Who has cheap car insurance for students?
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UPDATED: Mar 13, 2020
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Car insurance for young drivers can be very expensive and when you are living on a student budget its important to find cheap car insurance quotes. Young drivers will always pay more but with the right search you can find cheap car insurance for students with sufficient coverage. Many car insurance companies offer teenage car insurance but there are some things you can do to find the best auto insurance rates as a young student driver.
Go to School
As a young driver your car insurance rates are already high but for teenagers who stay in school the benefits are not just a better education but also a lower risk profile by car insurance companies. Teenagers not enrolled in school are seen as much higher risk and often get even higher car insurance quotes.
Live at Home
When you live at home the options for having your parents add you to a car insurance policy are much greater than if you live away from home. Some exceptions could include living fairly close to your home or temporarily living away (such as a student dorm) but the qualification for being eligible to be added as an additional driver will vary from one provider to another. If you do happen to stay at home however the odds are you will benefit from lower car insurance rates.
Get Good Grades
Many car insurance companies offer car insurance discounts to young drivers with a B or higher GPA. While you may not see the rewards of good grades just yet you can bet if all students had to pay their own car insurance bill we would be a nation of scholars. Always check with your car insurance company about the Good Grades discount as its one of the most popular ways to get cheaper car insurance for young drivers.
Why do car insurance companies classify young drivers as high risk?
Car insurance companies measure risk based around one general theory – the risk of a policyholder filing a future claim.
Statistics show that young drivers often engage in riskier driving habits and have higher car accident rates. Anytime statistics can prove a correlation between a higher chance of filing a claim and a certain set of definable characteristics you can bet car insurance companies will adjust for the risk. However, unlike how your credit score affects car insurance rates, the question of whether or not young drivers pose a higher risk is much easier to answer given the logic associated with young drivers having little or no prior driving experience.
Who has cheap car insurance for students?
Car insurance companies love student drivers. On one hand they classify young drivers as high risk however the opportunity to catch a young driver as a policyholder is almost the equivalent of a credit card company giving students their first credit card. The brand loyalty and years of potential income from the policyholder make for a very attractive package that every car insurance company has some kind of young driver car insurance coverage available.
Who has the cheapest car insurance for students will ultimately depend on your profile so you need to shop around. Some would consider car insurance comparison as one of the very first tests a teenager has with “real world” costs so take your time, learn about car insurance coverage and always compare at least a handful of providers before selecting an auto insurance company.
How much car insurance do I need as a student driver?
How much car insurance you need will depend on a number of factors but you will have to carry at least the minimum car insurance requirements determined by your state which includes some form of liability insurance such as bodily injury liability, property damage and/or uninsured motorist coverage. Some states have other requirements while others fall under no-fault car insurance laws. Where ever you live its important to understand the basic requirements of car insurance well ahead of operating a vehicle.
How much additional insurance you need will depend on factors such as the make and model of your car, your financial resources, other insurance coverage you have and more. If its your first car insurance policy the best thing to do is always consult with a licensed car insurance agent to learn about your policy options. Most drivers consider some form of collision and comprehensive car insurance beyond state minimum requirements and even more always purchase policy coverage with limits far above those required by law.
Start your car insurance comparison for cheap student car insurance quotes today. Simply enter your ZIP code above and find local providers to help you learn about your auto insurance options today!