With car insurance premiums averaging $133 a month, it is important to make sure that you are receiving all the discounts available to you, especially if you are a college student on a limited income with lots of tuition, room and board, and food bills. Most insurance companies offer good student discounts to young drivers who are college students and maintain at least a “B” average and are under the age of 25.
Insurance Companies That Offer Student Discounts
- Allstate – 20%
- Nationwide – 15%
- State Farm – 25%
Good Student Discount
If you are a college student under the age of 25 and maintain at least a 3.0 GPA on a 4.0 scale, you are eligible to receive between 15 and 25 percent off of your insurance premiums. To qualify and maintain eligibility, all you have to do is present your end of semester grades to your insurance agent. If you maintain eligibility throughout college, some insurance companies offer the discount after graduation until the age of 25. After 25, insurance companies typically offer another discount for older, more mature and experienced drivers. If you fall below a 3.0 during any semester, the discount is removed until your grades improve.
College Student Living At Home
Are you living at home and attending a local college or university? College students that live at home may be eligible for multiple car discounts if everyone in the family is insured by the same insurance company and/or agent, which can save up to 20 percent on the total insurance premium costs. If paying for your own insurance policy is not an option, students living at home may be allowed to stay on their parents’ insurance policy until the age of 25.
In addition to student discounts, there are discounts that are available to everyone, regardless of age, including accident-free discounts and multi-line discounts.
Accident-Free Driver Discount
Most insurance companies offer students and non-students discounts for staying accident-free. If you haven’t had an accident in three years, you should ask your insurance agent if you qualify. This discount can save between 10 and 45 percent, depending on the insurance company.
Do you need more than one insurance policy? Young drivers that have more than one insurance policy with the same agency can receive what is called a multi-line discount. This discount works if the individual has car insurance and renters or homeowners insurance. The typical multi-line discount is 10 percent.
Automatic Debit Discounts/ Pay Up-Front Discounts
Can you pay your entire insurance policy up-front or have the monthly premiums directly debited from a bank account? Young drivers who set up their monthly insurance premiums for automatic draft from their checking or savings account can receive up to 5% off on their monthly premiums. Likewise, individuals that prefer to pay their entire insurance bill up-front can receive discounts up to 10 percent the total cost of the policy.