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The reality is young people pay the most of any demographic for automobile coverage. The good news is cheaper student auto insurance can be attained by making some smart moves. Below are some simple steps students can take to lower their premiums.
1. Stay on your Parents Policy
Unless you are making serious money and can afford super high premiums, talk to your parents about adding your car onto their policy. This will save you about 20% or more. Bundling multiple automobiles is a simple way to save and this includes students living on a tight budget.
2. Get Several Discounts
As a young driver, you might be thinking there are no discounts available for you. This is simply not true. If you have a solid GPA of a B or higher, you automatically qualify for a price break. Getting top grades will not only help you get a good job later on, but will lower your premiums about 5% or more. So why do insurers give lower rates to students with good grades? The secret is in the data. Auto insurance companies have compiled a huge amount of statistical data about accidents. There is a direct link between people who are disciplined and responsible academically and lower vehicle crashes. Car insurance premiums are based on the perceived risk associated with a driver, based on a person’s profile. After you finish school, you can continue to get these discounted pricing for up to a year, which is another incentive to get good grades.
To get this discount, students need to meet several qualifications. These include:
* Most auto insurers offer these special prices to students that have and maintain a G-P-A of a B or higher during the school year. The old adage of hard work pays is absolutely true.
* You need to be an active full-time student at a high school or college.
* Most car insurance companies put a cap on this discount at 25.
If you are reading this as a parent, talk to your kid about using this as a motivation for getting great grades. Reward them with something special, like a night out at a special restaurant, if they come home with a good report card.
3. Take a Certified Safe Driver Class
A great way for students to both learn about safe driving and lower their rates is by taking a driver safety class. Usually, the classes are held by retired highway patrol police officers who will share their amazing tips on how to stay safe on the road. You will learn how to drive carefully in rainy weather, snow and what to do to avoid accidents to name a few lessons. After you complete a certified class, call your provider and ask for this discount. Many companies will give an automatic 10% price reduction.
4. Buy a Vehicle that is Cheaper to Insure
The vehicle that you buy is one of the biggest things that will determine your car insurance costs. If you are a young student on a fixed income or have no job, it only makes sense to get a car that is cheap to insure. Yes, this means a boring car like a Toyota Corolla or used Subaru. Vehicles that are 5 or more years old can be bought at 50% off retail. If you buy the car outright and don’t finance it, you will have more control over the coverage you buy. If you don’t drive too much and are careful on the road, it might be smart to get a cheap liability only policy. This can be had for about $100, even for young students under 25 years of age.
5. Consider a Resident Student Discount
Most people have never heard of a resident student insurance discount. In a nutshell, those students who leave for college in a different state or city can get a big discount on rates. The big thing to consider however is students cannot drive while school is in session. They will be restricted to special events, such as the Christmas holiday or summer vacation. Students who want to take advantage of this program need to first contact their insurer to make sure it’s available and then provide the proper documentation, which is a certified copy of admission to the school or university they are enrolled in.
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Source: http://ezinearticles.com/?Cheaper-Student-Auto-Insurance&id=9554386
