May 19, 2010

3 Ways That Students Can Lower Their Auto Insurance Premiums

A new set of car keys on a key ring represents a great milestone to the teen who has recently acquired his or her driver’s license, however, behind the luster of independence and the move toward adulthood there are also new responsibilities to consider — some of which will be difficult to maintain, particularly when the driver has a limited budget. Aside from regular maintenance costs, there is also the issue of insurance, and getting auto insurance quotes can be a daunting wake up call for those students and young adults with fiscal constraints. But different companies offer special rates, so rather than dreading the idea of auto insurance premiums, make your student status work in your favor.

One thing to remember is that certain insurance companies offer discounted rates that are contingent upon your GPA! So getting good grades at school is not just good for your future, it’s good for your wallet as well. If you’re able to meet their established requirements that qualify as good grades’ (usually a minimum of a B, or a 3.0) you can save as much as 25% on your auto insurance premiums. Furthermore, a teen driver who takes a safety driving course can reap additional discounts and further shave down costs.

Another thing to always practice is safe, careful driving — a no-brainer to be sure, but the fewer mishaps you have on the road, the better it is for your bank account. Generally, if you’re able to avoid any accidents and violations for three years, you’ll be rewarded for your efforts with a reduction in your premium. You’ll get a bigger discount if you can maintain that vigilance for five years. Keep in mind too, that having a safe car overall with anti-theft devices, dual air bags, etc., will also manage to hack away at the cost of your premium.

One last way you can save on the cost of student auto insurance is to see if there’s any reward for having family members who own policies within the company (for example, if your parents have coverage on their car, or have homeowners’ with the same company). Some insurers are willing to offer some wiggle room and a little bit of preferential treatment if they see that they have loyal customers.

In the end, getting auto insurance quotes as a student might be a little like going to the dentist, but remember that your youth — which some might see as a liability — doesn’t have to sentence you to a wince-worthy premium payment stub. There are more options available to you than you think – all you have to do is remember to ask!