With a new school year just around the corner, parents and students alike are preparing once more for another year of education and of course, expenses. Some Americans reeling from the economic slump are bracing themselves for a more expenditures with the opening of classes.
Parents with children in college are also finding it even harder to find ways to cut unnecessary expenses. Increasing education costs, rising living expenses, and costly car insurance are forcing many families to cut back on some lifestyle features just to send children to college.
According to experts, however, many American families are in for a pleasant surprise. Recent data has shown that insurance companies are starting to lower their rates in anticipation of heavy competition from other providers. Insurers are locked in battle, fighting over a significant portion of the insurance market, college students.
Providers often target students and young motorists because they pay more for insurance expenses. Their age and inexperience are often cited by insurance companies for the higher than usual premiums. Insurance firms can also afford to slash rates because insurance rates for students start high. This allows then more leeway when competing with other insurers.
The presence of insurance providers online is also helping fuel the ongoing price wars. The advent of the internet age and the continuous innovations of online purchasing services have brought about significant changes to the car insurance industry, experts admit. Because of the internet, car owners can easily compare quotes and the services offered by different insurance companies.
Aside from the tough competition, students can also save money on insurance by following simple tips, insurance specialists contend. According to industry experts, young drivers can slash premiums simply by being responsible drivers. Keeping driving records spotless will automatically mean lower insurance rates. College students can also consider taking up defensive driving classes to make for their lack of experience in driving. Most car insurance providers consider this driving courses in determining premiums.
Paying for insurance on time can also save young car owners money. Some states allow insurance companies to use credit histories to come up with insurance rates. Paying on time and avoiding any missed payments can eventually mean lower insurance premiums, not to mention better credit ratings.
Lastly, experts say that young motorists can qualify for “good student” discounts by doing well in school. Students with GPAs of 3.0 or above automatically qualify for substantial discounts.