When students get to college, it is their first taste of independence. College is a time when they make many life-changing decisions. It is also a time where they balance having fun and going to lectures. Among the difficult decisions they must contend with is budgeting their finances. Understanding this is an important part when transitioning into adulthood.
Finding ways of reducing their expenses is not easy for any student. Among the financial challenges they face concerns car insurance. Keeping the car insurance rates as low as possible can help them save for other needs. Most car insurance companies have high premiums for people under the age of 25. Luckily, there are many ways students can save money and get discounts on car insurance.
Available Car Insurance Discounts for Students
There are several discounts that car insurance companies offer to students. These discounts depend on different factors applicable to the individual. Let’s delve into some of the car insurance discounts available.
Good Driving Discounts
Some auto insurance companies offer premium cuts to students with a clean driving record. A clean record means that they should have no at-fault accidents or tickets. They must maintain this record to stay eligible for the program. The terms and percentage discounts on premiums vary from one insurance firm to another. According to State Farm insurance reviews, offers such as Drive Safe and Save Program help many students stay safe on the roads.
Good Student Premiums
Making the dean’s list brings pride and joy to both the students and their parents. These good grades can also help you save on auto insurance. Some car insurance companies offer between 10 to 25 percent discounts on premiums for students in this category. They may give the offer to students under 25 years old. Those who are still students above this age must provide proof that they are full-time college students.
Defensive Driving Course
Taking a defensive driving course can go a long way to bringing down your auto insurance premiums. Most insurance companies view this as a way of you trying to become a safer and better driver.
For many students, taking this additional course while still in college seems cumbersome. Its advantage is that it can help you save money. Not all auto insurers offer this discount, though. It is advisable to confirm with your auto insurance company or broker before signing up for the course.
Affiliation Discounts
These discounts are for student drivers who are affiliates of certain organizations. Only a few auto insurers offer affiliation discounts. Some organizations that qualify for these discounts include:
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The military
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Fraternities and sororities
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Banking
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Honor societies
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Alumni of colleges
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Certain colleges
Auto insurance companies offer different levels of discounts, depending on the organization that you are in. You can only qualify for this discount for only one affiliation. If you have more than one, consult your auto insurance agent on which one has the best offer.
Occasional Driver Discount
This premium affects households with multiple student drivers. If the household has more student drivers than the vehicles available, one will be the occasional driver. The occasional driver can still fully access the car. The advantage is that the parent or head of the household saves on overall auto insurance.
Pay-Per Mile Premiums
Pay-per-mile is a new form of auto insurance where drivers pay their premiums per daily mileage. Each car insurance company has its criteria for offering this kind of insurance. There is a set daily rate and the amount per mile you drive.
Anti-Theft Discount
To qualify for this discount as a student driver, your vehicle must have a quality anti-theft system. Most auto insurance companies require a standard car alarm as the minimum requirement. A vehicle security system not only affords you an insurance discount but also allows you peace of mind.
Other Ways of Saving on Car Insurance
There are a few other ways of reducing your insurance premiums without depending on discounts. Some are:
· Type of Car
The model of vehicle you drive dictates your insurance rates. Larger expensive cars have higher rates than average cheaper ones. Small SUVs and minivans have the cheapest car insurance rates in most companies. Auto insurance premiums are also low if you choose to drive a hybrid vehicle or one that runs on alternative fuels. Apart from saving on auto insurance, you are also protecting the environment.
· Increase Your Deductibles
A deductible is the amount of money you pay above what is in your auto insurance coverage in the event of an accident. You can choose the amount of deductible when applying for your vehicle’s insurance. The rule in auto insurance is when the deductible is low, your annual premium will be high, and vice versa. The catch in this scenario is to drive safely and avoid at-fault accidents at all costs.
· Credit Rating
Some auto insurance companies check your credit ratings before determining your insurance premiums. This goes to say that the better your credit rating, the lower your premiums. To get the best car insurance rates as a student, do a lot of research and consult with others on their coverage.
Students who want to save on car insurance need to find out the discounts they qualify for and the amount they can save. Not everyone can qualify for all the discounts, though. It is possible to get the most affordable car insurance premiums for college students from reputable sources such as Market Watch. You can use such sites to compare prices and policies to get the most affordable car insurance.