It is inevitable there will come a time in every student’s life when having a driving license will become the most important thing. Being able to drive will likely remain just as important for someone going to college. Unfortunately, insuring a young driver can be an expensive proposition for the student or a parent. On the plus side, many insurance companies do offer discounts for those who know what actions to take or questions to ask.
Insurance companies tend to charge students more for coverage because their youth makes them a higher risk. Dispelling that myth can go a long way to reducing the monthly charge on a policy.
Good grades – Having a high grade point average, at least a 3.0, will often encourage an insurance provider to offer a discount on the monthly rate. Parents can use this incentive to encourage their children to study hard. It should be noted college students may be required to maintain 12 credit hours to receive this discount.
Safety first – If a vehicle has not all ready been purchased for the student, look for a model with a proven track record for safety. Make sure it has anti-lock brakes and airbags. Not only can more safety features lead to a discount, it can provide a parent with some additional peace of mind. Taking a defensive driving class can lead to an additional discount.
While lowering the risk factor of a student can encourage insurance companies to offer discounts, there are other ways to lower the cost of auto insurance.
Higher deductibles – Increase the deductibles for comprehensive and collision coverage. This will lower the monthly premiums as well as prevent a driver from making claims on minor accidents. The only caveat is that if a claim does need to be made it will result in more out of pocket expenses.
Consider the age – Older vehicles are worth less and as such, insurance companies usually will not pay out as much in the event of an accident. In fact, it may cost more to repair the vehicle than will be received. Consider dropping collision and comprehensive coverage on an older vehicle, which will lower premiums. Again, be aware this will lead to the driver being responsible for repairs.
Stay with parents – Students can be added to a parent’s insurance policy as a part-time driver. The driving record of the parent will help keep rates low while covering the youth. If the student is going off to college, make sure to inform the policy provider as this could result in a discount.
Students that can show good behavior appear to be less risky, which encourages insurance companies to lower their rates. Adjusting certain aspects of the policy can also help. A combination of the two can ease the financial pain for a student driver, allowing them to continue to earn their freedom.
Jennifer Lewis writes for a site that helps female students find financial aid for college, including graduate scholarships for black women and free gov grants for women.
Well, most of the students are teenagers, and teenagers are considered as irresponsible drivers by the insurers. The insurers determine the auto insurance rates for an insurance applicant after evaluating how much of a risk they pose. Teenagers are considered as high-risk drivers since on an average they have been found to be distracted behind the wheels and are more involved in accidents. And a sports car in the hands of a young driver is deadly. Thus, if the auto insurance rates have to be kept within means, then you’ll need to convince the insurers that the driver is a responsible teenager. A safe car, good grades, clean driving records etc. are all different roads that lead to the same destination. And yes, instead of having an individual policy, it’s definitely better to be included under a parent’s auto insurance policy. However, the parents may lose their advantage of ‘cheap’ premiums and will have to pay more consequently.
ReplyDeleteDefinitely all young students always try to drive the car in very fast speed. They also not have complete knowledge of driving. It is very necessary for them having a good driving record. Students can lower car insurance rate by showing thy have good grades. Many insurance companies are willing to lower the insurance premium for students with good grades.
ReplyDeleteonline Car Insurance
The type of vehicle you choose to buy directly affects your insurance premium. Some cars are higher profile such as sports and luxury cars.
ReplyDeleteInsurance Car Seattle