Auto insurance is a necessary cost if you’re running a car – the financial implications of even a small fender bender can be too much to bear if you’re on a tight student budget and don’t have cover. If you’re studying abroad, it may even be an unavoidable legal requirement – with serious consequences if you drive without it. While it’s tempting to try and go for the lowest premium possible, it may prove a false economy if you get involved in a smash. Getting the right cover is about finding a balance.
When looking for a good deal, it pays to shop around. This may sound obvious, but finding quotes can be a bit of a chore, and many people miss out on savings by not looking hard enough. By all means use comparison sites to look at what is on offer, but try speaking to the providers directly when you get a good lead. By avoiding the middleman you can make noticeable savings.
Taking the higher deductible to get a lower premium might seem like a good idea, but if you really rely on your car, you don’t want to be facing a huge lump-sum payment if you get in a crash. This is where the balance comes in; you want to make sure both aspects of the policy – the deductible and the monthly premium – are manageable financially.
There are policies out there which specialize in servicing young drivers, who – statistically at least – are the most likely to have an accident and can therefore be penalized by a generic policy. Again, do your research and check out specialist options, such as the car insurance for young drivers from Can Can Cover.
Many insurance providers are now using telematics, and if you can consider yourself to be a good driver, these policies can be a great money-saving option. By installing a ‘black box’-style device in your vehicle, the insurer will know whether you’re the Driving Miss Daisy Type or a wannabe Indy 500 winner, and adjust your premiums accordingly. Everyone likes to think they’re a good driver, but you need to be honest with yourself if you’re going to take advantage of telematics.
And remember: these principles apply to renewing your coverage as well; just because you got a good deal from one provider a year ago, it doesn’t mean it’s the best one on offer now, so look again.
Of course, the best way to avoid paying through the nose for car insurance is to have less accidents – so go easy on the gas!
{ 5 comments… read them below or add one }
What do you mean, “if you’re studying abroad, it might be an unavoidable legal requirement?”
Auto liability insurance is required by law in every US state except for New Hampshire; fines and penalties are very stiff if you drive without insurance… in Ohio, you lose your license for a minimum of 90 days on the first offense among many other consequences.
I agree with George the study abroad portion is a bit odd. Do you mean a student coming into the US wanting to drive or a US student going into another country?
But getting car insurance for a student or anyone can be a struggle. Do you pay a little more out of pocket every month to have a lower deductible or do you keep more money in your pocket and risk the higher deductible. You never know what can happen when driving on the road at anytime.
I personally have a higher deductible, I’ve only had to use it once for the 5 years ( knock on wood) Ive had more car and the accident wasn’t my fault but I still had to pay it with my money right away to get my car fixed.
This is a tricky outcome…
Nice to know about telematics. I thought that lesser premiums are possibly assigned only to long-time drivers. Great pointers.
A black box in your car? No way! That is way too big-brotherish. I don’t care if it lowers my premium, I would not install such a device in my car.
I realise that some people find the idea of having an in car black box, as BeginYoung said “way too big-brotherish” but the truth is that if you’re driving to the law, then you shouldn’t have anything to hide, and the fact that these cameras can drastically lower your premiums, and even back you up in the event of a none fault accident completely outweighs any perceived negatives people may have!