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Finding inexpensive Student Car
Insurance is a complicated affair but it doesn't have to be
overwhelming. The internet has now made it a whole lot easier to
find information about Student Car Insurance policies online, to
find information on specific companies, and to eventually receive a
good Student Car Insurance quote. In the past, students have
sometimes had a hard time getting car insurance, as they were
perceived as a high risk by some insurance companies. |
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This is changing, and there are now
insurance companies that specialize in providing student car
insurance, although the cost of this can vary depending on the type
of policy required. Third party, third party, fire or theft or fully
comprehensive are available with fully comprehensive being the most
expensive, the value of the car is a good indicator as to which to
choose. Other factors that must also be taken into account when
shopping for student car insurance, is where you are living. If you
are at home with parents it may be slightly cheaper rather than
living in halls of residences as the insurance provider may deem the
car more at risk away from home for long periods.
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It is worth taking the time and trying
to get the best deal and value for money, online student car
insurance providers often offer cheaper premiums and extra discount
for buying online. The advantage of getting car insurance in your
own name, rather than as a named driver on your parents policy means
you can start building up your no claims bonus, therefore making
future premiums cheaper.
Insurance rates are determined by a number of factors, including
driving record, gender and ZIP code. Young people love sporty cars,
but the truth of the matter is your insurance company is going to
nail you if you drive one. The best thing that students may do to
keep low insurance rates is to maintain their good-driver discount.
The best way to reach both quantity and quality is to be informed.
Very often people end up buying more coverage than they need because
they don't know the different terms involved in Student Car
Insurance. Worse yet, they buy too much insurance in one area and
are underinsured in another. This can deeply affect your pocketbook
if you were to ever get in an accident, so it is important to know
all of the terms up front, as well as the factors that can make your
rates go up and down.
• Good grades, better rates. If you make good grades in school, let
your insurance company know. Students with a “B” average or higher
(3.0 on a 4.0 scale) are considered lower risk drivers. Earn a
substantial discount just by presenting a copy of your report card.
• Students who live close to campus and do not drive much are often
eligible for low-mileage discounts. Participants in “Driver's
Training Program” classes on insurance issues may also qualify for
discounts.
• Drive an older car. You likely won't turn heads driving a 1993
Ford Escort, as opposed to a 2003 Corvette, but you will save a ton
of cash on your auto insurance policy. Cars that are made out of
steel are far cheaper to fix than sports cars made out of
fiberglass. The rate of injury and theft is also lower in an Escort
than a hot rod. Plus, if your car is worth $3,000 or less, you can
choose to eliminate collision insurance from your policy.
• Maintain good credit. Pay all of your bills on time so that your
credit score is strong. Automobile companies look at your credit
history because they believe there is a significant correlation
between good credit and good driving habits - and vice versa.
• Strive for a good driving record. As tempting as it is to drive
your Maserati 185 miles per hour, obey speed and traffic laws. The
money you save from fines and higher insurance rates is worth the
“slow poke” label you may get from fool-hearted friends. Also, if
you can find a driver's education course, take the class, and let
your insurance company know about it. It can save you bucks on your
insurance premiums.
• Membership has its privileges. Let your insurance company know
about any memberships in clubs or organizations. For example, GEICO
offers significant discounts for fraternity membership, Golden Key
National Honor Society membership, and scores of other student and
alumni organizations. AAA members can get discounted rates by
purchasing auto insurance through AAA's insurance partnership with
American Insurance Group (AIG).
• Drive on mom and dad's policy for as long possible. Students who
get their own policy pay more because they are listed as a “primary”
driver, placing them in a higher risk pool. But, if you stay on your
family's policy and list yourself as a "secondary" driver on a car,
you get the price break of your parent's age as the primary vehicle
operator and can get another cost savings from having a multi-car
discount on the policy.
• Higher deductibles, lower premiums. By raising your deductible,
say from $250 to $500 for liability insurance (covers medical costs
caused by you in an accident); you can save several hundreds of
dollars in premiums. Also, you can save by lowering the limits of
coverage. So, instead of carrying 100/300 ($100,000 of coverage per
person/$300,000 per accident) of liability insurance, you can
decrease this coverage to 50/100 ($50,000 per person/$100,000
maximum. But make sure you carry the state-required minimums for
legal operation of your car and that you carry enough insurance to
adequately protect you if the worst-case scenario happens.
• If you work while going to school and are close to home, you can
save money on car insurance if you work within three miles of home
and primarily use your car to go to and from the workplace.
It is possible for students to receive low rates on auto insurance
-- they must simply shop around to find the best rates, according to
auto insurance experts. |
