How to Choose College Student Car Insurance

As you start your freshman year of college, going without car insurance to pay for books or beer is not an option. Choose college student car insurance with appropriate coverage for your needs. Uninsured drivers involved in accidents can lose their licenses, be fined, be jailed and take a hit on their credit scores, all of which would compromise your bright future.

Difficulty: Moderate

Instructions

1. Do your homework. Contact your insurance agent to see what coverage is available and how much it costs. Be sure to notify your agent of the change in location, driving patterns and so forth. Also research other insurance companies and their policies, rates and discounts. Shop around to find the right policy at the best price.

2. Look at all the variables. A student attending college in another state or city can see significant variation in policy terms and premiums. Even if the student is covered under her parent's car insurance policy, her premium can soar when she leaves her rural home for an urban campus. When driving and parking in a major city, the premium can increase to offset additional coverage that protects against increased risk of accidents or theft.

3. Find insurance policies with lower rates for college students with good grades. Contact the carrier to see what discounts may apply for students who consistently earn A's and B's. Also begin your studies early with a defensive driving course that can provide an additional discount on your car insurance.

4. Think about getting a different car. Depending on the location of the college and the insurance policy, a less-expensive vehicle can make a huge difference in premium costs.

5. Get on or stay on your parents' policy if possible, and keep "your" car registered in your parents' names. If the car is registered to the parents, a family policy typically covers a child at a lower cost than insuring a car in the student's name only. College-aged drivers can expect to pay 50 to 100 percent more for insurance than older drivers.

6. Consider leaving the car home. Some insurance policies lower the premium if the car stays with your parents. You can't use it while at school, but you keep the car and can use it during breaks as an "occasional" driver.

7. Decide on the right policy for your needs. If you commute to college, obviously you need a car and appropriate insurance for the commute. However, if you are going to school in an area with good public transportation, you may want to leave the car with your parents.

8. Verify that any insurance policy you buy honors the automobile insurance laws of the state where you go to college.

Resources

• Factors affecting an auto insurance policy
• Car insurance quotes