Insurance companies often charge young drivers more because they think they are more likely to get into an accident. The Centers for Prevention and Control say that drivers between the ages of 16 and 19 are almost three times more likely to be in a fatal accident than drivers 20 and older.
But you may be able to reduce your car insurance premium even if you are a student. So before you go to college, here are three things you should know about your coverage options and possible ways to save money on coverage.
College students may be permitted to remain on a parent’s policy.
Staying on your parent’s auto insurance policy is one way to keep your rates low. Even if you attend school out of state, you might be able to do this if one of your parents is on the title of the car you drive. But if you own your car and your name is the only one on the title, you’ll probably need to purchase a separate policy, which usually costs more.
If you plan on living at home while going to college, and you don’t own the car you’ll be driving, you may be able to stay on your parent’s policy. But if you live on campus or rent an apartment during the education year, check with your insurance company to see if you need to buy your coverage.
Even if you’re not bringing a car to college, it’s generally a good idea to stay on your parent’s insurance policy in case you need to drive home during breaks. If your parents own the car and you plan to keep it home while you are at school, they might get a discount on their policy. Staying on your parent’s auto insurance policy can also assist you in avoiding gaps in coverage, which can increase your rates when you purchase your own policy in the future.
College students, as younger drivers, usually pay more for car insurance.
Insurance companies usually charge younger drivers, like college students, more for car insurance, but how much you pay depends on many different things. But remember that you’ll usually pay less if you can stay on your parent’s policy. If you need a car at school and can’t stay on your parent’s policy, it can be expensive to buy your policy.
Listed below are some of the variables that can affect your rates:
The company sets auto insurance rates based on the car’s location. Your rates may be higher if your car is in a city than in the suburbs or the country.
Most of the time, the younger you are, the more you will pay. When you turn 25, your insurance rates tend to go down a lot if you have a good driving record.
The number of miles you drive
The better you drive, the more likely you are to get into an accident, so the more you drive, the more your insurance will cost. A pay-per-mile policy could save you money if you don’t plan to drive much while in school.
Car insurance rates may be cheaper for college students.
Even though you can’t change some things that affect your rates, like your age, there are things you can do to lower your cost. You might be able to obtain a discount on your car insurance from one of the many companies that offer them. Here are some examples, but your insurance company and state may have different rules.
Resident student discounts
If you’re going to college but keeping your car at home and staying on your parent’s policy, they may be able to get a discount because you won’t be driving as much.
You might be able to get a good grade discount from your insurance company if you study hard and keep up a certain GPA.
Multiple policy discounts
People who buy more than one insurance policy, like auto and renters insurance, often get a discount.
Anti-theft device discounts
You might obtain a lower rate if you take extra steps to keep your car from being stolen, like installing an alarm.
Driver training discounts
If you are under 21 and take a course on safe driving or driver education, you may be eligible for a discount.
Organization members get a discount.
Some car insurance companies give discounts to people who belong to certain fraternities, sororities, honor societies, or other student groups.
Be able to inquire about any insurance companies you’re considering if they offer discounts like the ones above or any other discounts that might be helpful. For instance, Erie Insurance gives a discount to unmarried students under 21 who live with their parents and are under the age of 21. It might be worth watching if you’re attending school in the state and don’t plan to live on campus.