As a college student, life can be chaotic, busy, and stressful enough with classes, a social life, and maybe even a job. If you own a car and have to navigate the murky, not-so-fun waters of car insurance on top of all of that, it can just seem like too much. Not many students know too much about insurance and all the money that they can save because the parents usually take care of that. But let’s say you’re on your own or you just want to stay informed, here’s the best way to get the most out of your money:
As a college student, life can be chaotic, busy, and stressful enough with classes, a social life, and maybe even a job. If you own a car and have to navigate the murky, not-so-fun waters of car insurance on top of all of that, it can just seem like too much. Not many students know a lot, if anything at all, about insurance and all the money that they can save because their parents usually take care of that. But let’s say you’re on your own or you just want to stay informed, here’s the best way to get the most out of your money:
Select the car that will help you get the best rate
If you don’t have a car just yet and are looking to buy or lease your first one, the type that you choose can heavily influence how much your premium will be. A fancy sports car, such as a Nissan GT-R can cost upwards of $3,000, while a Honda Civic or Jeep Wrangler can get you into a more reasonable price range. So as you browse the aisles of new and used dealerships alike, keep this tip in mind.
Once you’ve chosen your car, some basic additions can help add in some discounts from the get-go. Things like lowjack, anti-theft, and anti-lock brakes can get you a cheaper rate and some dealerships will even offer special financing if you’re in college or a soon-to-be college grad.
Next step is our first descent into this foreign ocean. Insurance companies, unfortunately, will charge you a much higher rate if you’re under 25 because your risk of getting into an accident is higher than someone between the ages of 25 - 84. While this is unavoidable, the many discounts available to you can help reduce the extra costs you’ll have to pay.
Know your discountsThese are some of the discounts available to you as a student both if you’re on your own or your parent’s policy:
- Good Student
- Distant Student
- Driver’s Education Discount
- Safe Driver Discount
The Good Student discount is the most common out of these options, and as long as you maintain a B-average while in school, you’ll be able to maintain this throughout your academic career. You have to send proof to your chosen agency, but other than that, just keep up the good grades and it’ll keep down that premium!
Another thing to explain is the Distance Student discount. By this, the insurance companies that offer this discount mean that if your school takes you away from home and you do not take your car with you, they will reduce your rate as long as your school is at least 100 miles away.
Get on your parent's’ insurance policy
Ultimately, though, not much can beat tagging onto your parents’ insurance as a lot of companies will offer additional discounts, but if that’s not an option for you, the already-mentioned discounts, and even more, are out there and available. Do keep in mind that just because one carrier offers you more discounts than the other, doesn’t mean that they will also offer the lowest premium. It’s important to shop around and really see what the best combination is that will get you the cheapest coverage while in college. And an important note about how to effectively shop around, it is best to get quotes from real-time comparison websites, such as us here at Ensurify or directly through the carrier's’ websites. When comparing prices, also be sure that you are comparing apples to apples, meaning don’t just automatically jump on the lowest price. Double check to make sure you have the same coverages each time you get a quote to get the best deal.
Restart the hunt in six months
Once you find the right carrier for you, it’s crucial to remember to get back out there after six months. After this period of continuous coverage, you’ll be able to shop around once more and get even better rates than you did your first go around, especially if this was the first time you’ve been on your own insurance policy.
It might not be the most exciting extra-curricular you’ll involve yourself in, but staying informed on car insurance and knowing what will get you the best rates will end up saving you money in the long run. And no college student can argue with extra cash, can they?