New drivers & first-time buyers · 12 min · 6 steps
How to choose your first auto policy
A complete path from state minimums to liability, physical damage, UM/UIM, and apples-to-apples quoting.
- 1
Confirm legal minimums in your state
Look up your state DMV/DOI minimum liability requirements. That is the floor—not a recommendation for what you personally need.
Tip: Screenshot the official minimums page so you can verify quotes meet the law.
- 2
Map assets and income to liability limits
List savings, home equity potential, and income. Serious injury claims can exceed state minimums quickly.
Tip: Ask an agent for two sample claim stories at minimum vs higher limits.
- 3
Check loan/lease physical-damage rules
Financed/leased cars often require comprehensive and collision with maximum deductible caps.
- 4
Decide whether to self-insure physical damage
If the car is paid off and low value, compare premium for comp/collision to the car’s actual cash value.
- 5
Review UM/UIM and medical/PIP options
UM/UIM helps when the at-fault driver is uninsured or underinsured. PIP/MedPay rules vary by state.
- 6
Compare identical coverage across quotes
Match limits and deductibles before comparing price. Cheap with weaker coverages is a different product.
Tip: Use a spreadsheet: carrier | BI | PD | UM | comp ded | coll ded | premium.
Checklist
- State minimums documented
- Target BI/PD limits written down
- Lender requirements checked
- UM/UIM decision noted
- At least 3 matched quotes
Red flags
- Agent won’t show declarations sample limits
- Quote omits UM/UIM without discussion
- Price-only comparison with mismatched deductibles