All drivers are usually in need of car insurance to financially protect themselves against risks and damages resultant of an accident. Although car insurance for drivers 18 to 25 is normally far more expensive than for other age groups however college students often enjoy certain advantages. For example many insurers provide students with discounts based on their grades and driver education. But the question is how to figure out which car insurance is best for college students? Making the search easier, here is a review that gives you the options based on affordability, student specific discounts, and useful coverage. Here is a selection of the best car insurance for college students.
Comparing car insurance for college students
Inside the U.S. the average annual cost of car insurance for the age groups of teens and young adults between of 18 and 22 is $3,615. The five car insurance providers have been evaluated here. All of these providers don’t to a certain extent approach this price point. However these are the best options for college students in search of car insurance service. Given below are some of the student specific discounts and other unique features offered by these companies that create a standard for competitors.
| Company | Student specific discounts | Unique features to offer | Average rate for 18 year olds |
|---|---|---|---|
| Allstate | Smart student, student away at school | Drive wise program for safe driving, Mile wise program for irregular drivers | $6,521 |
| State Farm | Good student discount, student away at school | clear guided program, top ranked mobile app and online resources | $5,506 |
| Amica | Good student, student away at school | Scores based on credit, surplus policies, huge consumer service | $7,872 |
| USAA | Good student | Broad range of discounts accident forgiveness, payment plans | $3,516 |
| Geico | Good student | Mobile app available, huge discounts, Mexico insurance | $4,521 |
Average cost of car insurance for college students
Car insurance companies take into account a number of custom designed factors while evaluating the risk of a driver to decide how much will be their car insurance rates. Some of these factors include place you live, your driving history and the type of motor vehicle you drive besides others.
Car insurance companies also consider your gender while evaluating risk. According to the surveys conducted by the traffic safety companies like Insurance Institute for Highway Safety (IIHS) and the Highway Loss Data Institute, men die more than the women in motor vehicle accidents every year. Obviously because men are often take on risky driving practices much more than women. These risk factors include over speeding, saying no to wear a safety belt and driving while not in being full senses after using alcohol. These factors increase the need for car insurance to assure male drivers consequently the car insurance companies ofer higher car insurance rates.
Annual premiums based on gender
| For female | For Male | %age difference |
|---|---|---|
| $5,009 | $5,661 | 13% |
| $3,725 | $4,266 | 15% |
| $3,370 | $3,814 | 13% |
| $2,451 | $2,792 | 14% |
For college students, age is connected to and is an additional factor for the lack of experience behind the steering wheel which means they are more liable to have an accident, making them riskier drivers to be insured. So the car insurance premiums offered by most of the companies, age wise are summarized below.
| Age of college student | Average premium offered |
|---|---|
| 18 | $5,335 |
| 19 | $3,996 |
| 20 | $3,592 |
| 21 | $2,622 |
Tips for college students to save money in car insurance
Car insurance offered to college students may be expensive because of the reason that young drivers are placed in the high risk grouping often. In addition to that car insurance rates for college students can be affected by the state where you live. However, there are some ways by which you can save money on your car insurance.
For most of the cases, the average savings for a good student discount is in the range of 8% to 9% for college students. Nevertheless, this small percentage discount still can be helpful. For example in the case of Allstate’s average annual premium for an age of 18 year is $6,521, that means annual savings of $521 is possible.
Savings with good age wise student discount
| Age of student | Average savings possible |
|---|---|
| 18 | 8% |
| 19 | 9% |
| 20 | 9% |
| 21 | 8% |
Improve your grades
Most of the car insurance providers offer good discount for students maintaining good grades. Sometimes this discount can significantly reach up to 25% or even more with most companies not requiring a GPA of 4.0 or straight A’s. For instance, All states regard you as a good driver if your grades are almost B- or above, having at least a 2.7 GPA. If your grades lie in the C or below range, improvement of grades can help you to save some money on your car insurance.
How to take advantage of low mileage discounts
If your living place is at a walking distance from your campus, the most probably you only use your car on the weekends or for household tasks. Some of the car insurance companies offer discounts for irregular car drivers. Even you can find pay per mile insurance, which charges with the distance you drive in a given period of time. Most of the times, this type of insurance is far more cheaper than a usual car insurance policy.
Stick to your parents’ policy
By comparing to the costs of having your own policy to that of be staying on your parents’ policy one can see if it is cheaper to stay on their own policy. Although this is not always a good savings opportunity, it might make it simpler that can alleviate the extra costs with additional discounts. For example, taking a safe driving course, improving grades, and getting enrolled in a safe driver program can all surly help in maintaining your parents’ rate low if you are staying on their insurance policy.
Leaving your car at home
The final option is one that most college students don’t like to hear, but it is actually valuable. And this option is to just leave your car at home. Your car will surely be much safer there, and there is almost no risk of something happening to it. Although it is never a good idea to withdraw your car insurance, you can take advantage if your college is more than 100 miles away from your house called as a student away at school discount.
Summary
- College students who possess a car for school are in need of a car insurance policy.
- No doubt insurance is not always cheap for young adults, there are some useful ways to save money.
- Like for example most insurance companies usually offer discounts for smart students as well as those who leave their car at home.