With the start of another school year looming, parents are scrambling to get everything in order for students returning to colleges and universities across the nation. The economic pinch has certainly made its presence felt for many households. Rising education costs are also forcing many parents to cut back on several expenses, car insurance included.
It is a well know fact that getting auto insurance coverage for young drivers can be quite expensive. Their relative inexperience in driving combined with reckless tendencies can lead to skyrocketing premiums for parents. However, car insurance is a necessity in 48 states and not having one can have serious consequences for college students trying to establish clean records.
Fortunately, students can find ways to scale back their insurance costs and save hundreds of dollars in the process. By simply following basic recommendations, young drivers can easily avoid hefty insurance premiums. Of course, students have to be aware of the basics of auto insurance before anything else, experts say.
Drivers aged 18 to 22 automatically qualify for higher premiums because of their driving inexperience. Because they have not yet gained enough knowledge about driving, they are considered by insurers as more likely to get in accidents. In fact, statistics have shown that the leading cause of fatalities among American youth is car crashes.
On average, college students pay $150 each month for car insurance. Men also shell out ten percent more for auto insurance than women. Male drivers are often deemed as more prone to get involved in car accidents, hence the higher rates.
Getting a traffic ticket or citation can also spell higher premiums for a young motorist. These violations are automatically recorded in the student’s driving records, making them a determining factor for insurance rates. Experts agree that the best way to avoid higher premiums is to drive responsibly and be aware of traffic regulations. Students can also buy parking permits from their universities or colleges to avoid getting more tickets.
Paying on time can also mean better credit records and eventually, better insurance rates. Some states allow insurance providers to base premiums on several factors, including credit history. Because of this, it is crucial to maintain good credit ratings to get better insurance premiums.
Finally, college students can qualify for discounts by simply doing well in their studies. Most insurance companies offer “good student” discounts for young drivers who perform well academically. Students with high GPAs are often seen as more responsible motorists, hence the discounts.
