Are You Paying More than Necessary for Your Student Auto Insurance?

Drivers of all ages have the necessity of needing auto insurance but none more so than student drivers.  It’s not a good idea to drive uninsured since most states have minimum insurance requirements for everyone and you could wind up in prison if caught driving without it.  If you want better prices then you can take advantage of discounts on your premiums.

What are the premiums available?

It won’t be surprising if your student premiums are high – this is the norm.  You’ll have all kinds of things stacked against you – age, lack of a driving record, and statistics.  If you get a DUI/DWI, drive without insurance, or drive a sports car or an SUV you could be in even more trouble when it comes to high premiums. 

Unfortunately, the place in which you live will also affect your premiums.  The closer you live to a large city the higher your premiums will be.  If you’re a guy under the age of 25 you’ll pay more as well.  Combine both of these and the premiums will skyrocket.  Student auto insurance will usually run from $3,600 - $13,800 annually.

Is it possible to lower my premiums?

There are a few things you can do to lower your premiums.  If you maintain a good driving record year by year you’ll see your insurance rates drop almost automatically.  You can also get a discount for maintaining an excellent GPA in high school, college, or university.  Provide your report cards or transcripts to the insurers and they’ll likely give you a discount – just ask if they have an academic discount.

Drive less and you’ll find you can get a low mileage discount as well.  You can also get substantial discounts by taking, and passing, defensive driving courses, driver training courses, and so on.  If you can get away with it, though you’ll get the best prices if you are a secondary driver on your parents’ auto insurance.

When you’re a student you’ll be put into more situations than older people will when it comes to possible theft and you’ll enjoy discounts if you have an anti-theft device installed.  You’ll also enjoy better rates in a newer vehicle that has anti-lock brakes, air bags, and new seat belts.  If you don’t mind paying more out of pocket when a claim is put in then consider a higher deductible in exchange for a lower premium.

Your student policy should be in place before you are removed from your parents’ policy.  Drive carefully, considerately, and within the law in order to develop good driving habits that will help prevent accidents and provide you with an excellent driving record for future discounts.