Seeing students drive their cars to school is such a common view. However, most parents ignore the importance of registering their children’s car for insurance. This might be due to the costs, which are so expensive when it comes to younger drivers. Luckily, a car insurance discount for students is now available and we are here for it.
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What is Car Insurance Discount for Students?
For your information, what makes students’ car insurance rates expensive is the higher possibility of an accident due to their lack of driving skills. As mentioned earlier, the expensive costs might be the major reason why the number of students who insure their cars is lower. It is actually not the student’s fault, but the parents.
Parents should be more aware of their children’s car protection so when any unexpected things happen, the insurers are ready to cover them. Fortunately, these days, insurers also offer discounts with several requirements. Therefore, what we will discuss here is an alternative way to get a car insurance discount for students.
Car Insurance Discount for Students is Possible With These Methods
The tricky thing in registering for insurance is not only choosing the suitable company but also how to get discounts. It might be just a little obstacle, but having a discount means a lot for drivers at younger ages to save their money. What we provide below are several methods to get car insurance discounts for students.
1. Shop Around to Find The Best One
The first step might be the very basic one. This actually applies to all people who want to buy any insurance products. Shopping around and comparing each company is the best way to find the most suitable insurer for you.
What to compare? You may compare quotes from each company. It is an initial estimation of your insurance rates. In order to get your quotes, you are required to fill out your personal data from address to type of your car. Then, the system will show some estimated prices which are projected to be your premium.
Comparing quotes can occur both online and offline. You may access it through the company’s official site or by reaching out to the insurance agents directly.
2. Make Sure The Type of Your Cars
What type of car that enables students to get a discount? The second aspect to affect the car insurance discount for students is the type of car used. As mentioned in the previous discussion point, the type of car is one of the information needed when you apply for auto insurance. It happens in all auto insurance companies.
Since you are categorized as a young driver, so everything is under hard and long consideration. One thing to consider a lot is the item value aspect, which means the more expensive your car, the smaller discounts will be. In addition, your original rates will also be higher.
Then, how students with expensive cars can get suitable rates? Let’s go back to the first point where you have to shop around and compare each to find the best one.
3. Scores Best in Driving Lesson
It has been mentioned earlier that the higher rate of students’ car insurance is caused by their bad driving skills. In order to overcome this problem, most companies try to open driving class programs to score them regularly.
In addition, the company also provides an online mobile application that can score the students driving ability. In the end, the company will recap the students’ scores. If your score is well, a discount on insurance rates is possible to be given as one of the advantages.
4. Collect Your Good Academic History
How lucky you are with good grades! It is because you are eligible to get a car insurance discount for students. Surprisingly, a good cumulative score transcript can help you to save more money on auto insurance. What kind of students are eligible for the good grades category?
Overall, the good grades category includes a student with the following requirements:
- A 16-25-year-old active student in any educational institution
- The minimum score is B or with a GPA of 3.00 or more
- Top 20% in the class.
For your information, those points are actually what most insurers required. It is actually can be more varied based on each company’s policy.
5. Where You Study Determines Your Discounts
Are you a student who lives separately from your parents? If yes, this situation enables you to have a car insurance discount for students. In order to make this discount work, you have to make sure of the following situations.
First, you have to make sure that the car you usually drive is on behalf of your parents. Second, you live at least 100 miles away from home because you attend college in another state or somewhere else. Third, you only drive your car when you are at home for a holiday or simply you drive it rarely.
If those requirements are matched, so you are able to save money up to 30%. The company gives more discount for this because when you drive your car infrequently, the possibility of an accident happening is so small.
3 Companies With The Cheapest Car Insurance Discount for Students
After learning the methods to get car insurance discount for students, here we are to know the three companies that serve the best rates for young drivers. For your information, the rates below have included “students with good grades” discounts.
First, we have State Farm. This company offers the cheapest rates after a discount for students. Since car insurance for students is included under the parent’s policy, they have to pay around $71 per month with a 17% discount included. Meanwhile, the rate before the discount is up to $85.
Second, USAA. It is an insurance company that is available for someone from the military only. USAA offers a cheap rate as well. For example, a student with good grades will be eligible for a 4% discount and is required to pay around $105 from the original rate of $110.
Third, American Family. This company offers the biggest discount of all, which is up to 19%. The original monthly rate is $137 and after the discount, you will only have to pay around $110. It is actually the same rate as USAA, but American Family is available for everyone.
Let’s Get Car Insurance Discount for Students Right Away!
Even though the car insurance rate for students is higher, purchasing it will not make you regret it at all. Since car insurance discount for students is available in almost all companies with various requirements, you will have a bigger chance to get yours. So, which one of the companies above will you contact first?