You have your very first genuine job and apartment. Or you have graduated and moved back in with your folks. Is it time to leave your parents’ policy and get your own vehicle insurance quote?


Here’s what you need to know.


Do you want your own policy?


You can keep on your parents’ policy as long as you reside with them and don’t personal your own automobile, according to the National Association of Insurance coverage Commissioners. And that is possibly very good for you.


“Staying on their policy saves income because parents are regarded as reduce-danger drivers than young singles,” according to the NAIC, a regulatory group.


But when you get your 1st apartment or purchase your first auto, it’s time to get your own automobile insurance quotes. Staying on your parents’ policy could leave you with no coverage following an accident.


Must you just go with their firm?


If you have been on your parents’ policy, it’s easiest to ask the exact same insurer about setting up your own plan. You might also qualify for special savings.


Geico, for instance, has a Family members Pricing Plan for 18- to 29-year-olds leaving the strategy of a parent, legal guardian, aunt, uncle or grandparent.


“Once the information we have on file for you is verified, we will offer you with a totally free auto insurance coverage rate quote,” the firm says. “And because you’re currently a portion of the Geico loved ones, you could acquire specific pricing primarily based on your family’s loyalty and knowledge with Geico.”


That mentioned, you should get several vehicle insurance quotes to discover the cheapest rate. Your parents may not have comparison-shopped for insurance coverage in decades. Also, what operates for them may well not be greatest for you.


Elements to contemplate


Right here are elements to contemplate when evaluating car insurance coverage quotes from a number of businesses.


Auto model: Sport utility vehicles, convertibles and performance vehicles normally expense far more to insure, according to the NAIC. New vehicles can price far more to insure simply because of their greater worth but may have safety functions that bring discounts.


Liability limits: Young individuals usually have fewer assets and so need to have less liability coverage. But they need to think about how this may modify within a couple of years as they start to accrue far more assets.


Collision coverage: “With older cars, the price of collision coverage can exceed the worth of the car,” the NAIC notes. You can also save on premiums by raising your deductible for collision and comprehensive coverage, though that would leave you on the hook for more charges after an accident.


Mileage: Contemplate how a lot you truly expect to drive and whether or not you can minimize driving. The much less you drive, the less you’ll spend in insurance.


Discounts: A lot of insurers have discounts for issues such as good grades, clean driving records and taking driving courses.


Add-Ons: The policy you inherit from your parents might consist of roadside assistance, which you may currently have or be able to get cheaply by way of your credit card, carmaker or even cellular provider. You may possibly get by without having other add-ons, such as a rental car even though your vehicle is being fixed.


On the other hand, accident forgiveness may well be a very good notion. That’s because 16- to 20-year-olds are 30% far more likely to get into an accident than 21- to 24-year-olds, who are practically 40% far more most likely than those 25 to 34, according to the most current report from the National Highway Visitors Security Administration.


Finally, congratulations. Buying your very first auto insurance policy is an additional large milestone on the path to adulthood.


Aubrey Cohen is a employees writer covering insurance for NerdWallet. Comply with him on Twitter @aubreycohen and on Google+.


Image via iStock.