Shopping for Car Insurance: 5 Things Students Should Know
Let’s be honest, buying car insurance isn’t the most exciting part of college life. In fact, it’s probably one of the most boring things you could spend your afternoon doing. But if you own a car in Utah, it’s something you’ve got to deal with. Utah law requires you to have insurance, and the kind of policy you choose can either protect you or leave you with a massive bill after an accident. So, if you’re shopping for your first policy (or just trying to lower your monthly bill), here are five tips to help you make a smart choice.
1. Don’t Just Go for the Cheapest Plan
It’s tempting to grab the lowest price, especially on a student budget, but Utah’s
minimum coverage $25,000 for injuries per person, $65,000 total per accident, and
$15,000 for property damage, doesn’t go very far in real-life accidents. Add in Utah’s
no-fault rule, which requires $3,000 in personal injury protection (PIP), and you’re
technically covered but not necessarily protected.
Understanding the different types of coverages and liabilities can be confusing, so
I’ve broken them down here for you:
Bodily Injury Liability: Covers legal responsibility for injuries caused to others in an accident.
Automobile Insurance: Bundled coverage for both liability and property damage.
Medical Payments Insurance: Pays for injuries to the driver and passengers, no matter who’s at fault.
Property Damage Liability: Covers damage you cause to someone else’s property with your vehicle.
Collision Insurance: Pays for damage to your car from crashes or rollovers. Comprehensive Insurance: Covers
non-collision damage like theft, fire, or natural disasters.
A rule of thumb is to think about the value of brand new cars: if you crash into someone’s car worth $60,000 and you only have $25,000 in property damage coverage, you’re on the hook for the rest. Spending a little more for better coverage can save you from way bigger headaches later on.
2. Know How Deductibles Work
A deductible is basically your share of the repair bill before insurance steps in. If you pick a $500 deductible, you’ll pay $500 first, then insurance covers the rest. If you pick a $1,000 deductible, your monthly bill will be cheaper, but you’ll have to cough up more money if something happens. If your savings account isn’t stacked, a lower deductible might be safer. But if you’ve got a decent emergency cushion, choosing a higher deductible could save you some cash each month.
3. Always Shop Around
Insurance companies all have their own formulas for setting rates; things like your
age, driving history, ZIP code, and even your credit score can make a big difference.
Don’t just take the first quote you see online. Get at least three to five quotes
and compare the prices and what’s actually covered. Also, remember to check how easy
it is to file a claim if you need it. Some companies have local agents here in Salt
Lake, while others rely more on apps and call centers. Pick the one that fits how
you’d actually want to deal with a claim.
Here is a great resource to help you pick a provider: Nerd Wallet: Compare Auto Insurance rates.
4. Ask About Student Discounts
This is where being a student can actually pay off. Many companies give discounts
for keeping a GPA above 3.0. Renting an apartment near campus? Bundling renters’ insurance
with car insurance can knock your costs down. Other perks include safe driving programs
(sometimes tracked with an app) or low-mileage discounts if you don’t drive much because
you’re always on TRAX or buses. Don’t be shy! Ask your insurance company to run through
every discount you might qualify for
5. Don't Get Burned by Red Flags
If a deal looks way too good to be true, it probably is. Be careful with companies that have bad reviews, confusing fine print, or super-low prices that don’t actually cover much. Before you commit, check that the company is licensed in Utah (you can verify this on the Utah Insurance Department’s website). Doing a quick check now can save you a ton of stress if you ever have to file a claim.
Wrap Up
Car insurance might not be the highlight of your college years, but it’s one of those “adulting” things that can really protect you financially. The best plan is one that balances cost with enough coverage to actually help you if things go wrong. So, take the time to compare quotes, ask about discounts, and pick a policy that fits your budget and your life as a student. A little effort now could save you thousands later. If you’re looking for help, come see us at the Financial Wellness Center! We’d be happy to walk you through the steps and help you understand the policies you're looking at.
