Student insurance car policy providers offer discounts based on various qualification requirements. Consumers might think student car insurance premiums would cost more because most students are younger drivers with less experience on the road. The less time one spends on the road, however, the less risk they pose regarding traffic violations, accidents, and other driving-based issues. This aspect is not overlooked by auto insurance providers and discount programs for students exist based on this premise.
Cheap car insurance for young drivers in college is not based solely on the time they spend driving. Some car insurance providers take income into consideration because most college students are either not working or only working part-time while enrolled in school.
Most car insurance companies do not use income as a factor for calculating insurance premium discounts, however. The first factor used in determining the base price for student car insurance premiums involves the state where the student is attending school.
This is true even for out-of-state students because traffic laws are created, regulated, and enforced by each U.S. state. The second factor affecting premium discounts and final prices is the existence of an affiliation between your school and specific auto insurance providers. Sometimes your school will refer you to an insurance company and in exchange for getting new business, your monthly bill or annual premium will be discounted.
More logistical factors also play a role when calculating discounts on car insurance for college students today. The length of your commute is a factor. Do you drive to and from the campus each school day and if so, how far? Conversely, do you live on-campus as a student-resident and barely drive your vehicle at all? The less time you spend driving as a student the deeper your car insurance prices might be discounted. Your age also plays a factor as does your current and prior driving record. A clean driving record with zero accidents has a positive impact on your premium prices as it does for drivers of any age.
Whether or not you are on your parent’s car insurance policy also affects your car insurance rates as a student – but not always in the way you might expect.
If your parents are the primary policyholders and their driving records are bad, your rates might increase as a result. Conversely, parents with clean driving records who include student children on their policies might receive extra discounts. Some car insurance companies also offer rate discounts for students who maintain a 3.0 or higher Grade Point Average (GPA), make the honor roll or dean’s list and receive high scores on SAT, PSAT and ACT tests.