As a college student, car insurance probably isn’t very high on your priority list. However, it probably should be. In most cases, it is required by law and it is also important to have to protect your property as well as your financial well being in the event of an accident regardless of who is at fault. I understand that as a college student you have plenty (and I mean plenty) of expenses to worry about without throwing car insurance on top of the pile; however, it is a necessity… not a luxury.
Unfortunately, car insurance isn’t always affordable… especially for young drivers. In fact, according to Quoted by The Zebra, “Statistics show that for drivers under the age of 25, there’s a significantly higher risk for accidents. As a result, the age group of 16 – 25 year-olds will face the highest insurance rates in the country.” Yikes!
But wait, don’t despair! With a little research and creativity you can score student cheap car insurance. Here are some tips that may be useful:
Lean on Mom and Dad
As a college student you may be covered under your parents’ insurance. Since your parents have an established driving history (hopefully a good one), your insurance will likely be cheaper if your policy is bundled with theirs. The ability to get insurance under your parents’ policy varies by state, age, and insurance company so be sure to talk to an insurance agent to verify the details. If this is an option, I highly recommend it as it is one of the easiest ways to score student cheap car insurance.
More is Better
If you have renters insurance or any other insurance policy, try to get your auto insurance policy from the same company. When you have multiple policies you tend to get special discounts. For example, Nationwide offers up to a 25% multi-policy discount. What’s great about this is it isn’t just student cheap car insurance… you can keep saving even after college.
Study, Study, Study
Many insurance companies will give you a discount on your car insurance if you get good grades. Yep, all it takes to get student cheap car insurance is hitting the books! The GPA (grade point average) required to take advantage of this special discount varies from company to company. For example, Nationwide will give you a discount of up to 15% if you have a B average or higher.
Leave Home… but Leave Wisely
Moving away from home may actually make you eligible for student cheap car insurance. According to Dave Carpenter of USA Today, car insurance premiums for students may be reduced by up to 20% if the student attends a college more than 100 miles away and doesn’t take a car.
However, this discount may be zeroed out, so to speak, if you pick a state where car insurance is more expensive. Do your research and see what states pay the highest car insurance premiums and which pay the lowest. According toInsurance Business America, the states topping the list for most expensive car insurance in 2015 are:
- Michigan
- Montana
- Washington DC
- Louisiana
- Florida
It isn’t just the state your college is in that will affect the price you pay but also whether it is a rural versus urban setting. Typically, if your school is in an urban setting your rates will be higher because insurance companies know that urban settings have more traffic and more traffic means a greater chance for accidents.
Enroll in School
Signing up for drivers ed (which is required by some states, such as Ohio, in order to get your license at the age of 16) or other insurance approved educational courses can also help you get a discount on auto insurance. What’s great about this is you get student cheap car insurance and learn important tips and tricks that may save your life while you’re behind the wheel!
Gadgets Galore
High tech cars may be the way to score student cheap car insurance. For example, if you have an anti-theft device in your vehicle, full front-seat airbags, or restraint devices that work automatically when the car door closes you may qualify for additional car insurance discounts. To see which features can help you save with specific car insurance companies, check out this comparison chart from bankrate.com.
Raise the Roof… Err, the Deductible
If you don’t qualify for many of the discounts listed but still need to find student cheap car insurance, consider raising your deductible or making other changes to your car insurance policy. For example, if you change your policy so that it does not cover a rental car in the event of an accident you may be able to save money. If you change your policy so that it has a higher deductible your monthly premium should go down. Talk to your insurance agent about what tweaks can be made to make your policy more affordable.
Out with the New in with the Old
If you’re going to be purchasing a new car, head on over to the used car lot. Used cars will be easier on your wallet and tend to come with a lower insurance premium.
Family Friendly
Another thing to keep in mind when purchasing a car is the type of car you’re getting. When you need student cheap car insurance forget that sporty convertible and go for the family friendly type vehicles (ex. sedans). You can always ask your insurance agent about the different rates on different types of cars before making a final decision.
Break Bad Habits
Traffic violations, claims for accidents, and bad driving habits can also affect your ability to get student cheap car insurance. Drive safely and obey the law! The longer you go without violations and claims the lower your premium should go. In addition, some insurance agencies offer devices that can be plugged into your car to measure your driving habits. If you agree to such a program, the device will track your driving habits over a certain amount of time and if you’re a safe driver, your insurance premium may be lowered.
Final Thought on Student Cheap Car Insurance
As a student, cheap car insurance may be all you can afford. However, please keep in mind that the cheapest insurance isn’t always the best. Make sure to do some comparison shopping both in terms of the monthly premium you’ll pay and what you’re getting for your money.
For more savvy money advice and other helpful college related articles, follow Freebie Finding Mom’s College Life Pinterest board.
Thanks, Nationwide, State Farm, andThe Zebra!
