Getting gifted a vehicle after graduating from high school is the perfect way to begin adulthood, but there are also responsibilities included. For instance, getting auto insurance is required since driving without coverage might be a crime in your state. If you do not already have a job, you will also need a job or source of income to pay for an auto insurance policy. After you are ready to pay for insurance coverage, ask an agent what your policy options are and how each policy is beneficial. If you desire more information about auto insurance policies before speaking to an agent, continue reading.
Why Age Matters When Buying Auto Insurance
Age plays a big role in what is charged for auto insurance coverage, and there is a good reason. Young drivers are known for getting into more accidents than older drivers due to reckless driving. As a young adult who just graduated from high school, you should expect to pay more money than your parents. Keep in mind that your sex will be considered with your age as well for the same reason. Male drivers are known for causing more accidents than female drivers due to factors such as speeding.
How an Insurance Premium Can Be Lowered
Just because you are young, it does not mean that you are stuck with a high insurance premium. There are ways to lower the premium to make it more affordable, such as by opting for a higher deductible. A deductible is an amount of money that you must spend out of pocket, such as if your vehicle gets damaged by hail and you file an insurance claim. If the vehicle that was gifted to you has any safety features, it could contribute to a lower insurance premium as well. For example, installing an alarm system to deter criminals from stealing your vehicle might lead to a lower premium rate.
The Basics of Auto Insurance Coverage
Bodily injury liability is one of the basic things that an insurance policy covers. For example, if you cause an injury collision, the other party can file a claim for to cover medical expenses. The extent of the expenses that are covered depends on your insurance policy. Property damage is usually covered under a basic auto insurance policy as well, such as if you cause an accident that requires the other party getting his or her vehicle repaired.