If you’re getting ready to head off to school with a car, there are a couple of things to know. A big one is how you’ll handle paying bills, and that includes your auto insurance premium. So buckle up and get comfortable, in this post we’re going to go through the need-to-knows of having a car away at school.
You Can Still Use Your Parents’ Policy
Even if you’re moving out of town, you can still be listed and protected under your parents’ auto insurance coverage, just so long as you’re not moving out of state. If you’re going to school out of state, you’ll need to get an insurance plan that covers you in that state. What works in Arizona for insurance does not work in New Hampshire.
Get More than Minimum Insurance
Most states in the U.S. require their licensed motorists to carry liability insurance. While this is the most affordable option for car insurance, it also means there’s a chance you’ll have to pay out of pocket if you’re involved in an accident and your insurance can’t cover all of the expenses.
It’s fair to say that as a college student, whose diet consists mostly of ramen and PB&J sandwiches, that you won’t be able to afford much out of pocket if you’re involved in an accident. This is one reason why getting more than the required coverage is critical. It will save you money in the end.
Here are some basic coverage options to take a look at:
- Bodily Injury Liability: This is the basic liability coverage that most states require. In essence, if you’re the driver at fault in an accident, auto liability coverage will cover the cost of the other driver’s physical damages.
- Property Damage Liability: Also required, this coverage plan pays for the property damage sustained to another person’s vehicle when you’re the one responsible for the accident.
- Comprehensive Coverage: When natural disasters, theft or vandalism damage your vehicle, comprehensive coverage covers the cost of repairs.
- Collision Coverage: When you’re in an accident, it’s unlikely that the physical damage of the wreck will be one-sided. While property damage liability coverage makes sure the opposing party can cover their repair costs, it’s the collision coverage that actually keeps you in the green for your own car damages. Even if you’re not at fault in the traffic collision, collision coverage will get your car repaired in no time.
Other Things to Keep in Mind
While we all do our best to avoid any involvement in a crash, accidents happen. Auto insurance exists to protect you if and when such an event occurs. And as reported by Forbes Magazine, studies show that motorists will be involved in an accident every 17.9 years. So no matter how careful a driver you are, it’s only a matter of time before you yourself will be filing an insurance claim. This is why it’s a good idea to get more insurance than is required. You’ll simply never know when you’ll need it.
That being said, try not to go with the first deal you see, as it might not really be a deal at all. When it comes to auto insurance for college students, companies like CoverHound can help you compare rates, so you don’t end up going broke paying monthly premiums on top of your rent and other expenses, it’s astounding how much textbooks cost. Contact your insurance provider today or use a quotes comparison site to find the insurance package that is right for you.