College is a time of life that’s full of important decisions. Some decisions are exciting, like choosing your major or picking out the perfect outfit to wear to a weekend party. Other decisions, like learning to budget and finding ways to reduce your expenses, aren’t always so fun. Nonetheless, learning how to use your money wisely is an important part of adulthood. One way to potentially shave a few bucks off your monthly budget during college is to find ways to keep your auto insurance rate as low as possible. When it comes to auto insurance rates, being young doesn’t work in your favor. It’s a well-known fact that auto premiums typically cost the most during your early driving years. Thankfully, there are a number of ways to save money and even score discounts on your auto insurance rate that might help offset this. Here are five smart saving ideas you might want to try for yourself.
Shop for the best deal
Likely the best way to save money on auto insurance is to shop around for the best rate. Don’t be afraid to ask different issuers about available discounts as well. By comparing quotes from multiple insurance companies, you have a better chance of finding the best deal available for your situation.
Non-owner car insurance
As mentioned earlier, a lot of students don’t bring their vehicles to college. In fact, many don’t own a vehicle at all. But even if you don’t have a vehicle in your name, it doesn’t mean you’ll never be driving. That begs the question: Do you need car insurance if you don’t own a car? If you plan to borrow or rent a car, you might. Non-owner car insurance is designed for licensed drivers without a vehicle. It’s a type of policy that can provide you with a degree of coverage in case you ever cause an accident while driving anything. Essentially, it’s liability coverage that may pay for the damages you cause to others but not damages to the vehicle you’re driving or to you personally. Non-owner coverage is often purchased by people who:
- Borrow vehicles often
- Regularly use car-sharing services
- Rent vehicles frequently
Make the dean’s list
Getting good grades in college doesn’t just buy you bragging rights with your family; those A’s and B’s you worked so hard to earn could help you to save money too. You might be able to score an auto insurance premium discount of up to 25%, depending on your insurance provider, if you have a GPA of 3.0 or higher. Getting good grades can also land you more scholarship money, so making the dean’s list could bring a lot of benefits.
Leave your car at home
Although the freedom to hop in your car and drive wherever and whenever you like can certainly be enticing, you might fare better financially if you leave your car at home when you’re at college. If you do opt to go carless while at school, you won’t be alone. If you choose this option and your college is more than 100 miles away from home, be sure to call your insurer to give them a heads up. You might qualify for a discount on your premium for putting fewer miles on your car—sometimes as high as 20%.
Stay on your parents’ insurance plan
Staying on your parents’ insurance is a great way to save money on your insurance while in college. If your permanent address is still the same as your parents, most insurers will allow it. Of course, while being on your family’s insurance policy may save you money (even if you’re reimbursing your parents for the cost of coverage), be aware that your family is taking on some added risk. If you’re in an accident while on the family insurance policy, it could cause a rate increase for everyone, not just you.
Take a defensive driving class
Adding another class to your busy college schedule might not sound very enticing, but a defensive driving course might save you money on your auto insurance premium. Some insurance providers may offer discounts if you complete an approved course. Just be sure to check with your insurance company before you sign up to get the details.
There’s no one-size-fits-all answer when it comes to picking the best (and most affordable) car insurance plan. Your best bet is to do your homework and take the time to compare policies and pricing from different insurance providers. If you follow this advice, you should be able to find the auto insurance policy that offers you the coverage you need at an affordable price.
Remember: You can also save money in college with scholarships! Find some today with our Scholarship Search tool.