Crash Course On Auto Insurance

The Basics

What do you know about car insurance? Hopefully, you know that insurance is not an option. It's an absolute necessity and legally required in most states. With today's high medical costs, increasingly expensive car repair costs, and high litigation expenses, even a seemingly minor accident could cause a major financial hardship for you.

Every state except for New Hampshire requires you to have auto liability insurance, and all states have financial responsibility laws, meaning you need to have sufficient assets to pay claims if you cause an accident. If not, you must purchase at least the state minimum amount of insurance.

Visit the GEICO auto coverages page to determine what types of coverage you'll need for your car.

Now what?

If your parents are insured with GEICO, you may be able to take advantage of GEICO's Family Pricing Program, which allows you to start your own auto policy while receiving the same great rates and most of the discounts available to your parents. And the discounts you may not be eligible for when you first buy your policy may be available as your driving experience increases. Plus, you'll find getting service as easy as your parents do on your mobile device, online, or over the phone. When you call for a quote at (800) 555-2760, be sure to ask your GEICO sales agent about the GEICO Family Pricing Program.

There are also things you can do to get a lower rate.

Five Easy Ways To Save On Auto Insurance

One of the most common questions among young adults when the topic of insurance comes up is, "How can I get a lower rate on my car insurance?" Consider these five easy ways:

  1. Be a safe driver. The fewer the accidents and moving violations you have, the lower your rate could be. If you've been accident-free for five years, you may be able to save up to 26% on most coverages.
  2. Ask for higher deductibles. When you increase your deductibles—the amount you're willing to pay in the event of a loss—for collision and comprehensive coverages, you could reduce your premium.
  3. Reduce annual mileage. Join a car pool or use public transportation. This can reduce your annual mileage and your insurance premium.
  4. Ask about discounts. Many insurance companies, including GEICO, offer discounts to members of organizations, good students or young drivers who have taken defensive driving courses. Also, at GEICO, we offer the GEICO Family Pricing Program, allowing you to start your own auto policy while receiving the same great rates and most of the discounts available to your parents.
  5. Get a quote before you buy a car. Insurance costs vary greatly by age and type of vehicle, even if the vehicle isn't a high performance one. Call or get an online quote for a GEICO policy before you buy a vehicle. In fact, you can even make a long list of vehicle possibilities and quickly and easily get quotes for each. That may help you decide which vehicle to buy. You'd look great driving that slick sports car, but if you have to work 12 hour days to pay for it and for the insurance, you won't have much time to look good driving it.

Please note:

The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.