How to Save on Insurance Costs for Tuition Payment
Going to college can be an exciting experience. From the perfect packing list to choosing new linens, it’s a first step towards independence. But while bringing a car might be on this list, it’s a decision that shouldn’t be taken lightly. Whether the family car is being taken out of state or to a college in the state, parents and students should be aware of the additional expenses and responsibilities that come with bringing a car to college.
Do students have to bring a car to university?
Having a car in college has several advantages. Simple tasks like running errands and running errands are more convenient with a car. There is also the freedom to explore nearby regions and towns outside of class and on weekends. For some students, having a car also means expanding their range of job, internship and volunteering opportunities. Keep in mind that bringing a car means an extra expense, as most colleges require the purchase of a permit for on-campus parking.
The decision to bring a car to college largely depends on personal needs and budget, as well as the location of the college campus. A centrally located university close to public transportation, along with carpooling and meal delivery options should make it easy for many to get by without a car. For many freshmen, it’s likely they don’t yet know if they’ll need a car in college, but knowing what comes with a car in college can help with the decision.
Can a student stay on their parent’s car insurance?
In most cases, young drivers can stay on their parents’ auto insurance while attending out-of-state college. For example, if the car they bring is registered in a relative’s name and they always drive home on vacation, students can usually keep their family car insurance policy.
If so, make sure the zip code of the car garage is updated with the new address in the car insurance policy. This applies whether the student attends an out-of-state college or in-state and lives on campus. You’ll also likely want to check what the state’s DMV regulations are for importing out-of-state vehicles to see if there are any special auto insurance rules or requirements for students.
How much does student car insurance cost?
Drivers under 25 face some of the most expensive auto insurance premiums compared to any other age group. College students can likely lower their auto insurance cost by qualifying for specific discounts and, if dependent, remaining on their family auto insurance policy. Below is a comparison of car insurance for students on their parent’s car insurance versus people of the same age who are not students and have their own policy:
18 years old
19 years old
21 years old
Car insurance discounts for students
Finding the best car insurance for students can mean balancing coverage and taking advantage of special car insurance discounts for students. On average, drivers under 25 pay some of the highest car insurance premiums, so these discounts could offer great savings opportunities. Popular car insurance discounts for students include:
Good student discount: Students who maintain a high GPA are usually eligible for this discount. Each car insurance company may have its own threshold, but it is normally at least a 3.0 GPA or B average.
Register for a safe driving course: By taking a qualifying safe driving course and receiving a certificate, an additional discount can usually be added to the policy with many companies. Check with your insurance company to see what may be offered.
Telematic discount: To combat some of the high rates young drivers face, it can be helpful to take advantage of a telematics program if your company offers it. Drivers who participate can benefit from discounts based on real-time safe driving habits.
Affiliate discounts: Joining different clubs and organizations in college can be a great experience. Some, like fraternities and sororities, often offer car insurance discounts. Each car insurance company’s affiliations differ, so it’s a good idea to check with yours to see where this type of discount may apply.
Although the Distant Student Discount (also known as the Distant Student Discount) is a popular car insurance discount for college students, it only applies if they don’t bring their family car to college. . The student must also attend a school located a certain number of kilometers from his home.
Frequently Asked Questions
Generally speaking, the auto insurance policy would defer to the insurance rules of the state where the accident occurred. For more details, it may be helpful to speak to a local college agent to learn more about that state’s insurance rules and regulations. Also, make sure your car insurance policy correctly reflects where your student lives and where the car is parked.
Auto insurance coverage follows the car, not the driver. This means that if someone drives your car and causes an accident, your policy will pay for the damage. For this reason, it may not be the best idea to allow others to drive the car.
The scholarships are generally intended to cover tuition fees, which include tuition fees as well as room and board. The costs of owning a car and paying for on-campus parking are generally considered personal expenses and as such cannot generally be paid for with scholarship funds. Fortunately, there are other ways for students to save on driving.
Bankrate uses Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted by population density in each geographic region. Rates quoted are based on a 40 year old male and female with a clean driving record, good credit and the following full coverage limits:
Civil liability of $100,000 in bodily injury per person
Civil liability of $300,000 in bodily injury per accident
Civil liability of $50,000 in property damage per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 aggregate deductible
To determine minimum coverage limits, Bankrate has used a minimum coverage that meets each state’s requirements. Our basic profile drivers own a 2020 Toyota Camry, commute five days a week, and drive 12,000 miles a year.
These are sampling rates and should only be used for comparison purposes.
Age: Rates were calculated by evaluating our base profile with ages 18-21 (base: 40) applied. Depending on age, drivers can be renters or owners. Age is not a contributing scoring factor in Hawaii and Massachusetts due to state regulations.