As a college graduate you are probably eager to start your own life and get on your way. This is the time when most young adults consider what type of insurance needed. The truth is that you have many options to choose from. Car insurance for college graduates can be like a maze that you have to find your way through. Consider the following facts that will make your journey much easier.
Understanding Your Auto Insurance for College Graduate
There are two types of car insurance for college graduates. You can choose comprehensive or full coverage, insurance or you can choose liability insurance. Comprehensive insurance covers your car and the other car if you are in an at-fault accident. However, liability insurance will only cover the other person’s vehicle if you are at fault.
With liability insurance you are responsible for any repairs on your car. However, most states do require that you carry medical coverage on both comprehensive and liability insurance. Therefore, if you or your passengers are injured you can expect this to be covered.
Getting Your Own Coverage for the First Time
If your insurance was always under your parent’s you may be shocked to see what our individual rates are. Young drivers typically pay the highest rates. However, if you have over five years of driving experience and you completed driver’s education course you are entitled to discounts on your coverage. However, if you are new to driving you may pay rates that are 10-35% higher on your car insurance for college graduates.
Credit Score Factors That Impact Your Price
Insurance companies not only consider your driving history but they also consider your credit score when determining how much you will pay. If you have never purchased anything on credit you probably don’t have a high credit score. In this case you may consider having one of your parents or friends cosign on your insurance. Choose someone with a high credit score to get the best rate.
Are You in the High Risk Pool?
Insurance companies divide everyone into different pools. As a new driver and college graduate you may fall into the high risk pool. This can cause your car insurance for college student’s rate to be very high. The best thing you can do in this situation is to take a driver’s education course and report the good grades you made in college. The insurance company will look at these factors and determine that you are a dedicated and responsible adult. This may allow the company to lower your rates whether you are in New York, California or any other State. .
As you can see many different factors affect your ability to get car insurance for college graduates. While it may take a while for your car insurance rates to drop it will be worth the wait. Make sure you do shop around to find which company offers the best deal. You can use your zip code to search online and find companies that work with students in your area. Compare like policies to find the best deals by entering your Zip Code on this page.