You have completed high school and are now preparing to enroll in college. However, because of tuition, books, and living on campus, your list of expenditures is beginning to rise, and you are searching for methods to reduce your spending. I'm a college student; is it feasible to obtain a discount on my car insurance?
The answer is true, but you will need to consider your alternatives and do some comparison shopping to get the best deals. The following are some options for less expensive insurance available to college students.
Continue To Be Covered By Your Parent's Insurance
Keeping your name on your parent's car insurance policy will almost always result in the lowest possible premiums. Because young individuals often have shorter driving records and a higher risk of accidents, insurance companies typically charge them more premiums. You may take advantage of your parents' reduced rates and discounts for multiple drivers or loyalty if you continue to be covered under their insurance policy rather than purchasing your own.
If you are a college student, most insurance companies will let you remain on your parent's policy as long as your permanent address is the same as theirs. However, if you intend to live close to school during the year, you may need to consider purchasing your insurance policy.
If your parents have a history of traffic infractions and accidents on their driving record, purchasing your insurance might be less costly for you. This is especially true if the violations and accidents occurred in the past. Because insurance companies base premiums in part on the ZIP codes of their customers, purchasing a separate policy might save you money if your parents reside in the city and you go to school in a more rural or suburban region. If you want to purchase your insurance, you must remember that the car's title needs to be in your name, not your parents, to be eligible.
Reconsider Collision and Comprehensive Coverage
If you want to bring an older car to school, you should ensure that it is not overinsured with coverages like collision and comprehensive that you will not use. These kinds of coverage will only pay out up to the amount equal to the car's actual cash worth, less the deductible. If the worth of your vehicle is under $1,000 and you also have a deductible of $1,000, it is in your best interest to forego purchasing collision and comprehensive insurance.
Try Usage-Based Car Insurance
Because college campuses provide a lot of amenities that can lessen your need for a car, purchasing insurance dependent on your mileage might save you money. With this, you pay for miles you drive, and some of these insurers, don't charge beyond 250 miles or more, which means that you may take day excursions without having to pay any further costs.
Ask About Possible Discounts on Car Insurance for Students
While you are away at school, you can qualify for several different discounts, depending on the insurance carrier and the state where you live. Car insurance companies provide the following popular discounts to college students.
Good student
Many insurance companies will give you a discount on your premium if you are a full-time student and have strong grades (usually a B average or better), have high scores on tests. In addition to meeting the age requirements, you will be required to provide transcripts from previous schools attended or test results.
Students living apart from their home
Consider using a public car to school if the distance between your home and campus is greater than 100 miles. Certain insurance companies will provide a discount to college students who only use the family car when they are home for vacations or breaks from school. If you leave the car at home, you won't have to worry about getting citations or having accidents that would drive up your prices. This will help you save money on your insurance premiums over the long term.
Military
You can be eligible for a lower car insurance rate if enrolled in an ROTC program.
Student and alums organizations
Members of undergraduate groups, such as the American Medical Student Association or alums organizations, could be eligible for discounts.
Safe driving
Reducing your car insurance premium may be possible if you steer clear of traffic law infractions and collisions with other vehicles. However, this reduction will only take effect once you have shown that you are a safe driver for at least three to five years.
Young driver training
Some insurance companies may give you a discount on your premium if you successfully finish a training course designed to enhance your driving abilities and you fall within the acceptable age limit for the policy.
