Everything You Need to Know About Auto Insurance for College Students

Everything You Need to Know About Auto Insurance for College Students

Are you a student that's looking to get car insurance but are unsure of where to start looking? Do you not know what to look for in price or coverage? If this is your first time looking, be sure to learn more about auto insurance for college students.

Doing so can help you find the perfect fit for your needs. Finding the right auto insurance means understanding what it is, why it's important, and what you need to be keeping an eye out for. 

Be sure to read below to read more about finding cheap auto insurance and what you need to know before you start searching.

What Is Auto Insurance?

tree on top of car

Surprisingly, most people shop around for auto insurance (AKA car insurance) without even taking the time to understand what it's for. They know that it's important and legally required, but they don't know much about it beyond that.

Shopping for car insurance without knowing what it's for is like buying a house without knowing how many rooms it has, the size of it, what it looks like, or where it's located.

It's like committing yourself to a college that you'd never heard of or seen before stepping on campus for the first day of school. 

Auto insurance is coverage that an insurance company gives you to protect you from a financial loss about your car. Basically, they'll cover you in situations such as a car accident or if your car were to get broken into.

It does not cover the items that were stolen during a car theft. Rather, it covers the damages and stolen parts to your car during the break-in such as a shattered window, broken car lock, and so on.

You want to make sure to find a balance between the monthly premium of the car insurance and the coverage that it entails.

How Do Car Insurance Companies Create Their Rates?

calculator on top of money

The rates that a car insurance company gives out are determined on a client by client basis. Just because your roommate received a low price from one particular provider doesn't mean you'll get the same rate. In fact, odds are that you won't.

There are a number of different factors that insurance providers use to calculate the rates such as your age, how long you've been driving, and how many miles you drive each year.

They also consider your previous driving record. If you have tickets on your driving record, then you can expect your rates to be a bit higher, no matter what provider you get a quote from.

Unfortunately, there are other things that they consider which are out of your realm of control.

Things such as your gender, where you're from, whether you're married or not, why you use the car, and the reputation of the car you drive all play a factor in your rates. There are heavy statistics to prove that these are all indicators of risk.

Collision and Comprehensive Coverage: What's the Difference?

damaged car

As a college student, this is probably your first time shopping for car insurance. Because of that, you need to familiarize yourself with two terms: comprehensive coverage and collision coverage. They're two completely different things.

Collision coverage, as the name would imply, will cover any damage that your car takes from a car crash, hitting a tree, hitting a steep pothole in the road, and so forth.

Comprehensive coverage is the protection from things like a fire, someone vandalizing your car, car theft, flooding, debris, or other unforeseen circumstances.

It's important to note that comprehensive coverage does not cover your car if you were to damage it in a car accident. It's important that you have car insurance that includes both types of coverage in order to protect yourself. 

Without both types of coverage, your car insurance isn't worth the investment. Without the proper coverage, the damage will be yours to pay for.

Are There Discounts Available?

shopping cart with balloons with percent signs around it

The answer is a resounding "yes". In fact, there are several different discounts you can use to save on your car insurance from month to month.

As a college student, the two you should keep your eye on most is a good driver and a good student discount.

Both discounts are pretty self-explanatory. To get a good driver discount, you need to have a clean driving record from the past 3 or 5 years. For a good student discount, you need to maintain a 3.0 GPA (B average) or higher.

There are also things like paperless discounts, anti-theft discounts, and multi-policy discounts that you can use to save big on your auto insurance. 

When Do I Need Insurance?

growing plant

Essentially, you need to start shopping for your own insurance as soon as your name becomes the primary owner of the car. 

If you and your parents are considered joint owners of the car, then you'll be able to stay on your parent's car insurance. 

However, if your name is the primary on the car title, then you need to find car insurance right away. Otherwise, you won't have any coverage if an emergency were to happen.

Find the Best Rates on Auto Insurance for College Students

Now that you have seen an in-depth guide on how to find the best rates on auto insurance for college students, it's important to start your search.

Be sure to read this article for more information on the 9 different myths about car insurance that can come back to bite you if you believe in them.

To begin your search, please start by visiting this page in order to start comparing auto insurance on our site. You'll be glad you did!

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