What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

How to Take Car Insurance for College Students?

What a kid moving ahead in their student life is the biggest turning point for both the students and the parents. As a parent, you can't be everywhere with your children, and that can be scary at times. Although you cannot accompany them, still you can keep them safe and protected with auto insurance for college students.

Nowadays, many students drive to college by car. With changing period, it has become a trend to own a vehicle. Not only this, students are forced to work during their semester breaks, and parents cannot accompany them everywhere. Young drivers are the costliest and riskiest insured group of drivers. Car insurance for college students is expensive, yet it is the best way to safeguard your child.

What type of car insurance do college kids need?

As a college student, it is very important to know the various losses you might face due to loss of car or an accident.

  • As a parent, you can safeguard your kids through Liability insurance policy. Every state has a liability insurance that acts as a third party to cover all the aspects of insurance.
  • Liability insurance covers, car damage, and personal injuries. This insurance is highly recommended for all car drivers.
  • The students can also cover basic theft coverage as well.

Enumerating the losses that can be covered with best car insurance for college students, here are three types of insurance policies:

  • Liability coverage: Protects you from damages in an event where you were at fault. It covers the third party which suffered loss due to your fault.
  • Crash/collision coverage: Covers your car for any repair services required due to clash or collision.
  • A comprehensive policy that pays for repairs and replacements.

Is car insurance for students expensive?

The rates of car insurance for students drastically depend on the usage of the car. As mentioned earlier, young drivers are an expensive call for the insurance agents. If you drive the car to the college, then the rates might be high. The reason behind is the risk of car theft from the campus.

Your insurance agents have to give a cover for your personal injuries as well a loss of the car which makes the rates soar higher. However, if the students drive the car only on occasions and do not ride it to and fro the campus, the rates may be lesser.

How Much Can Student Car Insurance Cost?

State Annual Premium
Alabama $4,692
Alaska 3,144
Arizona 4,468
Arkansas 6,792
California 6,177
Colorado 4,792
Connecticut 7,964
Delaware 8,716
Florida 4,278
Georgia 4,732
Hawaii 900
Idaho 3,309
Illinois 6,279
Indiana 3,330
Iowa 4,248
Kansas 4,680
Kentucky 9,807
Louisiana 11,176
Maine 3,188
Maryland 9,252
Massachusetts 4,076
Michigan 11,271
Minnesota 3,366
Mississippi 3,978
Missouri 3,784
Montana 4,656
Nebraska 3,927
Nevada 7,208
New Hampshire 4,335
New Jersey 9,048
New Mexico 5,504
New York 6,216
North Carolina 1,953
North Dakota 5,244
Ohio 3,352
Oklahoma 7,464
Oregon 5,024
Pennsylvania 10,208
Rhode Island 8,000
South Carolina 2,752
South Dakota 4,320
Tennessee 4,092
Texas 4,068
Utah 4,827
Vermont 3,432
Virginia 3,471
Washington 6,000
West Virginia 6,088
Wisconsin 7,227
Wyoming 3,738

What factors affect the cost of student car insurance?

The rate of insurance majorly fluctuates among different insurance agents. However, certain factors remain the same for determining the cost of student’s car insurance.

Factors that largely affect the cost of student car insurance are:

  • Where the vehicle is driven.
  • Age and marital status of the driver.
  • Model of the car insured; a sports car is more expensive than a family sedan.
  • Accidents and traffic violation history of the driver.
  • Auto insurance for students in college largely depends on the state’s auto insurance regulations as well.
  • More precious your car is, higher is the rate of insurance.
  • The credibility of your parents and you as a driver.

Ways to save on auto insurance for college students

Since best auto insurance for college students can be expensive, you can take up different methods to save on auto insurance. There are basically three ways in which you can save on insurance:

  • College auto insurance discount: Some Insurance agents offer discounts on “good grades” or on a high-performance level. As a student, one can avail such discounts and save on insurance rates.
  • Pay per Mile auto insurance: The pay-per-mile insurance is one of the cheapest car insurance for college students. Insurance rate is on the basis of miles that a car is driven. If the student stays on a college campus, then the rates can be saved by driving the vehicle, lesser as compared to students who reside out of college. Moreover, students can save per mile by walking to the college and driving less.
  • Multiple quotes: Hopping and searching for the best auto insurance for college students is another method to save your monthly expenses. You can spend a week in getting multiple quotes and comparing them before deciding on cheap car insurance for students.

Your own policy VS Your Parents policy

The best car insurance for students majorly depends on whether they are staying on parent’s policy or taking their own.

Sometimes, parents are doubtful whether their kids will remain on their policy or will move ahead to obtain for themselves. At times it completely depends on the rates of insurance agents and much time on the will of kids. Let’s evaluate both the circumstances.

College students remaining on Parent’s policy

As a parent, the car insurance policy depends on whether you want to cover your child or let them own their own policy. In case the student travels to college that is more than 100 miles away without a car, then parents make like to give an insurance cover to the kids. They may also avail away from home discounts or remove the kids from the policy while they are in college and do not drive much.

Here, it must be clear that parents are the owner of the car and lend it to their wards for college transportation. College students who remain on parent’s policy majorly affect the rates of the insurance depending on the times they drive.

Eligibility for parent’s policy:

  • You do not own a car.
  • You stay with your parents.
  • You are a full-time college student, and your permanent address is that of your parents.
Benefits of staying on Parent’s policy;
  • You pay lower insurance rate.
  • You will get continuous cheap car insurance for college students till you are on parent’s policy.

Should a college student buy their own policy?

When college students buy cheap auto insurance for college students, it turns out to be profitable for the parents. Since students are now buying separate policies, the parents can take relief from the recurring expenses. Any accidents or major losses impact the individual’s policy and not on the parents’ policy.

It not only reduces the expenses for parents but also makes the students responsible for how to handle the car.

However, it is also true that individual policy is high-rated than the parent’s policy. The case is because the young drivers are the riskiest ones and tend to damage car due to accident and theft. The insurance agent takes a safer side and charges high for the students when they have a separate policy. However, this is only possible when the student has attained the age of 18 and has his/her own car or co-owns the car with the parent.

How To Buy Car Insurance Coverage For College Students

Just like buying car insurance for people in other demographics, college students will benefit from shopping around for automobile insurance. Each car insurance company uses different variables to determine the amount that a driver will pay for their auto insurance plan. Generally speaking, college students fit in the age demographic where they are at higher risk of getting into accidents than middle-aged drivers. Depending on your living situation, as well as your driving record, you may adopt one of many approaches for purchasing an auto coverage plan.

Student Who Lives At Home And Drives Own Car

Students who are living at home with their parents, but drive their own car, have a few different options available. If the student is on the title of the vehicle, they should get their own car insurance policy. This can be an expensive option for parents, but misleading your auto insurance provider can end up being a mistake. If a claim needs to be filed, and the paperwork does not match what has been told to the car insurance company, they could deny a claim.

Some people choose to leave a title in a parent's name so that they can save more money on automobile insurance overall. Either way, you will want to use the tools here to compare car insurance plans and get the best policy and the best price available to suit your needs.

For A Student Who Lives At Home And Drives Their Parents' Car

Students who live at their parents and also drive their parent's vehicle will need to be listed on their parent's automobile insurance plan. Even though this type of insurance policy can be expensive, it can help save money overall. If the student is in an accident and not listed on the policy, it is possible for your insurance provider to deny a claim if it is made. Being honest with your car insurance company is the best way to make sure that you are getting the right policy to suit your needs.

For A Student Who Doesn't Live At Home, Is At College In-State, And Drives His Or Her Own Car

Students who own their car, even if they are attending an in-state college, are going to need their own car insurance plan. If a person’s name is on the title of the vehicle, they will need to have their own automobile insurance plan to be fully protected.

For A Student Who Doesn't Live At Home, Goes To College In-State, Drives Parents' Car

People who are going to college are often not sure what type of car insurance policy they will need. If a student is using a vehicle that is in their parent's names, they will need to be listed on their parent's car insurance plan. Even if the car itself is not being garaged at their parent's house, insurance companies generally allow a policy knowing that college is a temporary situation. This is something you will want to verify with your car insurance provider, but either way, you will need to have car insurance while you are at college in-state.

For A Student Who Goes To School Out Of State, Drives Their Own Car And Returns For Holidays And Summer

People who are listed as the owner of the vehicle on its title should have a policy in their name. That said, using your parent's insurance provider may be able to save you some money. If a student purchases a policy from the same company as their parents, they may be offered a discount by the insurance provider.

Contacting multiple car insurance companies to get free quotes can be done using the tools on this website. Keep in mind that you may need to ask about specific discounts and if they are available. Requirements for car insurance can vary from one state to the next, so make sure that you have information about where the vehicle will be garaged, including the ZIP Code of the location. Where a vehicle is garaged can have an impact on the rates a person pays for their insurance plan. Safer areas tend to pay lower rates on car insurance on average than areas that are less safe.

For A Student Who Goes To College Out Of State, Drives Their Parents' Car And Returns For Holidays And Summer

This can be one of the best options in terms of saving money overall. If a student is going to college out of state and drives a parent's vehicle, only returning for the holidays and in the summertime, they will need to be added to their parent's car insurance plan. Their parents are listed on the title as the owners of the vehicle, so they will need an insurance policy on the car.

Even so, you will need to let the car insurance provider know that the vehicle is being garaged in another location, out of state. In some cases, the student's name will need to be added to the title as well. Keep in mind that your premium may change depending on where the vehicle is being garaged while the student is at college. Different ZIP Codes are associated with different amounts of risk, changing the rates that people pay.

For A Student Who Goes To College Out Of State, Only Comes Home A Couple Of Weeks A Year, And Drives Their Parents' Car

People who are considered household residents are often required to be listed on a car insurance plan. Even if a student is only home for a few weeks of the year and drives their parents car while they are home, they will need to be listed on an automobile insurance plan. Sometimes parents choose to drop their child from their car insurance plan while they are away at school. This can have some risk to it. If a student borrows a friend's vehicle while at college and does not have backup car insurance, and there is an accident, they are less financially protected overall.

For A Student Who Goes To College 100 Miles From Home, Doesn't Have A Car, Returns For Holidays And Summer And Drives Parents' Car

Parents can get a discount for drivers who are listed on their policy and only return for the holidays and the summertime while only using their parent's vehicle only when they are back. Use the tools on this website to get free quotes on automobile insurance, but also ask about discounts you can get when a student driver is not around for very much time each year. You may need to explain your specific situation in order to get the best car insurance rates available.

For A Student Who Has Own Car, But Will Leave The Car At Home When Attending An Out-Of-State School

If a person owns their own vehicle and is listed on the title, they will need their own car insurance plan. It is possible to register a vehicle with a parent, though, which allows people to qualify for discounts from some companies, as long as the university the student is attending is at least 100 miles away from where the vehicle is being garaged.

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