Car Insurance
Insuring your Car
The first time you buy a car can be pretty exciting. You get in the driver’s seat, and boom - you and the car just click. The seat feels made for you, the bass thumps in your chest like a second heartbeat, and whoa, that new car smell…! Best of all, you can afford it.
Your Fast & Furious daydream high lasts right up until they start talking about monthly payments. And taxes. And title fees. And standing in line at the DMV to get your car tag. Whee.
But the fun’s just starting – let’s talk car insurance! Because guess what? Vin Diesel needs car insurance, and so do you. It’s the law. Never fear, fam: JumpStart’s got you. With our tips in your glove compartment, you’ll… uh… drive… a hard bargain? Or you’ll… accelerate… into first… pl— You know what we mean! Keep reading!
Know the different types of coverage. A full-coverage auto policy includes three types of coverage:
Collision—covers repairs to your car – or the cost to replace it – after an accident “Comprehensive” (non-collision)—insurance against damage caused by nature, theft, fire, or vandalism Liability—pays for injuries and property damage you may cause in an accident
Most banks or credit unions need to know you’ve got all three on lock before they’ll loan you the money for a car. And, joy of joys, every insurer prices each piece of that puzzle differently. What you pay can also vary a lot by state, driving history, and even ZIP code. You have to shop around – more on that below.
Protect others to protect yourself. Every time you drive your car, you’re piloting a thousand-plus pound self-propelling hunk of metal and plastic at double digit speeds. You are a potential threat to anything less durable, be it a picket fence or a person. That’s why [<all states>] require you to purchase [<a certain amount of liability coverage>]. Aim for coverage just a little swankier than is required. Often, a small change in price nets you a lot more protection from the long-term cost of one bad mistake.
Learn how to cut costs. Be warned that insurance is generally more expensive for drivers under 25 years of age. It’s nothing personal – statistics show younger drivers are more likely to get in accidents. Insurers loooove statistics – it’s kinda their thing. But you can do things to trim the costs:
Shop around (and re-shop every couple of years, if your price increases yearly). There are lots of online tools that help you comparison shop. Sometimes, for no obvious reason, you’ll find wildly different rates attached to the same kind of policy. There’s no sinister motive behind the discrepancy – different insurers just have different formulas for risk calculation. Also, the lowest-priced insurer in one state is often not the cheapest in another state. So if you go to school in a different state than the one where you legally reside, that might make a difference.
Price is a big deal, but it’s not the only thing you should worry about. Try to find consumer reviews of each insurer when you shop. When you run over a nail in the rain and have to wait for roadside assistance, or you’re refreshing your bank’s webpage to see whether your insurer writes you a big check or a little check to cover urgent repairs, the insurer with the quickest and best service can feel priceless. Similarly, extra [“policy features”] like roadside assistance and windshield/window repairs might sound excessive, but they’ll feel essential when you need them.
Deductibles are the amount you pay out of pocket in the event of an accident before your insurer kicks in their money. If a tree falls on your car and causes $1500 of damage, but you [have] a $1000 deductible, insurance will only cover the last $500. While this may sound awful, we recommend choosing as high a deductible as you can stand. As a rule, the higher the deductible, the less your insurance policy will cost. If you’d bet on yourself to avoid trouble (or if your car isn’t worth a ton of money to begin with!), [taking] a higher deductible can save you a lot of money on insurance.
This is a risky move, though; if you suspect you’ll end up spending whatever amount you save on car repairs anyway, a lower deductible might be worth the extra money.
Always ask about discounts, such as those for: driving a car with air bags, antilock brakes, or security systems; taking driver education classes; maintaining a high grade-point average; and for maintaining a clean driving record.
When you’ve found a good insurance policy and you’re ready to hit the road [safe], keep two final points in mind:
Once you have insurance, you should try very hard not to use your insurance. When you need financial assistance from your insurer, you file a <claim> to acquire it. The more claims you file, the more your policy costs your insurer. Guess who pays more to compensate? That’s right – you. Sometimes filing a claim is unavoidable, and you should never put your safety at risk to save a few bucks. But since insurers won’t usually come right out and say that using their policy is going to increase your policy’s price (what your insurer calls a “rate”) next year, we’re telling you right now. You’re welcome! Always keep your insurance card or info with you while driving. This can be easy for first-time drivers to forget. But it’s the law, and if you get pulled over and don’t have proof of insurance with you, most states don’t play. Getting your car back after it’s been impounded and towed costs hundreds of dollars, and you’ll feel like a chump for spending new game console money on something totally avoidable.
The bottom line on car insurance: shop hard, choose wisely, use rarely, and most of all, stay safe!