How to Save Money on Student Auto Insurance

If you are a high school or college student, and you are responsible for paying for your own car insurance, you probably realize just how expensive this can be. Rates for young drivers can be quite high, so students typically end up paying far more for auto insurance than older drivers. Fortunately, there are a few ways you can save money on student auto insurance, so you will have more left over for books, supplies, and socializing.

The best way to save money on student auto insurance is to stay on your parents' auto policy. Most auto insurance companies use one of several “averaging” methods to determine rates for policies for more than one driver. This means that a policy with a student and two adults will end up costing less per person than having a separate student policy. If your parents, and their insurance agent, agree to add you to their auto policy, you can save hundreds of dollars each year in insurance costs.

If you can't stay on your parents' policy, another way to save money on student auto insurance is to ask your agent about policy discounts. Most insurance companies offer a variety of discounts, which can substantially reduce your policy premiums. If you have good grades, let your agent know - some insurance companies offer ”good student” discounts that can shave as much as 10% off your insurance costs. Also, if you pay for a policy term in full, instead of paying in monthly installments, you may qualify for a ”paid in full” discount of 5 to 10% - plus, you'll likely also save on installment fees, which can be between $3 and $15 per month.

A third way to save on auto insurance is to choose your car wisely. That shiny sports car might be very appealing, but it will likely drive your insurance rates through the roof. While a ”family car” might not be as attractive, it will usually cost far less to insure.

Saving money on student auto insurance takes a bit of time, patience, and research. The time you spend, though, can help you save hundreds every year.