{"id":362596,"date":"2025-11-10T16:23:04","date_gmt":"2025-11-10T21:23:04","guid":{"rendered":"https:\/\/www.reviews.com\/?p=362596"},"modified":"2025-11-10T16:23:04","modified_gmt":"2025-11-10T21:23:04","slug":"guide-to-buying-car-insurance-for-the-first-time","status":"publish","type":"post","link":"https:\/\/www.reviews.com\/insurance\/car\/guide-to-buying-car-insurance-for-the-first-time\/","title":{"rendered":"The Gen-Z Guide to Buying Car Insurance for the First Time"},"content":{"rendered":"            <span class=\"b-toc-anchor\" id=\"report\" title=\"Reviews Report\"><\/span>\n    \n\n\n<h2 class=\"wp-block-heading\">Reviews Report<\/h2>\n\n\n\n<ul class=\"is-style-blog-list\"><li>First-time and young drivers face higher premiums because insurers price for higher expected loss frequency and severity; stacking new-customer discounts (early quote\/signing, paperless, pay-in-full, bundling) and enrolling in telematics can produce double-digit savings, and about one-quarter of U.S. auto customers now participate in telematics programs (<a href=\"https:\/\/www.jdpower.com\/business\/press-releases\/2024-us-auto-insurance-study\">J.D. Power<\/a>; <a href=\"https:\/\/www.progressive.com\/auto\/discounts\/\">Progressive<\/a>; <a href=\"https:\/\/www.allstate.com\">Allstate<\/a>; <a href=\"https:\/\/www.travelers.com\">Travelers<\/a>).<\/li><li>Where allowed by state law, teen males often pay more than teen females; differences are typically in the high single- to low double\u2011digit percent range for teens, while several states prohibit using gender in auto rating, including <a href=\"https:\/\/www.insurance.ca.gov\/0400-news\/0100-press-releases\/2019\/release012-19.cfm\">California<\/a> and <a href=\"https:\/\/www.mass.gov\/info-details\/auto-insurance-frequently-asked-questions\">Massachusetts<\/a>. Some sources previously cited fixed differences such as <a href=\"https:\/\/www.nationwide.com\/lc\/resources\/auto-insurance\/articles\/removing-children-from-car-insurance-policy\" rel=\"nofollow\" class=\"achor-toggles\">25% more<\/a>, but actual impacts vary by state rules and profile (<a href=\"https:\/\/www.thezebra.com\/auto-insurance\/coverage\/gender-and-car-insurance\/\">The Zebra<\/a>; <a href=\"https:\/\/www.valuepenguin.com\">ValuePenguin<\/a>).<\/li><li>State minimum requirements set the legal floor for liability coverage, typically expressed as BI per person\/BI per accident\/PD per accident (e.g., 25\/50\/25). Recent updates include <a href=\"https:\/\/www.insurance.ca.gov\/01-consumers\/105-type\/95-guides\/01-auto\/Minimum-Auto-Liability-Limits.cfm\">California 30\/60\/15<\/a> (effective 2025) and <a href=\"https:\/\/www.dmv.virginia.gov\/vehicles\/#insurance.html\">Virginia\u2019s compulsory 30\/60\/20<\/a>; see the <a href=\"https:\/\/www.iihs.org\">IIHS state list<\/a> for current minimums and PIP\/UM\/UIM requirements.<\/li><\/ul>\n\n\n\n<p>Buying your own auto policy comes with new choices and higher scrutiny of risk factors that directly affect price. Premiums reflect more than inflation: insurers set rates based on expected claim frequency and severity plus expenses, reinsurance, and a risk margin. Marketwide, the CPI for motor vehicle insurance rose about 19% year over year in late 2024 as carriers priced higher claim costs (<a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">BLS CPI<\/a>; see premium fundamentals from <a href=\"https:\/\/content.naic.org\">NAIC<\/a> and our <a href=\"https:\/\/www.reviews.com\/insurance\/car\/best\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"achor-toggles\">car insurance<\/a> guides).<\/p>\n\n\n\n<p>Picking coverages you understand and limits that match your risk is essential. Below we outline how to shop your first policy, what drives premiums, and where verified savings are available from telematics, low mileage, and bundling\u2014especially useful for first-time buyers.<\/p>\n\n\n            <span class=\"b-toc-anchor\" id=\"how-to-shop\" title=\"How to Shop for Car Insurance for the First Time\"><\/span>\n    \n\n\n<h2 class=\"wp-block-heading\">How to Shop for Car Insurance for the First Time<\/h2>\n\n\n\n<p>Break your first purchase into a few evidence-based steps and line up discounts early. These four moves can secure the right protection at a competitive price.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Research state laws about car insurance<\/h3>\n\n\n\n<p>Every state sets minimum liability limits, often written as 25\/50\/25 (BI per person\/BI per accident\/PD per accident). Many also require first\u2011party benefits like PIP and\/or UM\/UIM. Use the <a href=\"https:\/\/www.iihs.org\">IIHS state minimums index<\/a> to confirm your requirements, and note recent changes such as <a href=\"https:\/\/www.insurance.ca.gov\/01-consumers\/105-type\/95-guides\/01-auto\/Minimum-Auto-Liability-Limits.cfm\">California\u2019s increase to 30\/60\/15<\/a> (effective 2025), <a href=\"https:\/\/www.dmv.virginia.gov\/vehicles\/#insurance.html\">Virginia\u2019s compulsory insurance at 30\/60\/20<\/a>, and <a href=\"https:\/\/www.azleg.gov\">Arizona\u2019s 25\/50\/15<\/a>. Michigan remains unique with required $1,000,000 Property Protection Insurance and PIP medical choices (<a href=\"https:\/\/www.michigan.gov\">Michigan DIFS<\/a>).<\/p>\n\n\n\n<p>Insurance minimums in the 25\/50\/25 format translate to $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident. Consider higher limits if you have assets or income to protect.<\/p>\n\n\n\n<p>In no\u2011fault states, PIP is mandatory and covers your injuries regardless of fault; lawsuits for pain and suffering are restricted. The 12 no\u2011fault states are Florida, Hawaii, Kansas, Kentucky (choice), Massachusetts, Michigan, Minnesota, New Jersey (choice), New York, North Dakota, Pennsylvania (choice), and Utah (<a href=\"https:\/\/www.ncsl.org\/transportation\/no-fault-auto-insurance\">NCSL<\/a>; <a href=\"https:\/\/www.iii.org\/article\/what-is-no-fault-auto-insurance\">III<\/a>).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Get multiple quotes<\/h3>\n\n\n\n<p>Collect at least three to five <a href=\"https:\/\/www.reviews.com\/insurance\/car\/everything-you-should-know-about-car-insurance-quotes\/\" rel=\"nofollow\" class=\"achor-toggles\">quotes<\/a> on the same day with identical limits and deductibles. Quote early to capture \u201cearly quote\/early signing\u201d discounts and stack digital savings: <a href=\"https:\/\/www.progressive.com\/auto\/discounts\/\">Progressive<\/a> (Quote in Advance, Sign Online, Paperless), <a href=\"https:\/\/www.allstate.com\">Allstate<\/a> (Early Signing, EZ Pay Plan, Paperless), and <a href=\"https:\/\/www.travelers.com\">Travelers<\/a> (Early Quote) all advertise new\u2011business credits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Apply every discount you can<\/h3>\n\n\n\n<p>First\u2011time buyers can often achieve double\u2011digit percentage savings by stacking: telematics enrollment (instant participation discount with potential ongoing savings), multi\u2011policy bundling (auto + renters\/home), online\/paperless and auto\u2011pay, plus driver education\/student credits where eligible. See program details from <a href=\"https:\/\/www.progressive.com\/auto\/discounts\/\">Progressive (Snapshot)<\/a>, <a href=\"https:\/\/www.allstate.com\">Allstate (Drivewise)<\/a>, <a href=\"https:\/\/www.statefarm.com\/insurance\/auto\/discounts\">State Farm (Drive Safe &amp; Save, Steer Clear)<\/a>, <a href=\"https:\/\/www.geico.com\">GEICO<\/a>, and <a href=\"https:\/\/www.travelers.com\">Travelers (IntelliDrive)<\/a>. About one\u2011quarter of U.S. customers now participate in telematics (<a href=\"https:\/\/www.jdpower.com\/business\/press-releases\/2024-us-auto-insurance-study\">J.D. Power<\/a>). The <a href=\"https:\/\/www.iii.org\/article\/how-to-reduce-your-auto-insurance-costs\">Insurance Information Institute<\/a> also recommends bundling, higher deductibles you can afford, and verified low mileage where permitted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Add insurance to your vehicle immediately<\/h3>\n\n\n\n<p>Have your VIN, garaging ZIP, and driver\u2019s license ready. If you\u2019re leasing or financing, expect to carry comprehensive and collision and to list the lessor or lender on your policy; leases often require higher liability limits (commonly 100\/300\/50), cap deductibles, and may include or require GAP protection (<a href=\"https:\/\/www.progressive.com\">Progressive: leased car requirements<\/a>; <a href=\"https:\/\/www.iii.org\/article\/what-are-the-different-types-of-auto-insurance\">III: coverage basics<\/a>; <a href=\"https:\/\/www.consumerfinance.gov\">CFPB: GAP<\/a>).<\/p>\n\n\n\n<p>Bundling helps first\u2011timers who lack long tenure and claims\u2011free discounts. Pairing auto with renters or homeowners can lower both premiums, and some carriers provide a homeowner discount on auto even without bundling (<a href=\"https:\/\/www.statefarm.com\/insurance\/auto\/discounts\">State Farm<\/a>; <a href=\"https:\/\/www.travelers.com\">Travelers<\/a>; <a href=\"https:\/\/www.progressive.com\/auto\/discounts\/\">Progressive<\/a>). See our picks for <a href=\"https:\/\/www.reviews.com\/insurance\/car\/best-for-new-drivers\/\" rel=\"nofollow\" class=\"achor-toggles\">New drivers<\/a> to compare options.<\/p>\n\n\n            <span class=\"b-toc-anchor\" id=\"factors\" title=\"Factors That Affect Car Insurance Premiums\"><\/span>\n    \n\n\n<h2 class=\"wp-block-heading\">Factors That Affect Car Insurance Premiums<\/h2>\n\n\n\n<p>How insurers price: Premium \u2248 expected claim frequency \u00d7 severity + expenses + reinsurance cost + risk margin. Younger age, more annual miles, high\u2011risk driving, and costly\u2011to\u2011repair vehicles raise expected losses; discounts and safer vehicles can lower them. Broadly, U.S. motor vehicle insurance prices rose about 19% year over year in late 2024 as claim costs increased (<a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">BLS CPI<\/a>; fundamentals from <a href=\"https:\/\/content.naic.org\">NAIC<\/a>).<\/p>\n\n\n\n<ul><li>Driver profile<ul><li>Age, years licensed, annual mileage, garaging ZIP, and (where permitted) credit\u2011based insurance scores affect price (<a href=\"https:\/\/content.naic.org\">NAIC<\/a>).<\/li><li>Gender use varies by state. States prohibiting gender in private passenger auto include <a href=\"https:\/\/www.insurance.ca.gov\/0400-news\/0100-press-releases\/2019\/release012-19.cfm\">California<\/a> and <a href=\"https:\/\/www.mass.gov\/info-details\/auto-insurance-frequently-asked-questions\">Massachusetts<\/a> (Hawaii also prohibits it). Where allowed, teen males tend to pay high single\u2011 to low double\u2011digit percent more than teen females (<a href=\"https:\/\/www.thezebra.com\/auto-insurance\/coverage\/gender-and-car-insurance\/\">The Zebra<\/a>; <a href=\"https:\/\/www.valuepenguin.com\">ValuePenguin<\/a>).<\/li><li>Lower mileage can help; in some jurisdictions (e.g., California), annual miles are an explicit rating factor, and telematics can verify reduced exposure (<a href=\"https:\/\/www.insurance.ca.gov\/0250-insurers\/0800-rate-filings\/recent-change-auto-liability-insur.cfm\">California Insurance Code<\/a>; <a href=\"https:\/\/www.jdpower.com\/business\/press-releases\/2024-us-auto-insurance-study\">J.D. Power<\/a>).<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul><li>Vehicle<ul><li>Higher\u2011value cars and complex ADAS features can increase repair severity; conversely, proven crash\u2011avoidance tech reduces crash frequency. Front automatic emergency braking cuts police\u2011reported front\u2011to\u2011rear crashes by about 50% (<a href=\"https:\/\/www.iihs.org\/news\/detail\/front-crash-prevention-slashes-police-reported-rear-end-crashes\">IIHS<\/a>).<\/li><li>Theft risk affects comprehensive coverage. U.S. vehicle thefts surpassed 1 million in 2023, elevating comprehensive claim frequency and cost in many markets (<a href=\"https:\/\/www.nicb.org\">NICB<\/a>).<\/li><li>Usage matters. Business\/work use often carries higher exposure than pleasure use.<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul><li>Driving history<ul><li>Prior tickets, at\u2011fault accidents, and DUI raise rates. Premiums commonly increase after an at\u2011fault crash or when you file a claim\u2014magnitude varies by state and carrier (<a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.reviews.com\/insurance\/car\/premiums-increase-44-percent-after-accident-should-you-file-claim\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"achor-toggles\">more on accidents and premiums<\/a>; see also reporting behavior insights <a href=\"https:\/\/www.reviews.com\" rel=\"nofollow\" class=\"achor-toggles\">here<\/a>).<\/li><li>Telematics programs can apply discounts or surcharges based on real\u2011world driving (hard braking, speeding, phone use) where allowed (<a href=\"https:\/\/content.naic.org\">NAIC<\/a>).<\/li><\/ul><\/li><\/ul>\n\n\n            <span class=\"b-toc-anchor\" id=\"need-to-know\" title=\"Auto Insurance Terms You Need to Know\"><\/span>\n    \n\n\n<h2 class=\"wp-block-heading\">Auto Insurance Terms You Need to Know<\/h2>\n\n\n\n<p>Key definitions and why they matter for first\u2011time buyers, with links to up\u2011to\u2011date requirements and research.<\/p>\n\n\n<div id=\"block_60d5ff1dcf334\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Comprehensive coverage<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>Comprehensive coverage pays for non\u2011collision events like theft, vandalism, fire, hail, and animal strikes. Theft risk has been elevated\u2014U.S. vehicle thefts exceeded 1 million in 2023, which can influence comprehensive rates in affected areas (<a href=\"https:\/\/www.nicb.org\/news\/news-releases\/vehicle-thefts-surpass-1-million-2023\">NICB<\/a>). It is separate from collision coverage and from liability for injuries or damage you cause (<a href=\"https:\/\/www.reviews.com\/insurance\/car\/premiums-increase-44-percent-after-accident-should-you-file-claim\/\">learn more about claims and premiums<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d5ff86cf335\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Collision <\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>Collision coverage pays to repair or replace your vehicle after a crash with another vehicle or object (e.g., guardrail, tree), regardless of fault, minus your deductible. Lenders and lessors typically require collision on financed or leased vehicles (<a href=\"https:\/\/www.iii.org\/article\/what-are-the-different-types-of-auto-insurance\">III<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d5ffa6cf336\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Underinsured\/uninsured motorist coverage<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>UM\/UIM helps when the at\u2011fault driver has no insurance or not enough to cover your losses. Many states require UM and\/or UIM at specified limits (e.g., CT, IL, KS, ME, MD, MA [UM], MN, MO [UM], NE, NC, ND, NJ, NY [UM], OR, RI, SC [UM], SD, VT, VA, WI, WV). Check your state\u2019s rules via <a href=\"https:\/\/www.iihs.org\">IIHS<\/a>.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d5ffcdcf337\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Bodily injury coverage<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>Bodily injury liability (BI) pays for injuries you cause to others (medical bills, lost wages, and related costs) up to your limit. It does not pay your own medical bills\u2014those are covered by MedPay or PIP where applicable (<a href=\"https:\/\/www.iii.org\/article\/what-are-the-different-types-of-auto-insurance\">III<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d60043cf338\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Property damage\/liability coverage<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>Property damage liability (PD) pays for damage you cause to other people\u2019s property (vehicles, buildings, fences) up to your limit. It does not repair your own vehicle\u2014that\u2019s collision or comprehensive if you carry them (<a href=\"https:\/\/www.iii.org\/article\/what-are-the-different-types-of-auto-insurance\">III<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d60060cf339\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Premium<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>Your premium is what you pay for coverage (monthly or per term). Insurers set it from expected claim frequency and severity plus expenses, reinsurance, and target profit. Marketwide, premiums have been rising as claim costs increased (motor vehicle insurance CPI up ~19% YoY in late 2024). Learn what affects price from <a href=\"https:\/\/content.naic.org\">NAIC<\/a> and the latest <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">BLS CPI<\/a>.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d60080cf33a\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Deductible<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>The deductible is what you pay out of pocket on a covered claim before insurance pays the rest. Higher deductibles usually reduce premiums, but leases often cap deductibles (commonly $500\u2013$1,000), so check your contract (<a href=\"https:\/\/www.progressive.com\">Progressive: leased car requirements<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d600becf33b\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Gap coverage<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>GAP (guaranteed asset protection) helps when a financed or leased car is a total loss and its actual cash value is less than what you owe. Many leases include a gap waiver; otherwise you can buy GAP from an insurer or dealer\u2014compare price and terms (<a href=\"https:\/\/www.consumerfinance.gov\">CFPB<\/a>; <a href=\"https:\/\/www.iii.org\/article\/what-is-gap-insurance\">III<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n\n\n<div id=\"block_60d600fdcf33d\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">Car insurance claim<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>A claim is a request for payment after a covered event (crash, theft, hail, etc.). You can file via app, online, or phone. Insurers investigate, estimate covered losses, and pay up to policy limits minus deductibles. Claims history can affect future premiums, and risk\u2011based programs (telematics) may influence pricing at renewal (<a href=\"https:\/\/content.naic.org\">NAIC<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n            <span class=\"b-toc-anchor\" id=\"how-much-insurance\" title=\"How Much Car Insurance Coverage Do I Need? \"><\/span>\n    \n\n\n<h2 class=\"wp-block-heading\">How Much Car Insurance Coverage Do I Need?&nbsp;<\/h2>\n\n\n\n<p>Use these checkpoints to tailor coverage to your vehicle, contract, and state rules\u2014and to find savings without sacrificing essential protection.<\/p>\n\n\n\n<ul><li><strong>Leasing vs. financing<\/strong>: Leases typically require higher liability limits (often 100\/300\/50), comprehensive and collision for the full term, deductible caps, and listing the lessor as additional insured and loss payee; a gap waiver is commonly included or required. Financed cars usually must carry comprehensive and collision with the lender as loss payee, but lenders generally don\u2019t require liability above state minimums (higher limits are prudent). Verify requirements before you sign (<a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.geico.com\/living\/saving\/money\/car-leasing-vs-buying\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" class=\"achor-toggles\">Geico<\/a>; <a href=\"https:\/\/www.progressive.com\">Progressive<\/a>; <a href=\"https:\/\/www.iii.org\/article\/what-are-the-different-types-of-auto-insurance\">III<\/a>; <a href=\"https:\/\/www.consumerfinance.gov\">CFPB on GAP<\/a>).<\/li><li><strong>New vs. used<\/strong>: Newer cars with advanced driver\u2011assistance systems can cost more to repair, but proven features like front automatic emergency braking reduce crash frequency by about 50%\u2014a safety benefit that supports carrying physical damage coverage on higher\u2011value vehicles (<a href=\"https:\/\/www.iihs.org\/news\/detail\/front-crash-prevention-slashes-police-reported-rear-end-crashes\">IIHS<\/a>).<\/li><li><strong>State minimum<\/strong>: Always meet your state minimums and consider higher limits for better protection. Recent changes include <a href=\"https:\/\/www.insurance.ca.gov\/01-consumers\/105-type\/95-guides\/01-auto\/Minimum-Auto-Liability-Limits.cfm\">California 30\/60\/15<\/a> and <a href=\"https:\/\/www.dmv.virginia.gov\/vehicles\/#insurance.html\">Virginia\u2019s compulsory insurance<\/a>. For a current map of minimums and PIP\/UM\/UIM rules, see <a href=\"https:\/\/www.iihs.org\">IIHS<\/a>.<\/li><li><strong>Dropping comprehensive coverage:<\/strong> If your car\u2019s value is low relative to its premium and deductible, you may opt to carry liability only. Leases and loans typically require comp\/collision until payoff (<a href=\"https:\/\/www.iii.org\/article\/what-are-the-different-types-of-auto-insurance\">III<\/a>).<\/li><li><strong>Medical payments limits:<\/strong> MedPay and PIP cover you and your passengers\u2019 medical costs after a crash; PIP is mandatory in no\u2011fault states while MedPay is generally optional elsewhere (<a href=\"https:\/\/www.iii.org\/article\/what-is-no-fault-auto-insurance\">III<\/a>).<\/li><li><strong>At-fault and no-fault states<\/strong>: Twelve no\u2011fault states require PIP and restrict some lawsuits: Florida, Hawaii, Kansas, Kentucky (choice), Massachusetts, Michigan, Minnesota, New Jersey (choice), New York, North Dakota, Pennsylvania (choice), and Utah. Learn how thresholds and benefits work via <a href=\"https:\/\/www.ncsl.org\/transportation\/no-fault-auto-insurance\">NCSL<\/a>.<\/li><\/ul>\n\n\n            <span class=\"b-toc-anchor\" id=\"working-from-home\" title=\"Car insurance while working from home\"><\/span>\n    \n\n\n<h2 class=\"wp-block-heading\">How Car Insurance Works During WFH<\/h2>\n\n\n\n<p>Insurers don\u2019t offer a \u201cWFH discount,\u201d but fewer commute miles can qualify you for low\u2011mileage tiers, \u201cpleasure use\u201d classifications, or usage\u2011based\/telematics credits. California explicitly requires mileage as a rating factor (Insurance Code Section 1861.02(a); Title 10 CCR 2632.5(c)(2)), which means reported and verified miles can directly affect price (<a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.insurance.ca.gov\/0250-insurers\/0800-rate-filings\/recent-change-auto-liability-insur.cfm\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" class=\"achor-toggles\">California Insurance Code<\/a>).<\/p>\n\n\n\n<p>Remote\/hybrid work remains elevated\u2014roughly 28\u201330% of paid U.S. workdays were from home in 2024\u2014so telematics and pay\u2011per\u2011mile products are natural fits for many WFH drivers (<a href=\"https:\/\/wfhresearch.com\">WFH Research<\/a>; <a href=\"https:\/\/www.jdpower.com\/business\/press-releases\/2024-us-auto-insurance-study\">J.D. Power<\/a>). Get odometer photos ready and be accurate; underreporting mileage can create claim issues.<\/p>\n\n\n\n<p>Even as some individuals drive less, national vehicle miles traveled rebounded to near or above pre\u2011pandemic levels by 2024, and claim severity (repair, medical, litigation) remains elevated\u2014key reasons premiums rose broadly despite persistent WFH (<a href=\"https:\/\/www.fhwa.dot.gov\/policyinformation\/travel_monitoring\/tvt.cfm\">FHWA VMT<\/a>; <a href=\"https:\/\/risk.lexisnexis.com\">LexisNexis Trends<\/a>; <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">BLS CPI<\/a>).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Are You Ready to Buy Your Own Car Insurance?<\/h2>\n\n\n\n<div><div class='op-interactive' id='60f18d8c8d0628227d7a3bed' data-title='Are You Ready to Buy Your Own Car Insurance?' data-url='https:\/\/redventures989.outgrow.us\/60f18d8c8d0628227d7a3bed?vHeight=1' data-width='100%'><\/div><script src='\/\/dyv6f9ner1ir9.cloudfront.net\/assets\/js\/nloader.js'><\/script><script>initIframe('60f18d8c8d0628227d7a3bed');<\/script><\/div>\n\n\n            <span class=\"b-toc-anchor\" id=\"faq\" title=\"First-Time Car Insurance FAQ \"><\/span>\n    \n\n\n<h2 class=\"wp-block-heading\">First-Time Car Insurance FAQ&nbsp;<\/h2>\n\n\n\n\n<div id=\"block_60d5febccf332\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">What insurance should I get for my first car?<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>Match coverage to your vehicle and contract. If you lease, expect higher liability limits (often 100\/300\/50), comprehensive and collision with deductible caps, and the lessor listed as additional insured and loss payee; a gap waiver may be included. If you finance, comprehensive and collision are typically required with the lender as loss payee, while liability above state minimums is usually optional but recommended (<a href=\"https:\/\/www.progressive.com\">Progressive<\/a>; <a href=\"https:\/\/www.iii.org\/article\/what-are-the-different-types-of-auto-insurance\">III<\/a>; <a href=\"https:\/\/www.consumerfinance.gov\">CFPB on GAP<\/a>). In no\u2011fault states, you must carry PIP; check state\u2011specific rules at <a href=\"https:\/\/www.iihs.org\">IIHS<\/a>. Bundle auto with renters or homeowners and enroll in telematics to capture early savings (<a href=\"https:\/\/www.progressive.com\/auto\/discounts\/\">Progressive<\/a>; <a href=\"https:\/\/www.allstate.com\">Allstate<\/a>; <a href=\"https:\/\/www.statefarm.com\/insurance\/auto\/discounts\">State Farm<\/a>; <a href=\"https:\/\/www.travelers.com\">Travelers<\/a>).<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div id=\"block_60d5fed8cf333\" class=\"block b-accordion\" data-js=\"b-accordion\">\n    <div class=\"b-accordion__container\">\n        <div class=\"b-accordion__header\">\n            <a href=\"#\" class=\"b-accordion__title\" data-tag='cta' data-tag-element-type='LINK' data-tag-location='ACCORDION' data-tag-outcome='INTERNALLINK' ><h3 class=\"b-accordion__title--h3\">What is the best way to shop for car insurance?<\/h3><\/a>\n            <span class=\"b-accordion__toggle chevron-arrow-down\"><\/span>\n        <\/div>\n        <div class=\"b-accordion__content\" style=\"display: none;\">\n            <p>Start online to compare fast quotes, then confirm discounts by phone or chat. Quote 7\u201310 days in advance to unlock early signing credits, select paperless and auto\u2011pay, and enroll in telematics at purchase for an immediate participation discount (your driving can raise or lower savings over time). Always get 3\u20135 comparable quotes and verify state\u2011specific minimums and PIP\/UM\/UIM rules via <a href=\"https:\/\/www.iihs.org\">IIHS<\/a>. Program examples: <a href=\"https:\/\/www.progressive.com\/auto\/discounts\/\">Progressive<\/a>, <a href=\"https:\/\/www.allstate.com\">Allstate<\/a>, <a href=\"https:\/\/www.travelers.com\">Travelers<\/a>; see market adoption in <a href=\"https:\/\/www.jdpower.com\/business\/press-releases\/2024-us-auto-insurance-study\">J.D. Power<\/a> and consumer tips from the <a href=\"https:\/\/www.iii.org\/article\/how-to-reduce-your-auto-insurance-costs\">Insurance Information Institute<\/a>.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Reviews Report First-time and young drivers face higher premiums because insurers price for higher expected loss frequency and severity; stacking new-customer discounts (early quote\/signing, paperless, pay-in-full, bundling) and enrolling in telematics can produce double-digit savings, and about one-quarter of U.S. auto customers now participate in telematics programs (J.D. Power; Progressive; Allstate; Travelers). Where allowed by [&hellip;]<\/p>\n","protected":false},"author":345,"featured_media":362893,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1266],"tags":[22176,21449],"post_author":[16970],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Gen Z Guide to Buying Car Insurance for the First Time | Reviews.com<\/title>\n<meta name=\"description\" content=\"Buying car insurance on your own for the first time can be full of complicated jargon. 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