Buying car insurance for the first time can feel overwhelming. You’re faced with confusing coverage options, unfamiliar terms, and rates that seem higher than what everyone else pays.
Jerry has helped 33,763 new car owners find the right coverage, paying between $146 to $347 per month to be financially protected while on the road.
If you’re buying car insurance for the first time, here’s the coverage you need, how much it costs and common mistakes to avoid.
Jerry pulls up to 20 quotes from top rated carriers.
The coverage first-time buyers need
State minimum liability is what’s legally required to be on the road. But these limits are low and often fall short in a serious accident. Many first time drivers find they need more protection to avoid paying out of pocket for injuries or property damage. Consider at least 100/300/100 in liability insurance to help cover the costs you may cause in an accident. This means you’ll get:
- $100,000 in bodily injury liability, per person.
- $300,000 in bodily injury liability, per accident.
- $100,000 in property damage liability.
Why it matters: Every state except New Hampshire requires state minimum liability insurance, but those limits are typically too low to cover costs after a serious accident. One accident with injuries can cost over $160,000, according to the National Safety Council.
Also consider full coverage, which adds comprehensive and collision coverage, to cover damage to your car, regardless of who was at fault.
Here are the main types of insurance coverage you can choose from, as well as a recommendation for when you might want to consider each of them.
| Coverage type | What it covers | Do you need it? |
|---|---|---|
| Liability | Others’ medical bills and property damage when you’re at fault. | Required by law, except in New Hampshire. |
| Collision | Your car repairs after hitting another vehicle or object. | Required if financing/leasing. Recommended for cars worth more than $5,000. |
| Comprehensive | Damage to your car from theft, vandalism, weather and accidents with animals. | Required if financing/leasing. Recommended for cars worth more than $5,000. |
| Uninsured/underinsured motorist | Your costs when hit by uninsured or underinsured drivers. | Required in some states. Strongly recommended everywhere. |
| Personal injury protection (PIP) | Medical bills, lost wages, childcare after an accident. | Required in no-fault states. |
| Medical payments (MedPay) | Medical expenses after an accident. | Optional in most states, but may be worthwhile if you don’t have health insurance. |
Key takeaway: State minimums may not cover a serious accident. Consider 100/300/100 liability, plus full coverage, to protect your finances and your own car.
Learn more: The Jerry guide to getting car insurance for a new car
Do you need full coverage?
Here’s what to consider if you’re unsure if full coverage is right for you.
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You financed or leased your car.
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Your car is worth more than you can afford to replace.
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You own an older car worth less than $3,000.
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You have enough savings to pay for a new car if it’s totaled.
Key takeaway: If you finance, lease, or can’t afford to replace your car out of pocket, full coverage is worth it. If your car is worth less than $5,000 or you have savings to cover a total loss, liability-only may be enough.
Learn more: How much car insurance you need
Get car insurance quotes through Jerry
When you shop for car insurance for the first time, compare quotes from multiple insurers to find coverage that fits your budget. Jerry pulls quotes from over 50 insurers in minutes, making it easy to see who has the best option for your needs.
Insurance companies have vastly different pricing for first-time car buyers, even for the same level of coverage. By comparing quotes you can potentially save hundreds of dollars annually. Jerry simplifies the shopping process and shows you up to 20 quotes from top insurers in just minutes.
How much car insurance costs for first-time buyers
Car insurance costs vary widely for first-time buyers because insurers look at many details about you and your car, and each company weighs those factors differently.
What you pay depends on factors like your:
🎂 Age: Drivers under 25 pay the most because they statistically have more accidents.
📍 Location: Urban areas with more traffic and crime have higher rates.
🚗 Car type: Expensive cars, sports cars and cars with high theft rates cost more to insure.
💳 Credit score: In most states, better credit means lower rates.
🛡️ Coverage level: More coverage means higher premiums.
Jerry recommends: Car insurance for first-time buyers can vary by hundreds of dollars for the same coverage, so it’s crucial to compare quotes. Get quotes from multiple insurers through the Jerry app, which shows rates side-by-side.
Avoid these common mistakes
⚠️ Buying only the minimum coverage
State minimums are often too low to fully protect you. If you cause a serious accident, you could be personally responsible for thousands beyond your policy limits.
🔍 Not comparing quotes
The first quote you get is rarely the best. Shopping around can save you on your premium. Insurance companies often price first-time buyers very differently.
👥 Forgetting to add all drivers
If someone else drives your car regularly (roommate, partner, family member), you need to add them to your policy. If they cause an accident and they’re not listed, your insurer may deny your claim.
📅 Letting your policy lapse
If your insurance lapses even for one day, insurers label you as a high-risk driver. Your rates will most likely go up significantly when you buy a new policy.
Why it matters: Avoiding common mistakes can save you thousands of dollars in out-of-pocket costs, denied claims and inflated premiums. A little extra effort upfront can protect both your finances and your driving record for years to come.
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faq
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🚗 Do I need car insurance before I drive?
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👨👩👧 Can I be added to my parents’ policy?
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🚨 What happens if I drive without insurance?
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⏱️ How long does it take to get car insurance?
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🔄 Can I cancel my policy anytime?
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🛒 Do I need to stay with the same insurer?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
