Auto Insurance for College Graduates

Auto insurance quotes for college graduates searching for car insurance will probably make them wish they were back on their parent’s insurance policy. While some college graduates will have been paying their own auto insurance throughout college, the ones that have been covered by their parent’s insurance are in for a rude awakening.  Getting cheap auto insurance that still gives you enough coverage depends on finding the right agent, doing your research, and knowing how to lower your rates.

Find A Quality Agent

A good auto insurance agent will get you the best rate possible with the adequate amount of insurance coverage. Anyone can find you cheap insurance, but it’s probably the bare minimum coverage that exposes you to hundreds of thousands of dollars in liability.

Personally, I choose independent insurance agents, because they have access to dozens of insurance companies and their products. They will shop around for you and present you with the best coverage at the most affordable price. That’s not to say that State Farm, All State, and other exclusive agents are no good, but they are only bound to what their principle company allows them to offer.

Car insurance is extremely competitive, and that’s why I believe going to an agent who can shop around for you is the best way to approach finding a quality agent.

Do Your Research

The Insurance Information Institute has some good information to educate you more about car insurance. It would take an entire series of posts to get into all of the intricacies about car insurance, and that is why it is so important for you to do your own research. There are four major things you need to know about car insurance before signing on the dotted line:

1. Car Insurance Liability Limits
2. Exclusions from Coverage
3. Car Insurance Endorsements
4. Difference between Comprehensive and Collision Coverage

The internet makes it easier than ever to research rates, you can get auto insurance quotes from multiple sites on the web.  Make sure you search the rates on multiple sites to get an idea of what the average rate is. Here are a few places you can get insurance quotes online so you can compare their rates right away:

What You Can Do To Lower Your Rates

As a young person, especially for guys, your insurance rates will be in the highest tier simply because of your age. There are statistics to back up the fact that younger, more inexperienced drivers get in more accidents than middle aged people. There’s nothing you can do about your age, but there are a few things you can do to lower your car insurance quotes.

• Choose a $higher deductible for Collision and Comprehensive coverage if you choose to carry them.
• If you are still in college, ask about a good student discount. State Farm offers a discount for students with a certain grade point average.
• If you have renter’s insurance or homeowner’s insurance, ask for a multi-line discount.
• If you plan on buying a new car after college, consider a car with high safety ratings. I know, you’re still young and a Toyota Camry doesn’t sound that appealing, but sports cars and SUV’s that are prone to flipping over carry higher insurance rates.
• Do not let agents tack on policy endorsements that are not necessary. The only ones I pay for are emergency roadside assistance and collision coverage for rental cars.

The importance of being a well-informed consumer is invaluable, and insurance policies are often overlooked by consumers of all ages. It is one of the products we buy that we know so little about, yet don’t bother to educate ourselves about. Be informed and do your homework. You’ll save a lot of money on car insurance and on other big purchases you make in your lifetime.

Erik Folgate is a husband and father living in Orlando who's been writing about money online for 6 years. Digging himself out of $20k of debt after college and his former experience in the insurance industry give him some useful insights into personal finance issues.

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