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May 10, 2019

Auto Insurance for College Grads

The countless all-nighters and numerous study sessions have finally paid off—you’re a college graduate! It’s now time to start “adulting” and think about purchasing an auto insurance policy that best fits your needs as you enter the working world. 

Start off with a little research and learn terms. Insurance jargon can be tough to understand, but with a little research, you’ll be more knowledgeable when it comes time to insure your vehicle. 

Talk to Parents and Relatives—they know from experience! You may want to stick with the same company your family has, or you may want to switch. Either way, they can teach you the basics and help you kick start the process of insuring your vehicle.

Expand Your Horizons—when choosing your insurance plan, do your research. Shop around, get multiple quotes and go from there. You and others your age have different characteristics that determine rates including your age, geographic location, driving history, make and model of your vehicle and more. With so many aspects, you should explore your options, get different quotes, and get the right price for you. The best price might not be the best coverage--know what you’re paying for. Agents can help compare options.

Older vs. Newer Vehicles—did you know that older vehicles are sometimes over insured? Collision and comprehensive coverage  are the key factors. Collision covers damages to your car in a collision or accident, while comprehensive coverage covers perils like fire, theft, or flood. With older vehicles, it may be more cost effective to only have liability coverage. You’ll save money on your premium and any potential deductible.

Deductible? What’s that?—this is the amount you pay out of pocket before insurance picks up the bill. On average, raising your deductible will lower your payments. However, you have to keep in mind that although your payment will be cheaper, raising your deductible from $500 to $1,000 means you’ll have to pay more out of pocket in the event of an accident. Most college grads may not be able to afford the higher deductible costs, so it might be better to stay on the safe side. 

Safety Features—when shopping for a new car, or receiving the family hand-me-down, look for the safety features. Back-up cameras, cruise control, alarms and blind spot monitors are features that aren’t just safer, but some can save you money! Some safety features can help you qualify for discounts on an auto insurance plan.

Discounts. Discounts. Discounts.—everybody love them! Safety features, electronic payments, purchasing a new car, good student discounts, defensive driving, and accident prevention courses can help you save money on your car insurance. Talk to an agent to see which discounts you may qualify for.

In the end, you have to know what’s going to be best for you, your budget, and your vehicle. Doing your research and laying out all the options can make this process smoother. 
Still have questions? Choose one of our independent insurance agents near you today! They will sit down with you and figure out what coverages best fit your needs.