5 Tips to Save Money on Student Auto Insurance
Student auto insurance is extremely high priced due to the increased risk factor related to teenage drivers, as used by insurance providers to determine prices. Many automobile insurance plans allow the student driver to be insured on the parents’ policies while still in school, and qualify to get student discounts until they finish their education.
Student automobile insurance prices may be reduced by taking advantage of discounted rates that most insurance companies provide. Here are some tips for saving money when adding student auto insurance:
1. Stay on the family coverage. Generally, insurance costs less should the student live at home with their parents and remain on their policy. When a student moves out and establishes a new residence while going to school, most insurers require a separate plan for the driver.
2. Drop coverage – Owning older autos where comprehensive and collision coverages can be dropped will cut costs. If there are auto loans in force, normally these two coverages must be retained until such time as the loans are paid off.
3. Good student special discounts are structured for students who keep no less than a 3.0. grade point average, in combination with some other requirements. This particular discount is normally provided to students age 16 – 24 who accomplish this GPA, make the honor roll or dean’s list for his or her school, or accomplish high ranks on standardized tests including the Scholastic Aptitude Test (SAT). The good student discount could amount to fifteen to twenty percent cost savings for student auto insurance. Nearly all insurance carriers will likely enable this discount up until young driver reaches age twenty five, and the premiums begin to drop.
4. Distant student discounts could be applied for when the student will be away at school and there is no access to a car, consequently their mileage driven each year is usually nominal. If the driver takes a vehicle with them outside the state to college, extra student car insurance coverage might be required to be added given that insurers usually necessitate that insurance coverage be purchased inside the state where the auto is registered and mostly retained (garaged).
5. Defensive drivers programs offer the student an opportunity to experience expert, accredited instruction, thereby showing the insurance company they are a great risk. These courses can be found in most metropolitan areas, and may also be looked for on the internet. A large number of insurance companies will offer immediate savings after notification if this type of training course is completed.
Needless to say, the most basic thing that the student driver can do to keep their car insurance premiums as low as possible is to keep a clean driving history, and stay informed about traffic safety and rules.
