How to get car insurance for the first time

If you want to get car insurance for the first time, it can be complicated to work out what kind of cover best suits you. Here’s our step-by-step guide to getting car insurance if you’ve never had it before.

1. Understand what’s covered by car insurance

Car insurance is a way of making sure you’re covered financially if you accidentally damage your car, or someone else’s. There are different types that are designed for different situations – see below for more info.

Generally speaking, car insurance is designed to help you if your car is stolen or damaged. If your policy covers it and your insurer accepts your claim, your insurance will cover the cost of repairing or replacing your vehicle, or repairing someone else’s vehicle or property that you damaged – minus the cost of your excess, which is the amount you pay towards it.

2. Decide what type of insurance you need

There are different types of car insurance that cover you under different circumstances. ‘Comprehensive’ cover is the type of insurance that covers you for most kinds of loss or damage, but also costs more. If you’re looking for a more affordable option, you can choose ‘fire, theft and third party’ insurance or ‘third party only,’ which covers damage to another person’s car or property, but not to your own.

Find out more about the different types of car insurance and how to choose one that suits you.

3. Gather information about your car and drivers

There are lots of things that will affect how much it costs to insure your first car, and your insurer will assess these to work out how much you’ll pay in car insurance. You may need to provide some information like:

• How old you are, and the age of any other named drivers too – insurance tends to be more expensive for younger drivers.
• Where you live, and where you park your car at night – for an insurer, it’s riskier to cover a car that’s parked on the street compared to one that’s secured in a garage.
• Your driving history - any infringements or convictions need to be disclosed.
• Who uses your car – is it just you, or will you be sharing it with friends or flatmates? It is generally cheaper to insure for only ‘named drivers,’ or specific people, but you’ll need to give some information about your nominated drivers like their date of birth, address and driver’s license details when you apply for a quote.
• What kind of car you’re insuring – your car’s make and model, how old it is, and its value will all affect your premiums.
• What type of insurance you choose – for example, comprehensive will be more expensive than third party only.

As an example, if you’re a 25-year-old insuring your 2009 Toyota Corolla for $5,000 sum insured and you park it in a locked garage every night, you could expect to pay between $50 to $200 a month for car insurance, depending on where you live, your driving history and sum insured value.

4. Apply for a car insurance quote

To get car insurance for the first time, you’ll probably get a quote from an insurer first. You’ll need to have some info ready to go for this, including where you live, what kind of car you have, any accessories or modifications your car has had, and who will be driving it. A Member Support Centre Adviser can then chat you through your options and the motor vehicle insurance solution that would best work for you.

Everyone’s situation is different, so the best way to find out how much car insurance will cost for you, as well as figure out the best type of insurance for your situation, is to get a free motor vehicle insurance quote from MAS.