The costs of insurance for student drivers are high; we may also ask how and why these policies are so expensive, how they were computed and what relation is there to the general as far as this demographic.
In theory, all insurance premiums use pre-defined metrics, which is applied to all policyholders regardless of their age (teen, adult or senior drivers). However, there are other variables used to arrive at the premium rate computation. These factors differ from person to person, which explains the differences in premium prices. In the case of student drivers, insurers normally evaluate the student’s performance in school, driving courses completed, etc. On top of that, the notion that student drivers are high-risk drivers still holds true; bloating the premium prices and making them extremely overpriced.
Imagine if you have two or three children, who in the next few years, will be asking you to pay for their insurance coverage? Do you honestly think you can handle that situation? You might as well start saving today. If savings won’t be enough, there is another way to reduce the cost of student insurance coverage by way of insurance discounts. Without a doubt, this will decrease your burden of insurance payments.
What exactly is a student insurance discount? Well, as the name implies, it is a type of insurance discount to deserving students whom perform well in school. Students with excellent school grades can obtain these incentives. Again, the percentage discount differs from company to company. Talk to your insurer to get the list as to how much is available for a particular GPA score range. A GPA score of 3.0 could qualify your child as much as 10% off the posted price. On part of the insurance company, this encourages the new driver to take their responsibilities head on and to value the safety, in general.
We all know that insurance companies make money from us for being safe drivers. A mere discount of 10% to student drivers would not hurt their business. They see this idea as an investment because soon thereafter, these young people will become full-blown drivers themselves.
Most insurance providers believed that when a particular student handles his academic performance well, he or she will be able to handle the responsibilities for being a new driver. Furthermore, intelligent students tend to be more cautious on the road and think about doing any stupid silly things behind the wheel.
This kind of discount is comparable to a “reward and punishment system”, by which a good student prepares himself for his future, by studying well and receives a well-deserved award. On the other hand, those students who are negligent and careless about their schooling are punished by not being allowed to enjoy what their other peers.
It is easy to determine if your child is eligible for a good student car discount. All you need to do is to contact your insurance provider and furnish them a copy of his GPA report card. If he or she qualifies, you will receive a notification with a corresponding discounted amount.
In addition to this, you may also qualify for further discounts. For example, picking up a non-flashy and inexpensive vehicle will definitely reduce the premiums. Also, it is best to stay away from vehicles that have become the usual target of thieves. Do not forget to install safety devices and other enhancements such as, an enhance belt support and airbag system. Age, gender and residence still affect the rates.
