With the new school year just a few weeks away, millions of American parents and their college-bound children are preparing for more expenses. The economic slowdown has further worsened the increasing education costs that many families have to contend with. Because of this, a large portion of the college populace across the U.S. has expressed their desire to spend less this year.
In fact, a recent study conducted by the National Retail Federation found that 48 percent of back-to-college consumers have expressed concerns that the poor economy will affect their spending significantly. Analysts contend that the expected decrease in spending will also affect the car insurance industry as college freshmen and their parents scale back their expenses.
However, students can find ways to lower their insurance costs without sacrificing the quality of protection they receive. College freshmen can opt for a unique kind of insurance whose rates rely on how much policyholders drive each year. Experts say that the “by-the-mile” insurance can give students a new take on insurance with lower premiums. Despite the relatively low price, policyholders would still enjoy the same level of protection as ordinary insurance.
According to insurance specialists, the by-the-mile insurance allows freshmen and their parents the freedom to save money without experiencing any less protection than before. With college students and motorists under the age of 25 suffering from high insurance premiums, the special insurance policy can take up to 25 percent off from premiums.
Experts say that the auto insurance option is suitable for college students who own cars but do not rely on them entirely when getting from one place to the other. Most universities and colleges often have bicycle lanes and pedestrian sidewalks to discourage the use of cars. Young drivers can then leave their cars in their garages and walk or bike to their classes. The unique insurance system rewards students for driving fewer miles each year. Less time spent on the road can actually lead to lower insurance payments.
Industry analysts point out that the by-the-mile insurance option is best for students who travel less than 12,000 miles each year. By keeping the miles below a pre-set distance, college freshmen can actually slash up to 25 percent off their premiums.
Finding the perfect economical insurance coverage is also considerably easier because of the internet. Students can even add additional coverage if there is a pressing need to do so.