Student Auto Insurance

Students typically needs to find every way they can to save money.  Tuition, books, and living expenses eat up their meager income from the parttime jobs they hold.  Finding a suitable auto insurance policy and a rock bottom price should be a top priority of all struggling students. 

Searching for a new policy can now be managed straight from their dorm room. Online insurance tools can provide multiple quotes in as little as fifteen minutes. These sites will lead you through a step-by-step process to determine which insurance plan suitably fits the consumer’s needs. There are questions related to age, location, types of vehicle etc which are fairly standard.  Other questions, if answered properly could help save substantially on the quoted rates.

Factors That Can Reduce Student Insurance Premiums

There are sometimes other situations that may help lower cost. For example:

  • Good Student Discounts – Many carriers actually offer better rates for students that maintain a competitive GPA. Usually this requires a B average. In some cases, making the Dean’s list can also help lower rates further
  • Living on Campus – If you live on campus, then you will be driving significantly fewer miles on a daily basis.  This is one of the key factors in determining your rates and could reduce your rates. 
  • Maintaining your Credit – If you are able to avoid falling behind on your bills and stay away from too much credit card debt, you will also save on your insurance premiums.  A strong credit score is very attractive to an insurance company because not only will you pay your bill but you are also statistically less likely to be in an accident.

These discounts vary across companies and states.  Do your homework and ask specific questions about which discounts you qualify for.

Factors that Can Increase Student Insurance Premiums

Several important factors that negatively affect your auto insurance premiums:

  • Poor Credit Score – Having a credit score under 600 will make you appear to be a high risk client to an insurance company.  People with poor credit are much more likely to default on their premiums and cost the insurance company significant time and money to fight you for it. 
  • Traffic Infractions – Even small tickets or moving violations can come back to haunt you.  If you live in an at fault state and are found liable for even a trivial accident, you will see your rates skyrocket. 
  • Motorcycles Are Costly – The potential fuel savings from riding a motorcycle can quickly be eaten up by the increased coverage cost for the insurance.  Until you are in your mid to late 20’s, insurance companies will charge high rates to insure these vehicles.
  • Driving the Wrong Car – Small and fast cars are actually the most costly to insure. It may seem logical that larger SUV’s may cost more to insure, but smaller cars rank before SUVs. Younger, less experienced drivers tend to drive sportier and faster vehicles. Acuras and Nissans are among the sportier vehicles that rank toward the top of the list. Honda Pilots and many Ford sedans operate on the lower end of the scale. 
  • Age – This is one area where age discrimination is real and legal.  Students younger than 25 should expect to pay significantly more for their premiums.  People in this age group typically take more risks, are less settled, and end up making more claims than people over 25.
  • Metropolitan Drivers – Densely populated areas will typically have a much higher rate of accidents which leads to higher premiums for all drivers.

When these aforementioned factors are added together, finding competitive auto insurance may seem daunting. When searching for the perfect quote, all of the previously mentioned issues must be considered so that an accurate quote can be given by the insurer. Find out which plans favor certain issues over others.

The internet is the best way to find informative auto insurance quotes these days. However, comparative shopping, detailing specific companies, and asking important questions is still necessary to save. Remember, some companies will offer specific incentives and perhaps partially overlook a driver that owns risky sports car, while others may squeal at the sight of a minor traffic infraction. In order to find the most competitive rates out there, use the finder tool at the top of the page.

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