Many young adults are confused when purchasing auto insurance on their own because they had previously qualified for service under their parents’ policies. However, eventually, you’ll need to choose a plan that’s under your name. Below are four vital facts to understand when looking into purchasing a policy.

What You Should Know About Auto Insurance 

1. Prices Vary

Always ask for policy estimates from several companies before selecting an auto insurance policy. Rates vary based on risk assessment formulas that are individual to each company, so it’s best to shop around to get the best coverage for a price that fits your needs.

2. Many Factors Determine Policy Pricing

Most auto insurance providers consider credit scores when deciding what to charge and whether they’ll give you a policy. They will also keep marital status in mind, as single drivers tend to be a higher risk. Those who live in urban areas have a higher likelihood of auto theft and getting into accidents, so that may lead to costly insurance rates. 

3. Collision & Comprehensive Policies Are Different

Every vehicle on the road must legally have liability insurance. Collision and comprehensive policies are optional, but most drivers opt for one. Collision policies will pay for vehicle damage if you cause an accident like running into a tree or crashing into another car.

Comprehensive policies cover more situations, like car theft, vandalism, crashing into wildlife, or hail damage. While comprehensive plans tend to cost more, they will better protect you from a myriad of problems while collision policies only address crashes and their aftermath. 

4. Never Let Your Policy Lapse

Most drivers set their auto insurance to renew annually to avoid lapsing. During this period, you are no longer eligible for insurance protection and must pay full price for any accidents or injuries. This temporary lack of insurance is a legal offense and may earn a ticket and a fine from the police. Plus, it may be more difficult to get another policy when you decide to get coverage as you’re now considered a higher risk investment.

Vehicle owners looking for auto insurance should contact Primerica in Atlanta, GA, for an estimate. The experienced Lithonia-area agents can help you find the perfect life, auto, or homeowners insurance plan for your needs. Visit the website for more information or call (404) 374-1010 to learn about their affordable policies.