Best Car Insurance When Moving Out

So, it’s time to leave the nest and get your own insurance on your car. As you could expect, you might be losing some discounts you were enjoying while on mom and dad’s policy. Let’s look at some ways you can get the best car insurance when moving out.

Shop Rates

One of the most effective ways to make sure you’re getting a good deal is to shop rates. You can shop individual companies through their salespeople, use online companies or consult independent brokers. We’ve spoke about how and where to look, check it out here. Not all insurance companies are looking for the same people to insure. Some like drivers in their 20’s just leaving their parents’ policy and some don’t.

The best way to start is to check out the rates of several companies. Then, you can get a ballpark idea of which ones are going to be competitive for you. Shop rates from over a dozen companies

Compare Coverages

Not all policies are created equal. Some sites are going to give you quotes for your state’s minimum allowable limits. Some may quote better limits. You need to know what you’re looking at so you can actually compare the costs and benefits. Use this guide to compare and ask questions. This is actually one of the documents we use to train new agents:

Bodily Injury Liability

Covers cost associated with injuries and death that you cause while driving your car.

Many times you’ll see this coverage represented like this: 100,000/300,000/100,000. The first two numbers represent the Bodily Injury Liability limits. The first number is the coverage limit per person. The second number represents the aggregate or total coverage limit for the occurrence. The third number is Property Damage Liability which we’ll talk about next.

Our minimum recommendation: $100,000 / $300,000

Property Damage Liability

Reimburses others for damage that you cause to another vehicle or property such as a fence, building or utility pole.

Our minimum recommendation: $100,000

Medical Payments

Provides coverage for medical expenses for injuries to you and your passengers.

Our minimum recommendation: $1,000

Uninsured Motorist

Reimburses you for Bodily Injury when an accident is caused by an uninsured motorist, or in the case of a hit-and-run. Does not cover Property Damage. 

Our minimum recommendation: $100,000 per person / $300,000 per occurrence

Underinsured Motorist

Reimburses you when an accident is caused by an underinsured motorist, or in the case of a hit-and-run. Does not cover Property Damage. 

Our minimum recommendation: $100,000 per person / $300,000 per occurrence

Comprehensive

Coverage for theft and damage caused by an incident other than collision, such as fire, flood, vandalism, theft, hail, falling rocks or trees and other hazards. 

Our minimum recommendation: Depends on your risk tolerance. If you have a loan on your car, your lender is going to require you have this coverage.

Collision

Covers damage to your car that occurs as a result of a collision with another vehicle or other object, i.e. a tree or a guardrail, when you’re at fault. 

Our minimum recommendation: Depends on your risk tolerance. If you have a loan on your car, your lender is going to require you have this coverage.

Roadside Assistance

Covers cost of towing or roadside service.

Agency Minimum Recommendation: Buy

Vehicle Rental

Covers the cost of a rental car while your auto is being repaired as a result of being damaged for a covered incident. 

Agency Minimum Recommendation: $40 per day. Consider more if you need a pickup truck for work because rental cost is much higher.

Glass Coverage

Some auto policies offer no-deductible, or a separate low deductible, coverage for glass. 

Agency Minimum Recommendation: Buy. Windshields have exploded in cost in recent years.

GAP Coverage

This coverage bridges the gap between the vehicles’ actual cash value and loan balance. In the event of a total loss the insured can rest assured knowing their policy will cover the full amount they owe on the loan. This is most important on vehicles that are 2 model years old or newer. Carriers will have an age limit in which they offer this coverage and is typically around 2-3 years old. See article and video “Should You Buy GAP Insurance?”

Agency Minimum Recommendation: Absolutely, positively, for sure BUY!

Maximize Discounts

Insurance companies offer a ton of different discounts. Here are a few to inquire about:

  • Good Student
  • Married
  • Low Mileage
  • Defensive Driving Course
  • Multi-Car Discount
  • New Car
  • Safe Driver
  • Military
  • Homeowner
  • Early Shopper
  • Paperless Billing
  • Automatic EFT Billing
  • Paid in Full
  • Driving habits tracking device

One of the largest discounts you can get is for participating in a program that tracks your driving habits. Some insurance companies will offer up to a 30% discount as long as you’re not closing the club down and hitting Taco Bell at 2:00am.

The main attributes they’re tracking are excessive acceleration, hard braking and time of day. Your score will determine your final savings. CAUTION: some carriers like Progressive will increase your rate if you have a poor score. Others like Safeco and Nationwide will not increase your rate as a result of your score. You just won’t get a discount. For more info: “Car Insurance Tracking Devices. Should I?”

We hope these tools help you to find the best car insurance when moving out.

Shop rates from dozens of companies

How to Get the Cheapest Car Insurance Rate

First Time Homebuyer’s Guide to Insurance

Should You Buy GAP Insurance?

Would You Like Us To Review Your Policies?

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Peak Insurance Group is here and ready to make the process as painless as possible. We look forward to meeting you!

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