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Student Auto Insurance: What is Included in Affordable Plans

Updated: July 23, 2018

Students who have cars and plan on using them at college are usually looking for some form of cheap student auto insurance.

There are many ways for students to get discounts on their car insurance policies through certain discounts.

The key to getting good student car insurance rates is qualifying for a number of the discounts available at major companies.

These discounts ensure that students can still have adequate protection through their insurance, but do not have to pay high premiums.

In some cases, students may have to sacrifice parts of a car insurance policy in order to reduce the overall cost.

Student Auto Insurance Discounts

There are many discounts available for student auto insurance at major companies. These discounts encourage students to get higher grades, with many companies offering lowered premiums for student who get a B average or better.

It is also possible for students to save on car insurance by having the insurance company increase their deductible.

In addition, car insurance for students comes down in price when teenagers take defensive driving classes. They can also get anti-theft devices installed, which helps lower monthly premiums. Other discounts are available for older cars that have air bags and other safety features added to them by the owner.

It is also possible for students to save on car insurance by having the insurance company increase their deductible.

This means paying more out of pocket in the event of an accident, but it does reduce the monthly premium level. It is a calculated risk that students must take to save money.

Students are discouraged from trying to get insurance for sports cars or luxury vehicles. If you want to save money on auto insurance, get a used car. These are cheaper to ensure that do not make certain types of car insurance mandatory, such as comprehensive and collision coverage.

What is Included in Student Auto Insurance

Car insurance for college students can include all the same coverage perks as regular auto insurance. It is up to the individual student to decide how much insurance they need. Factors include the car’s value, whether it is a loan or completely paid off and the student’s financial situation.

Liability insurance pays for the other car and driver’s damage costs if the insured student was at fault in an accident.

A student auto insurance policy must include liability insurance, because this is almost always mandatory in the United States. Students may also add comprehensive and/or collision coverage to their policies, if they want.

Liability insurance pays for the other car and driver’s damage costs if the insured student was at fault in an accident.

Comprehensive coverage protects the student’s car from vandalism, theft and other damage while it is not being driven. Collision coverage protects the car during an accident that is the insured individual’s fault.

If a student is driving a vehicle that was purchased through an auto loan, they are obligated to get comprehensive and collision coverage by the loan company. They cannot remove these coverages, which results in higher monthly premiums.

How to Save Money on Student Auto Insurance?

We already mention the many discounts offered by big companies for student auto insurance. In many cases, students can also get further discounts if they are good drivers. This means no traffic tickets or accidents since they started driving.

Statistics show that getting only liability insurance is often half as costly on a yearly basis as adding comprehensive and collision coverage.

The best way to get a drastic reduction on car insurance premiums is by eliminating the optional elements of coverage. This means forgoing comprehensive and collision auto insurance. While this is a slight risk, it is often necessary for students.

Statistics show that getting only liability insurance is often half as costly on a yearly basis as adding comprehensive and collision coverage. This means that if a student is seeing rates of $2,000 a year for all three coverages, sticking solely to liability will bring down the yearly costs to $1,000 or below.

Another way to try and save money is by getting the student onto their parents’ auto insurance policy.

Finally, it is possible to get good student car insurance rates by shopping around at various companies and trying to find the lowest possible premium for your desired level of coverage.

Best Companies for Student Auto Insurance

When getting cheap car insurance for college students, it is very important to deal with larger, reputable companies.

It is cheaper to go with a relatively unknown company, but it can cost you anytime there is a car accident.

There is a temptation to go with a local company that has only been around for a few years, because of their low-cost policies. However, companies that do not have a long history, and only service one state, are less likely to have reliable customer service or claims payout rates.

It is cheaper to go with a relatively unknown company, but it can cost you anytime there is a car accident. If the company takes months to pay compensation, you are losing money by having to pay for repairs out of pocket.

In contrast, the reputable car insurance companies have low-cost insurance policies for college students that still come with great coverage, customer service and claims payout rates.

To get good student car insurance rates, get a policy from a company that offers discounts for safe driving, good grades and other reasons. These discounts may not all apply to your policy at the start, but they can gradually bring down monthly premiums after a year or two.

Pros and Cons of Getting Cheap Car Insurance

There is always a trade-off for people who want cheap student auto insurance policies. Even with discounts for good driving and high grades, students will have to sacrifice coverage to get a cheap monthly premium.

If damage occurs due to natural phenomenon such as fires or heavy winds, the student is responsible for paying the repair costs themselves.

For example, ramping up the deductible to bring down the premium rates is a potential con. It is okay if the driver never gets into an accident, but each collision may result in the driver having to pay a lot of money out of pocket.

Similarly, sacrificing collision and comprehensive coverage does put the vehicle at risk. If damage occurs due to natural phenomenon such as fires or heavy winds, the student is responsible for paying the repair costs themselves.

In addition, the lack of collision coverage means you have to pay out of pocket for repairs related to an accident that was your fault.

However, there is one huge advantage of cheap car insurance: lower premiums. Many students simply cannot afford higher rates. The student could also have a very old car, which means that they may only want the minimum level of insurance.