I’m studying at a university here in Washington, and I want to purchase auto insurance policy. How much do they usually cost, and can I have lower premiums?

Peggie

Bellevue, WA

Well Peggie, it’s good that you are aware of the importance of insuring yourself at a young age. It ensures your insurability and credit ratings in the future. It will also keep you out of jail in case you get caught in an accident. You can get different discounts and lower your premiums by just following simple rules.

Generally, auto insurance premiums for student drivers are high. It is determined by factors such as your driving history, your age and the type of car you have. It would also add to your premium rates if you have a DUI or DWI on your driving history. Some insurance companies also have certain additional premiums depending on where you live. The monthly premium rate for students usually ranges from $300 to $1150.

Now, if you want to lower the premiums that you will be paying, you must be able to maintain excellent driving records. You can also avail of discounts depending on your grades. Some auto insurance companies actually give considerable discounts if you maintain good grades in college. You can also apply for low-mileage discount if you live near or within the campus. Another way to lower your premiums would be to buy various anti-theft devices and alarms, extra seat belts and air-bags and enrolling in driving courses.

Make sure that there are no gaps in your insurance policy as you enter the transition from being covered by your parents’ insurance policy to getting your own student auto insurance. Ask your parents about contacting a local agent there in Washington, or you can check out different auto insurance quotes for students online.

Hi, I would like to get a life insurance here in Washington with my parents as beneficiaries. However, I don’t want to waste money on premiums, which is certain if I happen to outlive my paying period. Is there a life insurance product that will meet my immediate needs?

Stuart

Bellevue, WA

Stuart, I got good news for you. You may avail of what’s buzzing in the market now regarding life insurance products. There is now a life insurance product that will return all premium payments you made at the end of your paying period or term.

Basically, this type of life insurance is called term life insurance because you will have a term of 15, 20 or 30 years. This is definitely cheaper than getting whole life insurance policy. However, total return of premiums paid is only applicable if you were able to finish the term, no matter how short or long you chose it to be. For example, you chose a 30-year policy. You will be compelled to pay a certain amount for 30 years as your premium. At the end of 30 years, all payments you have made will be returned to you down to the last centavo. In effect, the premiums you are paying are actually becoming your savings, and on top of the coverage you will get for thirty years, it is also tax-free.

And should you decide to terminate the contract before the 30-year term, you will still get a partial return of premium. The longer you have the policy enforced, the larger the amount that will be returned to you.

So, Stuart, I won’t keep you long now. When you call your agent in Washington, ask him about a policy called Return of Premium Life Insurance or ROP Term.