So, the day has come. Your parents have kicked you off of their car insurance plan, and now it’s time for you to get your own. At J. Thomas & Associates, we want our clients to be educated about what their insurance policy covers, how much they will pay a year to maintain their insurance (premium), and how much they will have to pay out of pocket if they use their insurance (deductible).

There is nothing worse than getting into a car accident and finding out that you cannot afford your deductible, even though you paid your premiums. In today’s blog, we are going to go over some car insurance basics so you understand what your policy will cover and how much you will be responsible for “before insurance kicks in.” Keep reading to learn more, and remember, you can always call our office and ask questions over the phone. We are here to work for you and are more than happy to explain every detail of your plan.

Why Are Young People More Expensive To Insure?

Young people (between 16 and 25) are more expensive to insure because they are statistically more likely to be involved in accidents. We know this can be frustrating, but there are ways to save which we will talk about below. Similarly, those who have a record of being at-fault in accidents or have serious driving offenses (drunk-driving arrests, for example) can expect to pay more for car insurance, so being a good driver will definitely benefit you in multiple ways. For drivers with clean records, you can expect your rates to drop significantly between the ages of 20 and 25.

Know About Ways To Save

The safer your car is, the less expensive it will be to insure. If you are looking to purchase a new or used car, contact your local insurance agent and ask about what to look for in a car that will make it more affordable to insure. Typically, sports cars and old cars without modern safety features are more expensive to insure than a newer car with the bells and whistles. Many insurance agencies also offer discounts for college students who earn good grades as well as those who have clean driving records, so be sure to ask about these when you speak with your Allstate car insurance agent.

Understand Your Premiums And Deductibles

As we mentioned above, the premium is your monthly or yearly fees you pay to have car insurance. The deductible is what you will need to pay out of pocket to get your car fixed if you are in an accident. Choosing a high deductible (say, $2,000 or above) can save you significantly on your annual car insurance costs, but if you cannot afford to pay this amount to have your car fixed, you might be out of luck in the event of an accident. And while a lower deductible of $200-500 might mean you pay more every year to keep your car insured, you know that you won’t suddenly face a huge financial blow just to use your insurance.

Choosing your deductible and premium amount will depend on a few things. The first being, how are your savings looking? (Or, would your parents be able to help out in the event of an accident?) If you are a pro at saving money or your parents have kindly offered to help out if you ever need it, you can likely choose a smaller premium with a higher deductible. On the other hand, if you are in a tough financial spot and cannot afford to drop a thousand dollars at any given time, you will likely be better off with a higher premium and a lower deductible.

Your Houston Allstate Agent

We know you’ve seen the commercials, but you truly are in “good hands” when you choose J. Thomas & Associates. Our team will work with you to find you the most savings, and considering that our owner and a few of our associates have experience as personal financial representatives, we hope that you will feel comfortable allowing us to find you an insurance policy that will work with your current financial situation. Get a free car insurance quote today, or give us a call if you have any questions about insurance policies in general!