Photo by Getty Images. Illustrations by bankrate
Turning 26 isn’t a big milestone birthday that would make you 18 or 21, but it was accompanied by personal and financial adjustments. I’m going to bake all my bread from scratch now (18 years old I’ll roll her eyes). I also looked at my insurance carefully, as I am not a youthful operator in the eyes of car insurance companies. Here are some key steps I’ve taken in reporting after blowing up this year’s candle.
1. I checked my coverage and deductible choices
If you don’t start a story by reviewing existing policies thoroughly, you ignore your role as an insurance agent. I had an insurance contract for my parents in my early 20s, and they set up coverage restrictions and deductions that I mimicked in my first independent auto policy. Now that I’ve become a licensed agent, I know how to have a more informed view of my reporting. There are several ways to change (and not) the policy.
- I kept my coverage limit high: It feels like the world is constantly becoming more expensive. This means that accident costs are higher than ever. I could have put in compensation limits to save a few dollars, but the potential out-of-pocket costs are not worth it to me. So I decided to maintain the liability limits with the best options my career offers.
- Reduced the deduction to $500: My collision and comprehensive deduction were both $1,000, but I live in Montana, where animal collisions on the road are very common. After firing $1,000 to file a comprehensive claim when struck a bear last year (don’t worry, the bear was fine), I decided to pay a little more at the premium for a lower out-of-pocket cost if another charge arises.
2. Comparing quotes from other carriers
Age is my state’s permitted auto insurance rating factor. All airlines define youthful operators differently, but 26 is usually a significant age that brings lower rates for some drivers. After turning 26, I set aside time to compare quotes online from a few insurance companies. I shopped, switched my career to progressive at age 25, saving over $30 a month with my premium. Given how much I saved last year, I wasn’t surprised that most of the fees I saw this year were closer or higher than the interest rates I had already paid.
We are conditioned not to talk about money with friends, but as a nosy generation Z insurance agent, I absolutely ask what they pay for car coverage. Although auto insurance is highly personalized, chatting with friends and family can help you determine whether the fees you are paying are standard. This also helps you identify potential local carriers that you may not know. These carriers usually don’t offer online quotes, but it’s worth pursuing a quote over the phone knowing that local carriers and someone can get a big fee.
Ultimately, my only friend, significantly less than I do for coverage, drives 90’s trucks without collisions and no coverage. This, combined with the actual quotes I got, made me believe I’m working with a proper career for now.
3. I looked up the discount
Discounts are one of the easiest ways to save on car insurance, and your eligibility can change with your age and lifestyle. We quickly scanned Progressive discounts and completed our policy review. Most of the low-hanging fruits – paperless billing, secure drivers, electronic payments – had already been explained, but there was one easy get I had avoided. If you agree to pay my six-month premium in full, you save $11. I wish I had been there as a manager who takes advantage of all my savings opportunities, but for now I have chosen to stay in my financial comfort zone and maintain my monthly payments. I’m probably 27 years old and I’ll pay in full.
4. I tried to change the duration of my policy – and failed
In most cases, car insurance companies cannot raise rates until their policies are updated. So, if you get into an accident or a carrier file due to a rise in the state rate, it won’t increase until updates.
Auto insurance premiums have been high over the last few years, and many airlines have quietly switched to a six-month policy as the default option rather than the classic one-year policy. When I switched my career last year, I was automatically given a six-month policy. With more know-how this year under my belt, I confidently called Progressive and requested that I switch to a year-long policy when the following month’s policy was updated.
Customer Service Representatives should tell us that policies sold through Progressive Agents are subject to the yearly policy terms. However, this is not the case with online purchase policies. It’s no exception. I’m not complaining about just encouraging people to switch careers, but I made a mental note to check this out the next time I change my career. You can also connect with local agents in my area to adjust the policy in that way.
Conclusion
While major changes in situations like milestone era, tickets, moving, marriage and more are all good reminders to review your policy, all the steps above can be taken at any time even during the policy period. If you’re a young adult who is still learning to manage your own insurance policy, chatting with an authorized agent with your insurance options, discounts and deductions is a useful way to ensure you don’t overlook any aspect of your coverage.
