Being a student can be very expensive. Aside from the usual stuff like tuition, books, rent, food and cell phone bills, having a car can really boost your expenses. Why you ask? Because law requires every car owner to get auto insurance for his/her car. And being a student, it can weigh heavier on you more than you think.
Why will it be heavier for me?
Aside from other things to pay for that you should think about, if you drive a car, you will be required to get auto insurance. And as if it wasn’t difficult enough to pay for other expenses. And also, being a student, it won’t get easier on you because auto insurance companies see you as higher risk client to insure.
Why is that auto insurance companies see it that way?
The auto insurance companies have records of clients that they have insured over the past decades or years. And it has been seen that drivers under age 25 prove to be riskier clients to insure rather than older clients. It means that usually, auto insurance companies look at student drivers to be more accident prone than other age groups up to age 65.
Male drivers under age 25 are seen as the most accident prone when it comes to driving so expect higher car premium if you are under this age bracket.
How much more will my premium cost then?
Usually, auto insurance companies will give you 50% or more on your premium as they perceive you as a higher risk. It is a really big thing especially of you’re a working student or if you are on a tight budget.
What are the things that contribute to my expensive premium?
Aside from the ‘higher risk’ in driving, insurance companies look at the capabilities of the driver; his/her ‘driving credentials’ to simply put it. Your driving record can be all the reason for your insurance company to add more to your premium rate.
Your car can also be a huge factor in your premium rate. Changing from one type of car to another can have very big differences on your rates. A ‘safer’ car can be really helpful to keep the insurance expense low. Also, a lesser expensive car can slash off a good amount of payment from your premium.
Companies look at the location in which you will be driving your car in. A more populated or highly urbanized location can mean more risks for your auto insurance company. And you can expect higher rates on more crowded places like your college or university.