Hi, My Name's Liesel

Moving out and becoming an independent adult is a rite of passage for nearly everyone, but this exciting process isn't all fun and games. Part of independent living means coming to terms with monthly bills and, for many Americans, moving onto their own auto insurance policy. If you're about to take this big leap, you might be worried about the potentially high cost of keeping your car insured.

Fortunately, your first auto insurance policy doesn't need to break your monthly budget. These three tips will help you select a policy that protects you on the road without becoming a major headache whenever you glance at your bank account.

1. Understand Coverage Categories

A typical auto insurance policy includes several different types of coverage. Unless you live in a no-fault state, liability, collision, and comprehensive coverage are the three standard options. You'll typically need to meet state minimums for liability coverage, but collision and comprehensive are optional coverage "add-ons."

Remember that liability coverage protects other drivers (and protects you from lawsuits!), while collision and comprehensive protect your vehicle. Although you generally don't need to spring for collision coverage, doing so can help protect you if you drive a high-value vehicle. Your lender may also require collision coverage if you have a car loan.

2. Consider Multiple Providers

Shopping around doesn't always make sense, and there are plenty of products where you can expect to pay about the same amount no matter where you ultimately make your purchase. Unfortunately, auto insurance rates are not all the same. You may find that premiums can vary substantially between providers, even when comparing policies with similar coverage.

If you're buying your first policy, you're probably a relatively new driver, which means your rates may be a little higher than more experienced drivers. As a result, you may see even more drastic differences from one insurance company to the next. By spending a little time comparing providers, you may save a substantial amount of money on your monthly premiums.

3. Don't Buy More Car Than You Need

If you already own a car and don't plan on replacing it, you won't have much control over how your vehicle choice will affect your insurance premiums. On the other hand, many people take out their first car loan around the time they buy their first insurance policy. If you're considering purchasing a new car, your choice of vehicle can greatly impact your insurance premiums.

Buying an expensive or sporty car might seem fun, but it can put a bigger hole in your budget than expected. Even if your loan payments are affordable, your insurance premiums might increase substantially. Before making a big car purchase, get a few insurance quotes to avoid unwelcome surprises.

For more information, contact a company like Illinois Insurance Center Inc.