Why should car insurance be lowered for students?
The people with the lowest insurance premiums are people approximately 35–55 years of age. They are married; professional; homeowners. These people are in a position that has learned the need to drive conservatively because of what they could lose if they didn’t. A large chunk of students, especially of college age, are away from parental control, party a lot, drink a lot, get a lot of moving violations, and couldn’t care less about rules and laws. This is the reason insurance rates are higher for students. College-aged students represent one of the absolute highest risk classes out there and as a result, auto insurers don’t offer very many discounts or any company offers car Insurance for Students or the best insurance for students. Still, there are a few:
Reduced mileage: This discount will apply if you drive fewer than a certain number of miles each month. Might be useful for students who live in a dorm in a college town where everything is very nearby.
Good Student: This discount will save you money provided you maintain a certain GPA and carry a minimum number of credit hours each semester.
Safe Driver: This is not exclusive to students per se, but can offer significant discounts in addition to the ones mentioned above. If you have gone at least 3 years without a traffic ticket and 5 years without an auto accident you may qualify for savings in this area.
The emerging trend in the insurance industry is driver-specific discounts: almost all insurers are now inviting customers to allow them to monitor their driving using onboard telematics. Some do this through a device they send you to install in the OBD-II port in your car while others have you download an app. These things will monitor various aspects of your driving like speed, braking, the average number of miles driven, time of day of driving, and/or maybe a few others. It’s usually for a certain period of time, like 90 days or so and at the end of the period, you may have earned a discount. The discount isn’t guaranteed, however, they also won’t raise your rates based on the data collected. Every insurer’s program is a little different so you want to be sure to understand how your insurer’s plan works.
I always advised college students to stay on their parent’s plan as long as possible. It will be significantly cheaper than taking out your own policy as a college student and you can simply pay your parents the increased amount on their policy by adding you.
Again, want to reiterate that the discounts offered to a college student will vary between insurers so the best thing to do is shop around to see who offers you the best rate.
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