When it comes to auto insurance for teenagers and student drivers, many people cannot help but ask how policy premiums are computed for drivers aged 25 years and below. Usually, auto policy premiums are computed in the same way, both for teens and adult drivers. In addition to regular metrics used for premium rate computation, insurance providers will look into other factors that can only be observed in student drivers. These factors can include records in school, academic standing, driving courses finished, and so on. Because of these extra factors, costs of insuring the vehicle of students can be quite expensive. Thankfully, good student car insurance discount is there to ease the burden of young drivers.
What is a good student car insurance discount? From the name itself, this is a promotion offered by insurance providers to deserving students who have shown academic dedication by having excellent school grades. Some companies set a minimum GPA requirement. Once a student driver meets the GPA required, he is now qualified for a special discount. For many insurers, offering a good student car insurance discount is one way of teaching young drivers the value of responsibility. According to some insurance providers, if a student shows he can handle responsibility by getting high grades from school, it shows that he can very well handle bigger responsibilities on the road when he reaches a certain age. For some companies, intelligent students tend to file fewer claims since they are more cautious and have more understanding of the consequences of their actions. Offering special discounts to teen drivers is a good practice of the reward and punishment system – you reward good drivers by lowering premium charges they need to pay and in a way punish bad ones by not allowing them to take advantage of promos and discounts.
Once qualified for a good student car insurance discount, youngsters need to know that they can still save more money by following a number of steps to make sure they are as low risk as possible. Getting premium discounts because of being an excellent student is just the start, and there are certainly more ways to save money on vehicle insurance. For instance, driving a simple not too expensive car, can affect cost of premiums. Flashy cars tend to be stolen most of the time. Adding safety belt enhancements and airbags is another way to make the vehicle low risk. In addition, gender and age of the driver can also affect rate calculation as well the neighborhood where a vehicle owner resides.
