All drivers, including college students, require some form of liability coverage to drive in most states. Read on to learn about selecting the best auto insurance coverage for college students.
How Much Is the Average Car Insurance for a College Student?
A recent Bankrate report showed that the average annual auto insurance cost for an 18-year driver on their parent’s policy is $1,975. A 40-year-old driver pays about $300 less for the same coverage per year. The cost is usually much higher (up to $5,335) for students carrying their own auto insurance.
Should You Lower Liability Limits for Your College Student Car Insurance?
Lowering a student’s auto policy limits isn’t the safest way to reduce insurance costs. Instead, it can expose the younger driver to more risks that could cost a lot more than the money saved with lower limits. Similarly, students that take out a separate policy from their parents’ might lose a significant amount of liability and uninsured driver coverage.
Should You Take Your College Student off Your Auto Insurance Policy?
As a parent, you shouldn’t be quick to get your college student off your auto insurance policy. You might pay higher premiums for it than you would under a joint coverage.
Generally, younger motorists tend to pay more for coverage and don’t usually get as many discounts as their older counterparts. However, sharing the risk under their parent’s auto policy can help lower the overall insurance costs.
When Should College Students Have Their Own Auto Insurance Policies?
This is an important decision to make if you’re a college-aged student attending university away from home.
If a student has a consistently bad driving record, it can negatively impact their parent’s auto insurance costs. It may make more sense for the younger driver to obtain a separate policy in such a scenario.
Also, you should have your own liability protection if you own the car. However, if your parents own the car or the vehicle is jointly titled, it’s best that you stay on your parent’s policy.
Once you’re financially independent and own a car, you can obtain your own auto insurance policy.
College students are better off maximizing their auto insurance coverage rather than limiting their liability protection to save money. For help obtaining the best car insurance for young drivers, contact the professionals at Steve Wilk Insurance Agency Inc. today. We are happy to discuss your unique coverage requirements. Our new office is located at 310 S Main Street, Suite C, Lombard, IL 60148.