Cheaper Auto Rates for Students
When it comes to auto insurance, the harsh reality is that newer drivers typically pay more due to their lack of experience on the road. Whether you’re a student or a parent, understanding how certain habits and choices impact insurance rates can lead to big savings now and in the future. Here are some tips to avoid sky-high insurance rates for young drivers.
- Safe driving- Accidents, speeding tickets, and other traffic violations will cause your insurance rates to go up for you and for your parents. Don’t get speeding tickets and don’t crash. Safe driving is one of the biggest determining factors in rates for insurance companies.
- Get good grades- Believe it or not, some insurance companies will rate based off how successful you are in school. They find there is a correlation between better grades and how responsible you will be behind the wheel of a car.
- Get a credit score- One of the factors that insurance companies also use is credit score. A lot of students probably don’t have a credit score because they are starting out in their lives. A good option to save money on your auto insurance is to get a credit card that would help build some credit. It doesn’t need to be big, maybe just some small expenses paid off every month to help gain some traction. Then, when the time comes when you leave your parents’ auto policy, you will have a credit score to fall back on, and your rates will be lower.
Does college out of state have any effect on rates?
If you or your kid lives in Pennsylvania but goes to college out of state, all that matters is the home address of the student. The rates do not change because they are off studying for a few months of the year if they retain the same home address. The student’s auto insurance may be cheaper if they go to college and do not have their car on campus. Ask your agent about discounts like this.
These are a few things college students can do that can make auto insurance cheaper for themselves down the road and for their parents right now.