Car insurance is required in 49 out of 50 US states. When you’re a student, funds are tight and you often find yourself walking a tightrope between your needs and wants. Since cars are often necessary for getting around, you’ll want to find the most cost-effective car insurance for your needs.
This isn’t as easy a task as we’d like since many insurers will often charge students higher premiums. Students are considered relatively inexperienced drivers so the risk of liability is higher meaning pricier insurance rates.
As a student, you’re already juggling expenses for books, food, lodging, and gas as well as other things. To add expensive insurance payments to the mix only complicates an already stretched budget.
How will you deal? Are there more affordable insurance options for students?
The good news is there are car insurance companies that offer more competitive rates. You’ll need to do some in-depth research though since no two insurance companies offer the same rates.
Before signing on the dotted line, it’s a good idea to look at a few offers, check prices, and available discounts for comparison.
Top 3 Car Insurance For Students
Geico offers some of the cheapest car insurance rates to students. It offers low premiums and often has promotional discounts tailored specifically for students. For example, there are discounts for fraternity and sorority members as well as for students actively involved in campus activities.
Geico’s policy is set at an affordable $2,326 for six months of full coverage. These rates vary based on location so you’ll need to get in touch with them for a more exact price.
2. State Farm
State Farm has a long list of auto insurance discounts including reduced rates for students:
- It offers a generous 25% off for students under 25 with a ‘B’ average or better.
- New drivers under 25 without accidents and moving violations in the last three years can get a 15% discount
- If you are a courteous driver, State Farm honors young drivers with safe driver discounts.
Known as the best car insurance in the market for student discounts, State Farm’s premium is around $2,462 for six months of full coverage.
Allstate is the only car insurance company that has a mobile app called Allstate Mobile. The user-friendly app provides functionalities like policy renewal, claims management, and customer support.
This is a great help for tech-savvy students who may not have the time to visit or call Allstate offices.
Without creating a hole in your pocket, the Allstate policy is around $2,467 to be fully covered for half a year.
Tips for Finding Cheap Car Insurance
To get the best rates for car insurance, keep the following tips in mind:
- Pay your bill on time
- Compare car insurance quotes
- Play around with your coverage
- Look for car insurance discounts
- Ask about a no-claims bonus/discount. This is a percentage discount awarded for not filing any car insurance claims during the previous year. It increases with every year that you don’t have accidents or claims.
- Consider the cost of coverage before buying a car
Frequently Asked Questions
1. Should college students have their own auto insurance policy?
It depends. If you’re a full-time college student, you can be covered by your parents’ car insurance as long as your primary address remains the same as your parents.’ This applies even if you’re attending college out of state.
2. What is an auto insurance premium?
An auto insurance premium is the amount you need to pay at regular intervals to keep your insurance active.
3. When do I need to get auto insurance?
If you own a car, you need to be covered by insurance. Forty-nine out of 50 states require it. In New Hampshire, the exception that doesn’t mandate vehicle insurance, you still have to show proof that you can cover any financial liabilities that may arise from accidents.
Once you have car insurance, you should always carry a copy of your current car insurance policy with you when you drive.
4. How can I avail of the cheapest car insurance?
Research and price comparisons are the only ways for you to find the cheapest car insurance available. You should also ask for discounts from each insurer.
Additionally, you can also ask about the minimum coverage for significantly reduced prices. Before doing so, however, you should see if what is minimally covered is sufficient for your needs and what’s required by the state.
5. What is the insurance rate?
The insurance rate is the amount of money needed to cover losses, expenses, and provide a profit to the insurance company for every vehicle.
Your Takeaway: Responsible Drivers Get the Best Insurance Rates
In the end, responsible and defensive drivers who don’t have any records of accidents and liability will always have a distinct advantage when it comes to insurance premiums. To keep your costs low, be careful and always follow road and safety rules.