The fast approaching start of the school year is catching many college freshmen and their parents off guard. With the economic slowdown affecting millions of American families, consumers are looking for ways to cut down on expenses and increase savings. For many households with college-bound family members, the rising educational costs can be a debilitating factor. Having a car to insure can also add to the financial troubles of many consumers.
Fortunately, students can look for ways to slash their insurance premiums and help their parents and families save money. According to industry experts, young car owners need not spend considerable amounts of money to get the best protection for their vehicles. They point out that knowing how the auto industry works can be helpful in guiding young motorists choose the most suitable insurance coverage for their cars.
For instance, buying a less expensive vehicle will eventually mean better rates. Typically, an expensive vehicle will be more costly to insure because of the replacement parts and the specialized repair services needed. A cheaper and more modest vehicle would need less expensive parts and regular repair services, helping drive down insurance costs.
Also, an older car can also do without comprehensive and collision coverage, says many industry specialists. In fact, cars whose values are below $3,000 no longer need collision coverage since repairing them from the car owners’ own pockets would be considerably cost less than letting the insurers take care of the expenses.
Parents can also save on insurance by adding their college students to a family car insurance policy. Of course, the young motorists must live in the same residence as the policyholders for the coverage to be effective. By keeping the college freshmen under a unified policy, parents can slash insurance expenses substantially. Most insurers would often cite the independence of many teen drivers for higher rates. With the inexperienced motorists living with their mature parents, the risk for accident goes down considerably.
College drivers must also keep their driving records clean. A good driving history can assure a car owner of great insurance rates and premiums. Avoiding traffic citations and tickets can translate into affordable premiums and great discounts. A clean driving record means that a motorist is less likely to figure in an accident. Freshmen who perform well in college can also qualify for “good student discounts.” The logic, according to experts, is simple. Students who do well academically are statistically better drivers. Insurance providers take this into account when determining premiums.