Auto Insurance Basics for First-Year Teachers

• Teachers may be eligible for special discounts and coverage packages, though teacher discounts aren’t the only route to a cheap auto insurance rate.
• Learning the basics of auto insurance coverage and minimum liability requirements can help you choose coverages wisely.
• Talking with an insurance agent and getting at least three quotes helps you find the best auto insurance option.

Basic auto insurance includes liability, personal injury, and other coverages that protect you, your passengers, and your vehicle. Here’s a quick breakdown of basic coverages and how they apply:

In addition to offering teacher discounts, some insurance companies have special coverage packages for teachers — often at special prices. Though you probably don’t need specialized insurance just because you’re a teacher, at companies like Liberty Mutual and Horace Mann (which specializes in insuring teachers), you may find helpful benefits that include:

• Personal property coverage that protects school property if it’s damaged or stolen
• Zero-deductible coverage for collisions or vandalism that happen on campus
• Student liability coverage for teachers who occasionally transport students in their vehicles

Some auto insurance companies offer special discounts for teachers. Teacher discounts on auto insurance typically fall into two categories, occupational discounts and affiliation discounts. Here’s what each type means:

• Occupational discounts are available to teachers and other education-related employees based on occupation. If you’re employed in a qualifying teaching position, you’re eligible for this type of discount.
• Affiliation discounts are for members of certain organizations and teachers unions, such as the National Education Association and the Association of American Educators.

Teachers aren’t limited to teacher-specific discounts on car insurance: You can also take advantage of a wide range of discounts insurance providers offer to all customers, including:

• Bundling discounts: Many insurance companies offer discounts when you carry multiple auto policies or multiple insurance policies — for instance, car insurance and renter’s or homeowner’s insurance — with the same company.
• Good driver and telematics discounts: Along with savings for drivers with clean driving records, insurers may offer discounts of up to 40 percent for participating in a telematics program, where drivers use a tracking device or specialized app to record their driving behavior and get rewarded for safe driving. GEICO DriveEasy and Liberty Mutual RightTrack are two examples.
• Loyalty discounts: Some insurers reward your loyalty with additional discounts if you re-up with them at renewal time.
• Miscellaneous discounts: Still more discounts include price breaks for automatic billing, low mileage, owning a home, being a veteran, installing a car alarm, and many others.

Several insurance providers offer special discounts to teachers. Here’s a quick list of companies with teacher discounts, either through occupational discounts or affiliation with education-related organizations.

• California Casualty
• Country Financial
• Farmers
• GEICO
• Horace Mann
• Liberty Mutual
• Meemic
• Plymouth Rock
• Travelers

There are many factors to consider when you’re choosing an auto insurance policy. Just because a provider offers teacher discounts — or any other discounts — doesn’t mean you’ll end up with the lowest rate, or the best insurance policy. Here are a few tips to help you zero in on the best coverage and pricing:

Focus on Getting the Coverage Right

Before you start looking at rates, take a moment to think through your coverage needs. Talking to an insurance agent — or multiple agents — can be helpful here. A knowledgeable agent can offer suggestions on how to optimize coverage and (ultimately) save money.

Be Honest About How You Plan to Use Your Car

If you have a long commute, need to drive between school locations, or envision transporting students from time to time, let your insurance agent know so they can help you tailor coverage — and point out scenarios you may want to avoid.

Get at Least Three Quotes

To find out precisely what your policy will cost, get quotes from at least three different providers. Compare more than pricing when you weigh your options. You may want to look at customer satisfaction data and financial strength ratings from companies like AM Best to learn more about prospective insurers.

Plan to Review Your Policy Often

Life changes constantly when you’re just starting your career. Many of these changes can impact your auto insurance rates. Here’s a quick sampling of potential life events that could affect what you pay for auto insurance:

• Turning age 25
• Moving to a new ZIP code
• Moving to a place with a dedicated garage
• Improving your credit score
• Getting married
• Buying or leasing a new car
• Having an accident or traffic violation drop off your record
• Adding an accident or traffic violation to your record
• Qualifying for a loyalty discount

Today’s best deal on auto insurance could be next year’s expensive option. Consider shopping again at renewal time to make sure you’re still choosing the best option for you.

As a consumer, you get to choose your coverages, set coverage limits, and select your deductibles, according to your needs and budget.

Minimum Liability Coverage by State

Drivers are required by law to carry minimum levels of liability insurance in 49 out of 50 states. As an example, standard auto insurance policies in California must include a minimum of $30,000 in liability coverage for bodily injury or death per person and $60,000 per accident, plus $15,000 in property damage per accident.²

Minimum requirements vary widely by state. Check your state insurance department or department of motor vehicles for more information on minimum liability coverage where you live.

How Much Liability Coverage Is Enough?

Minimum levels of bodily injury and property damage liability coverage may not be enough to protect you and your assets if you’re at fault in a major accident. When you cause an accident and expenses from it exceed your liability limits, you may be responsible for covering the additional costs.

Although setting liability limits is an individual choice, based on your budget, risk tolerance, and the assets you need to protect, you may want to consider higher liability limits. The following minimum limits are recommended by experts:

• Bodily injury: $100,000 per person and $300,000 per accident, or more
• Property damage: $50,000 to $100,000, or more
• Uninsured motorist: Equal to bodily injury

Adding Collision and Comprehensive

Collision and comprehensive coverage are optional, but they may be worth considering if the cost of repairing or replacing your car unexpectedly would be hard for you to manage. If you’re currently leasing or financing your car, your finance company may require you to carry collision and comprehensive coverage to protect their interest in your vehicle.

You can make getting or renewing your auto insurance a regular part of your back-to-school preparations. Figure out what coverage you need, factor in available discounts, gather up at least three quotes from the top providers for teachers, and choose the policy that gives you the coverage you need at the best possible price. If your circumstances change mid-year, you can contact your insurance provider any time to discuss your options and adjust your coverage.