Student Car Insurance Quotes
If you are currently attending school or you are in the stages of the admissions process, you may be interested in learning how to get the most competitive car insurance quotes for students.
While it is true that the insurance rates for students do tend to be higher than the average national expenditure of $797 per year, it is possible to keep your premiums down if you take the time to shop the rates available with all of the most respected insurers licensed to sell policies in your state.
Many college students are not familiar with insurance because they are newly licensed or they have let their parents handle their coverage since they passed their licensing test.
Because of this, it is important for students who are taking on the task of buying insurance for the first time to understand how insurance works, how to choose the best insurer, how to select coverage options, and how to keep their premiums as low as possible.
Read this guide to student car insurance quotes to learn everything that you need to know. Be sure to use the FREE quote comparison tool above to start your search for coverage!
Do you need your own insurance policy?
Before you start shopping for coverage independently, consider just how independent you will be. You may not necessarily need to buy your own insurance policy if you are still considered a dependent or part of your parent's household.
One of the major advantages of staying on a policy with your parents is that you can receive multi-vehicle discounts, loyalty discounts and other positive ratings that will keep the premiums for your vehicle down.
Whether or not you can stay on your family's policy will depend on vehicle ownership and your location. If the vehicle that you drive is registered to your parents, it can be covered under your parents' policy and you will be listed as an additional driver.
College students who go to school more than 100 miles away from home without a car can stay on the policy and receive a student away from home discount. This means that you will have coverage if you borrow a vehicle and when you return home on your school breaks.
If you own the vehicle and you live away from home, you will need your own separate policy where you are a named insured. Some companies will allow you to stay on your parents' policy if you own the vehicle and you still live in the household. Be sure to check with your current agent before making any hasty switches.
What to Consider When You Buy Car Insurance for the First Time
If you cannot remain on your parents' policy or you simply want to branch off onto your own, it is important to choose the right company before you consider price. When it comes to buying insurance, you get what you pay for.
Choosing a company that targets young students by preying on their lack of familiarity with insurance can land you in hot water when you need to file a claim.
This is why you should take the time to create a list of the best insurers in your state before you start to request quotes. Here are a few factors all consumers, even college students on a very strict budget, need to consider:
Financial Solidity
Students are much more vulnerable to predatory actions in the financial sector. Because of this, it is very important to use the financial ratings of insurance companies to analyze whether or not the company will be able to pay your claims if you were to file one.
There are many independent companies that will use financial records to analyze and grade every insurer licensed by the National Association of Insurance Commissioners.
These grades will help you narrow down your list so that you do not end up paying premiums to a company that will quickly go out of business.
What is the company's reputation?
You should also use technology to check and see if a company has any complaints filed through the department of insurance. The National Association of Insurance Commissioners has a complaint search tool on the main page of their website where you can find out if there are any closed complaints against the insurer while you verify their licensing status.
You will be given a detailed report that will show you the final decision on the investigation. One of the great things about this tool is that you can locate insurers in any state instead of visiting each department's website separately.
Selecting Your Coverage Options
Premiums are based on several rating factors and also on the coverage options and limits that you choose. You should know how the insurance that you buy will protect you while you are driving to class or sitting in your classes.
Every state sets their own unique coverage requirements, but you do have the option to purchase additional protection. Here is a brief explanation of each coverage so that you know what the difference between basic insurance and comprehensive insurance is:
Basic Insurance Policies
Basic insurance is the minimum requirements that you are mandated to carry in your state. This will always include Bodily Injury and Property Damage. Here is a straightforward explanation of each basic coverage:
Bodily Injury
Pays for injuries that you or other drivers on your policy cause to a third-party driver. This coverage limit is listed in a per person and per accident form. It is important to consider purchasing more than the state minimums to protect your assets and your wages if you are sued for the injuries that you cause.
Property Damage
The second form of liability cover is Property Damage. This limit will pay for the damage that you cause to someone else's property or public property. Limits stated on your policy are per accident and not per item.
Personal Injury Protection
Some states operate on a no-fault system and others operate on a tort system. You should find out if the state that you are moving to to attend school is a no-fault state.
For no-fault states, you will also be required to carry Personal Injury Protection, which will pay for your medical bills when you are in an accident no matter who is at-fault.
This basic benefit will pay for medical bills, rehabilitation, loss of income, in-home care, and also funeral expenses, but it does cost you additional money.
Comprehensive Insurance
You can also purchase additional coverage for added protection on the road. Here are some add-ons to consider when they are not required:
Medical Payments
In tort states, you can purchase medical payments if you would like to. This coverage will pay for your medical bills regardless of who causes the accident. It is very important for college students with no health insurance to add this coverage onto their plans.
Uninsured Motorist
Will pay for your injuries if you are hit by a party who has no insurance to cover your medical bills. This is required in some states, but most states the coverage can be rejected.
Physical Damage
Comprised of two coverages: comprehensive and collision. Each will pay for damage sustained to your vehicle due to a covered loss. You will receive up to the fair market value of your vehicle minus your deductible.
Gap Insurance
If your vehicle is financed and you owe more than it is worth, gap insurance will pay off the loan if the car is totaled. Do not purchase this if you have the coverage built into your loan.
How to Save Money Off of Your Quotes as a Young Driver
Being a young driver does make you a higher risk, but you can receive a few different discounts to keep your pre-determined rates down. Aside from keeping a clean driving record, here are a few tips on how to keep your quotes as a student down:
- Purchase a safe vehicle that has safety features and a positive safety record
- Get good grades in school and receive as much as 30 percent off
- Take a voluntary driver education course if you qualify and receive a credit for 3 years and invaluable driving tips
- Carpool to school or take the bus to take advantage of low-cost pleasure ratings
- Raise deductibles for full coverage or do not carry full coverage if your vehicle is not valued over $2000
The best way to find the best rates for students is to shop around and find an insurer who is targeting a young market niche. If you would like to make the process of shopping for coverage quick and easy, use an advanced rate comparison tool online and enter your information only one single time to retrieve a handful of quotes.
Once you have the premium estimates, see if you would like to make adjustments and then compare prices so that you can build the best policy.
Use the FREE tool below to compare quotes instantly!