Lets face it, most students are strapped for money. College continues to get more expensive and saving every dollar they can is very important. Car insurance is one of the most expensive costs they will have as teens/students have some of the highest insurance rates. College students typically pay thousands of dollars more than any other group.
Taking the time to search out the best car insurance deals can be worthwhile and can save hundreds or even thousands of dollars over the course of a students college career. Some of the best car insurance student discounts include:
- Good Student Discount: Maintain a 3.0 GPA and your insurance company will likely give you a discount because teenagers with good grades are statistically more likely to be safer drivers than students with lower GPA’s.
- Driver’s Education/Defensive Driving Discount: Further your driver’s education and most companies will reward you with savings. Double check with your state’s requirements, but many teenage drivers can qualify for this discount by taking a course online.
- Military Discount: Serve your country and reap the awards. People who join the military often qualify for savings with their insurance provider. Plus, they qualify for USAA insurance, which is one of the best insurance providers in the country.
- Distant College Student Discount: If you’re away from your car and not driving that much while at a school, many insurance providers offer savings to reflect the amount of time you’re actually driving.
Should Your Student Take Their Car to College?
If they take their car to college, they won’t be stuck limiting their grocery shopping to what they can carry back home. Plus, having a car makes it easier to get a job off campus.
But there are a few reasons not to take their car to college, including:
- Parking may be extremely difficult
- They may have to pay extra for a parking pass
- Many colleges discourage students from taking a car, and some even make it against the rules.
- Many campuses are walkable
And then there’s insurance to consider. If they leave your car at home, their insurance provider will likely offer extra savings. Often called “Student away at school,” this discount still allows them to drive their car when they are home, but it expects them to leave it there when they go back to school.
Can They Stay on Their Parents Insurance?
Sometimes it makes sense to stay on their parent’s insurance, especially if it saves them money. If they are getting a lot of discounts for them, such as a good student discount, it might make sense for everyone if they stay.
Another reason to stay is for their insurance history. Insurance companies don’t like to see large gaps between coverage. Even though they may have a solid reason for not needing a policy, it may behoove them in the long run just to stay put.
However, it’s better to get their own insurance policy if:
- They get married/ no longer plan to live at home: Though there’s no age limit on when they have to get their own policy, if they no longer live at home, most insurance companies require them to be taken off of their parents’ policy.
- They buy a car in their name: If they own their own car, they need to get their own insurance policy.
- Their parents have a bad driving record: It might be financially advantageous for them to have their own policy if their parents have a bad driving record.
What is Covered By Car Insurance
- Bodily injury: If you injure someone else in an accident, your insurance provider will cover their medical costs up to your policy limit.
- Property damage: Damage another car or person’s property, and your insurance provider will pay for repairs up to your policy limit.
- Personal injury protection: Should you get into an accident, this coverage option covers you and your passengers’ medical costs up to your policy limit.
- Uninsured/ underinsured motorist protection: This protects you in the event you get into an accident with a person who has little to no insurance protection.
- Collision: No matter who is considered at fault, collision protection will pay for your car’s repair or replacement up to your policy limit.
- Comprehensive: If your car is damaged while you’re not driving it, this coverage option will pay for its repair/replacement up to your policy limit.
What is not covered by Car Insurance
- Any amount that exceeds your policy limit: If you get into an accident that does more damage than your policy accepts, you will be responsible for the remaining amount.
- High performance cars: If you have a highly valuable car, it’s likely that a regular insurance policy won’t cover it. You will need a specialized type of insurance to make sure it is protected.
- Gradual wear and tear: Your insurance provider will not help you replace parts damaged from normal wear and tear, like your tires or brakes. Anything that is considered a loss due to normal usage is not covered.
- Ridesharing: Drive for Uber or Lyft, and you will need a specialized type of car insurance called ride sharing. This is because your car has gone from being a personal use car to a business car.
Where can you start to research what is available? Reviews.com recently did some of the heavy lifting for you and compared auto insurance rates for students at many different companies. Here is a link to their blog which outlines some of the best options you may want to have your students check out: https://www.reviews.com/insurance/car/best-for-students/