5 Great Options On Cheap Car Insurance for College Students
It is hard enough that college students have classes, jobs, loans, and financial struggles to worry about. They have very high car insurance rates to deal with as well. Everyone knows that people under the age of 25 have the highest car insurance rates. This is because insurance companies consider them “high risk” for violations and accidents. While there is no way to avoid a high insurance premium for college students, there are options to get them a little cheaper. Check out these 5 great options on cheap car insurance for college students.
Get on Your Parent’s Plan
One option for college students to get auto insurance that they can afford is to get on their parents’ policy. This option is available to those students who are living with their parents while going to school. While the students won’t have to worry about getting high premiums, a family insurance policy will also be beneficial to everybody else in it. This is because everybody covered by the policy can split the premium. As a result, each person pays less than if they have their own individual car insurance policies. That can really lower the price on car insurance for college students.
Another great policy option for car insurance for young drivers is the pay-per-mile or pay-as-you-drive insurance plan. This policy, which has only been recently introduced, charges a policyholder based on the driving mileage consumed instead of on a fixed monthly premium. While not all insurance companies offer this, the companies that do have reported that pay-per-mile policyholders have saved 20% – 40% on their premiums. This policy is ideal for out-of-town college students as most of them spend much of their time in campus and the area around it.
Look at Discounts
Many car insurance companies offer discounts for full-time student drivers because they understand that college is financially draining. College students should ask their agent if they are qualified for this. Another discount college students can take advantage of are safe driver discounts, for which they can be qualified if they complete a driver’s safety course. Discounts like these will help them get cheap auto insurance for teenagers. It will also lower college students’ high premiums. They should inquire about such discounts and discuss them with their insurance agents.
Keep Your GPA Above 3.0
Another option on car insurance for college students is that students can lower their insurance premium if they keep their GPA above 3.0. A college student’s GPA is one of the many factors that insurance companies use to determine a customer’s monthly insurance premium. Maintaining an average grade of above 3.0 earns the insurance companies’ trust on a student’s sense of responsibility and will award that student with a lower premium. Additionally, if a student is on the dean’s list, the premium will decrease even further.
Choose Your Car Wisely
When deciding on a car to purchase, college students should consider bigger cars and newer models. They should also consider installing safety features on their cars like an alarm system and airbags. Having safe cars like these will encourage auto insurance companies to lower premiums for college students. On the contrary, fancy, expensive sports cars will only increase insurance rates and premiums, as these are more expensive to repair or replace and are more at risk of getting stolen.
Car insurance companies are notorious for giving very high premiums to college students because they are what they call “high risk” clients. However, this fact is not carved in stone. College students can find cheaper alternatives or even ways to get lower premiums and rates. Cheaper auto insurance is not impossible to find. Read up on this article on car insurance for women to see other ways you can save on car insurance.