Insurance companies generally prefer to sell insurance to good drivers and may decide not to insure high-risk drivers. Statistics show one of every three young drivers will have an accident each year. So, insurers do not consider new drivers as "good" drivers. But this doesn't mean you cannot get insurance.

There are several aspects of Auto Insurance you should know before you buy a policy.

Tips

• Shop around.
  Many companies sell Auto Insurance. Compare prices. In some states, prices vary by up to 100 percent. Ask agents, brokers or insurance companies for price comparisons. Some state insurance departments publish guides showing what different companies charge in certain situations in various parts of the state.
• See if you can lower your insurance rates.
  Many companies offer discounts on the price of auto insurance to people who have passed an approved driver education course or who have a B-Grade average or better. Take a driver education course certification and a report card with you when you shop for insurance. Many companies also offer discounts if a car has anti-theft devices or air bags.
• Investigate the types and amounts of coverage you need.
  For example, if your car isn't worth much, you may not want to buy collision coverage.
• Choose an agent, broker or company representative you trust.
  Ask friends and relatives. Look online or check the phone book. When meeting with an agent or broker, ask questions. Make sure the agent, broker or company is right for you.
• Read your policy.
  As a contract, an insurance policy creates several obligations for both you and the insurance company. For example, the company must defend you in court if you are sued under the policy.  Therefore, its important to give your insurer complete, accurate and timely information about any accident or ticket. Before you sign anything, review the policy and any confusing language with your insurance representative.