The Helpful Guide to Finding the Cheapest Car Insurance for Students
Driving as a student can be a real luxury. You’ll also need to pay for road tax, gas, and MOTs.
The cost of Cheapest Car Insurance for Students is the most significant expense. The amount of premiums you pay to your insurance company tends to be higher for less experienced drivers, which is unfair but understandable.
We decided to look at ways students could reduce their auto insurance rates.
Cheapest Car Insurance For Students
The average cost of auto insurance in the United States per year is $1 601 for full coverage and $513 for the state minimum coverage.
Average college costs for students are approximately 7 716 dollars per year or 598 dollars per month. If you pay less, then you are winning.
Liberty Mutual
Liberty Mutual is my 1 choice for Cheapest Car Insurance for Students . You might be surprised. Liberty Mutual offers a great incentive to combine their renter’s insurance, which every college student requires, with their auto insurance. By combining policies, you’ll save money AND get more coverage.
Multi-policy discounts can save money when you combine your car and renters insurance. Liberty Mutual offers a multi-policy value, saving you a lot of money. Liberty Mutual is our top choice for students looking for cheap auto insurance for new drivers.
Lemonade
Lemonade has been rated as one of the best products because it offers everything you require–car, renters, and other insurances–in a single product. You can apply online and be covered.
Lemonade makes it easy to get insurance. Lemonade is a relatively new company in comparison to Liberty Mutual. However, this has led them to be innovative and make things easier for their customers.
Metromile
You probably have yet to hear about Metromile. But it’s an excellent solution for students who only drive a little. You pay for car insurance by the mile. If you drive 2,500 miles or less per year, you can save up to $947 on your insurance.
That is a good model for drivers and college students on a tight budget because you pay only for what you need. Why pay for car insurance all year if you only drive at weekends, in the summer, or on random trips?
What is the best level of student car insurance?
Three main types of auto insurance are available:
Car insurance for third parties only
It covers damages and medical claims for other persons if you are liable for an accident.
You will be responsible for the costs if your car is damaged. This cover is excellent for older cars but could be better if it’s a newer model.
Insurance for third-party fire and theft, as well as damage to your car
That is our number one pick for student auto insurance. The most affordable third-party, theft, and fire (TPFT) cover is often available. It also provides theft coverage, which can be very important if you live in a big city and have no place to store your car.
You are not covered by this option for damage to your vehicle in the event of an accident.
Comprehensive car insurance
You are covered for all your costs if you’re involved in an accident, whether you caused it or not. Your car, the other person’s car, and your medical expenses will be covered up to a specific limit.
We recommend comprehensive insurance for those who are prone to accidents. Saving a few dollars now could lead to you having to spend a lot more later.
It is essential, to be honest with both yourself and your insurer.
What to consider when shopping for car insurance for students
The price of Cheapest Car Insurance for Students is affected by several factors. Your history, vehicle, location, and other factors all affect the cost of your insurance.
You can get a quote on many insurance websites and see what you can buy for that price.
You must understand the insurance you are getting. Insurance companies thoroughly appreciate your car, driving habits, and other factors.
It would help if you considered the following when shopping for auto insurance as a student.
Types of car insurance premiums for students
The standard type of auto insurance is what most drivers choose. It covers them and their car to the level they select from. These premiums may not be the best choice for young drivers since rates are higher.
We recommend a specialist policy that will allow you to reduce your premiums due to less frequent driving or as an incentive for safe driving.
Two types of specialist insurance policies are available: Pay as You Drive (PAYD), and Pay How You Drive (PHYD).
Both are often called telematics or “black box” insurance because they use a small device fitted in your vehicle to monitor how and when it’s driven.
Students who only go for short periods can benefit from temporary car insurance.
Pay as you drive (PAYD)
That is a similar option to a mobile pay-as-you-go contract. You only pay when you drive your car.
This option is to have a device installed in your car which monitors the distance and frequency of driving and then charges you accordingly (some insurance companies charge an additional fee for an engineer to install the black box, so you should be aware).
Here are some options that you can choose from:
- Cover Box – Your insurance rate will be determined by the miles driven and the time you go. That is a good option if you do not drive at night.
- Choose your annual miles (6,000+), which you can increase if needed. Safe driving can earn you more.
- By Miles – A great choice if you’re a low-mileage driver. Miles will send you a small black box about the size of a matchbox to track the miles you drive.
Pay how you drive (PHYD)
The GPS box is also attached to the car. PHYD and PAYD are similar, although there is some overlap. PHYD focuses more on safety than how many miles you drive.
These black boxes monitor various factors, including acceleration, braking, and cornering speeds, to determine the type of driver you are and adjust your premium accordingly.
Check out these premiums if you consider yourself to be a safe motorist:
- Cooperative Young Driver Insurance – They may offer insurance without a box at your second renewal.
- Ingenie – Ingenie is an excellent option for young drivers, as you will receive feedback every ten days on your driving. You can then improve your driving and earn the no-claims bonus.
- Drive Like a Girl – After you get over the sexist title, it’s a pretty good option. (And open to men as well!) Safe driving and not driving between 11 pm and 4 am are rewarded.
How Students can get a discount on car insurance
You can choose from a wide range of car insurance policies, but it is essential to understand which discounts are available. You should be aware of three significant buckets for discounts:
Discounts on Vehicles
Vehicle discounts are savings for owning a vehicle with specific features. Our recommended company Liberty Mutual, for example, offers the following discounts on cars:
- Discount for anti-theft (does the car you drive have an alarm system?)
- Discount for online purchases
- Discount on new cars (if you are the first owner of this model and it is yours)
- Violation-free discount
Discounts on Policy
They are applied to your entire policy and are usually based on your actions.
- Discount for multiple policies (if you hold more than one insurance policy with the same insurer)
- Discount for full payment (if you pay the entire premium in one go rather than monthly)
- Deal for auto-payment (if you choose to pay your premiums by direct debit)
- Value for responsible driving (if no accidents or claims occur in a long time).
- Value on Paperless Statements (if you subscribe to eStatements).
- Value for long-term customers (if you have been a customer for many years)
Additional Discounts
You may also qualify for other discounts from your auto insurance provider, but these usually require taking special steps. Ask to see if your car insurance company offers any discounts.
- Discount for good students (usually a combination of both being a student AND having good grades).
- Discount for driving education (if you complete a course sponsored by your insurance company).
- Discount for safety monitoring (some insurance companies offer a value to drivers who install a device to monitor their driving habits).
Good student discounts and multi-policy discounts are two of the most significant discounts students can take advantage of. Insurance companies offer the most significant dollar amount discount with a multi-policy discount.
Conclusion:
Finding the best car insurance rates for students can be challenging, but following these tips will save you a lot of money. It pays to research before you sign up for an insurance policy.
That includes shopping around, comparing prices, and using comparison websites to find the best deal. This guide should have helped you find Cheapest Car Insurance for Students, and you can now save money on your wheels.
