Auto insurance rates are generally the highest for people who are under the age of 25. As most college students are in this age range, the cost for auto insurance can indeed be very high. While college student rates are higher than those of the general public, many students, unfortunately, unknowingly pay more money for this coverage than necessary. Premiums for the same car and the same coverage can vary as much as 50% among various carriers. Utah Department of Insurance rate information collected showed that average premiums for a single, 20-year old male ranged from as low as $466 to as high as $2613 for a six month policy. The fact is that you may be paying way too much for your automobile insurance coverage. Assuming a 20 year old saved only half the amount between the lowest Utah rate of $466 and the highest rate of $2613, the decision to make this million dollar choice could be worth well over $3,300,000 by retirement. Explore the links below to determine how you can save a huge amount of money on your insurance coverage.
- Insurance Rate Information by State. Use this great resource to find your state’s insurance department rate information. This is the best, most objective, place to begin your comparison shopping
- http://www.naic.org/documents/consumer_guide_auto.pdf is a wonderful publication from the National Association of Insurance Commissioners that teaches you how to effectively shop for automobile insurance. Pay particular attention to the section that discusses the many potential discounts available. Ask your insurance agent about each of these discounts to see if you qualify.
- Insurance Rate Database. A large part of your insurance costs stem from the vehicle you choose to purchase and drive. Use this handy database to compare the costs of the vehicle you drive with those costs of other vehicles. “This database is intended to help individuals compare insurance rates for different vehicles. On the first tab, you can see the alphabetical listing (by make) of the 568 cars in the database. On sheet two, the results are sorted so they highlight those cars that have the best liability ratings (meaning individuals are charged lower rates on liability coverage). The third tab is sorted according to those cars that have the best collision and comprehensive rates. Tab four is sorted so it displays those vehicles that have the best VSD (a discount on medical/PIP for vehicle safety). Finally, tab 5 lists those cars that both had either a significantly or somewhere lower than average liability premium AND a significantly or somewhat lower collision/comprehensive premium. This database should help you in making wise auto insurance purchasing decisions.
- http://www.youngmoney.com/wheels/auto_insurance/050315 is a great article that discusses just a few of the ways young college student drivers can get discounts on their insurance coverage.