Car Insurance for Good Students
High school and college students are often charged higher car insurance premiums than their elders because they are inexperienced behind the wheel.
Unlike their parents and other drivers on the road who have been licensed for years, students generally lack the experience and maturity that they need to drive defensively.
The most effective way for any youthful operator with little driving experience to keep their rates low is to earn good grades, take voluntary driving courses, and maintain a clean driving record.
Teen drivers and young adult drivers who earn a good grade-point average may pay higher rates for their age, but the discounts that they earn for their records and grades will help offset the cost.
Read this guide to buying the most affordable Good Student car insurance, and be a wise consumer the first time that you quote and buy state-mandated protection. And be sure to use the FREE search tool above to compare quotes easily!
What are youthful operators and why do they pay more for coverage?
Understanding insurance terms and how the industry works can help you as a consumer when you are shopping for auto insurance. In the insurance world, inexperienced drivers who are under the age of 25 and have less than 9 years of driving experience are considered to be youthful operators.
If you are a married male or female, your marital status may actually qualify you for discounts and more competitive rates so that you are no longer classified as a youthful operator.
Many people who have been driving for 1 or more years with no blemishes on their record wonder why they must pay higher rates for their age when they have proven that they are a good driver.
While it may seem as if their skills have been proven, insurance rates are based on risk and the statistics show that 1 in 5 teens have an accident within their first year of driving. The statistics also show that car accidents are the leading cause of death for drivers ages 15 to 20.
Based on what the data shows, it is not until someone has about 9 years of driving experience that the high incidence of accidents and the increased death rates go down.
This, in short, is why age and driving experience are very important insurance rating factors, and consequently why youthful operators will pay higher premiums than experienced drivers who are in the same preferred rating class otherwise. Young males are affected the most by the statistics and are the highest risk class that exists.
When comparing rates, young males will pay higher rates than young females because they tend to have more accidents.
Ways to Keep Your Rates Low When You Are Young
As a good student, you are resourceful and focused. Using these skills when you are shopping for the most competitive car insurance premiums can be beneficial if you want to save money. Just because you are being charged higher rates based on your age does not mean there is no way that you can find an affordable plan.
There are plenty of ways for inexperienced drivers to save as long as they understand that every company has their own unique rates and that buying insurance is a multiple step process. Here are a few tips to keep in mind before you start shopping:
Shop Around to Find the Best Price
It may sound obvious to some, but some consumers who are new to shopping for insurance are not familiar with the fact that it is best to compare quotes with several different insurers. To understand why shopping around is the best way to save, you need to understand how the market works in all cities and states.
Insurance companies, like all companies, market to the public to sell their products. They communicate the value that they offer, and try and attract a specific targeted niche to gain market share.
To compete in the market that the insurer is trying to take over, the rates must be comparable or better than the rates of other companies. All rates must be approved by the Department of Insurance in the state, but it is not out of the norm for a company to price themselves out of some markets and price themselves very low in others.
As a young driver, you should be looking for a company who is trying to attract the younger generation of drivers who are responsible drivers and good students. The only way to find a company priced right in your rating class is to get quotes through multiple insurers.
Shop for a Safe Car
If you do not yet own a vehicle, you can control your rates from getting out of hand by shopping for a safe vehicle. The vehicle that you choose can strongly impact your premiums. Most people assume that rates are determined by the value of a vehicle, but that is not the case.
It is claims statistics and safety records that affect rates. The crashworthiness, structural design, safety features, restraint systems, anti-lock brakes and size of the car can all impact safety records and ultimately premiums.
Premiums for unsafe cars are exorbitantly higher when you are an inexperienced operator, even when you earn good grades. This is why you should take your time to shop for a safe car as a new driver. Be sure to compare the vehicle classifications and rates for several makes and models before you buy a car so that you make a practical purchase.
Stay On Your Parents' Policy if You Can
You may have the option to stay insured under your parents' policy to save money. If you live in your parents' home, you are still a dependent in school, or you drive a vehicle where one of your parents is the registered owner, you have the option to stay on their plan.
This will qualify you for all of the multi-policy, multi-car and loyalty discounts that your parents receive, which will dramatically lower your rates. You can also stay with your parents if you are away at school more than 100 miles from the home and did not take a car. This helps you build prior insurance credits for when you will buy your own plan.
Show That You Are a Responsible Teen
The most effective way to keep your premiums low is to show the insurance companies that you are responsible and not likely to file a claim. This means that you should avoid the leading causes of accidents which include: distracted driving, speeding, drinking and using cellphones when you drive.
You should also obey traffic laws to avoid moving violations, take a voluntary defensive driving course as part of your state's Graduated Driver License Program, and earn good grades all throughout your student career.
By doing all of this, you can show that you are a Good Driver, receive a preferred rating, and receive special discounts.
What discounts are available for young operators?
You should always take advantage of the insurance discounts that you are eligible for.
Some companies offer their own unique set of discounts, but here are some that are common in the industry:
Good Student Discount for Full-time Students
Earning good grades will not only get you into college with a full-ride scholarship, doing this will also keep your insurance rates down. To qualify for a Good Student Discount (GSD), you need to show your insurer that you have earned good grades and are enrolled in school full-time.
You must be under 25, classified as a full-time college or high school student, and earn a 3.0 or higher based on the rules of most insurers. You will need to provide a copy of your transcripts or have a special form completed to qualify for renewal discounts.
Driver Training Discounts
Another way to earn credits off of your premiums is to take a driver training course that is approved by your insurer. Driver safety training for youthful operators teaches drivers with little experience how to be defensive and avoid accidents.
Because these classes statistically help lower accident rates, they will make you eligible for a discount for a period of 3 years. You can take this course until you are 21 or 25 depending on the company.
Accident-free and Good Driver Discounts
You cannot qualify for accident-free or good driver discounts when you are newly licensed, but once you have 3 years of experience behind the wheel you can.
These discounts are only available to you when your record is clean and you have no at-fault accidents.
If you are ready to save on your own policy, now is the time to start comparing the rates for Good Student car insurance. Use an online insurance rate comparison tool, such as the FREE one below, that gives you access to the rates with several top-name insurers in your state to make your job all the easier. Keep up with your grades, drive safe, and find the best insurance rates.