Auto insurance companies usually charge young and new drivers higher rates than more experienced drivers.
That’s because younger drivers have less driving experience, increasing their chances of getting into an accident and filing an insurance claim.
The high insurance premiums coupled with costly college tuition can make budgeting challenging for many students.
Fortunately, most car insurance companies offer various discounts to students. As a student, finding reputable car insurance to rely on can help you take advantage of these discount opportunities, saving you lots of money on your monthly insurance premiums as you become more experienced behind the wheel.
Here are some of the best car insurance discounts explicitly tailored for college students:
1. Good Student Discount
Good student discount is inarguably one of the most common types of discounts offered to students by car insurance companies. The discount is offered to student drivers in both high school and college education.
To qualify for this car insurance discount, you need to show your insurer that you perform well in school.
However, not all students may be eligible for this discount because it mainly applies to students within a certain age limit who are drivers under someone else’s or their own policies.
Most auto insurance companies require you to be below 25 years and show proof of your educational achievements, which is a current copy of your transcript with a grade point average (GPA) of at least 3.0 or a B.
Most insurers also require you to be a full-time student to qualify for this discount.
However, the discount requirements can vary from one insurer to another, so it’s best to confirm with your provider their eligibility criteria.
Applying for this discount can reduce your monthly premiums by up to 15%.
2. Distant Student Discount
A distant student discount or resident student discount is another popular type of car insurance discount offered by auto insurers to students.
You can qualify for this discount if you attend school away from home and don’t bring your car to campus
This discount is meant to benefit those who leave their cars at home because their risk of getting into an accident is lower without regular access to a vehicle.
Eligibility criteria will vary depending on your car insurance provider. That’s because some insurers will require your school to be at least 100 miles away from your home, while others will just need your college’s address or a current schedule of your classes.
Ensure you ask your provider about the discount requirements, so you can get the necessary documentation before applying.
3. Driver’s Education Discount
This is another common car insurance discount that could help you save lots of money on your policy’s monthly premiums.
This discount is usually available to student drivers who have completed an approved driver training or education program to get this discount.
For instance, if you’ve completed a defensive driving course, you could save up to 10% on your monthly premiums. Like with the good student discount, you need to be a full-time college student to qualify for this discount.
Completing a driver’s education course qualifies you for this discount because the course helps improve your situational awareness and helps you learn how to drive safely. This makes your insurer consider you less likely to get into an accident.
Confirm with your insurer to know which courses you need to take to qualify for this discount and how much savings you would get.
While car insurance premiums are typically high if you’re a student, capitalizing on the above discounts can help significantly reduce your monthly car insurance payments.
Check with your current auto insurance provider to know the specific discounts they offer and the requirements.
If you’re not eligible for any discounts, it might be best to look for a cheaper insurer, so you can save money and safeguard your personal finances.