Class Is in Session: A Guide to Affordable Car Insurance for College Students
Just like all the other adult stuff you're responsible for now that you're in college, car insurance is something you need to check off your packing list before moving into your new dorm or apartment. Here's what to know about finding affordable car insurance for college students.
Why is car insurance typically higher for college students?
Car insurance is typically pricier for college students, not because they are in college but because traditional college students are young, often still teenagers. Car insurance rates for teens and young adults are higher due to the risk of insuring less experienced drivers.
That's why it's important to understand what makes up the cost of car insurance and how you can find cheap student car insurance options. Being insured in high school and college can be expensive, but you can take steps to get discounts or adjust your policy and save.
What types of discounts are available to college students for car insurance?
Use your smarts to seek out insurance discounts for college students on car insurance. You may be eligible for discounts related to both your educational status and general discounts.
These can include:
- Good student discount: Studying pays off when it comes to dropping your car insurance costs. Insurers typically require a B-average to take advantage of this discount. You may also need to be unmarried, under 25, and a full-time student.
- Resident student discount: If you are on your family's policy and won't be using a family car while at your college — which is at least 100 miles away from home — you may qualify for a resident student discount.
- Policy bundle discount: Have a renters insurance policy at your college apartment? Bundle with your car insurance to reduce costs on both.
- Safe driving discount: After an insurer-designated period, you may qualify for a safe driving discount if you have a good driving history.
- App/device discount: Safe driving discounts look backward at your safe driving history, but some insurers offer discounts based on current driving behaviors, which are collected by a phone app or connected device.
- Anti-theft device discount: Add an anti-theft device to keep your car safe and reduce your insurance costs. This may include an immobilizer or kill switch that makes it impossible to drive the car unless you are the owner.
- Military discount: If you attend college after the military, you may qualify for military discounts on your policy.
- Autopay discount: Some insurers may offer a discount if you sign up for autopay.
- Loyalty discount: If you renew your insurance policy, you may be eligible for loyalty discounts after a set period of time.
Keep in mind that insurers may not be willing to combine discounts. Though you may be eligible for multiple price breaks, it's best to strategize and choose the one that will get the biggest discount. Working with an agent or broker can help you maximize discounts.
“ You may be eligible for discounts related to both your educational status and general discounts.”
How does changing your coverage affect your insurance premiums as a student?
One of the best ways to keep insurance costs under control is to review your policy to see if changing coverage may help reduce costs. Whether you adjust coverage options or shop around for a totally new policy, changes can mean savings on the best auto insurance for students.
Consider changing the following:
- Coverage limits: Car insurance policy limits are often set up as a XX/XX/XX value (for example, $30K/$20K/$10K) that tells you how much money can go to each accident and, within that, to medical bills and property damage costs. Adjusting these limits upwards protects you more in case you cause an accident, but adjusting them down can reduce the cost of your policy.
- Comprehensive and collision: If you own your car outright, you may reduce your costs by dropping comprehensive and collision coverages. Although you have less coverage overall, this adjustment can lower your premium.
What factors should college students consider when choosing an auto insurance policy?
While it may seem like car insurance is just one more expense in the already costly college years, it is a product meant to save you money when bad stuff happens. So, even though it may be tempting to take the least expensive policy offered, make sure you have enough coverage to protect yourself after an accident.
- Premium: Car insurance premiums are what you pay per renewal term or every month. When shopping for car insurance, premium cost is often the deciding factor. Shopping around can help you find an affordable premium.
- Deductible: The out-of-pocket cost you pay when you make a claim is called the deductible. You may lower your plan premium by taking a higher deductible — but be prepared to pay more after an accident.
- Discounts: Whether or not you are offered discounts can make or break an insurance purchase decision. Getting quotes from multiple insurers can help you find the best discounts.
- Coverage: Car insurance coverage details what the policy does and does not pay for. You can adjust parts of your coverage to reduce cost.
- Minimum requirements: Each state has different minimum requirements for car insurance. Particularly if you are considering moving permanently out of state to your new college location, you need to understand the requirements of your location.
- Perks like roadside and rental: If you drive a long distance to school, see if your policy offers roadside assistance. This may be included or have a small additional cost. Likewise, getting coverage for a rental if your car is in the shop after an accident is a good extra to consider adding to your policy, especially if you rely on your car to get to class.
Are there insurance benefits to being a student away from home?
College students may lower their insurance costs with common educational discounts like good student discounts or resident student discounts.
A pay-per-mile or usage-based insurance policy may also be worth considering if you expect to drive less during college. This type of policy would insure your car at a lower rate because you plan to drive significantly fewer miles than average. This can cut costs for college students who do not qualify for a resident student discount but plan to remain on campus most of the year or not bring their car with them.
Frequently Asked Questions
Can I stay on my parents’ car insurance policy if I go to college out of state?
How do I prove I'm a student to get educational discounts on my insurance?
To prove you have maintained the required good student average, submit a copy of your grades or transcript — or other necessary documentation — to your insurer.