College Car Insurance

College and university students are notoriously cash-strapped and looking to save money in every area of their budget. This can lead to questionable grocery and housing choices as well as odd jobs and much more. The good news is if you have a car and need insurance, you can save money more easily than you might think.

Car insurance companies are quite sympathetic to the tight budget of the average student and offer a number of ways for students to save some on their own, and some with the help of their parents.

Enter your zip code above and compare college car insurance for FREE!

Can You Save Money for Being A Student?

Auto insurance rates are notoriously high for younger drivers because they lack experience. Insurance for college student has to factor in that young drivers don’t have years of experience to show their skill and lower their risk profile. Not all young drivers are the same. Some are more responsible than others which is why many insurance companies offer discounts for good grades. Each company has different standards. Generally speaking, they look for As and Bs. But you may want to check with the company to see where you fit in.

The second type of discount for students is an affiliation discount. The company you work with, the bank you store your money with, or the school you go to may have ties to certain insurance companies. Be sure to check with your bank or credit union and school before you go shopping. You can also check with your college’s Alumni associations.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Can Driver Education Get You Insurance Discounts on Your Auto Policy?

One of the key concerns many insurance companies have about young drivers is their lack of experience behind the wheel. People of any age can take defensive driving or other classes, but it can be especially helpful to younger students including teen drivers or young college students. The idea is to show you know how to be a safe driver in different situations. (For more information, read our “Cheap Car Insurance for Students“).

Of course, rates drop as you also gain experience without getting into accidents or getting tickets. Taking an approved class allows you to jump ahead for a student discount. What else can drivers do to save?

Should You Sign up for Telematics Driving Programs?

An increasing number of insurance companies offer telematics programs. With companies like Liberty Mutual, you can get a 5% discount on your insurance premium up front. Then they track a few key behaviors for 90 days after which you’ll get a more permanent discount.

Be careful as with some insurance companies, they could increase your insurance premium if you’re recorded repeating certain behaviors too much. Some companies offer a guarantee you can only get discounts for cheap car insurance. Either way, you can adapt your driving during the tracking period. So this often leads to great discounts for college students.

Can You Get Multi-Policy Discounts in College?

Unless you’re living in a dorm room, your parents’ homeowners insurance will not cover your personal belongings. So you could benefit from a renters insurance policy. If you get your renters policy from your auto insurer, you can get the cheapest car insurance and cheaper renters insurance at once.

This is actually one of the smartest ways to save on your premium, as student discounts can be combined with multi-vehicle and multi-driver discounts. With a larger insurance company, your auto insurance policy can be combined with many different insurance types for more savings.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Are There Drawbacks to Combined Insurance?

What if you just want to stay on your parents’ auto insurance? What is the average cost? It’s important to keep in mind that the major policyholder on an account is responsible for any costs, damages, or other financial burdens caused by any other driver on the policy.

Parents will be responsible for the effect of a child’s accident, should they be unable to fully pay their cost. This includes both liability coverages and collision, comprehensive coverage, or other additional coverages.

Can College Students Benefit from Financial Planning?

College students can also save by lowering an insurance company’s inherent risk through the use of careful financial planning. This type of approach is especially important for students who live in a different city or state than their parents. Distant student discounts can kick in, but you cannot be on your parents’ policy as you don’t live in the same house.

This is a great way for those who are not on their parents’ car insurance plans to save a good amount of money each pay period.

Monthly payment plans, while more affordable to start, come with costly payment processing fees.

The second easy way to save on college car insurance is to have a higher credit score. The higher the score, the less potential financial risk you pose to your future insurance provider.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Drawbacks to Combined Insurance

It’s important to keep in mind that the major policyholder on an account is responsible for any costs, damages, or other financial burdens caused by any other driver on the policy.

Parents will be responsible for the effect of a child’s accident, should they be unable to fully pay their cost.

While this is unlikely to happen, it’s an important consideration to take into account.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Lowering Financial Risk

College students can also save by lowering an insurance company’s inherent risk through the use of careful financial planning.

This is a great way for those who are not on their parents’ car insurance plans to save a good amount of money each pay period.

The first key to low-cost car insurance premiums is paying ahead of time. Most companies will present the premium amount for monthly, quarterly, and twice-yearly payments when comparison shopping.

Monthly payment plans, while more affordable to start, come with costly payment processing fees.

The second easy way to save on college car insurance is to have a higher credit score. The higher the score, the less potential financial risk you pose to your future insurance provider.

When Do Good Driver Discounts Apply?

In addition to lowering financial risk via good credit scores and advance premium payments, insurance companies respond positively to safe drivers who go at least a year without an accident. Insurance rates take a serious drive for those with a good driving record around your mid 20’s. This is around the time when insurance companies are confident you have more experience and can see a pattern in your driving history.

Good driver discounts are an area where each company has a different policy or program, and it’s a key feature to pay attention to when comparison shopping. Some companies discount a certain amount of their insurance premium for each safe year of driving.

Either way, insurance companies are apt to reward people who never need the full brunt of their insurance coverage. So caution on the roads is bound to pay off.

Find the best college car insurance quotes by entering your zip code into our FREE tool below!

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption