There’s good news and bad news for new and returning college students getting ready for the Fall semester.
First the good news: Insurers love them. College students exemplify the sort of discipline and responsibility that leads to safer driving, resulting in less insurance risk. Reduced risk is higher profit-margin for insurers on auto insurance for college students.
Now for the bad news: Insurers are leery of them. College students are grouped into what is called a “high-risk” group, ages 16 to 24, and statistically tend to have more accidents and traffic violations due to their inexperience, making college student auto insurance more expensive. The only age group more expensive to insure is the “85+” group. Insurers also consider males to be a higher risk to cover than females. More risk means less profit-margin for insurers.
One of the big questions students often ask themselves is do they even need college student auto insurance. The answer is a resounding yes! Carrying car insurance is mandated by just about every state in the Nation and driving without insurance is illegal and could turn into bigger headaches such as financial difficulties or even jail time.
It’s not the end of the world for them though. They just need to do a little extra to save on auto insurance for college students. So unless a 25th birthday is coming around, the tips below should help families and scholars alike save on auto insurance for college students.
- Don’t drive, if possible. The average college student auto insurance premium is $2,500. That’s a lot of instant noodles. If driving is a must, students can alternate driving with using the bus or car pooling. Insurers usually charge less when a driver’s annual mileage is low.
- Be patient. Insurance premiums drop off at age 25.
- Go cum laude! Insurers often offer lower premiums to college students with 3.0 GPA or above.
- Stay in the nest. It’s understood that college is a sign of independence but staying on the family’s insurance policy will save money on college student auto insurance.
- Never too early to think about credit scores. College is a perfect time to start building credit history. So paying the bills on time will help build credit as well as earn the best rates from insurers on auto insurance for college students.
- Don’t be a stereotype. Just because some actuary says college students are risky drivers doesn’t make it so. Watch the speed limits and keep it slow to save on auto insurance. Also, get a taxi or use a designated driver to avoid a DUI which may lead to a drop in coverage.
- Wait until after graduation to get the ‘Vette. A quiet sedan with plenty of life-saving features such as ABS braking, side and front air bags will not only save money on auto insurance for college students but will also save lives. If a new car is out of reach though, going with a hand-me down car is another solid strategy to save on college student auto insurance.
- Dropping collision coverage on a used car is another way to save on college student auto insurance. A good rule of thumb on dropping collision coverage is if the car is worth less $2,000, then it could be dropped and that money put away in a separate account to be tapped in the event the car is totaled. Kelley’s Blue Book or the NADA guide books are good sources to determine a car’s value.
- Safety or defensive driving courses are a small investment in time and money but pay big dividends when it’s time to purchase college student auto insurance.
- Go with a higher deductible for lower premiums.
It’s also always important to seek out the best deals and college students can kick off their search for the lowest insurance premiums by visiting AutoInsuranceMonitor.com to get the latest insurance news as well as online auto insurance quotes from the top names in America.