If you are a young adult who is about to buy your first policy for auto insurance Santa Ana, there are some basic things to know and understand. Typically, insurance companies will consider you a greater risk. This means you will most likely pay more proportionately to people in older age groups.
There are several reasons that this is true:
- Statistics show drivers under 25 are more likely to have an accident
- You have not established a credit record
- You do not own a home, are not married and have not yet graduated from college
These are common factors used to determine insurance rates. However, graduating off your parents’ policy can work to your advantage. First, you are considered previously insured and can lower your premiums. This also means that you have been driving at least two years.
Because of your previous driving record, you may qualify for a good driver discount if you have no tickets or accidents on your driving record. Finally, if you select the same insurer that your parents use, they might give you legacy discounts.
With these considerations in mind, you can move forward with buying a policy.
Determine How Much Insurance You Will Need
The amount of insurance you need will depend on things such as how much you may owe on the vehicle and how much you can afford to spend out-of-pocket for repairs or other things after an accident.
At a minimum, you must buy a liability insurance policy, which is required in every state to be able to legally drive. Adding comprehensive and collision is smart if you still owe money on your vehicle.
Comparison Shop for Several Quotes
Once you decide how much insurance you will need, it is a good idea to compare prices online. Even if you are considering staying with the insurance carrier that your parents use, it does not hurt to see what others may have to offer.
Not only should you compare costs, but you should also compare what each policy offers. Cheaper is not better if it has fewer benefits and features that you will need.
Understand You are Buying a Legal Contract
The insurance policy you buy is a legal contract that often includes plenty of technical terms. Still, read before you sign to make sure it details who is covered, premium amounts, any exclusions and when your policy begins and ends.
It can also help to ask an insurance professional to explain anything that is not clear.