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Car Insurance Tips for College Students

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					Car Insurance Tips for College Students

College is a time of expanding your horizons and learning about how the world works.
Unfortunately, that also means that it is a time of increasing expenses and greater
responsibility. One of the responsibilities that you'll encounter that can take a significant
toll on your monthly expenses is car insurance. Many students consider the insurance
carrier that they used while living at home to be sufficient for their auto insurance
needs, but this may not be the case. Just because your parents' insurance company
worked well for them, perhaps even saved them money, doesn't mean that the same
will be true for you. In order to get the best bang for your buck, you'll have to take the
time to do some research, get quotes and make certain that you're getting what you're
paying for.

Evaluating Current Coverage

Look closely at the car insurance coverage you currently carry and determine if it suits
your needs. You might find that you're paying for insurance that's appropriate for a new
car when in fact you drive an old car that doesn't have as much value. Insurance
companies aren't going to tell you you're overpaying. They're just going to collect the
checks. If your vehicle is five years old or older, check its current value at an online
vehicle valuation service and compare that to your deductible. If the deductible is
$1,000 or more, and the car is only worth $3,000, then it doesn't make sense to carry
full coverage that could cost $100 per month or more. You'll end up paying more out of
pocket for the insurance than the car is worth. You may want to consider reducing your
coverage in such a case so that you'll save some money every month.

Comparing Car Insurance

Occasionally, it's a good idea to shop around for car insurance rates and see what sort
of discounts or lower prices other companies might be offering. If you don't shop your
rates around, you'll find in time that your insurance company will gradually raise your
rates, only to occasionally drop them small amounts during major life milestones, such
as turning 25 or getting married. The overall effect, though, is that your insurance rates
will gradually increase. Meanwhile, competing insurance companies are all trying to
earn your business, so their rates will be quoted lower. The Kanetix.ca quotes
comparison service is a popular free service.

Every two years, obtain quotes from at least three competing insurance companies,
being certain to get quotes that reflect the same level of coverage. Before you move
your insurance, though, take the quotes to your current insurance company and ask
them if they can beat them. If not, then your best recourse is to switch insurance
carriers.

Switching Insurance Carriers

The process of switching insurance carriers is simple during college. If you only carry
auto insurance, the process is just that much easier. All you have to do is sign up with
the new insurance company, and your new agent will request all the information from
your current insurance company. You'll have a few papers to sign and return in some
cases, and then you'll receive a check in the mail for any insurance from your current
insurance company for which you have already paid.

Bundling Insurance

Insurance bundling isn't just for parents and homeowners. College students can benefit
from bundling their insurance products, as well. In the insurance industry, this is known
as having multiple lines. It can include renter's insurance, life insurance and just about
any other insurance product you carry. Ask your insurance provider what discounts are
available for having multiple lines, and you might just be surprised how much you can
save.

Rather than avoiding insurance during college, make certain that your auto insurance is
exactly what you need at the time. This way, you'll not only save money, but you'll have
peace of mind to keep your attention on your studies, as well.

				
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