College is great for learning, but it’s not fun to go to college without a car. A car is a better dream than a senior in high school. Insurance rates are more expensive for younger people because they are considered high-risk. What can a college student do to lower car insurance costs? This list contains five important car insurance tips and tricks for college students.
Do’s:
1. Good grades are important: Car insurance companies believe that students are more likely to drive recklessly while learning to drive. 61% of young drivers admitted to risky driving habits, such as not wearing a seat belt. They are more likely to be distracted or impulsive when making driving decisions. If a student proves that he is responsible, an insurance company may offer him a discount on his car insurance. Good grades are one of the best ways you can prove you are a responsible driver. Insurance companies may offer a “Good Student Discount” to students with a minimum 3.0 GPA.
2. Carpooling: If you drive less, you’ll get a lower insurance premium. How much do you need to drive to have a negative impact on your premium? Insurance companies will reduce your premium if you drive less that 10,000 miles per year. You will be less likely to get into an accident if you drive less. Carpooling is a great way to reduce your driving time and make new friends.
3. Anti-theft and airbags: Installing security measures in your car will decrease the chance of it being stolen, damaged or destroyed in an accident. Car alarms and air bags are two of the best ways to make driving safer and help you save money on your monthly premium.
4. Servicing and maintenance: Car insurance is much cheaper if you are in good health. Cars that are well maintained will last longer and not fail to break down as easily.
5. Buy a used vehicle: You can reap many benefits by buying a second-hand car. A used car is a better choice than a new one. If you are a reliable driver and have a long driving record, you can save your SUV or supercar for later. Make sure your first car is used.
Insurance companies say that used cars are less likely than new ones to be stolen. Even if the car is totaled, parts from a used car are less expensive than new parts. You can save even more money if you purchase a smaller car. Smaller cars have less power, which means they are less likely to cause serious accidents at high speeds. Insurance companies offer used car insurance at lower rates for all these reasons.
Don’ts:
1. Don’t drink and drive: Having a clean driving record is the best way to secure a great deal on your insurance policy. A couple of DUIs will do more damage to your record than any other thing. Driving under the influence of alcohol or drugs is a violation of the law. It can also pose a danger to your safety and that of others. 32% of fatalities in 2009 were caused by drunk drivers. Driving drunk is a sign of negligence and a disregard for others.
2. You can let other people drive your car. While it’s tempting to offer to help a friend who is in dire need of a ride, you should always offer to take the friend with you to where he or she needs to go. If your friend is in an accident, don’t lend your car. Your insurance will pay for the damages and you will have to pay the deductible. This will also affect your record.
3. Break traffic violations: Your premium will skyrocket if you have more traffic violations than two in a single year.
4. Driving a sports car: Larger and more expensive cars are at greater risk of being stolen. Sports cars are also more expensive to fix if they have an accident or go down. Sports cars are the most dangerous because they have powerful engines that can be tempting drivers to drive recklessly and speed. Just as buying a used car offers many insurance benefits and sports cars have the best engines, purchasing insurance for a new sports car will be more costly.
5. Don’t skimp on coverage: Students might feel compelled to buy cheap insurance that only provides a limited amount of coverage. This is a bad idea. It is better to have full coverage insurance for your used car than just the SUV. This will ensure that you are protected in case of an accident that may happen to you or your vehicle. Although full insurance has a higher minimum, it will also have a lower deductible. However, this is an incentive to drive more responsibly.
These are the most important points to remember before buying car insurance. Online car insurance quotes are free and you can compare them to find the best deal for you.
Bethany Collins lives with her husband, two children and is a Work at Home Mother. She enjoys reading and surfing the internet for money-saving tips, recipes, and other useful information. She writes about personal finance (home, life, and car insurance quotes, budgeting and other investment options) and also grows organic vegetables in her small garden.