Good Students Get Better Car Insurance Rates

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The driver’s age is a crucial factor in car insurance premiums. The majority of high school and college students tend to be teenagers, and insurance rates are normally very high for them. In fact, if you are an 18-year-old student with liability coverages of 100/300/100, your annual car insurance rate will roughly be $4,050. This trend of sky-high premiums continues until you are about 22 and likely at the end of your college career, by which time the average annual premium drops by about $2,000 to $2,500.

However, if you are a teenager who has to drive to college, here’s what you can do to counter the problem of high rates. First, it’s best to get yourself enrolled in your parents’ policy, rather than getting one of your own. This is because having a more experienced driver on your car insurance plan helps in bringing down rates. Even if you don’t enroll in your parents’ plan, you should at least list one of your parents or your guardian as a secondary driver of the car.

Next, it is likely that if you are a student, you don’t need a full coverage plan, especially if you primarily drive just to get to your college. Let your insurer know about your driving record, and driving behavior (the amount of time you are likely to spend on the road, on average). They can then recommend a coverage that suits your needs and meets the state criteria.

Finally, there are two other factors you should take care of:  the type of car you drive and your grades. Insurers rate cars on its safety features, accident probability, and  its likelihood of being stolen. If your car scores well on these counts, and is easy to repair, your insurance rate will come down.

Statistics suggest that students who do well in their school are less likely to be involved in car accidents. Also, rewarding good students is great advertising for an auto insurance company  as students are likely stay with them even after they graduate. In general, high school and college students can qualify for a grade-based discount with a GPA above 3.0 or a B average. However, some insurers need you to be on the honor’s roll or the Dean’s list. Some insurers may also require you to be placed in the top 20% on a SAT1or ACT2 test.

Providing original transcripts is a must for availing this discount. Insurers typically expect that drivers seeking this discount should be between 16 and 24 years. But certain exceptions can be made if you are a graduate or an unconventional student. Typically, insurers limit the usage of this discount to two years in high school and four years for a regular bachelor’s degree at a college or university.

The table below shows the grade-based discounts provided by top insurance providers by state. It also shows how these discounts lower your car insurance premiums.

StateAverage PremiumProviderAverage Discount PercentageAverage Premium after Discount
Florida $5,729 Progressive 4% $5,500
Kentucky $3,770 Progressive 6% $3,544
Allstate corp. 2% $3,695
Louisiana $3,208 Progressive 7% $2,983
Allstate corp. 4% $3,080
Maryland $3,080 Progressive 5% $2,926
Alabama $1,604 Farmers 7% $1,492
Nationwide 4% $1,540
Georgia $1,593 Progressive 2% $1,561
Allstate corp. 2% $1,561
Liberty mutual 5% $1,513
Nebraska $1,511 Allstate corp. 4% $1,451
Colorado $1,344 Farmers 3% $1,304
Allstate corp. 6% $1,263
West Virginia $959 Nationwide 3% $930
Progressive 3% $930
Kansas $861 Progressive 2% $844
Farmers 5% $818
Nationwide 5% $818
Utah $788 Progressive 5% $749
Allstate corp. 5% $749
North Dakota $630 Progressive 2% $617
Farmers 10% $567
Hawaii $569 Progressive 4% $546
Allstate corp. 2% $558

Find a comprehensive analysis of all the ways to you can save on your car insurance, here.

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