Insurance specialists are advising parents of college students to seek alternatives to expensive car insurance. With the start of the new school year in fall, millions of young Americans are expected to rush to thousands of colleges and universities across the nation.
Parents are also trying to keep up with the increasing costs of sending their children to college. The tough economic situation is forcing many households to cut back on some traditional expenses and maximize whatever income they receive. This has lead to a sharp decline in auto insurance. The drop has also affected a large number of young motorists heading to college.
Drivers below the age of 25 are more expensive to insure because of the likelihood that they will get involved in accidents. Statistics also show that younger drivers are more likely to be in car crashes. Experts say that their driving inexperience contributes largely to this risk, resulting in higher insurance premiums.
Industry sources, however, say that parents can actually find ways to slash premiums considerably. They add that these methods are not new or uncommon. In fact, experts contend, parents can save hundreds or even thousands of dollars by simply following these suggestions.
For instance, car insurance rates can drop significantly if a car owner purchases coverage from the same provider of homeowner’s, health, or life insurance. Getting multiple policies from a single insurer can mean considerable discounts for any car owner. A parent can then apply an extension of the insurance coverage for a young motorist in the family as long as he or she resides in the same address. Specialists say that insurers would prefer to offer lower rates in order to sell several policies to the same household.
On their, college students can qualify for great discounts by simply doing well in school. Most major insurance providers offer rate cuts for young drivers who perform well in their academics. Also known as “good student” discounts, these markdowns are usually offered because insurers consider high GPA students as more responsible behind the wheel.
Car owners can also drop collision and comprehensive coverage if the cars they are using are relatively old. In these cases, experts say that drivers can actually save more money by paying for repairs out of their own pockets. Policyholders can also increase deductibles on older vehicles to cut back on insurance expenses.
Specialists also recommend buying safer and more economical cars. They explain that insurance providers prefer vehicles that present lower risks for accidents or injuries.