The Consequences of Not Having Auto Insurance

When young adults graduate college they have aspirations of starting their first "real world" job, getting their own place and buying a brand new car - one that does not need a screwdriver to start. However, college students are also graduating with much more than just a college degree and a dream, they are graduating with a substantial amount of debt. In fact, many students graduate with an average of $3,262 in credit card debt - 10 percent of that group owing more than $7,000 in credit card charges.

Students forget to factor in other life costs, such as health care, 401K deductions, income taxes, car payments, auto insurance, rent, utility bills, student loans, credit card bills and food expenses into their monthly budget. "After you graduate and land your first job, you do not think about having to pay for all of these expenses," stated a graduate from Ohio University. "Unfortunately, reality sets in pretty fast and you realize you do not have the money to make ends meet - it is a hard lesson to learn!"

College Debt
Why is there so much credit card debt among college students? "Many credit card companies set up kiosks on college campuses offering free pizzas and t-shirts to try and entice students to sign up for a credit card," noted David Roush, CEO of Insurance.com. "The problem is many college students do not have the income or financial knowledge to manage a credit card - a problem that is leading students into a lifetime of financial despair."

In addition to the outrageous credit card bills, students are also graduating with student loans ranging from $10,000 to $52,000 or more. Often students figure they will be able to pay everything off once they get a job and start making "real" money, but that simply is not the case.

Not only are credit card and student loan bills financially crippling to many new graduates, it is also forcing grads to cut back on other necessary expenses, such as auto insurance - one bill you legally cannot drive without! "Driving without auto insurance is illegal in all 50 states, however, many young adults elect to go without auto insurance because they think they cannot afford to have it," stated Roush. "A scary thought when 15.3% of all automobile accidents are caused by drivers between the ages of 20 - 24."

While deciding not to pay for auto insurance may seem like a good idea at the time, graduates are not considering the expense of getting caught without auto insurance or the cost of getting into an automobile accident. "Imagine if you had to pay the medical bills of someone who gets injured in car accident when you are at fault - suddenly paying for car insurance does not seem so bad," says Roush.

The Penalty of Driving Without Auto Insurance
According to the Insurance Information Institute, the cost of driving without auto insurance can vary from state to state, depending on the percentage of drivers who are uninsured in that state. For instance, in Massachusetts residents can be charged anywhere from $500 to $5,000 in fines and receive a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded - which can cost you thousands depending on how long it takes you to get your car out.

To find out the auto insurance state minimum and fines and penalties for driving without insurance in your state, visit the Department of Motor Vehicles' website.

How to Budget For Auto Insurance
As you look for auto insurance, make sure to check if the insurer offers a 6-month or 12-month payment plan to help you manage your auto insurance payments better. In addition, many auto insurance providers offer a variety of discounts, including alumni discounts. So make sure to ask if your college or university is eligible for a discount, because every bit helps when you are first starting out on your own.

To help make researching auto insurance rates easier, Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the best auto insurance coverage for your newly graduated budget.

Helping Named Drivers Keep Their Auto Insurance Premiums Down

Many teenagers see their driver's license as a passage of independence from their parents or a chance to head out on the open road with their friends. That is until they find out how much auto insurance is going to cost them - then being on Mom and Dad's policy doesn't seem so embarrassing!

Due to the lack of funds, many teenagers elect to become a named driver on their parent's auto insurance policy. This solution works for a while, but eventually these teens graduate from school, land their first job and purchase their first automobile - only to be faced again with the high cost of auto insurance premiums as a first time policyholder. It's a vicious cycle many young adults just can't seem to avoid.

However, one auto insurance company in England has developed a solution to help named drivers develop a driving history while they are on their parents' or guardians' insurance policy. This new plan allows the named driver to build up a no-claims discount in the event they do not make a claim while on another driver's policy. For instance, under this arrangement a teenager who spends three years as a named driver and does not make a claim could potentially receive up to a 50% discount when they switch over to their own plan. That's a considerable discount when you are just starting out on your own!

Even though this policy is not yet available in the U.S., there are steps young adults can take to help reduce their auto insurance premium, such as:

1. Buying an older car vs. a newer model. Typically older cars cost less to insure verses newer, faster models
2. Avoid modifying your car. Adding chrome rims and grills, customized murals, Spree wheels (spinner rims), pipes, decked out stereo systems, ground effects and hydraulics will only increase your auto insurance premium, possibly making it more than you can afford.
3. Drop collision coverage on less valuable cars. Multiply your current annual insurance premium by 10. If your vehicle is worth less than that amount, consider dropping the collision and /or comprehensive coverage portion of your policy. Not sure how much your car is worth? Visit the Kelley's Blue Book website to find out.
4. Ask for higher deductibles. Requesting a higher deductible can help lower your auto insurance rate by 15 to 30 percent. However, if you decide to do this, make sure you have enough money set aside in the event you have to make a claim.
5. Take a defensive-driving class. Often, auto insurance companies will offer drivers a 10% discount just for taking a defense-driving course. Check with your local city or town to find a class near you.
6. Combination discounts. Many times insurance companies will give a 10% - 20% discount to customers who insure both their house and car, multiple cars or take out renters' insurance and car insurance with the same company. It's a potential savings worth inquiring about.
7. Maintain a good credit history. Numerous insurance companies base your insurance premium on your credit score. So the better your credit score, the lower your insurance rate will be!
8. Low mileage discount. Some insurance companies offer discounts to motorists that drive lower than the average number of miles allotted per year. So if you work close to home or take the train or bus to work each day you might be eligible for this discount.
9. Group insurance discounts. Membership has its rewards! If you belong to an alumni group, club or organization then you might be eligible for a group discount just for being a member. Check with your organization or ask your insurance company if your club is eligible.
10. Shop around. Prices vary from insurance company to insurance company. So make sure to do your research first before you make your final decision. For assistance, logon to Insurance.com's auto quote comparison module. Here you will be able to compare the quotes of up to 12 insurance providers, helping you save time and most importantly money on your auto insurance rate.

Murder Provision Added To Teacher's Life Insurance Policies

The current condition and safety of teachers at our schools is deteriorating at a rapid pace. Who would have thought that being a teacher could carry so many threats and be such a high-risk job? Well in this day and age, it is more than anyone would have thought it to be. After a high-profile school violence case in Florida ended in a teacher being shot, the National Education Association (NEA) added a provision to its life insurance policy to protect its members. A murder provision plan was added to the list of benefits, which covers the NEA member if they are killed in the classroom, on a school-sanctioned trip, at a sporting event, field trip or during a school related activity. The current "on the job," accidental death benefit is $50,000, that benefit has tripled with the addition of the new murder insurance plan to the current life insurance policy offered to teachers.

The NEA is the nation's largest professional employee organization. Since 1982, it has offered free life insurance to its members, representing teachers, administrators, higher education faculty support personnel, retired educators, and students who are in school preparing to be teachers.

If you are interested in receiving a life insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your budget.