How College Students Can Save on Car Insurance
If you’re under the age of 25, finding affordable car insurance can be a very difficult task. It’s ironic that those with likely the least ability to pay for car insurance are charged the most, but insurance quotes are generally based on actuarial tables that estimate risk, and those statistics indicate that younger drivers, especially in urban areas or college towns, have a relatively high likelihood of getting in an accident. The statistics which are used to calculate insurance quotes are working against you, however there are still steps that young people can take to lower their car insurance costs.
Get Good Grades – Insurance companies have found that responsible students are often better drivers, so if you can shower your insurance company that you have a B average or above, are on any sort of honor roll, or are in the top 20% of your class, you can usually get a very good discount on your car insurance.
Have a Safe Driving Record – Drive Defensively, avoid accidents and tickets. Students with a track record of safe driving will be considered lower risk and won’t have to pay as much for car insurance.
Take a Driver’s Ed Class – Many insurance companies will offer discounts to drivers to take some sort of community drive, driver’s education, or defensive driving class. If you take one of these classes, you’ll be better informed has to how to handle unsafe road conditions, and deal with heavy traffic. This means you’re less likely to get in an accident and insurance companies know that.
Consider Getting On Your Parent’s Insurance – In some instances, it will be cheaper to be on your parent’s insurance rather than your own. If your parents are willing to have you on their insurance, get quotes from your parent’s company while being on their insurance and compare them to other rates that you can find on an open market.
Take Advantage of Low Mileage Discounts – For individuals who don’t drive that much or have very short commutes, insurance companies often offer some sort of discount because there’s less risk to insure someone who doesn’t have a long commute. If you’re a student that lives a few blocks from campus, or lives on campus and walks most everywhere, you may qualify for this discount.
Choose Your Vehicle Wisely – When purchasing your next vehicle, take into account the amount of money that it will cost to insure the vehicle. Sports cars are perhaps the most expensive type of vehicle to insure. Your best bet is to get a 5-10 year old sedan or coupe.
Buy a “Beater” - If you’re not particularly picky about what you drive, consider picking up a $3000-$5000 vehicle and only carrying liability insurance. It’s much more affordable than also having to pay collision and comprehensive insurance. You’ll have the added risk in your life of having to pay for all repairs, but it still can be a great deal for those with low incomes.