Due to high rates for young drivers and special student demands, finding car insurance for college students can be challenging. To make things easier, we’ve compiled a list of the best student auto insurance carriers based on a variety of factors, including pricing, available discounts, and more. Learn how college students can save money on car insurance by reading on.
Table of contents
- What is Car Insurance?
- Why Is Car Insurance Important?
- What Does Car Insurance Cover?
- What Does Car Insurance Not Cover?
- How Much Does Car Insurance Cost For A Beginner?
- Do students Get A Discount On Car Insurance?
- Is Car Insurance Expensive For Students?
- Best Car Insurance For College Students?
- Conclusion
- Frequently Asked Questions
- References
- We Also Recommend
What is Car Insurance?
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) covers cars, trucks, motorbikes, and other vehicles on the road. Its major purpose is to provide financial protection against physical damage or bodily injury caused by traffic collisions, as well as the responsibility that may arise as a result of such incidents.
Vehicle insurance may also provide financial protection against vehicle theft and damage caused by incidents other than traffic crashes, such as keying, bad weather, or natural catastrophes, as well as damage caused by colliding with stationary objects. Each region’s legal rules influence the precise terms of vehicle insurance.
Why Is Car Insurance Important?
There are many reasons to get car insurance. Here are a few key reasons you need car insurance as a college student.
1. Make a one-time payment and save money later
Car insurance can help you and your family avoid costly mistakes. You can assist avoid future pricey charges by spending a small amount now in your own protection. If an accident occurs, coverages including collision insurance, comprehensive insurance, property damage liability, and bodily injury liability can assist pay the costs of costly claims.
2. Make sure you and others are safe
Car insurance can protect you, your family, passengers, and other drivers. If you’re in an accident, you’ll want to be sure you have enough coverage to cover any property damage or bodily injury charges. To learn more about how you can help protect yourself and your family, get a vehicle insurance quote online or talk with an agent.
3. You’ll save time and effort
The aftermath of a car accident can be extremely time-consuming and inconvenient. You can avoid dealing with other drivers and property owners involved in the collision, as well as control the costs of repairing or replacing your vehicle if you have adequate coverage. A good auto insurance policy can alleviate a lot of these issues. A decent auto insurance policy may help with towing, repairs, and replacements, as well as covering the price of other drivers’ damages. When you file a car insurance claim, the insurance provider can assist you in managing the process and providing support.
4. Mindfulness
Everyone makes mistakes from time to time. However, another driver’s mistake can sometimes become your concern. If you have the correct form of car insurance, you can be assured that you will be protected if you are hit by an uninsured or underinsured driver.
5. Increase the value of your health insurance
Car insurance may be able to assist you in paying for medical bills that your health insurance does not generally cover. Dental work and medical treatments that are required as a result of an auto accident can be covered by a decent car insurance policy.
A personal vehicle insurance policy will, in general, cover the policyholder as well as any family members identified as drivers on the policy. In most cases, policies also cover anyone who isn’t listed on your policy but is driving your car with your permission.
Read Also: 10+ Best Health Insurance for Young Adults in 2023
What Does Car Insurance Cover?
A car insurance policy might include a variety of coverage options, some of which are required in most jurisdictions and others that are optional. The following are the most typical coverages:
1. Bodily injury liability coverage:
If you’re at fault in an accident that causes an injury to another motorist or their passengers, this coverage will assist pay for any associated costs up to your policy limits. In 49 states and the District of Columbia, it is mandatory. New Hampshire is the only state that permits drivers to go without insurance but “highly recommends” that they do so.
2. Liability coverage for property damage includes:
This insurance covers any damage to another driver’s vehicle or other property, such as a neighbor’s fence. Almost every state requires it as well.
3. Collision coverage:
In the event of an accident, collision insurance can protect your vehicle. Every state makes it voluntary.
4. Coverage that is comprehensive:
Comprehensive coverage, often known as “other than collision,” protects your car from damage caused by things like flooding, falling trees, and fires. If your automobile is stolen, it is also covered. It’s optional, much like collision coverage.
5. Personal injury protection (PIP)/medical payments (MedPay):
MedPay or PIP, which is required in some jurisdictions, pays for medical bills and related expenses if you or a passenger in your car is injured in an accident.
6. Coverage for uninsured or underinsured motorists:
This insurance can cover the difference if you’re ever in an accident with someone who doesn’t have automobile insurance or whose insurance isn’t enough to cover the damage they’ve caused. In some states, it is required.
If you’re leasing a car or have an outstanding auto loan, gap insurance is a separate type of policy that you should investigate. Gap insurance will cover the difference between what your auto insurance company pays you and what you still owe on your lease or loan if your automobile is declared a total loss after an accident.
Many insurers also provide additional specific types of plans, such as antique or classic car insurance and ride-share insurance for persons who drive for firms like Uber or Lyft, in addition to the foregoing coverages.
If you use your car for business, you might require commercial auto insurance coverage instead of a personal one.
What Does Car Insurance Not Cover?
A standard car insurance policy did not n’t cover wear and tear, persons who regularly use your car but aren’t mentioned on your policy, and. However, you may sometimes supplement your car insurance coverage by purchasing a supplemental policy or warranty.
Here’s a list of a few things not covered by your car insurance:
1. Damages caused by natural calamities
While your car insurance may cover collisions and accidents, natural calamities like earthquakes, floods, etc are not placed or compensated. Ideally, insurance companies place natural disaster like floods, earthquakes under the “Act of God” clause which fall under permanent exclusions in car insurance.
2. Your personal belongings
In a case where your car is damaged and vandalized, your insurer pays for the damages caused to your car alone. What this entails is that if any of your personal belongings like your laptop or other valuables in inside the car, your insurance company won’t pay for the damage caused.
3. In case of theft, make sure you file a police complaint
If your car gets stolen, you need to file a police report to seek adequate compensation. In a case where your car is stolen because of your carelessness, your claim is likely to be rejected on the grounds of carelessness.
4. If you use your car for business
If your insurance policy covers individual use and not business use, your insurer won’t grant your claim when you encounter an accident while using your car for business purposes.
5. No coverage hen you are using someone else’s car
If you are driving someone else’s car or the car is rented and you encounter an accident, the claim for the damages will be rejected outrightly. The insurer will only cater for claims that have been made for the car registered under the insured’s name.
READ ALSO: Best Health Insurance For College Students
How Much Does Car Insurance Cost For A Beginner?
Crash rates for teen drivers are nearly four times greater than for more experienced drivers. Car insurance companies often charge more for teen drivers to compensate for this risk. Teens are, in fact, one of the most costly groups to cover.
Do students Get A Discount On Car Insurance?
When it comes to car insurance, you don’t get any special savings if you’re a student.
However, just like any other driver, there are a number of things you can do to assist keep costs down.
Taking out telematics or black box insurance is one of them. Also, be cautious about the type of vehicle you drive. Insuring smaller, less powerful cars, for example, is typically less expensive.
Is Car Insurance Expensive For Students?
Because most students are between the ages of 17 and 25, they are designated as ‘young drivers.’
Statistics suggest young drivers are more likely to be involved in accidents and file insurance claims. As a result, they’re regarded as a higher risk, and the cost of auto insurance coverage reflects this.
Even mature students’ rates may rise as a result of being classified as a student risk, regardless of age or driving experience.
For many students, prices are also high because they are frequently inexperienced, new drivers who haven’t had time to accumulate several years of no-claims discount.
The location of your home might also affect the cost of your insurance. Universities are frequently located in densely populated areas, some of which have higher crime rates. Due to these hazards, cars parked overnight on the street in these types of neighborhoods will cost more to insure.
SEE ALSO: Progressive Insurance Reviews: Is It Legit Or Scam | How It Works
Best Car Insurance For College Students?
#1. AAA Insurance
AAA offers the best car insurance for college students since it has the lowest prices and a range of discounts, including good-student, student-away-at-school, and new-young-driver discounts. It’s worth mentioning, though, that drivers must be AAA members in order to be covered by the company’s insurance. The cost of membership varies by area, but a basic subscription with the company’s trademark roadside help service costs roughly $38-$90 per year.
Average Annual Premium: $792
#2. GEICO
Because of its competitive rates, easy-to-navigate website and app, and diverse coverage options, Geico is one of the best car insurance companies for college students. College students may also be eligible for discounts such as good student and driver’s education.
Average Annual Premium: $973
#3. Travelers Insurance
Travelers is one of the most affordable insurance options for college students, including discounts for good students, students away from school, and driver training, among other things. Customers can also select for Travelers’ optional “Responsible Driver” plan to avoid having their rates raised as a result of an at-fault collision or minor moving offense.
Average Annual Premium: $879
#4. USAA Insurance
Only veterans, members of the military, and their families are eligible for USAA, but it’s a low-cost option for those who qualify. Furthermore, USAA offers a wide range of insurance products, making it simple for qualifying college students to combine auto insurance with renters insurance or other types of coverage. USAA also offers a number of discounts to college students.
Average Annual Premium: $879
#5. Esurance
Esurance offers low-cost insurance for college students, albeit it should be noted that the company does not write policies in all states. They provide discounts for good students, on-time payments, and associations, among other things. College students in the Pac-12 conference, as well as Pac-12 alumni, can save money with Esurance’s special discounted rates.
Average Annual Premium: $987
#6. Progressive
Progressive consistently ranks high in assessments of low-cost vehicle insurance, and its rates for college students are no exception. A variety of discounts are available to college students, including young drivers, distant students, and good student discounts. Additionally, the organization provides a Name Your Price feature, which can assist college students in locating a cost-effective policy.
Average Annual Premium: $1,004
#7. State Farm
For college students, State Farm offers competitive prices as well as a choice of optional add-ons such as ridesharing insurance, travel expenditure coverage, and rental reimbursement. Good student, student-away-from-school, and driver training discounts are also available to college students. State Farm is the nation’s largest insurer, with policies written in all 50 states, making it a fantastic alternative for students looking for a large corporation to get insurance from.
Average Annual Premium: $1,251
#8. Allstate
Allstate has affordable prices and the option of pay-per-mile insurance, which is ideal for college students who don’t use their car for commuting on a regular basis. College students who maintain outstanding grades or complete the TeenSMART driving education program may be eligible for a “smart student” discount. Furthermore, editors gave Allstate a high rating for their claim services, as drivers can make a claim online, via the app, or by calling 24/7 claims to support phone lines.
Average Annual Premium: $1,268
#9. Liberty Mutual
Liberty Mutual has affordable rates for college students, as well as reductions for good students and students away from school. Various add-on options, such as rental car reimbursement and roadside assistance, are available to college students. The company’s website and claim systems are also basic and easy to use, which is another advantage of acquiring Liberty Mutual coverage.
Average Annual Premium: $1,228
#10. The Hartford
Although Hartford is best known for its AARP auto insurance program, the business also offers college students affordable coverage. College students can take advantage of the company’s generous student discount.
Average Annual Premium: $1,293
Conclusion
It makes no difference whether or not you’re a student; the fact is that you’re on your own, making your own decisions.
So, which option is best for you? It is critical to select the best Car Insurance For College Students when making the choice of car insurance.
Frequently Asked Questions
What is Car Insurance?
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) covers cars, trucks, motorbikes, and other vehicles on the road.
Do students get a discount on car insurance?
When it comes to car insurance, you don’t get any special savings if you’re a student.
What Does Car Insurance Cover?
A car insurance policy might include a variety of coverage options, some of which are required in most jurisdictions and others that are optional.
What Does Car Insurance Cover?
A car insurance policy might include a variety of coverage options, some of which are required in most jurisdictions and others that are optional.
References
- How Does Car Insurance Work?
- How Does Car Insurances Work?.
- The 9 Best Car Insurance Companies For College Students
- Best Car Insurance for College Students
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