December 11, 2009

What Students Can Do To Minimize Their Car Insurance Costs For Parents

When under the age of 25 it can be expensive to insure student drivers. Fortunately, there are many auto insurance discounts available to minimize this cost for teen drivers, and their parents. Parents can call for an auto insurance quote and ask for discounts applicable to teen drivers.

Students have at their fingertips an array of auto insurance discounts that they should take advantage of in order to save substantial money. For example, teens are able to take courses to reduce their auto insurance rates. To qualify for this discount, the student usually has stipulations to meet with the course. Most times these include receiving 30 hours of classroom instruction, undergoing a minimum of six hours operating a motorized vehicle and that the course must be conducted by a licensed instructor. Students can locate courses online, and oftentimes, insurance companies work with specific programs that offer driving courses for students. If using an outside agency, students should verify the course meets the required stipulations before signing up for the class.

A good driving record can also pay off for teens when it comes to car insurance rates. In order to apply for this discount, all members under the same insurance policy (usually all drivers in the same household) must have no at-fault accidents and no moving violations of any sort within the past three years. Teen drivers can receive further discounts for good grades in school. If you are enrolled in high school or college full time, under the age of 25 and unmarried (depending on the insurance company), you may be eligible for an auto insurance discount. The student must show proof of their enrollment and meet one of the following requirements: rank in the top 20 percent of his/her class; a grade average of B or higher; a grade point average of 3.0 or higher (out of 4.0); or made honor roll or dean’s list. Students that are home schooled can also qualify for teen auto insurance discounts. They need to rank in the upper 20 percents on one of the following tests taken within the last 12 months: PSAT, PLAC, SAT-1, ACT, TAP or the California achievement test.

Teens can also minimize auto insurance rates by choosing cars that are low in maintenance costs, are not at high risk for being stolen, perform well in safety testing and are low performance’ vehicles. It is prudent for students to contact their insurance company for an auto insurance quote and double-check their vehicle of choice.

Students have many opportunities to save their parents money. A little bit of research goes a long way, and so does good grades and driving records.