About Car Insurance for College Students
The car insurance policy laws differ from state to state, but the fact that an insurance is compulsory remains the same. The auto insurance in most cases works as follows…
After a person, in this case a student, applies for an insurance, his or her background, identity, medical records, eyesight, driving permit, driving record and tests are scrutinized. Then the driver’s car and the usual roads that are used by the driver are also analyzed. Lastly, the bio-data of the applicant is scrutinized.
Based upon all these features, the auto insurance company provides an auto insurance quote to the applicant, which indicates a rate of premium. The rate of premium is often expensive in case of student auto insurance, due to the fact the college students are viewed as high risk candidates, and the probability of accidents is high in their case. The inexperience of young drivers also often, results in significant property damage.
In the United States, the following are some of the important objects that are covered by average insurance policies. A general rule of thumb is, more the covered objects, the more is the rate of premium.
- Medical expenditure of insured party, as well as the third-party.
- Car/Auto damage expenditure of the insured person as well as of the third-party.
- Property damage expenditure of the property that has been damaged.
- Damage compensation of any public property.
- Fines that have been imposed by the road authority.
- Compensation ordered by the court.
Finding Cheap Car Insurance For College Students
The aforementioned mechanism is applicable for all students, irrespective of their age. Also as mentioned above, the biggest drawback is that, for students rate of premium is exceptionally high. However, to find affordable car insurance, you can try out these tricks:
- Have a Clean Driving Record: A criminal offense or a drinking and driving, or driving under influence, will earn a straight denial for cheap car insurance. Such people are viewed as high risk and high liability for the insurance company.
- Family Purpose Doctrine: In this policy, the owner of the vehicle becomes liable to pay for the repairs of the car. If a third person pays for the car repair, he gets compensated by the driver’s insurance company. In this case, the car’s insurance is held by the parents. Such a provision substantially reduces the rate of premium.
- Underwriting Perks: During the underwriting process, overall habits and temperament of the driver are seen. To get the cheapest car insurance package, make sure that you have good grades, student awards and honors to your credit, because merits point towards a responsible temperament of the student, thus earning a lowered rate of interest.
- Low Power and Safety: Insurance companies often charge a higher rate of interest on most of the high-powered cars. Cars that deliver speedy performance often tend to get into accidents, hence a high ‘CC’ car will have a higher premium. Apart from that, the safety features are also viewed very strongly, the more enhanced the safety features, the lesser is the premium. Therefore, having good safety features on a medium or low-speed car is usually recommended
Overall, if you follow the aforementioned points, then it becomes very easy to bag the lowest rate of premium.