College is a time to expand your horizons, and learn about the world. However, college can also be a time of increased expenses and more responsibility. Car insurance is one of the many responsibilities you will face that can significantly impact your monthly expenses. Students often believe that the auto insurance they use at home is sufficient. However, this could not be true for all students. Your parents’ insurance company may have worked well and saved them money, but that doesn’t necessarily mean it will work for you. To get the most bang for your buck you need to research, compare prices and ensure that you are getting the right price.
Evaluation of Current Coverage
Take a look at your current car insurance and decide if it meets your needs. It might be that you are paying too much for insurance for a new vehicle when you actually have an older car. The insurance companies won’t tell you that you are overpaying. They just want to make the checks. Check the current value of your vehicle at an online valuation service. Compare that with your deductible. If your deductible is $1,000, but the car is worth $3,000, it may not make sense to have full coverage. This could mean that you pay $100 per month. The car’s value will be less than your out-of-pocket cost for insurance. In such cases, you might want to reduce your coverage so that you can save money each month.
Comparing Car Insurance
It’s sometimes a smart idea to shop around for car insurer rates. This will allow you to compare the prices and find out what discounts or other offers are available. You will find that your insurance company will slowly increase your rates over time, but drop them slightly when you reach major life milestones like getting married or turning 25. Your insurance rates will increase over time, however. Moreover, insurance companies competing for your business will offer lower rates. Popular free service is the Kanetix.ca Auto Insurance Quotes Comparison Service.
Get quotes from at least three insurance companies every two years. This will ensure that you get the same coverage and quotes. However, before you decide to move your insurance, make sure to compare the quotes with your current insurer and see if they can beat them. You can switch insurance companies if they cannot beat you.
Insurance Carriers
It is easy to switch insurance companies during college. The process of switching insurance companies is much simpler if you have auto insurance. Sign up with the new company and your agent will ask for information from your existing insurance company. There will be some papers that you need to sign and return, and you’ll then receive a check for any insurance you have purchased from your current insurer.
Bundling Insurance
Bundling insurance products isn’t only for homeowners and parents. Bundling your insurance products can also be beneficial for college students. This is called having multiple lines in the insurance industry. This can be renter’s insurance or life insurance. It can also include any other insurance products you have. Ask your insurance provider about discounts for multiple lines. You might be amazed at how much you can save.
Avoid skipping insurance while you are in college. Make sure your auto insurance covers all of your needs. You’ll save money and be able to focus on your studies.