Today’s
student has a lot on his
mind. Next week’s final, the
big game, and the party
scene are just some of the
distractions facing our
youth. Auto insurance is not
a major concern for many
students. The reasons for
this can vary. Many young
students are still covered
on their parents’ policies,
as they can be covered on
these policies as long as
the parents allow them to
be. However, for all of the
hard-working students that
have to pay for their own
auto insurance, there are a
few key things to keep in
mind.
Collision
and
Comprehensive
Coverage
for
Students
If you have a new car or a newer used car, it is important to have full-coverage insurance for your vehicle. Full coverage means that you have collision and comprehensive coverage. Collision deductibles are the amount of money that you pay to the insurance company to fix your car in the event of an accident where you are at fault. These claims affect your future rates on insurance substantially. The comprehensive deductible is the amount of money you pay to the insurance company in the event that your vehicle was vandalized, involved in a hit and run, damaged in a hail storm, or even if you hit an animal in the road. These claims do not affect your future rates on insurance, as they are considered not to be the fault of the driver.
Minimum
Coverage
for
Students
States vary in the minimum required bodily injury coverage—anywhere from 50/100/25 to 10/20/20. These numbers translate to the following: x thousands of dollars per person, x thousands of dollars per accident, and x thousands of dollars for property damage to others. Keep in mind that states have mandated minimums. In general, this is not enough coverage to ensure that all parties will be taken care of in the event of an accident.
Work
with
an
Agent
Finally, when choosing your comprehensive and collision deductibles, ask your agent to compare different levels, and get feedback as to what they think you should do. Agents are professionals who do this kind of work for a living. They are trained and licensed, so they will help you to make the best decisions for your current situation. Also, when you upgrade your car, after you graduate, it is important to consider a different level of deductible. If you had an older car that was not worth much and carry liability only insurance for it, consider going with full coverage insurance for your new car.
