Choosing Car Insurance for College Students
Car insurance for college students tends to walk hand in hand with high insurance premiums. The reason for this is because insurance companies charge the highest premiums for the drivers that they believe are most likely to put in claims. The more claims any one driver places, the more money the insurance company must pay out. This is not something that the company enjoys doing so they charge higher premiums to anyone who falls into the anticipated group.
Statistically speaking, young drivers comprise the largest group of those making claims. The reasons for this are because they are less experienced on the road and tend to have more motor vehicle accidents. Another reason for this is because college students do not have a no claims bonus and therefore are not eligible for a discount of any kind.
While students actually comprise a small percentage of drivers, they are most often involved in car accidents (and in particular young male drivers). Young men are involved in approximately ¾ of all driver related deaths on the roads and in approximately 2/3 of accidents where there are serious injuries.
Let us take a look at a statistic from our neighboring country- Canada. In the capital city of Ottawa, in 2007 there were 2,831 young male from the ages of 15 to 24 who were involved in motor vehicle accidents. This is compared to 1,650 young female drivers in the same age group. (Source: “Safe Young Drivers- You Hold the Key”)
The sooner you can get yourself some car insurance as a new driver the better it is for you in the long run. This will enable you to begin building up the no claims bonus which could, at a future date earn you a discount that could run as high as 70 percent.
Car insurance for students can be expensive for the aforementioned reasons. Therefore, you must be smart when it comes to deciding how much money you want to shell out to buy a new or used car. For example, if you want to save, you can check the best cares for students at reputable Minneapolis car dealerships. Car insurance is something you need to purchase before you drive a new car off the lot so make sure you shop around for different rates. Make sure you figure car insurance into the total cost of buying and operating a car. You do not want to purchase the car of your dreams only to discover that you are short on money to pay for your insurance! This is an absolute no no! Be a more efficient financial planner and plan for car insurance for young drivers.
When it comes to car insurance for young drivers, find out about the different types of insurance that are available to be purchased and then choose wisely for your individual needs. For a young driver, liability may not be enough. You might want to purchase collision insurance as well as theft protection (if your car is new or reasonably new).
There are many things to think about once you decide to buy a car and join the throngs of drivers already out on the highways. Car insurance should always be a top priority. It is always a good idea to seek help on making important insurance choices from someone you can trust who is experienced in matters of these kinds. Bear in mind that there is much more to having a driver’s license and owning a car then just how you are going to look in the driver’s seat.