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The Importance of Having Student Car Insurance

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During these trying times when the economy is in a recession, we all try to cut down on expenses.  For some students, they are considering cutting back on or even completely doing away with their student car insurance.  Here are reasons why this is a mistake:

  1. For most students, their car is their most valuable asset.  Student car insurance helps protect this asset in the event of damage due to accidents or other reasons like bad weather and other force majeure
  2. Car insurance is also a legal requirement in some states to have your car registered.  Without it, you cannot legally register your vehicle.  For example, to register your car in California, you would need to show proof of financial responsibility, and the easiest way to do that is to have your car registered.  If you get stopped for a traffic violation and you are found not to have insurance, you could get fined for it.
  3. Student car insurance also gives you peace of mind, knowing that even if you get into an accident, you will not be exposing yourself to tremendous financial responsibilities that may arise.  In the event of an accident, especially when you have caused it and the other party suffered from injuries or even death, your auto insurance should be able to cover it.  This is especially important for students and young drivers who are more prone to have an accident on the road.  It is highly likely that a majority of new drivers will get into some kind of accident within the first year of driving.  In fact, National Highway Traffic Safety Administration statistics shows that drivers under 25 years old are four times more likely to die in an accident than older drivers!

Cutting back on your student car insurance may help you save a few dollars right now, but it will not help you in the long run.  If you really want to save, there are a lot of easy and proven ways wherein you could cut back on your student car insurance premiums like shopping around for the best deals, getting driver’s education courses, getting club memberships, and others. 

For some, having student car insurance could also serve as an incentive.  Insurance companies are offering discounts to good students who maintain a certain grade point average, those who do not have accidents within a three-year period, or those who have safety features installed on their cars.