New Car

Students and Auto Insurance

Today’s student has a lot on his mind. Car finance is not a major concern for many young students. The reasons for this can vary. Many 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. And for all of the hard-working students that have to pay for their own car insurance, there are a few key aspects to keep in mind.

Comprehensive and Collision Coverage for Students
If you have a new car, it is important to have full-coverage insurance for your vehicle. Full coverage means that you have comprehensive and collision coverage. Collision deductibles are the amount of money that you pay to the insurance company. The money are 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, damaged in a hail storm, involved in a hit and run, or even if you hit an animal on 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
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
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.

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