Reader question:
I’m not a new driver anymore, and now that I’m out of school I want to get my own insurance policy. What should I avoid while I’m looking for insurance?
Lily
Congratulations on striking out on your own, Lily.
Even if you are paying all of your own bills, driving your own car, and living away from your parents, those first few years between the end of high school and complete independence from the folks is a welcome transition period, but it does leave you with a few questions as to what to do once it’s time to make everything your own. Having insurance in your own name is an important part of being a financially stable adult, and considering that in most states it is required by law, it’s something that you should put some thought into before just jumping out.
- First, don’t just pick the first quote you get. Just because Whosit Insurance is right down the street from you, that doesn’t mean it’s the best place to get your insurance. Follow the link at the top and get a wide variety of quotes–when getting quotes online, you only have to put in your information wants and then you’re able to compare. Then, once you’ve done that, pick a couple of companies and talk to them individually to get a more exact quote.
- If your car is a piece of junk, don’t treat it like royalty. Anything worth less than $2000 does not need every possible type of insurance coverage available. Do you really want to be paying more to insure a car than you did to buy it in the first place? Might as well put that extra money into a savings account for the car you really want.
- If you want to stay with the company you were with under your parents’ policy, call your agent and get an annual review. Don’t let them offer quotes for you based on the information provided when you first got insurance with them–there might be several discounts that you’re eligible for now that you weren’t before.
- If you’re renting an apartment, or even buying a home, don’t go somewhere else for your renter’s or home insurance. Get it with the same company you get your car insurance at. Keep renter’s/home insurance in mind when you’re shopping for quotes.
- If you get in a small accident that doesn’t cause a lot of damage, think before filing a claim. The repair might cost less than your deductible, and if you do it yourself you want have to worry about paying more for collision coverage.
Enjoy your independence while the fun lasts!
Fashun Guadarrama.