Best Auto Insurance Options For College Students

Car insurance for college students can be expensive, but there are ways to reduce costs. One option is to stay on a parent's policy, which is usually more affordable as the cost of certain coverages can be split. It's also more convenient, as both the student and parent are covered when driving each other's cars. Additionally, the student remains covered when they return home for breaks, and it's easier to manage a single policy. However, if a student decides to move out permanently and keep their car at their own residence, they will need their own policy.

Another way to save money on car insurance as a college student is to look for insurance companies that offer discounts for younger drivers. For example, Geico offers several discounts for college students, including a good student discount of up to 15% for those with a B average or higher. State Farm also offers a good student discount of up to 25% for students with good grades or those who have scored in the top 20% of certain national standardized tests.

College students can also save on car insurance by limiting how much they drive. Metromile, for instance, bases its rates on how many miles you drive, which can be beneficial for low-mileage drivers.

Staying on a parent or guardian's policy

Staying on a parent or guardian's auto insurance policy is a great way for college students to save money. In the US, drivers can remain on their parents' policies until the age of 26. This option is usually much cheaper than buying an individual policy, as insurers often charge less for additional plans than they do for separate ones.

There are a few factors to consider when deciding whether to stay on a parent or guardian's policy. Firstly, if the student has their own car and is the sole person listed on the title, they will likely need to purchase a separate policy. Secondly, if the student's permanent address changes to their college address, the insurance company may require them to obtain their own policy. It is important to check with the insurance provider to clarify these requirements.

By staying on a parent or guardian's policy, college students can benefit from shared coverage costs and easier management of a single policy. It also ensures that the student is covered during school breaks when they may need to drive their parents' cars. Additionally, remaining on a parent's policy can help avoid coverage lapses, which can lead to higher rates when purchasing an individual policy in the future.

While there are advantages to staying on a parent or guardian's policy, it is important to note that it may increase the rates for the parents. Including a student driver on the policy can result in higher premiums, especially if the student has a less-than-perfect driving record. In such cases, it is essential to weigh the costs and benefits before making a decision.

In conclusion, staying on a parent or guardian's auto insurance policy can be a cost-effective option for college students, offering shared coverage, convenience, and continuity of insurance protection. However, it is important to consider the specific circumstances, insurance requirements, and potential impact on the parents' premiums before making a decision.

Getting a separate policy

While it is possible to have two auto insurance policies, it is generally not recommended. It is costly, and you will still only be able to file one claim per accident. Additionally, filing double insurance claims for a single accident is considered insurance fraud.

If you are a college student, you may be considering getting a separate auto insurance policy from your parents. This could be because you want to be financially independent, or perhaps you are worried about the impact of your driving record on your parents' insurance rates.

Cost

Auto insurance for college students can be expensive. The cost of insurance depends on various factors, including age, location, and driving history. Younger drivers tend to pay higher premiums because they are considered more likely to be involved in a car crash.

If you are a college student, you may be able to get discounts on your insurance. Many companies offer discounts for students with good grades, safe driving records, or completion of a defensive driving course. You can also save money by staying on your parents' policy, as insurers usually charge less for additional plans than individual policies.

Driving History

If you have a history of accidents or traffic violations, this will likely increase your insurance rates. In this case, you may want to consider staying on your parents' policy, especially if they have a clean driving record.

Location

Insurance rates vary depending on where you live. Urban areas tend to have higher rates than rural or suburban areas due to higher accident and theft rates. If you are moving out of state for college, you may need to get your own policy, as some insurers only cover drivers in certain states.

Type of Car

The type of car you drive can also affect your insurance rates. Classic, luxury, or exotic cars may require specialty insurance, which can be more expensive. If you are taking your car to college, it is essential to ensure it is adequately insured, especially if you are moving to an area with a higher risk of accidents or theft.

Coverage

When getting a separate policy, you will need to decide on the level of coverage you need. Most states require liability insurance, and some also mandate personal injury protection. You may also want to consider additional coverage options, such as collision insurance, comprehensive coverage, or roadside assistance. Keep in mind that the more coverage you have, the higher your premiums will be.

Number of Policies

If you have multiple cars, you can either insure them under one policy or get separate policies for each vehicle. Insuring all your vehicles under one policy can often result in a multi-car discount, simplifying your payment process and saving you money.

Insurance Company

When choosing an insurance company, be sure to shop around and compare quotes from multiple providers. Look for a company that offers the coverage you need at a price you can afford. You may also want to consider the company's customer service ratings and claims satisfaction scores.

In conclusion, while getting a separate auto insurance policy as a college student is an option, there are several factors to consider. It is essential to weigh the costs and benefits of having your own policy versus staying on your parents' policy. Be sure to do your research and choose the option that best fits your needs and budget.

Discounts for good grades

Many insurance companies offer good student discounts, which reward high school and college-age drivers who earn good grades with lower premiums on their car insurance. While the specific requirements and discounts vary by company, most insurers require students to have at least a B average (a 3.0 GPA) or be in the top 20% of their class to qualify for a discount. Some companies also accept scores in the top 20% nationally on certain standardized tests like the SAT or ACT.

• State Farm: Up to a 25% discount on premiums for full-time students up to age 25 who earn good grades.
• GEICO: Up to a 15% discount on certain coverages for full-time students who maintain a B average or better.
• Allstate: Around a 20% discount on the standard price.
• Progressive: A 10% discount for students under the age of 23 who earn a B average or better.

It's important to note that the availability and specifics of these discounts may vary based on location and other factors. It's always a good idea to check with your insurance company or agent to understand the exact requirements and discounts offered.

In addition to good student discounts, there are other ways for college students to save on car insurance. Staying on a parent's policy, taking a driving course, and seeking out other discounts, such as resident student discounts or organization member discounts, can also help reduce costs.

Discounts for students away from home

Students who live away from home may be eligible for a discount on their car insurance. This is known as a 'Student Away at School Discount'. To qualify for this discount, students must meet certain criteria.

Firstly, the student must be listed on their parent's or guardian's auto policy and be insured to drive their car. Secondly, the student must live at a school that is over 100 miles from home and not have a car at school. Finally, the student can only drive the insured car occasionally, such as during school breaks.

It is important to note that state exceptions may apply, so it is recommended to check with a local insurance agent or representative to determine eligibility.

In addition to the Student Away at School Discount, there are other discounts that students can take advantage of to reduce their car insurance costs. These include:

• Good Student Discount: Students who maintain a certain grade point average (usually a B average or 3.0 GPA) or rank within the top 20% of their class may be eligible for a discount.
• Resident Student Discount: If a student attends school away from home but keeps their car at home, their parent or guardian may be able to get a discount on their insurance policy since the student won't be driving the car regularly.
• Driver Training Discount: Students under 21 who complete a safe driving or driver education course may qualify for a discount.
• Multiple Policy Discount: Insurance companies often offer discounts to customers who purchase multiple policies, such as an auto policy and renters insurance.
• Anti-Theft Device Discount: Installing a car alarm or other anti-theft devices may qualify for a reduced insurance rate.
• Organization Member Discount: Some insurance companies offer discounts to members of certain fraternities, sororities, honour societies, or other student organizations.

Usage-based insurance

Here's how it works: insurance companies will use a GPS-enabled mobile app or a device installed in your car to track your driving habits. They will monitor things like your speed, how hard you brake or accelerate, and how often you use your phone while driving. If you demonstrate safe driving habits, you can earn discounts on your insurance premiums.

Some insurance companies, like Progressive, offer specific discounts for teen drivers who use usage-based insurance. This can be especially beneficial for college students, as they are considered high-risk drivers due to their age and lack of driving experience.

Geico, another insurance provider, offers a usage-based insurance policy called DriveEasy. This policy is ideal for college students who don't drive their vehicle frequently while attending school. By charging by the mile, DriveEasy can help keep insurance costs low for low-mileage drivers.

It's important to note that while usage-based insurance can lead to significant savings, it can also potentially raise your rates if your driving habits are not up to par. Therefore, it's crucial to practice safe driving behaviours and be mindful of your driving habits when enrolled in a usage-based insurance program.

In addition to usage-based insurance, there are other ways for college students to save on car insurance. Staying on a family insurance policy, maintaining good grades, taking a driving course, and leaving the car at home while attending school are all strategies that can help reduce insurance costs.

Frequently asked questions