Contrary to popular belief, car insurance companies do not automatically charge young student drivers more for auto insurance than older drivers. While it is true that drivers under 25 can be forced to pay very high premiums, it is also true that they can obtain discounts that will lead to much more affordable car insurance premiums.
Your premium is determined by many different variables such as your age, driving record and type of car you drive. A twenty- year-old male college student, who drives a BMW and has been cited four times in the last two years for speeding, is a high-risk driver.
On the other hand, a twenty-year-old female college student, with an unblemished record, who drives a five year old Toyota, is much more likely to be able to obtain affordable auto insurance.
Saving money by buying cheap auto insurance does not mean that you have to give up the benefits that you need and want. As a student, you can qualify for some discounts that are not available to other drivers. By taking advantage of student discounts as well as other common discounts that most insurance companies offer to all drivers that they insure, you can get some very cheap car insurance.
Academic performance
If you perform well in school and get good grades, let your insurance agent know. It is not so much that you want to brag about your academic achievements, but rather, that you can sometimes get as much as 20 percent off of your auto insurance premium.
Students in high school or college, between 16-24, can qualify for the “Good Grades” discount by:
• Being a full time student
• Maintaining a “B” average or better
• Maintaining a 3.0 GPA or better
• Being in the top 20 percent of their class
• Being on the Honor Roll
• Being on the Dean’s List
Each auto insurance company may have slightly different rules for qualifying for this discount. You are expected to show some proof of your grades such as a transcript or an official letter from the school administration stating your GPA. Each time your car insurance policy comes up for renewal, you must “show” that you are still an outstanding student.
Completing a Driver Safety course
If you take a defensive driving course, either online, or at a physical location, you may receive a discount. To qualify for those more affordable auto insurance rates, you must have a certificate showing you successfully completed the class.
Attending college 100 or more miles away from home
Getting far away from home has its advantages when you are looking for cheap car insurance. Many car insurance companies offer students a discount if they attend school at least 100 miles from their home.
Limited annual mileage
If you do not drive more than 7,500 miles per year, and many students do not, you may qualify for a low-mileage discount.
Other discounts that can mean more affordable car insurance
Students, as well as many other drivers of all ages can lower their rates by possibly taking advantage of other general discounts.
• Clean driving record
• Having a good credit score
• Paying your premium in full
• Having two or more policies with the same insurance company
• Being part of a group
• Buying a car with ABS, air bags and other safety features
A student, or any other drive can get affordable car insurance rates by becoming less of a risk to the insurance company. To get cheap auto insurance, students should strive to get and maintain good grades, practice safe driving habits and ask their insurance agent about all of the possible discounts they may be able to receive.