Insurance help for young adults

Auto insurance can be quite confusing for a young person faced with buying his or her own policy for the first time. It's important to have an agent you can trust to answer all of your questions both at the time of your purchase and in the future when you need help with changes or a claim. Here are some common questions asked by people purchasing insurance for the first time:

Question: How do I know when to buy my own auto insurance, rather than stay on my parent's policy?
Answer: Normally, when you purchase a vehicle in your own name. Make sure your policy is active prior to taking possession of the vehicle, and before requesting to be removed from your parent's policy to avoid any gap in coverage.

Question: What will I be asked to furnish to purchase my own policy?
Answer: Each state varies, but usually you'll be asked for your driver's license number, the vehicle identification number (VIN), and proof of present insurance.

Question: Is it ok to purchase the cheapest insurance?
Answer: The amount of your monthly premium is important on a limited budget, however you'll want to consider the cheapest rate may be giving you very limited coverage. When comparison shopping, make sure each company is quoting using the same coverage limits and deductible amount.

Question: How do I know what coverages I need?
Answer: Coverage and limits vary from state to state and according to your needs. Generally though, here is a brief description of the different coverages available:
Liability coverage: this covers you for injuries to others and property damage from an accident that is your fault. Most states require you to carry it.
Comprehensive coverage: covers losses not caused by a collision, such as theft of the vehicle, fire, vandalism, etc, minus your deductible amount.
Collision coverage: covers damages to your car from an accident, minus your deductible amount.
Uninsured and Underinsured Motorist coverages: pays for your injuries if you're involved in an accident with an uninsured or underinsured driver who was at-fault.

Question: How can I lower my insurance premium?
Answer: Maintain a clean driving record, increase your deductible amount, and chose a vehicle that is less expensive to repair - your insurance agent should have a list by Make and Model showing which cars are less expensive to insure.

Question: Do I need to purchase insurance from a rental car company when renting a car?
Answer: Maybe not. The rental company's insurance probably covers liability, medical payments and collision coverages. Many insurance companies extend the liability and collision coverages to rental cars. Be sure to check with your agent before renting a car to be sure.

Question: When I borrow someone's car, am I covered?
Answer: In most states, the coverage follows the vehicle, meaning the owner's insurance policy covers any damage you cause while driving his or her vehicle, provided you have their permission to drive the vehicle.