What They Don't Teach You in High School

13 Question: What can I do to save some money on auto insurance? Answer: Comparison shopping is the best way to save money on auto insurance. Savvy shoppers who keep a clean driving record will be able to find the best insurance deals with good companies. Another way to save money is by taking larger deductibles and lower limits; however, make sure that you are not putting your financial future in jeopardy by choosing low limits and high deductibles. Auto insurance needs to be a priority in your budget, not an afterthought. Question: When I get my driver’s license, will my parent’s auto insurance cover me? Answer: Generally speaking, if your parents have a standard auto insurance policy, it will cover any person in the household that drives on an occasional basis. However, when there is a minor or adult of legal driving age in the household, your parent’s insurance company will require that person to be permanently added to the policy for a premium charge. The insurance company can also decide to exclude that person from your parent’s policy if separate proof of insurance from a different insurance company is provided. An insurance company can start charging additional premium from the time that a driving permit is issued to a minor. It is up to the individual insurance company to determine when to start charging an additional premium. Some will wait until the driver’s license is issued. Question: How do you pay for auto insurance? Answer: When an insurance company offers coverage, the full premium is due up-front. However, most insurance companies offer payment plans. These payment plans require a down payment and usually charge a small service fee for each installment.