If you own a car as a college student, you will likely require auto insurance to protect yourself from financial loss in the event of a car accident or theft.
But getting the right auto insurance coverage can be challenging and costly for college students.
This is mainly because most insurance companies consider college students to be high-risk drivers as they lack much driving experience.
The good news is that understanding several facts about auto insurance can help you keep your insurance premiums low.
1. It Costs a Lot More to Get Insured if You’re Convicted of a Driving Offense
College life is full of fun and freedom, from late-night parties with friends to road trips to nearby cities.
Although such freedom may be suitable for your social life, it can significantly impact your auto insurance rates, especially if you drink and drive or break other traffic rules.
Most car insurance providers have specific provisions in their policies that will increase your premiums if you are convicted of a driving offense.
And if you accumulate too many convictions in a short period, your insurance company could cancel your policy altogether, requiring you to get SR-22 insurance.
Getting an SR-22 involves extra costs because the coverage is more expensive than a typical auto policy
Luckily, with the help of insurance comparison tools, you can keep your costs down by comparing various insurers that offer the best SR-22 policies for your needs and budget.
Ideally, the best SR-22 insurers must provide options covering the minimum amount required by your state of residence while also offering affordable prices.
Additionally, they should offer excellent customer service and reliable claims processing.
2. You Can Get Several Discounts on Car Insurance
While insurance for college students can be expensive, you may be eligible for various car insurance discounts for students.
For example, you could get a resident student discount if you are a full-time student living in a dorm or off-campus apartment, as you won’t be driving to college frequently.
Some companies may also offer a good student discount if you maintain a good GPA (this may vary from company to company).
Moreover, you may qualify for additional discounts if you take extra measures to protect your car, such as installing an anti-theft device.
Other discounts include driver training discounts and multiple policy discounts, so be sure to ask your insurer about the available discounts.
3. Insurance Premiums Can Vary Depending on the Car You Drive
Flashy sports cars and luxurious SUVs might look cool, but they can significantly increase your insurance premiums.
This is because these vehicles cost more than regular cars to repair or replace if damaged in an accident.
Moreover, sports cars attract higher premiums because they have a large claims ratio. Most young people often drive them recklessly, increasing the likelihood of being involved in a collision.
Whatever the case, you should always choose a vehicle you can easily maintain, depending on your budget.
4. You Can Stay on Your Parent’s Policy
Since most insurance companies tend to charge higher premiums to younger drivers, you can keep your costs down by remaining on your parent’s policy.
However, this will only be possible if one of your parents has been listed on your car title.
Some companies only allow you to be on a parent’s policy if you stay at home while attending college.
So, if you live in an apartment away from home or on campus, enquire from your insurance provider to find out if you need to purchase your own policy.
