College students have enough to worry about ranging from studying to the cost of tuition. Choosing the right car insurance shouldn’t be difficult, especially as it’s a necessity for many drivers. With the help of this guide, you’ll be able to find the best car insurance for college students. Not only will you learn about what to look for from insurance companies, but also, the specific providers to consider.
The Influencing Factors
First and foremost, let’s discuss the most important factors that affect the cost of your car insurance. Similar to most other forms of insurance, the higher risk you are, the more expensive your policy will be. However, there are other unique factors that influence cost as well.
Insurance companies operate similarly to any other company: they need to make money. Individuals classified as “high risk” are people that can cause a provider to lose money. With that being said, you can guarantee as a high-risk driver, you’ll be paying far more for your insurance. A spotty driving record can include a variety of things ranging from accidents to tickets, as all of these factors cost insurance companies money.
Mileage is also a huge factor to consider when it comes to insurance rates. The more often you drive your vehicle, the more wear and tear it’s dealing with. This can result in a higher likelihood of breaking down.
Additionally, the more you’re on the road, the more likely you are to get into an accident. People driving vehicles with higher mileages are prone to pay more for their vehicles over time.
However, this unique factor can help you save money, as we’ll discuss later on in this guide.
In every state, there are cities that are known for higher accident rates. This is why location is a huge indicator as to the cost of your insurance. If you live in an area that is prone to bad drivers and accidents, you’ll be paying for it in your insurance.
Unfortunately, this is also one of the most unavoidable circumstances that you’ll have to deal with. Especially as most college students are stuck to one geographical area because of where their school is located. With that being said, there may also be discounts that you can receive based on your location.
Type of Car
It might be interesting to head to a car dealership and pick out the coolest vehicle on the lot. You’d surely look fantastic riding around with your friends, however, you’re surely going to have to pay for it.
In most cases, the faster the car is, the more expensive it will be to cover. Many factors go into determining the insurable cost of a vehicle including what it’s built of, maximum speed, size, and even color. It’s also important to note that some vehicles are more likely to be stolen, which also increases your insurance.
If you’re searching for car insurance for students, you’re going to want to take your credit history into account as well. Did you know that providers use your credit history as a way to determine if you’re more or less likely to get into an accident?
It’s because the more responsible you are with your credit, the more responsible you’re likely to be with driving. It’s recommended that before you even start shopping around for quotes, you improve your credit history. With good credit, you can save up to $1000 or more per year.
Age is another huge indicator that will be considered when you receive policy quotes. Drivers under 25 are far more likely to deal with insurance rates that are far higher than older drivers. This is because younger drivers are characteristically more reckless and have less driving experience.
Unfortunately, this is another unavoidable cost that affects your insurance. Especially as the majority of college students are under the age of 25.
How to Save on Car Insurance
Now that you are aware of the main factors considered when totaling the cost of your coverage, it’s time to talk about savings. Even though the idea of paying insurance might seem like too much to handle, there are ways to save. The best way to find savings is to ask questions about any discounts that you might be eligible for.
Update Your Mileage
As mentioned, the mileage of your vehicle may determine how much you pay for insurance. Insurance providers typically have a general amount of mileage that they tack onto your vehicle yearly. However, these amounts might not apply to the type of driving you do.
If you’re driving a lot less than normal, it’s important to take the time to keep the information updated as it can help you to save money. Plenty of insurance providers give discounts in the event that you fall beneath their mileage predictions.
Live Closer to College
Where you are located can have a huge impact on your insurance premiums. Not only because certain areas have higher insurance rates, but also because of travel time. The closer you live to college, the less time you’re spending on the road daily.
This, in turn, reduces your chances of being in an accident, which then lowers your insurance costs. Additionally, you’ll be putting less mileage on your car which can also cut back on how much you pay for insurance.
Choose a Reliable Vehicle
It can be incredibly tempting to drive a brand new sports car on campus, but it’s also one of the most costly choices you can make. Additionally, you’re going to want to make sure that you choose a safe and reliable vehicle to save on your insurance. Instead of opting for a two-door sedan, it’s a better option to choose a van. This is because cars that are known as “more dependable” are the ones with the lowest insurance rates.
If you’ve done any research into different insurance agencies, you likely know there are many discounts to take advantage of. This includes safe driving discounts.
Most providers have a type of benefit that gives reduced rates to drivers with clean records. This is one of the best ways to offset the cost of owning a vehicle, especially if you’re not prone to accidents or tickets. The safer you drive, the more discounts you’ll receive.
Another benefit of driving safely is that you’ll find it easier to shop for insurance. Insurance companies consider your driving history before providing you with quotes. The more accidents you have on your record, the more expensive your insurance will be.
In fact, many drivers with spotty records aren’t able to sign with the biggest providers in the country. Whereas individuals with clean records can sign with relatively any company and are entitled to the lowest possible rates.
Review Your Policies Annually
This is a lesser-known way to make sure you get the most out of your insurance. Every year, you should consider looking at different insurance providers to see what they have to offer. These companies are always looking for new clients to take on.
As such, you should take the time to compare quotes from different companies. You may even be able to negotiate better rates if you’re thinking about switching from one provider to another. By keeping an eye on your policy, you’ll always be aware of any discounts you’re entitled to or better deals from other insurance providers.
How to Choose an Insurance Company
Selecting the right insurance company is a combination of several things. You’re going to want a provider that quickly processes claims, takes accidents seriously, and gives you the most benefits. It’s important that you find a provider that gives you everything you need as a young driver.
Young Driver Discounts
Covering young drivers can be risky, which is why your insurance is likely to be more expensive than other people in your family. However, some insurance providers give discounts to young drivers. You may even be able to find extra savings if you’re a college student. When you’re shopping around, make sure you inquire about any discounts you might be entitled to as a student.
Fast Claim Processing
When you’re dealing with an accident, it’s a difficult emotional and physical time. The last thing you’re going to need is to deal with an insurance company that doesn’t want to help. Also, you’re going to need the money from the accident as soon as possible to cover any costs. With a provider that processes claims quickly, you can take most of the hassle out of getting into an accident.
There’s no way around it, you’re going to be giving an insurance company a lot of money. In return, they should be able to appreciate your business. Customer appreciation revolves around customer service and driving discounts.
Every time you call your insurance provider, you should be able to work with an agent who knows the ins and outs of your policy. They should also be more than willing to assist you with any questions you may have. When you finish your conversation, you should feel more knowledgeable and comfortable with the answers you received.
The Best Insurance Companies for College Students
Now that you know the bulk of information about car insurance for college students, let’s discuss the best insurance companies for students. There are five that customers recommend you consider.
1. State Farm
There are a few different ways that State Farm helps college students save money. First, they have a Steer Clear Safe Driver Program that can help you to save 15% off of your insurance premiums. All you have to do is take an online course that revolves around driver safety.
The other method is the Good Student Discount, which is ideal for students with high GPAs. If you are able to meet the grade requirements while at college, you can save up to 25% off of insurance.
Additionally, if you’re in one of the “special” college towns, you can save even more. Combined, you have the opportunity to get up to 40% off of your insurance.
Allstate’s savings for college students benefit students and their parents alike. The most interesting discount they offer is for students who are attending school at least 100 miles away from home. The Resident Student Discount is ideal for young adults going to college in another city, or even country. Additionally, parents can save up to 30% off of their insurance if their child attends a school 100 miles away.
3. American Family
American Family is an insurance company that makes sure every member of your family gets the coverage they need. This is especially true for college students with good grades. You can access their Student Discount if you are a full-time student, rank in the 80th percentile of your class, or maintain a B average. With this discount, you can save up to 25%.
Another great way to save is with their Teen Safe Driver Discount. If you drive at least 3000 miles per year, you can access discounts. On top of that, American Family has a Young Volunteer program as well. For students under 25 that do 40 hours of volunteer work, you can qualify for additional insurance savings.
Many people suggest that Nationwide has some of the best savings for young drivers, especially as they’re available for students between the ages of 16 and 24. The Good Student Discount is similar to other providers, as it helps you to save as long as you maintain a B average. You will also need to submit proof of your academic achievements with a signed document.
Students who are homeschooled can also benefit from Nationwide’s Good Student Discount. You simply need to provide proof that you can score in the 80th percentile of standardized tests.
5. Liberty Mutual
The insurance discounts through Liberty Mutual are set up quite similar to State Farm. If you’re under 25, you’ll be eligible for all of them, however, those under 21 get additional savings. Students under 25 with a minimum GPA of 3.0 will be able to save. Also, those under 21 will be able to receive a Driver Training Discount once you finish the Driver Training Program.
Another discount is their Distance Discount. This gives you an immediate 10% off your insurance if you’re a member of one of their 14,000 alumni programs. All you have to do is attend one of the schools that they have on their list.
Instead of spending an excessive amount of money on insurance, it’s important you find ways to save the most money. By knowing which insurance providers have the best benefits and student discounts, you’ll be well on your way. This guide to car insurance for college students helps to make insurance incredibly affordable for most young drivers.