How College Students Can Save Money on Car Insurance

Besides paying a mint for tuition, room and board, books and related expenses, college students often must pay for their own car insurance. Some students need a car to get back and forth to campus, or have taken their car with them as they live far from home. The cost of car insurance can quickly spiral out of control, but there are some ways this expense can be managed as well as reduced.

Obey the Law

Just one ding on your driver’s record can send your insurance costs soaring. This may not seem all that fair, but consider this: the industry is based on risk and driver’s under age 25 carry a greater risk.

Always obey the law when driving. If you get an infraction, you will pay a ticket, points and suffer higher insurance premiums for several years. You can ill afford to horse around behind the wheel of your car.

Defensive Driving Instruction

You say that you passed your high school driver’s ed course with a flourish? Well, since then your driving has been anything, but defensive.
Besides obeying the law, you can fix past problems by taking a defensive driving course. In fact, this course may be required if you have accumulated nine or more points on your driving record. The benefit of completing such a course is generally two-fold: you lose at least three points and your insurance rate will drop.

Get Good Grades

Students that get good grades are considered a lower risk by the insurance companies. Drivers as young as 16 and as old as 25 may qualify for lower rates by maintaining a "B" grade or better.

Discounts for good students vary and your insurer may ask for proof (your grades) before issuing you a discount. Discounts of 10 to 20 percent are possible, so work on your GPA and keep your social life in check.

Check Your Credit

Did you know that a certain three-digit number can spell the difference between high insurance rates and reasonable rates? That number would be your credit score, what insurers use to determine your risk.

Insurers have discovered a correlation between consumers that have a low credit score and claim filing. If your score is low, you’ll be considered a greater risk to insure. Guess what? You will be charged more for your insurance.

Your Family’s Policy

There are times when family involvement is beneficial. When seeking auto insurance, being tethered to your family’s policy is certainly one of them. For starters, you’ll be part of a multi-car insurance plan. Right away you will get a discount. Moreover, your family may be entitled to other discounts that you cannot get such as loyalty and affiliated plans with your father’s company.

A family policy does not always work. For instance, if your car is domiciled in a different state, then you will need to have a separate policy even if the same insurance company is used. Insurance policies vary from state to state, therefore your coverage will be slightly different too.

Further Savings

There are additional ways for college students to save on car insurance too. The type of car you drive will have a big impact on your insurance rates, therefore if you are in the market for a different car, consider the lower cost model over the fancy sports car. You can find savings by raising your deductibles or by dropping certain coverage such as collision. That 16-year-old sedan that your grandmother drove may have fairly low miles on the odometer, but it isn’t worth that much and collision coverage would simply be a waste of money.

Lastly, always shop around for auto insurance coverage as rates can vary from insurer to insurer. Make sure that your insurance company considers safety and security system features too including daytime running lamps and an anti-theft system.

Author Information
Jeff Mathis is an auto insurance expert. His aim is to guide you through the jargon and ensure you secure the very best deal. Learn more about the best rates from AutoInsurance.us.