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4 Secrets to Finding the Best Auto Insurance for Recent Grads

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Car insurance policy premiums come as an unpleasant surprise to students who piggybacked on their parents’ auto insurance during college. If you’re already burdened by student loans, high auto insurance premiums make it difficult to buy the car you want. Carefully choosing the car you buy can keep your premiums to a minimum.

Some cars, especially high-end sports or luxury cars, cost more to insure than others. You’ll pay more premiums driving an Astin Martin than you will if you own a Ford Escort. Four factors affect your auto insurance: your personal history, the car’s damage susceptibility, its safety rating and theft risk.

Personal Considerations

A number of personal factors determine premium cost. It doesn’t matter if you work with heavy machinery or contractor accounting software: If you’re male and under the age of 30, you’re going to pay a higher price for premiums than a woman of the same age.

More young men have auto accidents than other groups, so young males pay the highest insurance rates. Urban drivers pay higher rates than rural drivers for the same reason.

Your driving history also affects your ability to get insurance. Some companies won’t insure people who have DUI convictions. On the plus side, many insurance companies offer 10 to 15 percent discounts to graduates with clean driving records.

Damage Susceptibility

A vehicle’s damage susceptibility and price affects its collision policy. Damage susceptibility refers to the likelihood a vehicle will receive serious damage in an accident. A car can have low damage sustainability but still have high collision premiums if replacement parts are expensive. Conversely, a car with high damage susceptibility may not have high premiums if the replacement cost is low.

According to the National Highway Traffic Safety Administration, micro cars, pickups, SUVs and passenger vans have low average losses due to damage, and therefore relatively low auto insurance compared to large or midsize cars.

Safety Ratings

A vehicle’s safety rating describes how much protection the automobile provides to driver and passengers in the event of a crash. Cars with high safety ratings have lower insurance rates.

Theft Risk

Some cars are more likely to be stolen than others, resulting in higher insurance rates. While common sense suggests expensive cars have greater theft risk, this isn’t always the case. An expensive car may include advanced anti-theft devices to deter thieves. Some of the most commonly stolen cars in the U.S are mid-priced sedans such as the Honda Civic.

Theft risk changes depending on the demand for a vehicle’s parts, anti-theft devices and car popularity, making theft risk the most fluid of insurance factors. A car that ranks high for theft risk one year may drop in the rankings as conditions change.

Carl is an aspiring writer who currently works for Maxwell Systems Software. He loves blogging about anything and everything that crosses his mind. He’s constantly striving to strengthen his writing skills and is continuously grateful that the Internet allows him to share his thoughts with the world.

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