Auto Insurance – Student Coverage and Tips on Getting it Right

What Young Drivers and Parents Should Know About Auto Insurance: Student

Insurance companies recognize that young drivers have a high incidence of vehicular accidents. This poor track record is due to driving habits that put them at risk and a lack of experience under actual driving conditions. Consequently, when it comes to auto insurance, student rates are usually very expensive. In an attempt to cut down on teenage driving casualties, most state governments have instituted strict licensing requirements for beginners.

Newly mandated driving license procedures now applicable in most states.

New drivers must start with what is called a “Graduated Driver License.” This permit is valid for the first 6 to 12 months. A fully licensed driver must be in the car with them at all times. After this initial period, a written and a driving test are required. Those that pass will be issued a license allowing them to drive independently Restrictions on number of passengers, usage of cell phones and driving at night will apply. These restrictions will apply for a 1-3 year probationary period and then an unrestricted license will be issued to drivers with satisfactory driving records. Maybe a bitter pill to swallow for young drivers, but the program has proven to be a resounding success. Statistics reflect a reduced number and severity of accidents with this system in place.

Young drivers should follow these guidelines for cheaper insurance rates.

Maintain a B average in school…statistics show that students with higher grades are more responsible on the road. Complete a driver education class and advise your insurer. Maintain a spotless driving record…no moving violations or accidents. Let the insurance company know if you drive on a limited basis.

Example: If you are residing on campus and drive their vehicle only on the weekends or holidays.

Another money saving tip:

Make inquiries about renters insurance. But young people don’t have assets to insure, right? You might be surprised!

In that backpack –

Do you have an iPod?

A cell phone?

A laptop?

Or you wardrobe in case of fire?

Renters insurance is not expensive, and it also provides liability coverage which could come in handy if someone is injured in your dorm room or apartment.