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Student Car Insurance For Young Drivers

Written by Todd Clay. Posted in Research Last Updated: 08/02/2010

How getting good grades and staying on a parent’s policy will help students pay less for auto insurance

young female student driver

Good grades and staying on a parent's policy can help lower auto insurance rates for students.

Car insurance for students, like insurance for any young driver, is expensive. But there are some advantages students have while they’re in school.

Student car insurance considerations are usually only valid for individuals under 25. Older, non-traditional students generally aren’t subject to these conditions (or eligible for student discounts), even if they go to school full-time.

Good Grades Can Improve Insurance Rates

There are very few things high school drivers can do to keep their insurance premiums down. Statistically speaking, they are among the highest-risk drivers around. Even an otherwise modest liability-only policy can be very expensive for them – same thing goes for learner driver car insurance or car insurance for teens.

Even so, students can limit their insurance bill. Staying out of accidents is the most important thing they can do. But maintaining good grades is a close second. Most companies offer good student discounts of up to 20 percent for high-school age students. The good news is you don’t have to be the valedictorian to be eligible. A 2.0 GPA is usually all that’s required.

Students can document good grades by providing a current transcript or letter from a school to the insurance company. What’s more, good student discounts often extend to college-age students under 23.

Try Keeping Student Auto Insurance At Home

Many insurance companies allow a child to stay on his or her parent’s policy past age 18 if they are a full-time college student. This usually lasts until the child leaves school, gets married or turns 23, whichever comes first. Specific requirements can vary widely from company to company – so always check with your agent or broker.

Because a parent’s policy often offers discounts that a student could not usually get – like longevity and multi-car discounts – it’s often a good idea to keep student car insurance on the parent’s policy as long as possible.

Special Situations for Student Car Insurance

One caveat to staying on a parent’s policy: if the student goes to school in a state where the parent’s insurance company doesn’t do business, there may be an issue with staying on the parent’s insurance.

If the insurance company discovers the out-of-state student, they may drop the student and force them to insure separately in that state. There may also be a problem if there’s a claim. Be sure to check with your agent or broker if this is an issue.

Even if the student is forced to go it alone, maintaining constant coverage should remain a priority. Any gap in coverage may force the student into a high-risk company later – even with a spotless driving record. This could make a bad situation worse. It certainly doesn’t hurt to shop around. The good student discount and other discounts may still be available to them.

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Todd Clay

Todd Clay is a former insurance agent with the largest insurance company in the United States. He earned his Bachelor’s from the University of Texas. He's worked in several fields but has specialized in insurance, financial-related information, and technology. He blogs at Car Insurance Guidebook. Connect with Tood on Google+

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