Car insurance is, without a doubt, one of those necessary evils drivers are faced with but odious, especially for students on generally tight budgets. The comforting news is that students can reduce their car insurance rates in several ways without losing necessary coverage. Knowing how to calculate the rates of insurance and using discounts, it will be possible to handle the expenses more efficiently.
Shop for the Best Rates
One of the easiest ways to save on car insurance is probably to compare among providers the rates. Each insurance company has its own formula to rate premiums; thus, prices can be considerably different. Go online and take advantage of comparative tools that will pull quotes from a number of insurers, or get quotes from a number of insurers through an independent insurance agent.
When comparing the prices, make sure that the coverage level and deductibles are around the same in all quotes. This will be good to look at what other customers say about the quotes and the reputation of the insurance provider before choosing a good one for your needs.
Get a Student Discount
Most of the insurance companies have a discount available especially for students. For instance, a good student discount can be applied to those who are on a very good academic record. Basically, all students with above 3.0 GPA and those in the honor roll qualify.
Some insurers offer a discount to students away at school and not taking the car with them. If you attend school over 100 miles from your residence and leave your vehicle at home, see if you qualify for the resident student discount.
Drive a Car with Lower Insurance Rates
The premium actually depends quite a bit on the car you drive. Most regions classify sports cars, high-performance cars, and luxury cars as highly expensive to insure. They have this classification because such repairs are very costly, plus theft or accidental damages do happen quite often.
Get an older, reliable vehicle rated as one of the safest in its category. Most vehicles with anti-lock brakes, air bags and anti-theft systems receive lower insurance rates. Research a vehicle's insurance rating before purchase to ensure the cost of insurance will fit your budget.
Maintain a Clean Driving Record
Your rate of cover is often determined by your driving record. Not having accidents, tickets, and other violations keep the premiums lower. Students who can show that they drive responsibly are less perceived by providers as high-risk clients.
Some give a discount for safe driving, and many may automatically enrol you in the Telematics programs through a tracking device for your driving behaviour - or even mobile apps. Savings continues to build upon your continuity with good driving behaviour - such as maintaining safe speed limits, using minimal hard braking, and minimal night-time driving.
Bundle Policy with Family
If you’re still living with your parents or guardians, consider staying on their car insurance policy rather than purchasing your own. Family policies often cost less than individual ones, and adding a student to an existing policy is typically cheaper.
Many insurance companies offer a multi-vehicle discount or multi-policy discount, packaging car insurance with other policies like homeowners or renters. These can be big cost-cutters for families.
Choose a Higher Deductive
You can lower your premium by choosing a higher deductible. The deductible is that amount you pay out-of-pocket for expenses after an accident, before insurance kicks in. You may save a good deal on your premium by upping your deductible from $500 to $1,000.
But be careful not to set the deductible too high. You should have enough savings when you get into an accident to pay for the deductible.
Limit Coverage to What You Need
If you are a student and can afford to drive an older, very low market value car, you probably won't need comprehensive or collision. You might get away with just having liability, which is all most states require you to have.
Determine the retail value of the car using tools such as Kelley Blue Book. If the value of the car is so low, full coverage costs more than what the car is worth, you could drop the optional coverages.
Lessen Mileage and Drive Responsibly
The understanding usually from low mileage is simply low premiums. If you drive your car very few kilometres or you hardly use your car, then let your insurer know this. Most of the insurance providers give discounts on low annual mileage.
Others sell usage-based insurance, based on your driving habits - tracked via a cell phone app or telematics device. In these types of programs, safe, low-mileage drivers get significant discounts.
Ask About Additional Discounts
Apart from student-specific discounts, most providers allow discounts for a host of other reasons. You will be entitled to a discount once you have attended a defensive driving course, for example. These courses will educate you about safe driving and will also serve as proof that you indeed are a responsible driver.
Some will grant a discount for customers who will accept automatic payments, paperless billing, or one-time payment of the whole annual premium rather than pay monthly premiums.
Re-Evaluate Your Policy Periodically
Your insurance is something that, throughout your life, should grow with you. You revisit your insurance once every year and let them know of all changes that could make the premiums lower. Perhaps you have moved to a safer neighborhood, improved your credit score, or drive fewer miles now, hence cheaper premiums.
Apart from this, the premium may fall due to the rise in driving experience within which one is gradually shifted out of that percentage range used to identify people as a 'young' driver.
Conclusion
Car insurance as a student will be about proactive research, smart driving, and looking for discounts. Comparing rates, choosing an affordable car, keeping a clean driving record, and tailoring your policy to needs go a long way in reducing premiums. Periodic reassessment for coverage and information about discounts will help you always get the best deal available.
The following ways allow car insurance to be in control yet still retain enough cover and confidence when on the road.
