Congratulations to all 2016 Graduates, particularly those from the beautiful state of Georgia. If you’re a part of this year’s graduating class, your transition will include a good deal of change.
With this freedom often comes the end of the financial support you get from your parents. This means shouldering your own financial responsibilities like rent, phone bills, and car insurance policies.
Now that you’re in the real world, here’s how to get affordable auto insurance for new graduates.
Get few quotes
Auto insurance estimates can be tough to figure out if you’ve never looked into it before.
Every driver has their own driving history that affects the price.
Some key factors are:
- Age – if you’re older than 25, the better.
- Location – Georgia has one of the least expensive states for car insurance.
- Driving record – if you have speeding tickets on your record, you’re going to pay for it.
- Vehicle make/model – the more expensive the car, the more expensive the insurance.
- Credit history – pay your bills on time!
Rates also vary between carrier, so make sure to compare quotes.
Think about what you need
Find out what your state requires since most have a minimum liability rule.
Look for what Georgia car insurance requirements entail. You can add extra insurance policy – like uninsured motorist coverage, if you like.
Consider your coverage choices if you have an old car
Drivers with older cars may just be over-insuring their vehicle. For example, you may not need collision coverage because your car may not be worth repairing.
Some companies will cover the vehicle repairs after the deductible. Some will just pay you for the car’s value.
If your car is old or a hand-me-down, it’s usually worthwhile to pass on this coverage.
Figure out your deductible
An insurance deductible is what you pay for repairs before your plan kicks in. A bigger deductible gives you an affordable car insurance. But make sure to get what is best for you.
Bringing up your deductible will give you a more affordable auto insurance. It also means that you’ll pay more upfront if an accident occurs.
That one-time payment may be hard for young people starting out.
Affordable Auto Insurance for the Graduates’ Parents
Congratulations to you, too! Once your graduate is on their way to get their own car insurance plan, you will be eligible for several auto insurance rewards.
Here are some benefits you can expect when you drop your graduate from your insurance plan:
1) Count on an insurance rate decrease.
This is when you finally see lower insurance costs after the jump on your child’s 16th birthday.
By dropping a driver from your policy, the rate should decrease significantly. This is because drivers younger than 25 years old are a lot more expensive to cover.
2) Think about listing your newly-graduated child as an occasional driver.
Most providers permit other drivers to be under your coverage, if it’s in rare instances. This is called permissible driver coverage.
It’s best to call your advisor to determine what’s included in your plan to see if this option is still possible.
Having your own car insurance policy is a big responsibility, yet one that is worthwhile. Plan yours now.
Signature Insurance Group will be happy to assist you with your needs.
Shawn is the CFO and Co-Founder of Signature Insurance Group. In addition to his being raised in a family whose involvement in the insurance industry stretches back six generations, he has personally been in the business since 1999.
Shawn enjoys spending time with his wife, Holly, and three sons, Braxton, Hudson, and Maddox.
Shawn can be reached at Shawn@SIGWinder.com.