Young people are the most likely to pay for auto coverage. Smart moves can get you cheap auto insurance with no down payment. Here are some easy steps students can follow to lower their premiums.
1. Keep your parents policy in force
Talk to your parents about adding your vehicle to their policy, unless you’re very wealthy and can afford high premiums. This can save you around 20% to 30%. Bundling multiple cars is an easy way to save, even for students on a tight budget.
2. Enjoy a variety of discounts
Young drivers might think there are no discounts for them. This is false. A solid GPA of at least a B is enough to be eligible for a price cut. Not only will you be able to get a job, but your premiums will drop by as much as 5%. Why do insurance companies offer lower rates for students who have good grades? The key lies in the data. The data is the key. Auto insurance companies have collected a lot of statistics about accidents. People who are more disciplined and responsible academically have a lower rate of vehicle accidents. Car insurance premiums are determined by the driver’s perceived risk. This is based on an individual’s profile. These discounts can be continued for up to one year after you graduate from school. This is an incentive to keep good grades.
Students must meet certain qualifications to be eligible for this discount. These qualifications include:
These special rates are offered by most auto insurance companies to students who have and keep a grade point average of B or higher in school. It is true that hard work pays off.
* You must be an active student at a college or high school.
* Car insurance companies usually set a 25-percent discount cap.
Talk to your child if you’re reading this as a parent. This can be used as motivation for them to get great grades. If they bring home a great report card, reward them with something extra, such as a dinner at a favorite restaurant.
3. Register for the Certified Safe Driver Class
Take a driver safety course to help students learn safe driving skills and reduce their insurance rates. Retired highway patrol officers will often teach the class and share their incredible tips for staying safe on the roads. To name just a few, you will learn how to drive safely in snowy and rainy conditions. Once you have completed a certified course, contact your provider to ask for a discount. Many companies offer a 10% discount.
4. Purchase a vehicle that is cheaper to insure
Your car insurance cost will be determined by the vehicle you choose. It is a good idea to buy a cheap car if you are a student with a low income or no job. This means boring cars like the Toyota Corolla and used Subaru. Vehicles older than 5 years can be purchased at half the retail price. You will be able to choose the coverage that you purchase if you own the vehicle and not finance it. A liability-only policy is a good option if you aren’t a very active driver and take care on the roads. Even for students younger than 25, this policy can be purchased for around $100.
5. Take a look at a Resident Student Discount
A resident student discount on insurance is something that most people have not heard of. Students who go to college in another state or city may get a significant discount on their rates. Students cannot drive during school. This is the main thing to remember. Students will not be allowed to drive during school holidays or summer vacations. To take advantage of this program, students must first contact their insurance to confirm it is available. Next, they will need to provide the necessary documentation. This includes a certified copy or admission letter to the university or school they are enrolled at.
