Students may find car insurance very costly. Insurance companies usually charge young drivers more due to the lack of driving experience. The good news is that there are numerous ways in which students can save money on auto insurance.
Why Do Students Pay So Much for Car Insurance?
Insurance companies consider risk. Younger drivers are perceived as the high-risk category, particularly those under 25, since they are more likely to be involved in accidents.
Additional factors that influence the student insurance rates include:
Age
Driving history
Type of car
Location
Credit score (in some states)
Although the rates may be high, there are effective ways to reduce them.
- Stay on Your Parents’ Policy
Staying on your parents’ car insurance policy is one of the simplest ways to save on your policy.
Why this helps:
A family plan is usually cheaper.
Multi-car discounts can be used.
Parents would already possess good driving records.
When you are a housewife or cannot afford to make a living, this will save you hundreds of dollars per year.
- Search for Discounts for Good Students.
Many insurance companies offer numerous good student discounts.
You may qualify if:
You have an average (3.0 GPA) or better.
You are a full-time student
You go to school without having a car.
This cutback will be able to save your premium between 10-25%.
- Select a Safe and Low-cost Car.
It is about the kind of car you are driving.
Less expensive cars to insure:
Sedans
Small SUVs
Highly safe cars.
Cars that cost more to insure:
Sports cars
Luxury vehicles
High-performance cars
When you are a student and purchasing your first car, make it safe and not stylish.
- Increase Your Deductible
Deductible refers to the amount paid prior to insurance taking up damage.
In case you raise your deductible:
Your premium level at the end of a month reduces.
But do not forget to be able to pay more in the case of an accident due to the increased deductible.
- Enroll in a Defensive Driving School.
There are insurance firms that will give you a discount in case you attend a defensive driving course.
These courses:
Teach safe driving skills
Help reduce accidents
Prove to show insurers that you are responsible.
The discount does not need to be massive, however, any percentage counts.
- Compare Multiple Quotes
Do not select the first company that comes by.
Always:
Compare not less than 3-5 insurance quotes.
Test big and small insurance companies.
Inquire on any available discounts.
The rates may differ significantly among the companies.
- Take into consideration Usage-Based Insurance.
There are companies with programs that follow your driving patterns with the help of an app or a device.
If you:
Drive safely
Avoid hard braking
Do not speed
You may receive lower rates.
It is an excellent choice among responsible drivers among students.
Final Thoughts
Student car insurance can be considered very costly, although it can be reduced in numerous ways.
To save money:
Hang to the plan of your parents, as much as you can.
Maintain good grades
Drive a safe car
Compare quotes
Drive carefully
Better decisions today can make your future driving history and your insurance expenses less expensive.