Car insurance rates going from named driver to policy holder.

Reader question:

Since I got my license, I’ve been on my parent’s car insurance policy because getting my own was too much. Now that I’ve graduated from high school and am out of the state, I’m getting my own. How can I keep the rates from blowing up?

Molly

There’s a lot of ways, Molly.

First of all, if you’re going to school out of state you don’t even necessarily have to get your own policy. Your parents can keep you on theirs and even get a discount for having a student resident at a college out of state. However, if you’re not in school, or if you just want to establish your independence, there are several other ways to make sure your rates stay low.

• Get an older car. You’re young and you want to be flashy, but the facts are that not only is an older car more affordable period, it comes with more insurance.
• Don’t add stuff to your car. Leave out the rims, pipes, huge speakers, and hydraulics. They’ll just make your premium go way up.
• Calculate to make sure that your car’s actual worth isn’t less than your annual premium including collision coverage. If your car isn’t worth that much, you’ll want to get the minimal amount of coverage.
• Get a higher deductible. This can lower your rates 15-30%
• Take a class. Most companies will give you a 10% discount for taking a defensive-driving class.
• Keep your credit good. Bad credit affects your car insurance rates just like it affects your ability to get as many credit cards as you can fit in your wallet.
• Shop around. All insurance companies are not the same. Click the link on the top of the page to get quotes from several.
• Group discounts. Some clubs and organizations offer discounts on car insurance for qualified members.

Cheers,

Fashun Guadarrama.

Car insurance rates going from named driver to policy holder.