If you’re leaving home to go to university and taking your car with you, you’ll need car insurance for students.
It can be hard to find cheap car insurance when you’re a student, but at Go Girl, we understand how important it is to find the right cover at the right price.
Because it can be hard to manage without a car, we’ll give you a courtesy car if yours has to be repaired following an accident, if you’re covered by our comprehensive policy. Your personal belongings are covered up to £100 and your bag will be covered, too, if it’s stolen while in the car. But you must lock your car and keep bags and belongings out of sight.
You can get a quote and buy online in minutes. And our UK-based claims team are on call 24/7 if you ever need to make a claim.
Our comprehensive car insurance for student drivers also comes with optional RAC breakdown cover. This means you won’t be left stranded if you break down, even in the middle of the night.
Cutting the cost of student car insurance
Car insurance for students is sometimes expensive. This is because students are probably young drivers, between 17 and 25. And young drivers are more likely to have an accident than older, more experienced drivers.
It’s important to have your own student car insurance that you take out at your new address if you are no longer living at home. You can’t use your parents’ address even if it means your premiums will be cheaper.
Once you have your own policy you can start building up a No Claims Discount. Driving sensibly, sticking to the Highway Code and avoiding accidents will all help towards your goal of more affordable premiums in the future.
Make of car, model and engine size all contribute to the cost of your car insurance. As a rule of thumb, the bigger the engine size the more expensive a car will be to insure.
Also, avoid making any modifications to your car, as your standard policy won’t cover you for this. You’ll have to pay more.
Think about security. If you have to park on the street, try to park it in a well-lit area, particularly if you’re living in a theft hot-spot.
Make your car harder to steal by taking security measures such as fitting immobilisers and tracking devices. And don’t leave any valuables in the car that are likely to attract thieves.
If you are a student and want to find great value car insurance, Go Girl could save you money and help your student loan to go that bit further.
It is possible to get a good auto insurance plan if you’re a college student. You just have to know how to look and what to look for. Not only is it important to get car insurance at the right price, but it’s also a good idea to find the right plan to meet your needs. Here are some tips for college students shopping for auto insurance:
SHOULD COLLEGE STUDENTS HAVE THEIR OWN CAR INSURANCE POLICY?
You may be wondering whether you need your own car insurance policy now that you’re moving away from home. The answer depends on where you’ll be living while attending school and who owns the vehicle you’ll be driving.
What Are Your Living Arrangements?
If your parents’ address is still considered your permanent address, you may be able to keep the vehicle you drive on their car insurance policy (depending on who owns the vehicle). So, if you’re living on campus or renting an apartment temporarily during the school year, check with your agent to make sure you can stay on your parents’ policy.
Whose Name Is On The Title?
If the car is titled in your parent’s name and you’re taking it to school with you, you may be able to stay on the family car insurance policy.
If the car is jointly titled — it contains your name and a parent’s name — you may be able to stay on your parent’s car insurance policy.
If your name is on the title, you’ll likely need to buy your own car insurance policy in your name.
CAN I HAVE INSURANCE ON A CAR IN ANOTHER STATE?
If you’re a parent whose child is attending school out of state, you may be able to keep him listed on your car insurance policy, if you own the vehicle he is driving. Otherwise, he might need to buy his own separate insurance policy.
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Learn about Allstate’s affordable rates for college students.
CAR INSURANCE COVERAGE CONSIDERATIONS FOR COLLEGE STUDENTS
Whether you’re going away to college or commuting, you may want to consider your policy’s current coverages to see if they suit your new situation.
For example, if you’re taking your car to school, think about where it will be parked. If it’s most often parked outside, consider comprehensive coverage. It may help pay to replace your car if it’s stolen or repair it if it’s damaged by things like hail or vandalism.
Collision coverage may be a good idea if you’ll be driving to and from class, for example. It may help pay to repair your car if it’s damaged in an accident with another vehicle or object.
If you’re leasing or financing your vehicle, collision and comprehensive coverage are usually required by your lender. If your car is paid off, though, you may be able to drop one or both coverages from your car insurance policy to help save on premiums. Just remember, if your car is damaged and you don’t have comprehensive coverage or collision coverage, your policy won’t pay to repair your vehicle.
CAR INSURANCE DISCOUNTS FOR COLLEGE STUDENTS
If you (or your parents) are looking to save money on your car insurance premium now that you’re in college, consider these potential discounts.
Resident Student Discount
If your car is titled in your Mom or Dad’s name and you’re leaving it at their house while you live on campus, you may be able to save them a few extra dollars. If your college is at least 100 miles away from home, your parents may qualify for the «resident student» discount because you won’t be driving the family car as frequently now that you’re away at school.
Good Grade Discount
Good grade benefits on your car insurance policy don’t stop when you graduate high school. Most insurance companies offer a good grade discount for unmarried, full-time students up to age 25. Ask your agent whether you qualify for a discount on your car insurance bill if you continue to get good grades in your higher education studies.
Anti-Theft Device Discount
It’s always a good idea to research local crime statistics before taking up temporary residence. This gives you a good idea of what to expect, as well as how to prepare for life in your new surroundings. If you’re going away to college and bringing your car, it may be a good time to purchase an anti-theft device for your vehicle. Doing so may cut back on the likelihood of your stuff being stolen and also land you a discount on your car insurance.
There isn’t a one-size-fits-all car insurance recommendation for college students. Each student has his or her own individual needs, which in turn may affect the amount of coverage needed and the dollar amount of the premium. To create a policy that fits your needs, talk to an agent near you.
Car Insurance for College Students
The most salient question to answer is whether the student will remain on their parents’ policy or obtain their own insurance. To determine this, we’ll discuss insurance costs and liability risks for each scenario.
College Students Remaining on Parents’ Policy
As a parent, are you willing to keep your college student on your policy? Students, are your parents willing to continue to cover you? All things equal, this arrangement generally results in a cheaper overall auto insurance cost for the combined family.
As Kris Kirchner, President of First Florida Insurance Network of Central Florida explains, the parents will have an established credit file and likely be eligible for a better tier of rating (especially if they have higher limits of liability), as well as access to multi-car discounts. These factors typically translate into more favorable auto insurance costs overall. However, this means that the parents’ assets are still on the hook for any accidents that college students may get into (beyond the liability limits of the policy).
If your child is attending college more than a hundred miles away from home without the car, then parents may be eligible for an away from home discount, or be able to remove their students off their policy for the time they’re away. We’ll cover this in more detail in our discount section.
Should a College Student Buy Their Own Policy?
While young drivers typically are more expensive to insure, having a separate policy would typically reduce liability exposure for the parents. Any accidents or moving violations will only impact the individual’s policy premiums, and any liability beyond the insurance coverage amounts will be limited to the college student’s assets.
Leigh Needelman, President of Florida Assures, Inc., recommends that college students have their own policy for the sake of their parents. “Of primary importance, this separation limits the parents’ exposure to rate hikes due to points accumulated by your college child’s accidents or moving violations. Also, keep in mind that companies typically assign the highest-rated driver aka the youngest, to the highest-rated vehicle, thereby causing higher premium costs to the parents. Lastly, in case of a serious accident, the parents’ “deeper pockets” will not be accessible and any litigious action will be limited to the college student’s policy.”
Based on our study, the average cost for a basic policy with coverage slightly higher than mandatory state minimums is $5,411 for an 18 year old male driver across America. You can save with tips from our research into the cheapest companies for teen drivers here.
Car Insurance for Teenagers
If your teenager has a permit, insurance companies will require them to be listed on the auto insurance policy. Teenagers learning to drive typically get rated as permit status, which has little to no effect on premiums.
The situation changes once your teen passes his or her road test. It’s only when teenagers become licensed operators that the premium changes on the parents’ policies, notes Kirchner. There are a few discounts that parents can take advantage of to help reduce the impact of the increase.
Cheap Car Insurance for Young Drivers
In spite of their reputation as costly to insure, young drivers have access to a number of discounts that can lower their risk and auto insurance costs. Here are several discounts to get cheap auto insurance quotes for your college student and teenager.
Good Student Discount
Auto insurance companies typically will offer discounts for single and full-time students with good grades, some even up to the age of 25 after college graduation. Requirements and amounts can be different from company to company. For example, for eligible students, State Farm cuts 25% off of your policy, Allstate provides discounts up to 20%, and GEICO can reduce premiums by up to 15%. To be safe, we suggest you send a copy of your student’s report card into the appropriate representative at their insurance office. As their academic career progresses, you may need to send in subsequent copies of their report cards, although some carriers don’t require this.
Young Driver Education Programs
Check if your insurer has an education program for young drivers. If your teenager successfully completes these courses, you may be eligible for a further discount. As an example, Allstate grants a 10% discount to eligible graduates of their teenSMART education program.
Student Away from Home: Resident Student / Permissive Driver / Reduced Mileage
If the student lives at least 100 miles away from home and doesn’t have a car at school, you may be able to benefit from three types of savings. Your insurance company may offer a resident student discount if you meet the two requirements above. Otherwise, you can consider temporarily removing your child from the policy to save money, but then your student may risk not be covered in accidents on campus. They’ll still be able to drive the car during spring and winter breaks, provided it’s not for more than thirty days. During this time, they usually fall under the category of permissive driver. Once summer break comes around, however, they’ll presumably be living with you more than a month at a time, and will need to be added back to the policy. Without your student driving your car, you may be eligible for a reduced mileage discount, so be sure to check with your insurer.
However, if your child is taking the automobile to school with them, they are not eligible for any of these.
Student Driver at College
If your student driver will be driving your car away from home, you will need to update your insurance for a material risk change to adequately cover this. Your premium will change depending on where the car is garaged and driven. Therefore, if your son or daughter’s campus is in a less actuarially risky place, then your auto insurance costs may decrease. Remember to update this when your child drives the car back home for the summer too.
As mentioned above, companies can assign the highest-rated driver (usually the youngest) to the highest-rated vehicle, in Needelman’s experience. It’s worthwhile to check if you can minimize costs by assigning and restricting your teenager to the safest car or an older car.
In addition to the relative inexperience of student drivers, another reason they tend to see higher quotes is their thin credit file. One long-term approach to this is to begin building a credit card history with great repayment records and responsibility.
FAQs for Student Drivers
Here are several questions we typically get asked about student auto insurance.
How much insurance coverage should I get for student car insurance?
If the college student is on their own, they should at a minimum purchase the mandatory state liability coverage. If they have more assets to protect, then they should purchase as much as they can afford. Kirchner recommends striking the right balance between coverage and price, «but coverage should always be most important unless it is an issue of whether or not one can afford it at all». In his experience, this generally means keeping the child on the parents’ policy as they will generally have access to higher limits (more protection), with the higher costs being offset by multi-car and credit-scoring discounts the child otherwise would not have. For more information: how much auto insurance should I get?
What factors affect the cost of student car insurance?
General factors that typically impact the cost of auto insurance include: where the vehicle is garaged and driven, the age and marital status of a driver, the make and model of the car insured, the number of accidents and traffic violations, as well as credit file. These variables are weighed differently depending on your insurance company’s underwriting methodology, and your state’s auto insurance regulations. For example, insurance costs for a four-door family–style sedan like a Honda or Toyota are generally priced lower than insurance for a high performance vehicle like a Mustang, Camaro or Infiniti G35, according to Needelman.
Why are car insurance costs so high for young drivers?
Drivers under the age of 25 typically are costlier to insure because they have fewer years of driving experience and tend to have higher rates of accidents and claims filed. Furthermore, they also generally have less credit history, which can be interpreted adversely in certain states.
Are young male drivers more expensive to insure than young female drivers?
Yes. This is primarily because insurance companies’ statistics show that young male drivers are more likely to be involved in car accidents compared to young female drivers. For example, in the state of California, rates for 19 year old males are on average 14% higher than rates for 19 year old females.
Does it matter who owns the car that a student is driving?
Yes, to a certain extent, according to Kirchner. If a parent owns a car that a student primarily drives, Kirchner suggests keeping the car insured under the parents’ policy, since the parents would be brought into a suit in the event of an accident. If the student co-owns the vehicle along with their parents, he or she has the option of having an individual policy or being included on the parents’ policy. If the child owns the vehicle himself or herself and are 18+, they should be on their own policy, but can be on the parents’ policy if living at home.