3 Ways to Save on Car Insurance for Your College Kid
Has your child started driving? The auto insurance rates for a teen or college-aged student can be higher than you expect. Teen drivers and young adult drivers in their early 20s often pay hundreds of dollars more for auto insurance than others.
If you're a parent, there are three key ways you (or your college-aged child, if they’re buying their own policy) can save on car insurance:
Apply for a good student discount
Many major insurance providers, including Amica, offer a good student discount. The age of a qualifying student and the value of the discount may vary by insurer, and you may have to provide a report card or college transcript.
Amica’s good student discount program applies to full-time high school or college students who are aged between 15 and 25, and maintain a “B” average or higher.
Look into an away-from-home discount
Most college students study away from home. It’s estimated that three-quarters of full-time undergraduate students either live on campus or nearby in an off-campus apartment, and only a quarter live with their parents or families.
If your child lives away from home during the academic year, they could be eligible for an "away-from-home" insurance discount from insurers, including Amica. Some insurers offer this cost reduction to college students enrolled at a school that's farther than 100 miles from home.
The policy discount only applies if the student doesn't have a car at school, but the student can qualify even if they drive during breaks or holidays. It’s a good option, then, if your child is at a school without the need for a car.
Enroll in usage-based insurance (UBI)
Usage-based insurance differs from traditional coverage in that the car insurance policy bases drivers' car insurance rates on how much – and how – they actually drive their vehicle. The car insurance company uses telematics to track driving habits like the time of day drivers get behind the wheel, how many miles they cover and their driving speed.
Car insurance companies may allow drivers who drive safely and cover fewer miles than average to save money on their insurance costs through a telematics program like StreetSmart by Amica™. And, for college students, UBI policies that track the driver's habits with an app or telematics device provide an incentive to drive safely.
College car insurance FAQs
College students are usually young; typically, they're in their late teens or early 20s. As a result, these relatively new drivers have less experience behind the wheel, so they're more likely to be involved in accidents that can affect their driving record.
With that higher risk, college-aged students are more likely to file car insurance claims, so insurance companies charge this group higher rates.
Besides usage-based policies, and various driver discounts (including good student discounts), there are other ways you can help your child save money on the cost of car insurance while in college:
- Adjust the deductible: The deductible is how much you have to pay for a claim before your insurance company will cover much or all of the remaining cost. In general, the higher the deductible, the lower your premium. Raising your college student's deductible can make their premiums more affordable – though that change will, of course, raise the financial risk if an accident occurs.
- Take a safe driving course: With some insurers, students can qualify for a discount if they complete driver’s education at school or a qualifying defensive driving course. You may even be able to complete some courses at home, at your own pace. Amica has partnered with DriveSafe to offer an online defensive driver course, sponsored by the National Safety Council.
- Speak to your insurance representative: Your representative can review your policy in detail and work with you to ensure you have all available discounts and are carrying the appropriate amount of coverage. They may even be able to identify additional areas for savings, such as vehicle safety features.
This story was created in partnership with Money.com.
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