Car Insurance For Students - Simple Ways to Save |
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By: Paul Crocker Posted: 2010-03-07 05:46:34 |
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It's a fact of life that car insurance for students is expensive. That doesn't mean that you can't use the system to your advantage. Knowing what to look for when buying insurance can keep money in your pocket. Knowing what coverage you need, what discounts you can get, and how to compare insurance companies will definitely change what you pay in premiums.Know what coverage you need.Start by finding out what the required minimum coverage is in your state, think about your situation. Different states require different coverages. Now when you get a "minimum coverage" quote, from an insurance company, you have something to compare it to. A company's "minimum coverage" can be quite different than a states minimum coverage, and cost you more money per month.You always need liability coverage, but if your vehicle is only worth $1000 you may not need collision coverage. Every person's situation is different, you have to look at what coverage you need, above and beyond the minimum coverage that you are required to have.What kind of discounts, can you qualify for.Every company has discounts that you can use to your advantage. Here are just a few examples for students:1. Responsible student discount(having a 3.0 GPA), insurance companies feel that good students are good drivers.
2. Taking a defensive driving course. With some insurers that could save you up to $200 a year. 3. Having antilock brakes on your vehicle. 4. Having car insurance and renters insurance with the same company. 5. Keeping a good driving record. Always ask about all the discounts the company offers, and how you can qualify for them. Sometimes, insurance companies need prodding to get them to the maximum number of discounts that you qualify for.Compare apples to apples.Student insurance is considered high risk insurance. Statistics show that a 17-year-old driver is five times more likely to have an auto accident then a 35-year-old driver, so the cost of insuring risk is also higher. Each insurance company has slightly different criteria and ways of analyzing risk. That means that prices vary between insurance companies for the same exact coverage. It can even vary up to double the price. You can use that to your advantage by comparing insurance companies and their policies.Don't just compare prices, but compare policies and benefits to find ways to save you money. A policy that is cheaper but doesn't give you the coverage that you need is a waste of money.The more companies that you compare, the better your chances are of saving money. Never compare less than three quotes from three different companies.By knowing what coverage you need, getting all the discounts that you can, and comparing insurance companies to get the best possible deal, you can save money. Although car insurance for students will always be more expensive than standard rate insurance, by using these ideas you can make it more manageable for your budget. |
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