Let's Talk Auto Insurance

by D. Babbs

Last year, my godfather offered to give me his old car when his wife purchased a new jeep. I thought that idea was wonderful but then again, I thought about paying for car insurance. I knew I could not afford any other college expenses. Being that young adults are seen as more risky, I knew my rate would be sky high. So I began to look into affordable car insurance for people like me, broke, college students. The following list is some tips when looking into auto insurance:

Research, Research, Research – There are several insurance companies, so do your research. Understanding the prices and benefits of each company before you make a decision is crucial and can save you hundreds of dollars. Don’t be afraid to call each company and compare options.

Ask Around – Besides doing your own research, ask those you know with car insurance. They know first-hand the pros and cons of insurance companies. They can tell you what types of coverage to have and what to look out for when dealing with these companies.

Be A Good Student – Several insurance companies offer discounts to students, especially if full-time, who have at least a “B” average. With all the expenses that college incurs, who wouldn’t want to save money just by getting good grades.

Know Your Credit Score – One’s credit score will definitely have an impact on the policies that companies will offer. Companies use credit information to price policies. Make sure to pay bills on time, keep balances low, and check credit scores regularly.

Think About Higher Deductibles – Deductibles are what you pay before your insurance policy kicks in. Having a higher deductible can save money.

Use Mom And Dad – If possible, continue to use your parent’s insurance. Getting your own policy will put you in a higher risk pool and result in higher costs. (Risk requires compensation). Using your parents insurance and listing yourself as a secondary driver on a car will keep more money in your pockets.

Overall, choosing car insurance is a very long process, just like applying for college. Although I did not get my godfather’s car, I now have more knowledge when deciding what type insurance to purchase if I ever get a car.

http://www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm

http://www.youngmoney.com/wheels/auto_insurance/030127_03

http://campuslife.suite101.com/article.cfm/insurance_for_college_students