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Just bought your first car? Congrats! Having a car in the US means you must purchase a mandatory insurance plan. Some teens opt to stay on their parents’ plan as an additional driver, which means lower payments and often additional benefits for having an extra vehicle in the fleet. However, if you’re ready for a policy of your own, you’ll have the freedom of choosing the type of plan and extra options you’d like.

Most states require liability insurance at minimum. In states like Texas, you are legally required to at least have a 30/60/25 plan, giving you the following coverage:

• $30,000 – bodily injury liability per person in a car accident
• $60,000 – maximum amount your policy will cover for the collision / car accident
• $25,000 – maximum amount of property damage that will be covered

States will vary on the amount, but you can expect to get bodily injury, vehicle, and property damage coverage up to a certain amount if you are at fault in an accident.

You will have the option to adjust your deductible as well. If you have a $500 deductible, for example, you will pay $500 out of pocket before insurance will cover the rest, whereas a $1000 deductible will net you a lower monthly payment, but set you back a bit further in the event of an accident. It’s up to you to decide which deductible is a better investment in the long run.

It’s also up to you to decide if you want to pay for extra coverage. These will save you in sticky situations, but comes down to what you can personally afford. Here are the main options explained:

• Collision Coverage helps cover the cost of repairing you car, if your car is repairable. If your car is not repairable, you will be paid the current value of your car in full.
• Comprehensive Coverage covers the cost of replacing or repairing your car if its stolen, vandalized, damaged by fire, weather or a collision. It also may pay for a rental car depending on the policy.
• Medical Payment Coverage helps pay for medical bill that may result from an accident.
• Personal Injury Protection (PIP) coverage is like medical payment coverage but it also covers lost income and the cost of hiring a caregiver for an injured individual.
• Uninsured Motorist Coverage covers you in the case that the other motorist is uninsured or does not have enough insurance.
• Towing and Labor Coverage covers situations where you car can’t be driven and must be towed as well as when you have a flat tire or need a jump-start. Some drivers choose an independent AAA membership rather than include this with insurance. Do a price comparison to figure out which works for you.

Start by getting quotes online, using your personal and vehicle information to get estimates. You can also call in to discuss your options with an insurance agent. Base your decision on price, coverage amounts, reviews, and discount options. Many carriers will redeem hundreds of dollars in discounts for completing online driving courses. Play it smart, drive safe, and those insurance companies will love having you around.