Low-Cost Car Insurance for College Students: Is It Possible?

cheap car insurance for students

Getting your hands on affordable auto insurance can be challenging at any age, but when you’ve just entered college, you’re still in that “red flag” category, meaning most insurers feel you’re an accident risk and want to issue coverage at a price that reflects their beliefs.

Luckily, finding cheap car insurance for students is possible. With the right strategic planning, you can avoid paying considerably more for coverage than people 10 years your senior.

Young Drivers Struggle to Find Low Price Car Insurance

Young drivers just can’t catch a break. No matter how hard they try, it’s very difficult for them to find low price car insurance rates that benefit their wallets.

There are a number of reasons that young drivers, including teens at home and college students, have a hard time finding affordable coverage, but the biggest is their age group’s accident statistics.

According to the Centers for Disease Control (CDC), motor vehicle crashes are the leading cause of death among U.S. teens. As of 2010, seven teens ages 16 to 19 died every day from motor vehicle injuries.

But here is the biggest statistic: Young people ages 15 to 24 represent only 14 percent of the United States population, yet they account for 30 percent of the total costs of motor vehicle injuries among males and 28 percent among females.

When insurance companies see statistics like this, they can’t help but assume that all young drivers pose a high risk on the roads and must pay coverage that match their risk levels. And they have good reason to feel this way.

With many college students falling into the under-25 category, it can be difficult for them to acquire low price car insurance. But just because finding low-cost coverage is challenging doesn’t mean it is impossible.

7 Ways to Acquire Cheap Car Insurance for Students

If you are currently hoping to acquire cheap car insurance for students, here are seven tips to consider on your search:

1. Take Advantage of Student Car Insurance Discounts

One of the best ways to get your hands on lower car insurance as a college student is to take advantage of student car insurance discounts. Many insurers offer Good Student Discounts that reward students with a GPA of 3.0 or higher. If you are earning great grades, be sure to mention this to any insurance company you’re interested in to improve your chances of lowering your rates.

2. Have a Great Driving Record

Another great way to score low price car insurance is to maintain a good driving record. While residence, marital status and a number of other factors help determine car insurance rates, the biggest on the list is still your driving record. So be sure to avoid traffic violations and accidents when behind the wheel to help your insurance costs lower year after year.

3. Maintain a Good Credit Score

Another important factor in finding cheap car insurance for students is credit scores. A low credit score to an insurance company represents a person with a high risk of irresponsibility. As a result, the company will hike premium payments. While many college students don’t have enough of a credit history to calculate a score, if you have a score, be sure to keep it high to maintain lower insurance rates.

4. Buy a Cheap-to-Insure Car

Insurance companies calculate auto insurance rates partially based on the type of car being insured. Trying to cover a 2012 red Corvette will cause your premium to soar much higher than insuring a 1995 Geo Metro. If you are in the market for a vehicle, you can save a thousands on insurance depending on the car you choose, so conduct a bit of research on coverage costs before buying your next car.

5. Adjust Your Deductible

One way to reduce your car insurance rates that isn’t always advised, particularly for college students, is increasing your deductible. While this option automatically lowers your premium costs, you must have your deductible amount set aside so that it’s available when you need to file an auto insurance claim. In other words, if you don’t set a deductible amount that you can afford, making the adjustment will be pointless.

6. Consider the Pay-as-You-Drive (PAYD) Discount

An option to obtain cheap car insurance for students that is growing in popularity is the Pay-as-You-Drive (PAYD) discount. Car insurance discounts like this are offered by a wide number of insurance companies and allows drivers to reduce coverage costs based on their ability to drive fewer miles and maintain good driving behaviors. Individuals who opt for this discount sometimes save up to 30 percent on coverage. However, be warned that this option usually requires the driver to install a tracking device in their car.

7. Shop Around

The best way to score low-cost auto insurance at any age is to shop around before agreeing to purchase a specific policy. Many people miss out on great deals because they purchase coverage with the first company from which they request a quote.

While it may be tough for young drivers to score affordable coverage, a little determination makes the likelihood of doing so much easier. After you’ve explored every option on the list, it’s very possible that you will see your insurance rates drop to a range that is affordable for you.