Cheaper Rates on Car Insurance for Students
Reader's Question:
Shouldn't car insurance for students cost be cheaper than older people?
Jenny
Phoenix, AZ
Being once a student myself who lived on a tightly budgeted allowance, I can quite see where you're coming from with that question. Unfortunately, we can't simply change the way car insurance companies rate us. Car insurance for students is one of those that have really high rates. This is because car insurance companies sometimes use a driver's age to determine how much of a risk the driver is. Young drivers are often perceived as inexperienced and therefore more likely to get into accidents. So unless you are around 30 years old and working on your MBA, you're probably going to pay quite a sum to get your car insured.
Just like wishing for your grades to go higher, wishing car insurance for students to cost cheaper isn't going to make it so. But school grades can actually lower car insurance for students. There is a thing commonly called good student discount. Students with a high enough grade point average can actually avail of a discounted rate. Carriers that provide such a discount set different conditions for it, so it would be best to consult an insurance broker or directly contact a car insurance company regarding the finer details of this discount. Car insurance companies sometimes specialize on certain types of drivers, which mean they're better at computing rates for the type of driver they focus on. It would be advisable then to look for one that specializes on car insurance for students.