Cheapest Car Insurance for College Students
For any college student, the cheapest car insurance is the one that has a low rate of premium. Cheap car insurance for young drivers has however remained a dream and myth for several drivers. This is not entirely true, as college students can indeed get lowered rates of premiums, if they have a good driving record. Apart from driving records, drivers can use certain provisions to get affordable car insurance.
About Car Insurance for College Students
Car insurance or vehicle insurance laws differ from state to state, and there are several state laws which state the requisites and coverage requirements that the insurance policy has to fulfill. The car insurance policy also differs from state to state, but the fact that an insurance is compulsory remains the same. The auto insurance in most cases works as follows...
After a person, in this case a student, applies for an insurance, his or her background, identity, medical records, eyesight, driving permit, driving record and tests are scrutinized. Then the driver's car and the usual roads that are used by the driver are also analyzed. Lastly, the bio-data of the applicant is scrutinized. Based upon all these features, the auto insurance company provides an auto insurance quote to the applicant, which indicates a rate of premium. The rate of premium is often expensive in case of student auto insurance, due to the fact the college students are viewed as high risk insured students and the probability of accidents is high in such a case. The inexperience of young drivers also often, results into significant property damage. In the United States the following are some of the important objects that are covered by average insurance policies. A general rule of thumb is, more the covered objects, the more is the rate of premium.
- Medical expenditure of insured party, as well as the third-party.
- Car/Auto damage expenditure of the insured person as well as of the third-party.
- Property damage expenditure of some other property that has been damaged.
- Damage expenditure of any public property.
- Fines that have been imposed by the road authority.
- Compensation ordered by the court.
Finding Cheap Car Insurance For College Students
The aforementioned mechanism is applicable for all students, irrespective of their age. As mentioned above, the big drawback is that the rate of premium is exceptionally high, however, to find affordable car insurance, you can try out these hand tricks:
- Have a Clean Record: Having a clean record regarding your driving is the simplest way of getting cheap car insurance. A criminal offense or a drinking and driving, or driving under influence, will earn a straight denial for cheap car insurance. Such people are viewed as high risk and high liability for the insurance company.
- Family Purpose Doctrine: This is a provision that can be evoked with the help of the policy. In such a policy, the owner of the vehicle becomes liable to pay for the repairs of the car. The third persons expenditure however is compensated by the driver's insurance company. The cheap car insurance for teenagers has such a provision, and the car's insurance is held by the parents. Such a provision substantially reduces the rate of premium.
- Underwriting Perks: During the underwriting process, overall habits and temperament of the driver are seen. To get the cheapest car insurance package, make sure that you have good grades, student awards and honors to your credit, as such merits point towards a responsible temperament of the student, earning a lowered rate of interest.
- Low Power and Safety: Insurance companies often charge a higher rate of interest on most of the high-powered cars. Cars that deliver speedy performance often tend to get into accidents, hence a high 'CC' car will have a higher premium. Apart from that, the safety features are also viewed very strongly, the more enhanced the safety features, the lesser is the premium. Thus, to get the cheapest car insurance for college students, having good safety features on a medium or low-speed car is recommended.
