cheaper car insurance for student?

cheaper car insurance for student?

Finding Cheaper Car Insurance for College Students

College students often get stuck paying sky-high car insurance premiums. With limited incomes but big transportation needs, finding affordable coverage can be a struggle. This guide will explore why student auto insurance is so expensive and provide tips to cut costs.

Why Car Insurance is Expensive for Students

There are a few key reasons why teens and college-aged drivers pay more for insurance coverage:

High-Risk Factor

Insurance companies classify young drivers as high-risk because they lack driving experience. With fewer years behind the wheel, insurers believe you have a greater chance of causing accidents and filing claims. This risk gets priced into premiums.

Lack of Driving Experience

Not only do young people have fewer overall years of experience, but college is often the first time drivers face new environments, traffic patterns, and parking situations. This inexperience raises insurance rates.

More Accidents and Violations

The data backs it up – drivers aged 16-24 have the highest accident and traffic violation rates in the US. This further feeds into higher premiums.

Premium costs for students

Car insurance for students is generally more expensive than average rates. Premiums can easily cost over $200 per month even for minimum coverage. Rates are higher due to:

  • Lack of driving experience
  • Higher accident and claim rates
  • Tendency to drive sports cars or other high-risk vehicles
  • Limited budgets to afford higher coverage limits

Factors that influence costs

Insurance companies set rates based on risk factors like:

  • Age: Teen drivers pay the highest premiums that then decrease with age
  • Driving Record: Accidents and tickets raise rates; clean records get discounts
  • Credit History: Better credit can mean lower premiums
  • Location: Insurance costs more in urban areas
  • Vehicle Type: Sports cars and luxury vehicles have higher insurance costs

Tips to Reduce Student Car Insurance Costs

While student rates are expensive, there are some proven ways to cut those car insurance costs:

Shop Around and Compare Rates

Don’t just accept what your current insurer is charging. Spend time comparing quotes across insurers – prices can vary widely for the same coverage.

Maintain Good Grades

Many insurers offer a good student discount, generally for a B average or better. Bring proof of grades to get lower premiums.

Take Defensive Driving Courses

Completing an approved defensive driving course can earn you a discount of 5% to 15%. These classes teach accident avoidance skills.

Limit Miles Driven

The more miles you drive, the more exposure to accidents. Consider usage-based insurance plans (pay-per-mile billing) or commit to driving fewer miles to save.

Drop Unnecessary Coverage

Consider dropping comprehensive and collision coverage to save substantially on premiums:

Collision and Comprehensive Coverage

These optional coverages pay for damage to your car. They’re expensive for young drivers and can potentially be skipped to save on premiums each month if you drive an older car.

The Best Car Insurance Companies for Students

Based on expert reviews and average rates, these national insurance companies offer the most affordable rates combined with strong service for student drivers:

Geico

Geico provides very low rates for students who maintain good grades. Their discount can be as high as 15%.

State Farm

State Farm offers customized discounts for students through its Steer Clear program. Rates stay low after graduation too.

Allstate

Allstate features accident forgiveness and safe driving bonuses that can help students improve rates over time.

Progressive

Progressive provides tools like Name Your Price and Snapshot to help student drivers compare policies and personalize premiums.

Other Ways for Students to Save on Car Insurance

Beyond the usual tips, a few other creative options to curb costs:

Stay on Parents’ Policy

Adding your car to mom and dad’s insurance policy as a secondary driver keeps rates low thanks to their driving history. Premiums are split across policies.

Ask about discounts

Inquire with providers about discounts like:

  • Multi-policy (bundle home/auto)
  • Multi-car
  • Away-at-school
  • Good credit
  • Anti-theft devices
  • Low annual mileage

Finding the Best Car Insurance Rates as a Student

To find cheaper student car insurance rates, be sure to:

Compare quotes from multiple providers

Get quotes from national brands, local agents, and online insurance companies. Compare them to find the best price.

Look for student-specific options

Some insurers offer policies and discounts tailored specifically to students. These can offer better rates.

Consider parents’ policy or public transportation

Adding a student to their parent’s policy as a secondary driver or using public transportation can also reduce costs.

Conclusion

While students do pay higher premiums, there are many discounts and money-saving tactics to reduce the costs of car insurance during your student years. Maintaining good grades, taking safety courses, minimizing risk factors, and comparing rates from various providers can help find the most affordable coverage. With some effort, students can get cheaper car insurance.

Frequently Asked Questions

How much is car insurance for a teenage driver?

For teens, car insurance averages $400-$600 per month for minimum coverage limits, with rates starting above $200 per month. Exact costs depend on factors like age, driving history, and location.

Should I only get liability coverage as a student?

Liability-only policies are cheaper, but collision and comprehensive coverage is recommended if finances allow, to protect your vehicle investment in case of accidents or other damage.

Can my parents add me to their insurance?

Yes, adding a student to their parent’s policy as a secondary driver can reduce insurance costs since the policy uses the parents’ driving record and risk profile.

Is there an insurance discount for students with good grades?

Yes! A good student discount offers up to 25% off for a B average or higher. Simply provide your report card to get the discount.

How much does defensive driving save on insurance?

Taking an approved defensive driving class can reduce car insurance by 5-15% on average, while also helping improve driving skills.

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