It’s no secret that new drivers pay more for car insurance. Their lack of experience behind the wheel means insurance companies consider them an increased risk.
However, there are ways teenagers can save money on car insurance. Most insurance companies offer car insurance discounts designed specifically for young drivers. You could pay less for insurance if you have good grades and complete a qualifying driver’s education course. Additionally, it is possible to cut back premiums if you leave your car at the home once you head to college.
Let’s find out how you may get a much better rate on your insurance by using student discounts.
Why Are Students More Expensive to Insure?
Young drivers are much more likely to get into a collision when compared to drivers with an increase of years behind the wheel, following data collected by the National Highway Traffic Safety Administration (NHTSA), so insurance companies often charge them more for their or their policies.
Drivers between the ages of 15 and 20 are more prone to:
- Speed
- Drive while distracted
- Make mistakes on the road
Lack of experience isn’t the only real risk factor for young drivers. People in this generation are also recognized for taking risks while driving, operating a car under the influence of drugs or alcohol, and not wearing seatbelts.
Because they’re at an increased risk for an incident, teens are more expensive to insure. This means that car insurance companies often charge higher premiums for drivers in this age range.
However, car insurance companies know that they don’t assume all young drivers will get into a crash. This is exactly why many insurers offer discounts specifically for qualifying students.
Good Student Car Insurance Discounts
Achieving good grades takes effort and demonstrates responsibility. And, since you’ll typically take more time studying to keep your grade point average up, you won’t have as much time to goof off in a car. That means you’re less likely to get in a crash.
Insurance companies know this, so they give you a good student discount for young drivers who work hard in school.
Depending on your insurer, you may need to supply proof of your academic success. This could be a report card, transcript, or a form filled out and signed by your school administrator. You may need to submit standardized test scores in place of a written report card if you’re homeschooled. Your insurer might request your ACT or SAT scores.
If you qualify because of this discount, be sure you continue working hard at school. You might have to resubmit proof of eligibility regularly. Your car insurance rates could increase if your grades begin to go down.
Good student discounts aren’t available in every location by every insurance company. Check with your agent to see what’s available in your state.
How Much Is a Good Student Discount?
Here is a consider the average good student discount provided by three large insurance carriers. The dollar amount of the discount would depend on the quantity of your premium.
While good student discount amounts vary from insurer to insurer, it’s often between 5% and 25%. See your insurer just how much you can save.
Other Student Discounts for Car Insurance
Getting good grades isn’t the only method to truly save money on your car insurance as a driver. Here are some additional options available to you to reduce your premium.
Student Away-From-Home Discount
If you do not bring a vehicle with you to campus, you could qualify for a discount because you’re not driving as often. Some insurers offer this discount if you’re a college student living over 100 miles from home.
Driver’s Education Discount
Driver’s education courses can assist you in learning how to drive safely. They can help enhance your situational awareness, making you more prone to avoid accidents. You could qualify for a discount if you’ve taken an authorized course.
Safe Driver Discount
Regardless of how old you are, the simplest way to truly save money on car insurance is to operate a vehicle safely. If you do not get in any accidents or get speeding tickets for a specific time, you could qualify for your insurer’s safe driver discount.
While you won’t qualify because of this discount right away, keep practicing safe driving, and you may see your premiums decrease over time.
Membership Discounts
College students that are members of a sorority, fraternity, or honor society might also qualify for discounts. If you’re a person in one particular organization, see if your insurer offers any savings.
How Students Can Save on Car Insurance
To ensure you aren’t paying too much for your car insurance, talk to your agent about any student discounts you could qualify for. You May very well not be aware of all your choices, or you may not automatically obtain the savings, so getting personalized advice can assist you in saving money.
Additionally, it’s often cheaper to include your parent’s or guardian’s plan than to purchase your policy. It also lets you take advantage of additional savings, including the multi-policy discount. But when that’s not an option, take care to shop around. This way, you can find a policy that’s right for you.