Whether you’re a teenager who’s just got his learner’s license or a college student with a few miles already clocked, having student car insurance is an important step to understanding the risks of owning a car. It’s common for students to have a zest for life – parties, road trips, and night outs in your car are going to be regular. Having student car insurance gives you a safety net on which you can fall back on in case anything untoward happens.
To ensure you get the right pointers, we’ve answered some commonly asked questions that will keep you well informed about this topic.
What is student car insurance?
Student car insurance covers any damages that may occur to the car you own during the time you are in school or college. Some students may be driving a car back and forth from school/college every day, while others might be staying on campus and using their car for local trips and errands. Annual maintenance costs, dents/scratches, or accidents are unavoidable – that’s where insurance comes in.
According to our 2019 statistics, almost 25% of licensed drivers in the US are below the age of 25. A significant 8% of licensed drivers fall in the below-19 age group – a significant number. The 18-25 demographic also has the largest number of claims filed. As a student, car insurance is a must if you regularly drive for your daily routine.
Is it important for college students to have student car insurance?
Since students do not have a regular income, even a minor scratch on your car can cost a lot to repair. If you don’t have student car insurance and end up in a major accident, the burden of bills for both yourself and car repairs will have to be taken care by your parents or other well-wishers.
If you live on campus, away from home, you absolutely must have insurance in your own name. If you live with your parents and drive to and from college every day, you can choose whether you want to be included in your parents’ policy or take a policy on your own.
What should you look for in student car insurance?
It’s a good idea to keep some standard points in mind when choosing car insurance for students. For example, it’s a good idea to have comprehensive and collision coverage for starters.
Comprehensive coverage can help you cover costs in case the car is stolen or damaged because of vandalism, hail, and other unexpected events. This usually happens when students drive to class and park it outside school or college.
Collision coverage can be useful to pay for repairs and other liabilities a student may incur if he gets into an accident with another car or vehicle.
In case you are staying away from home and are renting an apartment near school/ college, you can also have the option to bundle your student car insurance and renter’s insurance. Check if your policy allows such bundling before opting for it.
What are the premiums like for student car insurance?
It varies depending on where you go to college, how old you are, which state you live in, and many other factors. However, the younger you are, the higher will be the premium. The logic behind it is obvious – young drivers get into more accidents and have more claims than any other demographic. It could also be higher if you live in a theft or crime-prone area.
The average six-month premium based on popular companies like AllState, USAA and others is around $2100-2500. Again, the exact premium will depend on your unique driving profile.
Can you get any discounts on student car insurance?
Yes, there are some common discounts that students can access so that they only need to pay lower premiums.
- Good grade discount: You can access this as long as you can furnish proof that you’ve been performing well academically.
- Resident student discount: This lowers the premium you have to pay if you’re attending college away from home and are leaving it at home while you live on campus. Since you won’t be driving the car frequently, the premiums are lower.
- Good driver discount: You’ll be eligible for this if you haven’t had an accident in the last 5 years (or however long the policy states)
- Society membership discounts: These are available if you belong to certain fraternities, sororities or honor societies.
How do I find the best student car insurance rates?
The easiest way to find affordable car insurance for students is to compare quotes from various insurance providers online. You can start your research on car insurance rates by getting free insurance quotes on Way.com.
Check out our blogs for info on finding top-rated airport parking, the best parking spots in your city, and affordable car washes near you.