The college years are filled with many firsts. You’re out on your own and new responsibilities will gradually start popping up. For instance, you might have to purchase your first auto insurance policy if you plan on taking a car to school with you. This will undoubtedly bring up some questions. Use this guide to get the answers to some of the most commonly asked ones.

A Guide to Auto Insurance Policies

Should I stay covered under my parents?

Auto insurance rates are much higher for college-aged kids under 25, so staying on a parent’s plan might be more appealing. However, this is only an option if you live with your parents and not on-campus. Most insurers actually prefer students to remain on a parent's policy if they drive home on weekends or use their car.

What’s the minimum amount needed?

All drivers in Nebraska are required to have liability coverage with minimum limits—the most a policy will pay out—of at least $25,000 per person and $50,000 per accident bodily injury coverage and $25,000 property damage coverage per accident. This ensures if you cause an accident, damages to other people and their property are covered by your policy up to the policy limit.

You're also required to obtain an uninsured motorist bodily injury policy with a minimum coverage of $25,000 per person and $50,000 per accident. This will pay for the medical bills of the passengers inside your vehicle if they are injured by an uninsured driver.

How can I keep my rates low?

Besides staying on your parent's plan, you can reduce your premium by maintaining a clean driving record. Also, insurance companies tend to offer lower rates for keeping driving to a minimum, as spending less time on the road reduces your likelihood of getting into an accident. 

This can help until enough time passes for you to reach more significant factors for lowering your rate, such as turning 25 or building your credit score.

What discounts are available?

If you plan to leave your car at home and remain on your parent's policy, you may qualify for a resident student discount. However, if you are taking your car and living off-campus, ask about a multiple policy discount if you also need renters insurance. 

Certain companies also offer discounts for maintaining a certain grade point average or becoming a member of specific Greek systems or student organizations. Showing you are a responsible and safe driver by completing a training course and taking security precautions can also help you to pay less.

Purchasing auto insurance isn’t complicated with help from First State Insurance Agency. Since its humble beginnings in 1956, this insurance company has grown to have several locations across Nebraska, including Beatrice, David City, and Hickman. They are able to assist with all of your personal, commercial, and farm insurance needs. Call them today at (402) 979-7585 or visit their website to receive a quote.