Auto insurance rates are highest for student drivers and those under 25 years of age. The reasons for the increased rates are due to the young driver’s inexperience and statistics show an increase in traffic accidents for young drivers. Auto insurance companies can combat these higher rates by offering a number of discounts to lower the overall cost. Lower insurance rates are available by becoming eligible for these discounts:
The Good Student Discount
Good student discounts are discounts offered to students who maintain a 3.0 grade point average. To be eligible for these discount students must be between the ages of 16 and 24 and show good scholastic accomplishments such as making the dean’s list, honor roll or achieving high SAT scores. The student remains eligible for the discount, which could be 15 percent or more as long as the grade point average remains the same. The student may be required to submit a copy of the student’s report card or school transcript as proof of eligibility.
Safe Car Discount
Safety features on newer cars such as anti-lock brakes, airbags, and a passive restraint system lower the rates for student drivers. Safer cars generally mean fewer accidents and fewer insurance claims, which save the company and the policyholder money in the end. Reduced rates are given to drivers that have no accident claims.
Discounts for Driver’s Education Courses
Many insurance companies offer discounts for student drivers that have taken a driver’s education course or defensive driving course. These courses provide the student with the knowledge to avoid traffic accidents and be a safer driver, which also lowers the young driver’s risk factor. These courses can be found by checking your local directory or performing an Internet search. Check with your insurance company for state-specific eligibility and requirements such as certificate of course completion.
Adding Student Drivers to Existing Policy
Parents can add student drivers to an existing policy for less than if the student applied for a separate policy. Assign the student to an older model vehicle for more savings. The policy will cover the student when driving this vehicle. The premiums will go down year after year as long as the student remains on the policy. The longer the student has been driving the less risk they pose to other drivers.
Additional Ways to Save Money on Auto Insurance
Additional discounts are offered for older model cars, multiple cars on the same policy and cars with security or anti-theft systems installed.