How much do you know about auto insurance? Do you know which types of policies best suit your needs as a young driver? Do you know how to keep your rates low if you’re driving an older car? Find out all this and more by reading this informative article on the best auto insurance for young drivers and why it’s an important part of having a good credit score, too!
Why you need Auto insurance
If you’re like most drivers, your family is probably relying on your ability to get them to and from work every day. That responsibility shouldn’t have to come with uncertainty. If an accident occurs that causes harm or damage, you want your family to be protected.
This is where auto insurance comes in; it’s a contract between you and an insurance company that promises payment for any resulting injuries or damages—regardless of who was at fault.
Most states require proof of financial responsibility before they issue driver’s licenses, so if you don’t have coverage already, chances are you need it.
Best brands to consider Auto Insurance
If you’re looking for cheap auto insurance, look at GEICO, Progressive and Esurance—they were all rated with high overall satisfaction.
State Farm, Allstate and Liberty Mutual are also great options; however, each of these carriers’ customers reports that they don’t always receive a good deal on their premiums when shopping around. If you do decide to go with one of these carriers and end up paying more than you have to, request a rate adjustment online.
Do you really need full coverage?
A full coverage policy costs around $800 per year for an individual and $1,200 for a family. That’s quite a bit of money that could be put to better use elsewhere.
In most cases, it is not necessary to get comprehensive car insurance coverage. Look at how much your specific circumstances suggest you need to spend on auto insurance and don’t let car insurance salespeople talk you into spending more than that.
How much do I need to spend on Auto Insurance?
All states have laws requiring drivers to carry some form of auto insurance, but that doesn’t mean you’re protected in an accident. That’s why it’s so important to ensure that you’re actually buying enough coverage when you purchase a policy. The best way to avoid overpaying is by shopping around and comparing quotes before taking out a policy. If you’re looking for great coverage at a fair price, check out GEICO or Nationwide.
What discounts can I get?
So many car insurance companies offer discounts for students that it can be hard to figure out which are legit and which are just marketing gimmicks. Don’t worry we have a list of discounts available to young drivers, so you can figure out what you really qualify for. Some of these may be obvious, but others might surprise you!
Does my age matter?
While it may seem unfair, one of many reasons car insurance is more expensive for young drivers is due to their propensity to get into accidents.
Older drivers have fewer accidents on average, so statistically speaking you’re going to be paying a higher premium even if you are a stellar driver. Of course, being aware of your own driving habits and not putting yourself in situations where an accident could happen is key.
Is paying more worth it?
Most companies offer three main types of coverage: bodily injury liability, property damage liability and personal injury protection. While most states require you to have at least some form of PIP, you may want to consider getting more.
After all, if you hit a pedestrian and she ends up being paralyzed for life, she will be looking for ways to get financial compensation for her losses—and that could include suing you.
Am I covered if I drive someone else’s car?
When you take someone else’s car out on a drive, your normal coverage may not extend to that vehicle. If you have a loaner or borrowed car while yours is being repaired or serviced, talk to your insurance company to see if they offer coverage in these situations.
Is price the only thing I should consider?
When looking for insurance coverage, it’s easy to just go with the cheapest policy you can find. But when buying auto insurance for young drivers, you should remember that price isn’t always everything. Here are some other factors you should consider before purchasing an insurance policy.
Which company is best?
When you’re looking for a car insurance company to protect your vehicle and its passengers, your choices can seem endless. But with so many options out there, how do you know which one is best? What about the price? or customer service? or coverage level? There are many factors that go into deciding what kind of auto insurance is right for you and your family.