Car insurance for young drivers can be expensive, but there are various strategies to lower the cost of coverage for college students. Though rates tend to decrease with age, there are actions that can be taken to reduce the expenses associated with car insurance for college students.
Remain on a Family Policy
In the United States, drivers can stay on their parents’ insurance policies until the age of 26. It is generally more cost-effective to remain on the current auto insurance plan rather than purchasing a separate policy for a college student. Most insurers charge less for additional plans than for individual policies.
However, there are potential downsides to including a student on a parents’ car insurance policy. For example, if a person has earned discounts for safe driving, they may lose those savings if anyone on their car insurance policy is involved in an accident.
Leave the Car at Home
Some insurers offer a discount for full-time students who leave their car at home while attending college elsewhere. Students who rarely return home or don’t drive much when they do may also benefit from a usage-based car insurance policy that charges by the mile.
Maintain Good Grades
Many insurers offer discounts to students who maintain good grades in school, providing an excellent opportunity to save on car insurance for college students. These discounts usually require students to maintain at least a B average or a 3.0 GPA or rank within the top 20% of their class.
These are general guidelines and may vary by the insurance company, so it’s important to check with your insurance agent to learn about your provider’s exact requirements.
Take a Driving Course
Many insurers provide discounts for completing an approved defensive driving or driver education course, which can help students become more responsible on the road and lower their car insurance rates by avoiding accidents.
Look for Other Discounts
In addition to student away-at-college, good student, and driver training discounts, insurance companies often offer more ways to save. Common car insurance discounts include multi-policy, multi-car, safe driver, and group discounts which can help reduce auto coverage costs.
Adjust Your Coverage
The types of coverage and their amounts are significant factors in determining auto insurance rates. Eliminating unnecessary coverage is a quick way to lower rates. However, it’s essential to weigh the potential savings against the increased risk, especially for younger drivers like college students who are more prone to accidents.
Consider a Telematics Program
Telematics insurance programs use GPS-enabled mobile apps to monitor driving habits such as speeding, braking, acceleration, and phone usage while driving. While some drivers find significant savings from these programs, it’s important to note that they can also result in increased rates.
