Students Seek Auto Insurance Savings: Unlocking Discounts

Students can get car insurance discounts in a variety of ways. The most common methods include good student discounts, where full-time students with a B average or above can get between 4% and 20% off their car insurance. Students can also benefit from leaving their car at home if they are studying far away from home, with some insurance companies offering a discount for those leaving their car at home and attending school over 100 miles away. Additionally, students can save by bundling their renters and car insurance policies.

Good grades discounts

Students can save between 4% and 20% on their car insurance by getting good grades. This is known as a "good student discount". To qualify for a good student discount, you must usually be a full-time student and earn at least a B average in your classes. You will also need to submit proof of your grades to your insurer.

• Be a full-time high school, college or homeschool student
• Earn at least a B average or a 3.0 GPA
• Alternatively, score in the top 20% on standardised tests such as the ACT, SAT, PSAT, TAP, PACT, California Achievement Test or Iowa Test of Basic Skills

Once you have confirmed that your grades qualify you for a good student discount, you will need to provide proof of your marks to the auto insurer. This usually involves sending a copy of your latest report card or transcript.

• State Farm: Offers savings of up to 25% for students who maintain high grades. Students can qualify until the age of 25.
• Geico: Offers a discount of up to 15% for full-time students who maintain at least a B average.
• USAA: Offers a good student discount for students who are between the ages of 16 and 25, are full-time students, and have at least a B average or rank in the upper 20% of their class.
• Allstate: Offers a good student discount of around 20% but its rates are more expensive than average.

Leaving a car at home while at school

Distance to School

If your child's school is located more than 100 miles away from your home, you may be eligible for a "student away at school" discount. This discount typically ranges from 15% to 30% and is offered by many insurance companies. It is important to note that most insurers require the student to live over 100 miles away from home to qualify for this reduction. Therefore, if your child's school is less than 100 miles away, you may not be eligible for this particular discount.

Driving Behaviour

If your child will not be taking a car to school, especially if they will be living on campus and not visiting home often, removing them from your policy could result in significant savings. Young drivers are considered high-risk, so excluding them from your policy can lower your premium by up to $2,500 annually. However, it is important to remember that if your child does drive while away at school, they should be kept on your policy to ensure they are covered in case of an accident.

Continuous Insurance Coverage

Another factor to consider is building a record of continuous auto insurance coverage for your child. Keeping them on your policy while they are away at school can help establish this record, potentially resulting in lower insurance costs when they obtain their own policy in the future. Some insurance companies may even reject applicants without a history of continuous coverage.

Discounts

Maintaining your child's coverage while they are away at school can make you eligible for various discounts. These include good student discounts, good driver discounts, and defensive driving discounts. These combinations can save you hundreds of dollars on your policy.

Exclusion Guidelines

It is important to note that some insurance companies and states may not allow you to exclude your child from your policy, especially if they are a licensed driver living in your household. Additionally, if you have a personal liability umbrella policy, you may not be able to exclude your child from your auto insurance policy.

In conclusion, leaving a car at home while your child is away at school can be a strategic decision that offers both cost savings and the benefit of continuous insurance coverage. It is important to carefully review your insurance policy and consult with your insurance provider to determine the best course of action for your specific situation.

Bundling renters and car insurance

Students can get auto insurance discounts in several ways, including by maintaining good grades, enrolling in safe driving courses, and sharing a policy with a parent. One way for students to save on car insurance is by bundling renters and auto insurance. Here's what you need to know about bundling renters and car insurance:

Insurance bundling, also known as a multi-policy discount, is a common strategy to save money on insurance. By combining your renters and auto insurance policies with the same company, you can take advantage of discounts and simplify your policy management. While bundling may not directly reduce the cost of your renters insurance, it can help lower the overall bill for all your insurance policies.

Benefits of Bundling Renters and Auto Insurance:

• Savings: Bundling renters and auto insurance can lead to significant savings on your total insurance costs. You may be able to save hundreds of dollars annually by having your auto and renters insurance with the same company.
• Convenience: Managing your insurance becomes more accessible and more convenient when you have a single insurer, a single bill, and a single app to deal with. This simplifies the process of viewing and downloading policy documents, paying bills, filing and tracking claims, and making policy changes.
• Combined Deductibles: In some cases, bundling renters and auto insurance may allow you to combine deductibles if you need to file a claim on both policies. For example, if an incident requires a claim on both your renters and auto insurance, you may only need to pay the higher of the two deductibles instead of both.

Things to Keep in Mind:

• Comparison Shopping: While bundling can offer savings, it may also make it more challenging to compare policies or switch insurance companies in the future. It's important to compare insurance bundle quotes from multiple companies, ensuring that you select the same coverage and provide identical details for an accurate comparison.
• Potential Drawbacks: Some experts caution that bundling can benefit insurance companies more than consumers by making it harder to comparison shop and encouraging customer loyalty. In some cases, you may find lower premiums by purchasing policies from separate insurers.

Companies Offering Renters and Auto Insurance Bundling:

Several reputable insurance companies offer bundling options for renters and auto insurance, including:

• State Farm
• USAA
• Lemonade
• American Family
• Erie Insurance
• Allstate
• Liberty Mutual
• Farmers
• Progressive
• Nationwide

Final Thoughts:

Bundling renters and auto insurance can be a strategic way for students to save money on their insurance costs. By combining policies, students can take advantage of discounts, simplify their insurance management, and potentially reduce their overall insurance expenses. However, it's important to weigh the benefits against the potential drawbacks and compare quotes from multiple companies to ensure you're getting the best deal.

Alumni associations, colleges, universities and student organisation discounts

Students can get auto insurance discounts through their alumni associations, colleges, and universities. GEICO, for example, offers special savings to alumni association members, faculty, and staff of select colleges and universities, such as Howard University's Department of Alumni Relations.

GEICO also provides discounts for members of select student organizations. These discounts are available to full-time students who can provide proof of their student status.

In Canada, Sonnet Insurance offers exclusive savings on auto insurance to alumni and students of any Canadian university or college. The discount is available to graduates and students of various universities, including the University of Toronto, McGill University, and the University of British Columbia.

Safe driving courses

GEICO, for example, offers defensive driving discounts and courses by state. The eligibility criteria and requirements for these defensive driving discounts vary, but they generally include age requirements (often for drivers over 50) and completion of the course on a voluntary basis. The discount amount also varies by state, with some states offering up to a 15% discount on applicable coverages.

In addition to GEICO, there are other organizations that offer safe driving courses with potential insurance discounts. For instance, the AARP Smart Driver online course teaches evidence-based strategies to keep drivers safe and may make drivers eligible for multi-year discounts on their auto insurance.

It's important to note that eligibility for these discounts may depend on factors such as age, voluntary course completion, and a clean driving record. Students should review the specific requirements and discounts offered by their insurance provider before enrolling in a safe driving course.

Frequently asked questions