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You’re a college student on a budget. Besides tuition, you also have to pay for accommodation and board. But if you drive, you need car insurance. Unfortunately, many overlook getting college student car insurance.
University students rarely shop for car insurance. Most of them are under the coverage of their parents’ insurance. This is because it is one of the cheapest ways to have one. Still, car insurance for university students can eat up a lot of their budget. This is because car insurance rates change depending on several factors.
So, if you’d like to know about the cheapest ways to get insurance while in university, read on below. Here, we have a comprehensive guide into car insurance with the most affordable ways to get one.
What Does Car Insurance Cover?
Car insurance policy has many coverage options that give varying levels of protection. When buying car insurance, you pick the coverages and their limits or deductibles. More coverage means more protection, but it also means higher costs.
Below are the following basic car insurance coverages:
Injury Liability
Liability coverage for injury covers injuries caused by the designated driver or insurer. This also covers when using someone else’s car with their consent. This provision also protects you and your family members.
Medical Payments or Personal Injury Protection (PIP)
This coverage provides for injuries to the policyholder’s passengers and drivers. PIP can cover medical expenses and missed wages. It also covers the cost to replace services performed by an injured driver. It also includes funeral expenses.
Property Damage Liability
This coverage provides compensation to someone else’s property. It generally means damage to another person’s car. But, it can also include light poles, telephone poles, and fence posts. Others are buildings or other structures.
Collision
Collision coverage pays for damage caused by a collision with another car. It also covers collisions with telephone poles or when you flip over. Also, pothole damage is part of the coverage.
Collision insurance usually has a separate deductible. Whatever the case, your collision policy covers it. It would also reimburse you for the cost of repairs, less the deductible. When you’re not at fault, your insurer may recover the deductible from the other driver’s insurer.
Comprehensive
This coverage reimburses you for failure due to damage or theft besides a car or object collision. For example, it covers contact with birds or deer. It also pays for the repair of a cracked or shattered windshield.
Comprehensive insurance has a separate deductible, though some companies offer no-deductible glass coverage.
Uninsured Motorist Coverage
Uninsured motorist coverage reimburses you, a family member, or a designated driver. Its scope also protects you if an uninsured motorist hits you as a pedestrian.
Getting Your Car Insurance While in University: The Cheapest Way
Get a full driver’s license.
Insurers prefer drivers with full, unrestricted licenses. A full driver’s license shows an insurer that you are a safe driver. In Ontario, a driver with a full G license who has never been in an accident or received a ticket saves 10% over a driver with a G2 provisional license.
Get registered as a secondary driver on your parents’ policy.
It would be better if you started developing your driving history. To earn a multi-car discount, ask to become a secondary driver on your parent’s insurance.
Complete a driver training course.
Enrolling in and passing a certified training program demonstrates that you are a safe driver to an insurer.
Work on your credit score.
Start establishing a good credit history. Insurers reward customers with solid credit ratings. The least age to apply for a credit card in Canada is 18. So, as soon as you are the right age, apply for a credit card. Then, be sure you pay it off in full each month. Insurers still consider a good credit score to justify cutting the cost of car insurance.
Get discounts for being a student.
Several insurance companies will provide discounts on your rates. You can do this by telling them that you are studying in a university or secondary educational institution. Be sure to ask about this, as most insurance companies don’t offer this information at the onset.
Contact your financial aid office.
Insurers also work with organizations and associations to provide savings to their members. If your university has any associations, request financial help from your administration.
Get good grades.
Several car insurance providers offer discounts to students with excellent GPAs. You may save up to 25%, depending on your service provider. Consider telematics.
Telematics, sometimes known as usage-based insurance, is a mobile application. It monitors your driving style, such as speed, braking, and turning. For good driving, you might save 15% to 20%.
Compare car insurance rates.
Most young drivers join the same insurance provider as their parents. This is excellent since it demonstrates commitment. It will also qualify you for discounts. Still, check rates to see whether you can get a better deal somewhere else.
Consider getting a car insurance broker.
Car insurance brokers like Brokerlink are specialized agents. They act as middlemen between drivers and insurers. They usually charge a low rate to help a driver find and buy insurance. At the same time, drivers could also enjoy a broker’s specialized insurance expertise.
Before you start looking for ways to get the things mentioned above, get advice from a broker. They can help you verify what you need to consider to get cheap car insurance while in university.
