5 Car Insurance Terms
You Need to Know
Car insurance jargon is like a foreign language, often to the point where shopping for a new provider can feel similar to a high school Spanish class. And getting into a car accident is like being dropped in a foreign country.
Unfortunately, you can’t fake your way out of
coverage like you could a Spanish vocabulary test. You actually need to study
to understand the benefits of your car insurance and earn a passing mark.
Brush up on
your car insurance terminology starting with these five important terms.
Doing so can save you loads of money in the
long run.
1. Collision
Although collision
coverage is optional, it’s wise to buy it. If you’re driving
home on a stormy night and you hydroplane and crash into a tree, collision
covers everything but the deductible –
the amount of money you’re comfortable paying out of pocket in the event of an
accident. Collision covers a number of scenarios including car
accidents. It’s better to be safe than sorry!
2. Consumer
price index
Every month, the U.S. Bureau of Labor
Statistics in the Department of Labor publishes a list of consumer prices that
can serve as a
guide for people shopping for car insurance. An easy way
to get the best deal is to plug your car information into compare.com.
The website compares rates of a lot of companies so you can have all of your
options laid out for you side-by-side.
3.
Comprehensive coverage
Comprehensive
coverage is a type of insurance protects you from damage that
isn’t related to a car accident. For example, if someone breaks
your windshield or your car catches fire, comprehensive comes
in handy. It can also cover natural disasters, civil disturbances, falling
objects and vandalism, depending on your insurance carrier.
“Gap insurance picks up where your lease car’s insurance
leaves off.”
4. Premium
By Wise Geek’s accounts, the premium is the
amount you’ll pay for insurance. It’s contingent on a few factors
including health, age and location. You can either pay your premium in one lump
sum or as monthly installments.
5. Gap
insurance
One of the major perks of leasing a car is
that many repairs and replacements are taken care of by the dealer. However, in
the event of a major accident, it’s rare that everything is covered. Gap
insurance picks up where your lease car’s insurance leaves off.
For example, if you totaled your car but still had payments left on it, gap
insurance could be applied to pay off the balance.
More
Insurance Terms
We’re just getting started with explaining every insurance term that
might be useful to understand. If you want to keep reading, we can help you
learn about everything from what
is an SR-22 to spelling out what MedPay does.
Cheap Car Insurance
for College Students and Graduates
College students face many big challenges, like living in a new
area, finding a job, and studying for classes. On top of all that, it can be a
real pain trying to balance out your finances like living costs, gas money, and
insurance. None of these are easy tasks, but we can help with at least one.
We’ve created this guide to finding cheap car insurance for college students so
you can focus on your other tasks (and have some extra money in your pocket
too).
How to Find Cheap Car Insurance as a College
Student
Buying affordable car insurance for college students is
certainly a concern, but it’s rarely a top priority. Many young drivers under
25 get a policy from the same insurance company that their parents use. Some go
online and get a quote or two from different car insurance companies. But
what’s the best car insurance for college students?
Luckily, we have several tips. Here’s how to find
the cheapest car insurance for college students. Just follow our
checklist!
Car Insurance Policy Check-Up
·
If you are still on your parent’s car insurance policy, make
sure you are a listed as a driver. If not, you may not be covered in the
event of an accident.
·
If you get good grades, you may be able to reduce your premium.
Many auto insurance companies now have a good student discount that can be
applied if you maintain a B or above in all of your classes.
·
Make sure you are assigned as the primary driver of the car you
drive to school.
·
If you have your own policy, make sure your insurance policy
reflects where you live and where you park the vehicle. Your address may be a
variable that insurance companies use to price policies, plus having it updated
makes submitting claims more efficient.
·
If you do not take the car to school, your parents can update
the policy to reflect the change in how often the vehicle is being driven and
how far. It might even lower car insurance premium since you’re driving less.
Many insurance companies refer to this as a distant student discountand require that the
college student attends school at least 100 miles away from home.
·
Check the limits on collision, comprehensive and liability coverages. Colleges are densely
populated with inexperienced, new drivers. Thus, accidents are more likely to
happen. Checking your coverages in these areas will help ensure that you have
the appropriate coverage if an accident occurs.
·
Theft of vehicles and personal
items from within vehicles is more common on and near college campuses. Be
sure to avoid leaving valuables in vehicles parked around campus. And, of
course, always lock your vehicle.
Best Auto Insurance Companies for College
Students
Unfortunately, there is no one absolute cheapest insurance
company for college students and drivers under 25. However, there is a simple
solution: shop around. Every insurance company doesn’t calculate risk the same
way, which means prices are different from company to company. Do your homework
and get multiple quotes. But who’s got time for that? We can help you expedite
your search with a single form that will give you multiple quotes at once. You
can compare prices side by side, lock-in your best rate, buy and be done.
What About After Graduation?
If you’re a recent college graduate, what can you do to get a
good deal on car insurance when getting your own car insurance policy? The
first thing is to make sure that you have a good credit score. A good credit score
can get you a better rate on car insurance. Be sure to keep your score up too
by paying bills on time and paying overdue debts. Paying off your credit cards
will help you to maintain your current insurance price. On the other hand,
falling behind on payments can hurt your credit score. If you get too far
behind, your insurance carrier might choose not to renew your policy when your policy
expires.
Bundle Your Car Insurance Policy with Other
Policies
You may have several insurance policies such as auto, renters
and perhaps life insurance. One way to find the cheapest auto insurance
policy is to bundle these policies. Bundling is when
you buy multiple types of insurance together from the same insurance company.
It could not only decrease your auto insurance premium but the premium for your
other insurance products as well. Leaving you one less bill to worry about.
Understanding What Coverage Limits You Need
As a recent college graduate, you may not be in the position to run
out and buy a new car. Some get a new car from mom and dad, but not many. If
you plan on driving your current car for a few years more, take a closer look
at the coverage levels. If the car has a few scratches and dings, it might be
worth raising the deductible or dropping comprehensive coverage.
Be careful though, because while you can save money by changing
coverage levels and deductibles, you can also get yourself into a tight spot if
you don’t have money put aside to deal with any issues that might arise.
The only way to get the best car insurance is to compare rates.
Age, driving history and your address are
all factors insurance companies may consider when
they price your policy. All of these factors are also currently in flux as a
recent college grad, especially if you are moving out of state.
We make finding cheap car insurance easy for both college
students and new drivers under 25. Enter your details once and we’ll show you
some of the best options out there!