Insurance is all about statistics and risks. Unfortunately for students, the statistics show that they are more likely to be involved in vehicle accidents and to show poor driving skills based upon their lack of driving experience and age. Affordable car insurance rates can be had for students who do their homework and make some concessions.
Defensive Driving – State approved defensive driving courses could offer a discount for student drivers. More education and driving instruction means safer drivers on the road. Many insurance carriers will give a discount for such instruction. However, classes that are mandatory because of traffic violations will not qualify for such discounts. The whole point of a defensive driving discount is to reward for knowledge and safety; traffic violations run contrary to safe driving practices.
“A” For Effort – Here’s another reason for students to hit the books. Good grades can pay off in the real world in the form of auto insurance discounts. Insurance companies often give discounts to students who maintain good grades.
Family Policy – A students insurance can be cheaper if they are insured on their parents policy instead of taking out their own insurance separately. A few calls and some research can determine the difference in rates for being insured with their parents or going it alone. Provided that the student qualifies to stay on their parents insurance and the parents allow it, it may be more cost efficient to consider doing so.
Resident Student – In addition to riding on a parents policy, students can receive a lower rate from the insurance companies that give a discount if the student is attending a school that is closer to home.
Higher Deductible – This insurance tip applies to everyone. A higher deductible can save you money on your policy, but you have to be prepared to cover the deductible should a collision occur. You have to weigh the cost versus the possibility that you won’t be able to afford to pay the higher deductible if the need arises.
Insurance Friendly Cars – A students dream car is rarely a car that will demand a low insurance rate. Instead of opting for sports cars, a student driver should pick a car with a lower associated insurance risk to achieve a better rate.
Skip Collision – Provided you don’t have a car note, you can probably skip collision coverage if your car has a low value. If you are driving around a cheap junker, then you can probably do without the extra expense.
Safety Features – If you do have a newer, more expensive car; you can shave some insurance cost off with safety features. Things like automatic seatbelts and anti-theft devices can net you some savings on your premiums.
Multiple Policy Discounts – Insurance companies want all your business. If they offer different insurance coverage, then they will usually give you a discount for bringing all your business to them. Renters insurance is a possibility for students who are away from home while going to school. For students who are on their parents policies, life insurance or homeowners insurance are options for additional coverage.
Shop Around – Sometimes a little extra leg work can mean big savings. Instead of automatically renewing with the same company; shop around and see what other companies have to offer and how they compare.
All discounts and savings may not apply to certain students or be valid in certain states or with certain insurance companies. Make sure you have all the facts about what discounts you are eligible for. One final tip; know that you can change insurance in mid-policy. There is no need to stay with a company until your policy expires if you find somewhere else you would rather be.
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