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Auto Insurance Money Saving Tips for College Students

by Amy Walters

With all the expenses associated with going to college, money is usually very tight for most students. While some costs cannot be controlled or reduced, car insurance is one that can. There are a variety of ways for college students to find cheaper auto insurance that keeps them covered.

Students under the age of 25 are generally considered by insurance companies to be a higher risk than drivers that are older. For this reason, rates are often higher for younger motorists. Still, there are ways for college students to find insurance that is less expensive than that usually charged to their peer group.

*Good grades – Many insurance companies will offer students discounts, from 10 percent to 20 percent off, for getting good grades. This can include maintaining a 3.0 grade point average or higher, being on the dean’s list or placing in the top 20 percent of the class. Insurance providers are willing to offer these discounts because students who get good grades are seen as less of a risk.

*Use the parents – Since college students are not usually full-time drivers, they can save money by remaining on their parents’ insurance policy as a student or part-time driver. Normally, insurance will be cheaper for the parents and the student can then pay them a small stipend each month rather than pay the high price for their own policy.

*Clean record – Policy providers are probably more impressed with a clean driving record than by anything else. As with good grades, a clean driving record, or low risk level, over a period of time reflects trustworthiness, which can convince an insurance company to reduce its rates for a student. This includes avoiding traffic citations, such as speeding, as well as accidents.

*The right car – Discounts are frequently available for models of cars that have a proven safety record. Look for vehicles with air bags and anti-lock brakes. Older models are also less expensive to insure than newer, sportier vehicles.

*Shop around – Be sure to compare a handful of policies offered by different insurance companies. Some will offer discounts others will not, and coverage can vary from place to place. Ask the agent what discounts are available.

*Good credit – Discounts may be available for those that maintain good credit scores. This is another opportunity to show how responsible the student can be, which often results in better prices.

There are many expenses college students cannot control, but the amount they pay for auto insurance does not have to be one of them. Shopping around will provide a variety of options that best fits each student’s situation. When a college student can prove to an insurance company they are more reliable than others of their age, it can result in real savings when it comes to an auto insurance policy. That money can then be used elsewhere or put back for a rainy day.

Guest blogger Jennifer Lewis writes for a site that has advice on college scholarships for women, such as minority women scholarships. She understands how hard it is to be a student living on a limited budget and believes in shopping around to get the best price on auto insurance.

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