Auto Insurance for Students

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.

source from http://www.autoinsurancetips.com/auto-insurance-students

The Truth About Cheap Auto Insurance

Cheap auto insurance: fact or fiction? For drivers paying hundreds of dollars a month in order to insure their vehicles against theft and damage and protect themselves from litigation in the event of an accident the prospect of cheap auto insurance may seem as much a myth as anything found in Grecian history. Yet there are hundreds of companies out there claiming to be able to provide exactly that. What is fact and what is fiction? Does cheap auto insurance really exist-and at what cost?

The sheer quantity of auto insurance companies around the country almost guarantees that you will be able to find cheap coverage. Unless you have been labeled a high risk driver there is going to be someone out there who is willing to take a chance on you. The question is, is it worth it? Is the money you’re going to save every month worth the possibility of receiving substandard coverage?

Advantages of Purchasing Online Cheap Auto Insurance

Let’s take a quick look at the pros of purchasing cheap auto insurance. First and foremost, you’re going to save money. That’s a no brainer! You’re going to pay less every month in premiums, sometimes as much as 40% less than you would through some of the "big name" insurance companies. Can you imagine what you’d do with an extra 40% of your income? Take a night out, save it up for a vacation, buy a new car! You can undoubtedly find something better to do with a little extra money that send it to a nameless, faceless auto insurance corporation on the chance that you might have an accident.

Another perk to cheap auto insurance is that your coverage usually isn’t cheap. In order to remain competitive most companies that offer cheap insurance also offer the same full coverage that you would have if you were paying twice as much a month in premiums! As long as you are meeting your state’s minimum coverage requirements you can comfortably choose to do business with any insurance company you want.

The Disadvantages of Cheap Auto Insurance

The downside to cheap auto insurance is that if you have an accident you are likely to find yourself paying considerably more in deductibles than you would otherwise. Insurance companies make their profit from the premiums they bring in, and if they’re paying all of their premiums out in repairs in a year they’re going to go under pretty quickly! Companies that offer cheap auto insurance premiums compensate for this by charging their customers more in deductibles for each individual accident, decreasing the amount that they are forced to pay and substantially increasing their profit margin.

The other caution point for drivers is that most companies offering cheap auto insurance to their clientele have a very strict set of criteria which must be met before they will be willing to pay a claim. That means that you may believe you are covered only to get a rude awakening the first (or second, or third) time you try to file a claim. It’s important before you sign on the dotted line to purchase cheap auto insurance that you take the time to read and familiarize yourself thoroughly with the fine print.

The bottom line is that cheap car insurance can be a blessing on the beleaguered pocketbook, but consumers should approach these companies with caution. Before you purchase cheap auto insurance, make sure you know what’s going to be covered-and what you have to do to make sure your claim is met.

Easy Ways to Slash Your Auto Insurance Costs

Does your auto insurance costs going higher than your expectation? If your answer is yes then simply follow 6 steps to slash your auto insurance costs.

In the global world of insurance field every one wants to have good deal at slash price, here’s 6 easy ways to get the best possible auto insurance deal.

1. Get multiple Auto insurance quotes: before going to purchase always make a practice to do comparison with the other options available in the market, use sources such as internet or call few brokers to compare quotes. Get different types of auto insurance quotes from insurance carriers, brokers and from agents, always look for secure and reputable insurance company who can pay good auto insurance claim.
   


2. Different type of car: The cost of insurance depending upon the car type you prefer. Generally the $100 sports model cost higher than your average model, so if you thinking to buy a new car check the insurance cost before you purchase it.
   


3. Car age and Value: The value of your car may be lower as the car model will become older and if you are using car since long time.
   A good rule of thumb multiplies insurance premium by 10, and compares that figure with your car value. So if you're quoted $1000 premium and your car is worth less than $10,000 you may want to think if comprehensive represents good value. If you drop collision and/or comprehensive coverage, you should get big savings.
   


4. Excess charges: To keep policy cost down most of the auto insurance companies keep excess charges, deductibles charges shows what you pay before your auto insurance policy kicks in, request quotes from different level of excess charges.
   


5. Low Mileage: More and more people work at home. No more commuting. Fewer business trips. Low mileage on your car. Maybe you do travel to work, but car pool? Either way, look for low mileage discounts.
   


6. Good Driving Record: A good driving record always reduces your auto insurance costs. Keep a clean drivers license. Don't speed, don't drive dangerously, and you'll save money (apart from other benefits!)