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Publish Date - September 08, 2021

Author: Jessica Fender

Categories:   Useful Automotive Information   

Car Insurance for College Students: All You Need To Know

When you're a driver, especially a young one, you need to make sure you're acting responsibly on the road. Student drivers have to learn about their obligations when owning and driving a car, but also about keeping themselves protected at all times. Car insurance is thus something students should learn about even before they start actively driving.

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When you're a driver, especially a young one, you need to make sure you're acting responsibly on the road. Student drivers have to learn about their obligations when owning and driving a car, but also about keeping themselves protected at all times. Car insurance is thus something students should learn about even before they start actively driving.

If you’re not sure why you need car insurance, what it covers, and how to get it-just keep reading. Here’s everything you need to know about car insurance for college students.

Is Car Insurance Obligatory?

When you’re a student with a ton of expenses and low income, car insurance may not come at the top of your priorities. But, as a driver, you’re obliged to have car insurance.

So, having car insurance is:

  • mandatory by law
  • proof of your financial responsibility for potential damage you can make
  • your protection in case of an accident

Simply put, you must have car insurance if you’re actively driving. However, car insurance keeps you safe on the road and protects your rights as a driver, so the legal obligation is far from the only reason to have it.

What If I’m Not the Owner?

There are cases when you won't have to get a new car insurance policy in your name but stay on your parents' car insurance policy. This depends from state to state, and from one insurance agency to another.

So, you may not need a need policy in case:

  • the car owner is one of your parents and their address is still your permanent address (even if you live on campus)
  • the car is jointly owned by you and your parents

But, if you're the sole car owner, you'll definitely need to buy car insurance in your name.

Make sure to check whether you fit any of the above-mentioned categories, to see what kind of car insurance you need.

What Does Car Insurance Cover?

To understand the importance of having car insurance, especially as a student, you need to learn about the coverage it gets you. Naturally, there are different types of car insurance coverage. Some of these are mandatory while others are optional, depending on the state you live in.

So, you’ll need to check the law and see what is the basic coverage you have to get. Then, you can choose what additional coverage you want to include.

Typically, car insurance covers the following:

  • liability car insurance for bodily injury you cause on another person in an accident or property damage you cause to someone while driving
  • medical bills coverage for you
  • car damage coverage for you
  • coverage in case of theft, fire, or vandalism

This is the basics of car insurance coverage. In addition, you can get towing coverage, gap coverage, sound-system coverage, etc. You have a ton of options, so you can design and decide how much car insurance do you need.

All of this will determine the price of your car insurance. Luckily, there are student discounts you can apply for and use.

Are There Student Discounts?

Most professional car insurance companies offer great discounts for high school and college students who wish to insure their cars. To apply for the discount and get a significantly lower offer than the typical one, you'll have to meet certain criteria.

Different companies ask for students to meet different criteria. Most commonly, those include:

Being a good student

You'll have to prove that you're a good student and take your academic tasks responsibly. Most car insurance companies ask for the students to have an average grade of B or at least a 3.0 GPA, or higher.

Good driving score

If you haven't been involved in any accidents and have a clean driving record, you might get an additional discount with some companies.

Student organization membership

Some companies collaborate with student organizations and offer a discount to their members. Check if any of the student organizations you're in have this type of deal with a car insurance company.

Driver education

If you have completed a driver education course required by your car insurance company, you can receive an additional discount on your policy.

The discounts can vary but usually start at 15% off, which is a great deal, to begin with. All you need to do is maintain good grades and drive responsibly.

If you have trouble with keeping your grades up, get help from your peers, professors, or even online resources. For instance, googling “write my research paper” will get you to a custom paper writing service that can help you with your writing assignments. Remember, good grades can get you a great car insurance deal.

How Much Does Student Car Insurance Cost?

You need to do a lot of research before choosing a car insurance policy to trust and get insurance from. The prices can range significantly, but the average annual cost of car insurance for a student is $2,500.

With the right discount and a monthly payment rate, you can make this expense less drastic for your student's budget.

Final Thoughts

Car insurance is a significant cost for the budget of a student, or a student’s parent. But, it’s mandatory by law and necessary for protecting the driver from potential consequences of an accident or road injury.

Hopefully, the guide above helped you realize how important it is to choose the right type of car insurance, and what to pay attention to when choosing.