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Student Car Insurance

5 Little Known Ways College Students Can Save Money on Car Insurance                                                               

You might think you have your act together when it comes to student car insurance. College life is hectic and money is always short. To lighten the load, you did your homework to get the best possible rate. Or did you? Sure, your GPA is great, but there are other factors too. Knowing them could allow you to shave dollars from your premium and keep precious cash in your pocket. This is what goes into determining your car insurance rates.


5 Factors That Influence Auto insurance Rates for College Students

Besides your age, gender, and grades, the biggest factor that influences student car insurance is whether you take your car to school. That is because where you keep your car and how much you drive it is one of the primary ways insurance companies determine how likely you are to get into an accident.

You will need to carefully evaluate where you live and how much you drive before you decide if you’ll drive your car to school. Here are some other things to consider:

infographic about 5 factors of auto insurance for college students

1. Location. This could be a big one. If your school is in a more rural area, you will pay lower rates. Urban areas and big cities always carry higher insurance rates. The reason is relatively simple. More cars on the road, more obstacles like pedestrians, and narrow through streets all mean there is a much greater potential for you to be involved in an accident. States like New York and New Jersey have the highest car insurance rates, whereas states like Idaho, Iowa, Wisconsin, and Maine are among the lowest (Bankrate.com). There may be a bit of relief, though. If you happen to live within 3 miles of your school or job, you could qualify for a mileage discount.

2. Type of Car. Your sports car might look good on campus, but in the long run, the student car insurance rate could eat you alive. If you can, go for a larger vehicle. They are more substantial, usually made of steel, and much easier to repair. They also carry lower premiums. It may seem like insurance companies pick and choose which models to charge higher premiums for, but the law and their reasoning are sound. Sports cars are always higher because they have a large claim history (drivers like to go fast and are often involved in wrecks) and they have a much higher chance of being stolen. This is why driving a minivan may not be sexy, but is a great choice if you want a lower insurance rate. Also, newer cars like sedans and compacts give you better rates, since they require much less maintenance and have better safety features.

3. Credit History. Insurance companies will examine your credit history as a predictor of your likelihood of getting in an accident. A good credit rating could save you around $1,000 per year in premium costs. If you have a poor rating, expect a higher premium.

4. How Much Driving You Do. This one is cut-and-dried. If you can prove that you will be driving much less, then you could save a bit on your premium. To further compound the savings, try to stay on your parent's insurance plan if possible.

5. Driving Record. This is the most important factor by far. You are young and full of potential. You are also squarely in the high-risk category. Even a speeding ticket will make your insurance rate skyrocket, simply because you are already in a category with a higher risk. Make sure your driving record is as clean as possible so you can get the best rate.

Finally, consider getting a huge break on your insurance by leaving your car at home. Doing so can save you thousands of dollars. The best way to accomplish this is by trying to remain on your parents’ insurance policy. Most insurance companies will allow you to stay on your parents’ policy if you:

  • Are under 25 years old
  • Attend a college or university within 100 miles of your home
  • Attend a college or university more than 100 miles from home, but drive your vehicle only when you are home for school breaks

The number of miles that you drive in a year also heavily influences how much you will pay for car insurance. If you keep your car at home rather than at school, you will drive less. If you must bring your car to school, use mass transit as much as possible, live on campus if you can, and consider carpooling where possible. Restaurants and other entertainment options are not beyond the scope of possibility if you take advantage of public or mass transit. Besides, you are there to learn after all, right?


What Discounts Are Available to College Students for Car Insurance?

As a student, you may be eligible for several discounts.

Resident Student Discount. This echoes what was mentioned previously. Choosing a school that is far away and only driving when you’re home on break is a dream come true for your insurance company. They will usually give you a nice break for this, since there's much less chance for you to be involved in an accident.

Early Signing Discount. This is something you can take advantage of, but it is time-sensitive. If you're shopping for new car insurance before your current policy has lapsed, there are insurers that will give you a discount for not procrastinating.

Multiple Policy Discount. If you need other types of insurance, consider using the same insurance company for them. For instance, if you need renters insurance, getting both your renters insurance and auto insurance policy from the same company will make you eligible for a discount.

Other discounts that college students might be eligible for include:

  • Good student discount
  • Safe driver discount
  • Pay-in-full or automatic payment discount
  • Driving school discount
  • Anti-theft discount
  • Safety equipment discount
  • Data tracking discount

Ask one of our Trusted Choice agents about these discounts when you shop for your policy.


What Car Insurance Coverage Is Necessary for Students Away at College?

Even for students away from home, good car insurance is a necessity. While you’ll want to buy the most affordable student car insurance available, you shouldn’t limit your coverage to your state’s bare minimums. This could leave you at risk if an accident occurs with one of the nearly 13% of uninsured motorist roaming the roads. In some states, that's as high as 25%, according to the Insurance Research Council.

infographic young drivers alcohol percentage

Remember, you can be the most responsible driver to ever hit the road, but that still won’t protect you from the actions of those around you. According to recent statistics from the National Highway Transportation Safety Administration, 33% of drivers 21 to 24 years old were involved in fatal alcohol-related accidents. This is the highest of any age group. Furthermore, consider the fact that 18% of all college-age drivers report driving under the influence at some point in time, while just over 37% of young adults between the ages of 18 and 25 were reported to be binge drinkers, according to the Substance Abuse and Mental Health Services Administration. The bottom line: Just because you might be responsible doesn't mean everyone else is. At the very least, you must carry your state’s mandated minimum liability coverage. But is that enough? Not likely.

To ensure you are protected, auto insurance for college students should include the following types of coverage with appropriate coverage limits:

  • Collision coverage is protection for physical damage to your vehicle when it hits or is hit by another vehicle or object, such as a tree.
  • Comprehensive coverage pays for losses from almost all other types of damage to your vehicle other than that resulting from a collision, such as theft, fire, vandalism, weather, birds or animals, glass breakage and so on.
  • Medical payments coverage, or personal injury protection, helps pay for medical, dental and funeral expenses for you or your passengers, regardless of who is at fault.
  • Uninsured motorist coverage protects you if you are in an accident involving a hit-and-run driver or a driver who does not have auto liability coverage. It takes the place of liability insurance that the other driver should have, but does not.
  • Underinsured motorist coverage protects you if another motorist is at fault for a collision but does not have enough insurance to cover your losses.

How Do College Students Find the Best Car Insurance Rates?

The best car insurance for you as a college student will provide protection not only for liability risks, but also for injuries, collisions and other types of risks to you and your vehicle. And it will provide all of those things at a price that that isn’t burdensome.

First, contact one of our Baldwin / Welsh & Parker (BWP agents. Your agent should be able to find quotes from numerous reputable insurance companies so that you can find the combination of coverage and price that best suits your needs and budget. When comparing quotes, make sure that the coverage and limits are the same for each quote. It doesn’t pay to compare apples to oranges.

Our local BWP Trusted Choice® agents can help you find the student car insurance you need, and will help you save money by finding all of the discounts that you are eligible for.  

Make Sure Your Stuff Is Protected When You Move

Moving generally indicates an exciting time of transition and life change- whether it’s moving from the parents' basement to a first apartment or parents downsizing because the kids have all moved out. Whether you’re handling the move yourself with the help of friends and family or whether you hire professional movers, moving can be as stressful as it is exciting, and one way to relieve some of that stress is knowing that your possessions are protected during the transition. Whether your move is across the street or across the country it’s important that you discuss your move with one of our Baldwin / Welsh & Parker (BWP) Trusted Choice ® independent insurance agents.

 

Insuring Your New Place (And Your Stuff)

First of all, your belongings are protected by your homeowners or renters insurance policy against damage and loss. But it’s important to know that when you move from an apartment to a house or house to house or apartment to apartment or condo to… well, you get the idea… your homeowners or renters insurance won’t follow you and your property to the new place. Moving to a new home means that the risks to your property change, and as your risks change, so should your insurance.

Since you have coverage for the contents of your home under a standard homeowners or renter’s insurance policy, the best option to protect those is to make sure that there is no gap of time between the expiration or cancellation of your policy on the home you’re moving out of and the effective start date for the policy for the home you’re moving into- one way to do this is to have the new policy start the day you are planning on moving. Not only would this help provide coverage for your contents, but it would also provide you with personal liability coverage during the time of the move. If you’re moving out of state, ask your BWP insurance agent about underwriting your new policy or a referral in your new hometown.

 

Protect Your Stuff During the Move

Now what about your contents in transit? If you’re renting a truck or a van for the move, the rental company may offer you additional insurance coverage. If you use a professional moving company, under federal law interstate movers are liable for the replacement value of lost or damaged items, so if you’re moving from Manhattan, KS to New York City, the moving company is liable for your stuff. However, they may present you with different options for coverage, including Full Value or Released Value. According to the US Department of Transportation, Full Value is more comprehensive coverage but it may cost more out of pocket, whereas Released Value is offered at no additional cost, but may only cover your belongings up to 60 cents on the dollar. If you opt for the Full Value, make sure you have an up-to-date estimated value for the belongings you’ll be moving. If you have an accurate and comprehensive home inventory, this shouldn’t be too difficult of a task.

One argument for taking the coverage from a rental company or a moving company (even for in state moves) is that if something does go wrong and can be covered by that policy you could avoid filing a claim with your own homeowners/renters insurance company and having to cover costs out of pocket to meet your deductible. Just be sure though that the coverage offered by a moving or rental company is enough to replace or repair damaged or lost items. Talk with your Trusted Choice agent about your coverage and deductible so you can figure out a plan to protect your belongings that works for you.

 

What If I’m Putting Some of My Stuff in Storage?

If you’ll be temporarily storing property at a storage unit during your move, you should know that some insurance policies will only insure items in a self-storage facility to 10% of your personal property limit, which may not be adequate to cover your stored furniture, rugs, etc. You should be able to raise that coverage with what’s known as an endorsement to the policy, so make sure you tell your BWP Trusted Choice agent if you’re storing anything at a self-storage facility as part of the move.

We have the ability to work with multiple insurance companies, to help you find the coverage that’s right for your new place and for getting you and your stuff there.

ChubChub

 

July 15 is National Pet Fire Safety Day and here are some prevention and rescue tips from The American Kennel Club and ADT Security Services.

To help reduce the estimated 500,000 pets affected by home fires each year, The American Kennel Club and ADT Security Services today launched the inaugural "National Pet Fire Safety Day." This nationwide awareness day educates pet owners about potential risks when pets are left home alone and provides them with proven prevention measures to ensure their safety.

According to a recent AKC study, 88 percent of pet owners consider their pets to be valued family members so it makes sense to include them in fire prevention plans and rescue alerts should a house fire strike. As part of National Pet Fire Safety Day, AKC and ADT have developed helpful prevention, escape and rescue tips for pet owners.

"One of the hallmarks of responsible dog ownership is keeping pets safe and planning for unexpected emergencies, including house fires," said AKC spokesperson Lisa Peterson. "Pet proofing the home, developing pet-friendly escape routes and alerting rescuers of your pets presence with ‘window clings’ is the best way to keep your four-legged family member from harm."

That’s something Lia Wentworth of Maryland knows well. One Sunday morning she and her family left their Labrador Retriever "Justice" home alone. They didn't realize they left a pot of boiling water with plastic baby bottles on the stove. When the water evaporated, the bottles began to emit a toxic smoke. No one knew Justice was in trouble because there was no flame. Luckily, the Wentworth’s had a monitored smoke detector and the firefighters were alerted. Their prompt response saved Justice's life.

"National Pet Fire Safety Day" Tips to Keep Pets Safe from House Fires:

  • Extinguish Open Flames - Pets are generally curious and will investigate cooking appliances, candles, or even a fire in your fireplace. Ensure your pet is not left unattended around an open flame and make sure to thoroughly extinguish any open flame before leaving your home.
  • Pet Proof the Home - Take a walk around your home and look for areas where pets might start fires inadvertently, such as the stove knobs, loose wires and other potential hazards. 
  • Secure Young Pets - Especially with young puppies, keep them confined away from potential fire-starting hazards when you are away from home.
  • Keep Pets Near Entrances – When leaving pets home alone, keep them in areas or rooms near entrances where firefighters can easily find them. 
  • Practicing Escape Routes with Pets – Keep collars and leashes at the ready in case you have to evacuate quickly with your pet or firefighters need to rescue your pet.
  • Since Pets Left Alone Can’t Escape a Burning Home – Use monitored smoke detectors which are connected to a monitoring center, providing an added layer of protection beyond battery-operated smoke alarms.
  • Affix a Pet Alert Window Cling – Write down the number of pets inside your house and attach the static cling to a front window. This critical information saves rescuers time when locating your pets. You can obtain a free window cling by going to www.adt.com/pets or at AKC Responsible Dog Ownership Days events. Details are available at www.akc.org.
  • Keep Your Information Updated - Firefighters are familiar with pet alert window clings so keep the number of pets listed on them updated. Knowing the accurate number of pets in the house aids rescuers in finding all of your pets.

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