When you are a college student, the last thing you want to worry about is another bill. From last-minute quizzes to research papers, your life is already filled with enough stress and worrying about school. However, there are ways to save money on car insurance that you should know about. So consider putting away your textbooks for a few minutes to check on your policy.
Lower Your Coverage
Lowering your coverage can help you save money every month. One option is to remove the collision and comprehensive coverage from your car insurance policy. Some experts recommend doing this when your premium per year is more than or the same as 10% of what your car is worth.
However, you have to consider the age of your vehicle and your ability to fix or replace it in case an accident occurs. For older vehicles, it usually makes sense to get rid of collision and comprehensive coverage. Newer cars need this type of coverage, and some finance companies may require you to have it to get a loan or lease.
Another option is to change your deductible. Most people have a higher deductible to lower their monthly insurance payments. Before you make this change, consider your ability to pay for a higher deductible if something happens. Having a lower deductible may cost more per month, but it offers protection if your cash flow is an issue after an accident. Make sure you have the money for a deductible in a savings account.
Shop Around for Car Insurance
One of the fastest ways to save money on car insurance is to find another company that offers lower rates. You can get auto insurance quotes to compare different insurance companies and pick the best deals. A quote gives you an estimate of what you will have to pay for a premium. It should explain the coverage and any deductibles.
It is important to remember that car insurance companies use a large number of factors to determine the quotes. You should be upfront about your current situation to get the most accurate estimates. You will need information about your car, such as the year, model, make, mileage and VIN. Other factors that affect your insurance quote include your driving history, insurance record, credit history and your age. Even your zip code and education level can affect the insurance rates.
The coronavirus pandemic has affected many people’s abilities to make payments, and it has also reduced the number of drivers on the road because of quarantines. Whether your college has switched to online classes or is still doing in-person meetings, you may still be driving less overall.
Some car insurance companies are offering discounts and other savings options to drivers because of the coronavirus. The relief packages vary from company to company and may include 15% to 20% refunds of premiums, so some are mailing checks or giving direct deposits to customers.
Others are offering complimentary roadside assistance for first responders, complimentary identity theft protection and delayed monthly premium payments up to 60 days without any penalties. Some are also pausing policy cancellations temporary.
The best way to find out about your options is to contact your insurance agent to find out if relief is available. If you are struggling to connect with a real person at an insurance company, try searching direct to human phone numbers or use a free service that calls you back when a person is on the line.
Check Available Student Discounts
As a college student, there are specific discounts that you can take advantage of to save on car insurance. Some companies give discounts to full-time college students who are less than 25 years old based on their grades. Although the specifics vary, most are looking for students who have high test scores and grade point averages (GPAs). Your savings can range from 10% to 25% off the premium. Insurance companies like students who do well in school because they view them as a lower risk and less likely to get into accidents.
Another way to obtain student discounts is by joining fraternities, sororities and honors societies. These organizations may have agreements with specific insurance companies that give you a way to save money. The insurance company benefits because more people buy their policies to get these special discounts.
Bundle Car Insurance With Another Policy
The last way to save on car insurance as a college student is to bundle the policy with another one at the same company. If you rent an apartment off campus, then you can combine renters and auto policies together to save money. There are different methods to save money on insurance premiums, so consider talking to your agent to find the best options.
