Is Your Parent's Insurance Company the Best Fit for You?

by Ryan Hurlbert

"I needed insurance, so my dad hooked me up with his agent. I have no idea what I bought, but I have insurance."

Sound familiar? Many people simply use the same insurance company as their parents without comparing rates, shopping around, or even taking the time to understand what they bought. While there can be some advantages to splitting off your parent's policy, shopping around could save you a lot of money.

An easy way to find out how much you can save is to fill in your zip code above and click next. Several insurers will compete for your business, so you can compare rates and coverage.

Splitting Off Your Parent's Policy

When you split off your parent's policy, you often get to take with you any discounts they may have earned along the way. You are often rated as an existing customer instead of a new one, which can change how tickets and claims affect your rate. You may even inherit accident forgiveness or other long-term policyholder benefits.

Then again, your parent's company may not extend any benefit to you at all, so be sure to ask your agent exactly which of the benefits you had under your parent's policy and what you may be keeping.

Leaving the Nest

Don't assume that if you shopped for rates at age 18, when your dad's agent had the best deal, that the same agent still does. You have more driving experience now, and that could affect your rate.

Perhaps that speeding ticket you got when you were 17 no longer counts in your rating. Have you graduated from college, bought a home or a new car, or gotten married? If your credit rating has improved, that can drive your rates down. There are several reasons to shop around for cheaper car insurance.

Update Your Coverage

Even if you have been happy with your insurance company, you should really take a look at your coverage. Many people start off with the minimum liability limits required by local law. This keeps your premiums down to an affordable level, and when you are 18 and have no assets to speak of, it is reasonable coverage.

But is it still adequate for your current situation? Even if you don't own a home or have a huge savings account, you have assets. Did you know that your promising career is an asset? Your future wages could be attached to satisfy a liability judgment against you. If you found yourself in this situation, buying a house or getting an auto loan would be almost impossible. Perhaps it is time to increase your liability limits.

Shopping for car insurance is easy. By using the form above, you will have several companies competing for your business. You may be surprised at how much you can save.

 About the Author

Ryan Hurlbert lives and works in the Pacific Northwest. As an insurance agent, he produced and presented educational seminars on various topics from insurance basics to strategies for dealing with teen drivers. He has researched and produced marketing materials in the insurance, auto, and financial industries. Ryan majored in business and received his Bachelor of Science degree from Portland State University.

 

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