First-Time Car Owners’ Insurance Guide: What You Need to Know Before You Hit the Road

October 17, 2025

Buying your first car is exciting, but understanding the insurance that comes with it can feel overwhelming. From coverage options to deductibles and discounts, there’s a lot to consider. Whether you just got your license or bought your first car, this guide will help you navigate the essentials of auto insurance with confidence.

1. Start with the basics

Auto insurance protects you financially if your car is damaged, stolen, or involved in an accident. At minimum, most states require liability coverage, which pays for injuries or property damage you cause to others.

2. Know the key coverage types

Liability: Covers damages and injuries to others if you’re at fault. Example: you rear-end another car at a red light, and the repair costs a total of $3,000. Liability coverage would pay for the other driver’s damages, but it wouldn’t cover your own car.
Collision: Pays to repair or replace your car after a crash. Example: You hit a guardrail on an icy road—collision coverage pays for your car’s repairs.
Comprehensive: Covers non-collision events like theft, vandalism, or hail damage. Example: A tree branch falls on your car during a storm—comprehensive coverage steps in.
Uninsured/Underinsured Motorist: Protects you if another driver doesn’t have enough coverage. Example: You’re hit by a driver who carries only state-minimum insurance. This coverage helps pay your medical bills and repairs.
Medical Payments or PIP: Covers medical expenses for you and your passengers after an accident. Example: You and a friend are injured when another driver runs a stop sign. Medical Payments coverage can help cover ambulance costs and ER visits even before fault is determined.

3. Choose a deductible you can afford

Your deductible is the amount you pay before insurance kicks in. A higher deductible usually means lower premiums but make sure it’s realistic. Example: If your deductible is $1,000 and your claim totals $1,200, you’ll only receive $200 from your insurer.

4. Ask about discounts

First-time policyholders can save with discounts for safe driving, good grades, or bundling with renters or home insurance. Example: Many insurers offer a “good student” discount that can reduce rates by 10–15%.

5. Review and update regularly

As your car ages or your lifestyle changes, review your policy to make sure you’re not paying for coverage you no longer need or missing something you do need.

Insurance doesn’t have to be complicated. Our team at Stanton Insurance Group can help you compare options, find the right coverage, and make sure you’re fully protected before you hit the road. Contact us today to get started.