How a Student Can Save Money on Car Insurance:
When it comes to car insurance, the rates are typically higher for students until they reach a certain age.
Quotewizard.com reports a student driver will pay an average of $371 per month for an individual auto policy, whereas the cost is $161 per month if they are added to their parent’s policy. It makes good financial sense, then, to keep a student on the parent’s policy. Luckily, there are insurance companies that offer discounts for students and make it easier on the parent’s wallet.
Insurance quotes depend on where the student lives but students can also get discounts through groups they may be members of such as fraternities or sororities. Insurance companies offer student discounts up to 25% for students who have a 3.0 grade point average or above and this discount will last until the age of 25. There are also discounts to students who are 22 years old or younger, go to school 100 miles or more from home, or who do not have a car at school.
Regardless of how good of a driver a student is, many companies base quotes on the overall majority. Students tend to pose a higher risk to insurance companies because they are inexperienced, easily distracted and their accidents are often more serious (quotewizard.com).
Driver’s education and driver safety classes may be additional ways to lower the cost of the premium while also equipping students to become safe drivers. Even though insurance is higher, it is needed just in case. Insurance can cover damage to the student’s car, the other driver, property and even medical expenses in case of an accident. This is a higher insurance to pay but well worth it for the student in the end.
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