Getting cheap student car insurance is hard as a student has lots of problems to worry about, and some of them university education fees, food, rent, etc. and the auto insurance is the last thing a student wants to worry about.
But hey, you don’t need to commit yourself to budget cuts just yet as there are lots of things you can do in order to achieve some sort of compromise and purchase car insurance.
Car insurance is very expensive
Here is a fun fact, students are statistically more likely to make a claim on their insurance.
Why is this? Well, first and foremost, mostly because young people have sort of limited experience with cars while older people tend to have much more experience. In some cases, it is because of bad neighbourhoods. Their car is more prone to theft and possible vandalism.
All in all, this means that insurance premiums for students tend to be higher than average as insurance companies are tricky and their main goal is to make a profit, after all.
And to make things worse, car insurance is a legal requirement in every state in the U.S. The government doesn’t care if you don’t have the money, if you want to drive the car, you need to have some kind of minimum car insurance. Don’t forget that some states offer government car insurance.
Cheap student car insurance – is it possible?
Yes, it’s possible. Of course, one of the most important and preliminary things to do is to look for student car insurance policies.
Then again, since you are a student and you are living on a budget, it might be hard for you to pay for any extras. For example, you’ll have to pay extra if you car is parked in high-crime rate area. You can fix that by buying industry-approved steering wheel locks. Doing that, insurance companies might lower your premium.
Also, if you haven’t purchased a car just yet, read this first. You should have in mind that some companies might lower your premium if you consider installing a black box. The black box is a small device that records and measures your driving style (speed, braking, etc.).
Don’t forget about car power and the car’s price. If your car is a more powerful and expensive one, you’ll be most likely charged with a higher premium because of two reasons. You are inexperienced and your claim on damage or theft will be very high.
To possibly reduce the premium you are being charged for, you can try adding older and more experienced drivers (such as you family member, friend, etc.) as your names drivers.
Last but not least, consider the Third Party Fire & Theft Insurance (TPFT) as they are usually cheaper than your average fully comprehensive policies. On the other hand, TPFT does not cover the cost of repairs on your own vehicle.
How do I get cheap student car insurance?
Here are five different things you can try doing.
1. Good grades everywhere
Statistics shows that students with higher grades are less likely of being involved in an accident. Here is a useful fact. If you earn a B average or better at your local school, you can try qualifying for up to 15% discount on the auto insurance.
2. Consider buying a used car
If you are buying a car, consider visiting a car lot. Also, don’t forget that reliable family sedans are much less expensive than SUVs or sports cars.
3. You should take a defensive driving class
Unfortunately, motor car crashes are the leading cause of death for U.S. teens and they account for more than one in three deaths in this age group. To fight this negative trend, U.S. offers a discount to drivers who successfully complete an approved vehicle accident prevention course.
4. Always protect yourself and your car
To protect your car you use above said industry-approved steering wheel locks or you can buy a special alarm for your car. To get an even better discount on your premium, you can buy a car with front-seat airbags or restraint devices that work automatically when your door closes.
5. Have you tried raising your deductible?
If you make simple changes to your policy, you may get a cheaper auto insurance since a higher deductible may lower your rate. Then again, if you have an accident you may have to pay more in cash expenses.
Some trustable car companies that are relatively cheap are:
Note: I am not affiliated with any of these companies and I do not get any sort of revenue for mentioning them.
What should I avoid when it come to cheap student insurance?
A big no-no for an insurance company is if you set up a policy on your car with someone else. This is also known as “fronting” and it might earn you a much cheaper insurance policy, but it is also illegal. Doing so, you might even find yourself facing criminal charges. Don’t do that.
To sum it all up, cheap insurance for students is hard to come by. Even more so, if you do manage to find it there are millions of factors that are calculated to what your premium is going to be. Some of these factors are age, driving experience, price and power of the car, the year it was produced, etc.
If you do manage to find your future insurance company, please read everything there is, especially the fine print as they might be sneaky on it.