Insuring student drivers used to be stereotyped as too expensive and too demanding to the part of policy shoppers. Luckily for students, the number of student drivers has been on a constant increasing trend which forces car insurance companies to modify their policy marketing strategies to fit the needs of this fast growing group of policy shoppers. More policy holders would automatically translate to higher profits for the policy providing companies; this is the reason why there are sudden attempts to improve their services catered to student drivers. But still student drivers are included in risk pooling.
Increasing corporate competitiveness is the primary effect of student drivers to policy providing companies. Due to the sudden influx of potential policy holders, many companies are exhausting all options in becoming more competitive with each other. Companies are slowly breaking away from the common conception that student drivers require high premium rates. Instead, policy providing companies are now becoming more open to aiding student drivers in availing their very own insurance policy. Some of the most common ways of doing so is discounts, incentives and risk buffering.
Policy providing companies now offers discounts that student drivers can avail to lighten up their premium payment burden. Discounts are usually given if the student driver’s guardians are currently insured by the same company. Discounts are also given to student drivers who are able to pay their premium payments on time on a regular basis. There are also cases where student driver insurance discounts can be enjoyed through group policies through student civic groups, clubs and organizations.
Many companies are also in their own ways of trying to formulate new ways of giving out incentives to their student policy holders. Good academic standing for example, is recognized by companies as automatic discounts in the part of student account holders. This is the case since major companies see academic standing as a direct indicator on how risky a student driver is.
Companies have also found ways of buffering risks that they are taking from student drivers through policy packages that include the inclusion of the student driver’s policy to an existing and established policy. Student drivers are now encouraged to be included in their guardians policies.
However, student drivers should still remember that there are still a lot of things that they can do to decrease their premium rate burden. Most student drivers are encouraged to start aiming to establish good driving history even at an early age through responsible and defensive driving. They are also encouraged to make use of all media that they can get hold unto in quoting for the most comprehensive, yet cheap insurance policy.