“How to Reduce Car Insurance Costs for Your College Student”

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8 Strategies to Save on Car Insurance for College Students

Car insurance for college students can be expensive due to their lack of driving experience, increased accident risk, and potential for poor decision-making. However, you can help your college student save on car insurance with these eight strategies. At O1ne Mortgage, we are here to assist you with all your mortgage service needs. Call us at 213-732-3074 for more information.

1. Keep Your Child on Your Policy

Adding your child to your current policy is often cheaper than purchasing a separate policy for them. Insurance companies charge higher rates for young drivers due to their higher risk. By adding your college student to your policy, your driving history is considered in the rate calculation, which can help reduce costs if you have a clean record. Ensure your child is eligible to be added to your policy by checking with your insurer.

2. Utilize Good Student Discounts

Many auto insurance companies offer discounts to college students who maintain a specific GPA. Grade requirements vary by insurer, and your student may need to meet age and school enrollment conditions to qualify. This can be a great way to save on insurance costs.

3. Look Into Student Away Coverage

Students who attend college far from home and do not take a car with them may qualify for a discount since they are not driving for months at a time. Generally, your child must attend school at least 100 miles away and leave their car at home to qualify for this discount. Age restrictions may also apply.

4. Consider Reducing Coverage on Older Cars

If your child drives an older vehicle, dropping comprehensive and collision coverage can help you save. Compare the cost of maintaining these coverages with what the insurance company would pay for repairs minus your deductible. If the cost of coverage is about the same or more than what the insurer would pay, it may not make sense to keep it. However, if you have an auto loan or lease, you will need to maintain these coverages.

5. Exclude Your Child From Your Policy

If your child will not be driving your car after heading off to school, excluding them from your policy can reduce your premium. However, if they will drive your vehicle during weekends or school breaks, it is best to keep them on your policy. Excluding them means they will not be covered if they are in an accident while driving your car and may result in higher insurance costs in the future due to a lack of continuous coverage.

6. Bundle Home and Auto Insurance

Bundling your home and auto insurance policies with the same provider can result in significant savings. Many insurance companies offer discounts when you purchase both types of coverage from them, potentially saving you hundreds of dollars per year.

7. Take a Driver Education Course

First-time drivers are often required to take a state-approved driver education course before getting their license. If your college student has completed one of these courses, you may qualify for a discount on your auto insurance.

8. Qualify for a Safe Driver Discount

Some insurance companies offer discounts to teens and young adults who enroll in programs designed to improve their driving skills or demonstrate safe driving behaviors. These programs may require the use of an app that monitors driving habits. Safe driving behaviors such as obeying the speed limit, maintaining a safe distance, and avoiding accidents and moving violations can help your student qualify for a discount.

How to Find Cheaper Car Insurance

Insurance rates have risen significantly in recent years. To find a lower rate for the same coverage, check out all the discounts your current insurer and other providers offer. Consider increasing your deductible to lower your premium, but weigh the cost savings now against potential expenses down the road. Paying your bills on time can also help lower your premium, as many insurers use credit-based insurance scores when calculating rates. Shopping around and getting quotes from multiple insurers is one of the best ways to ensure you are not overpaying for insurance.

At O1ne Mortgage, we are dedicated to helping you with all your mortgage service needs. Call us at 213-732-3074 to learn more about how we can assist you.

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