College students who own a car need to have an insurance policy in place. Car insurance for 18-year-old college student is important for students who own a college or hope to drive a family car back home.
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Car insurance for college students could be extremely expensive, however, there are various ways to find a cheaper policy with comparatively affordable rates.
In this blog, we have covered the details related to car insurance for an 18-year-old college student including tips for choosing insurance, a list of affordable car insurance, and more.
Key Takeaways:
- There are various types of car insurance for 18-year-old college students such as third-party car insurance policies and comprehensive car insurance policies.
- The car insurance for international students requires the applicant to have an international driving permit.
- To save money on car insurance for 18-year-old college students, family members can share the car.
- Unfortunately, male students are expected to pay more car insurance than female students since they are known to be more reckless and harsh with their vehicles.
- Some of the cheapest car insurance for 18-year college students include Geico, American Family, and more.
Types of car insurance for 18-year-old college students:
In the United States, students can purchase any kind of car insurance policy online, just like you can get it offline. This is a summary of the coverage options available to them when purchasing online auto insurance.
1. Third-party liability Car Insurance Policy:
This is the coverage required by law for auto insurance. This simplest auto insurance plan comes with personal accident coverage. These plans are inexpensive, but they also don’t provide very comprehensive coverage.
2. Comprehensive Car Insurance Policy:
This type of plan compensates for the coverage gaps in the liability-only plan. It includes own damage coverage, liability coverage, and personal accident coverage, which cover the cost of fixing the insured vehicle.
3. Zero Depreciation Car Insurance Policy:
This policy combines a Zero Depreciation Add-on with Comprehensive Coverage. Because the Zero Depreciation Add-on is a popular coverage, insurance providers frequently provide a policy that combines this coverage with Comprehensive Coverage.
4. Complete Car Insurance Plus Selected Supplementary Coverages:
Here, students can use the Comprehensive Cover as a starting point and bolster it with optional upgrades. In addition to the Zero Depreciation Add-on, other widely used add-ons include Engine Protect, Invoice Protection, and Roadside Assistance. Select only the ones that hold value for you. Purchasing them is not required.
Car insurance for international students:
Many insurers offer auto insurance to international college students attending American universities, although possession of a current driver’s license is a requirement.
Depending on the student’s country of origin, their existing driver’s license might be valid, or they may need to obtain an International Driving Permit (IDP) before acquiring a car insurance quotation.
Can students stay on their parent’s car insurance if they are out of college?
If they haven’t moved out permanently, college students can typically continue to use their parents’ car insurance when they attend classes. For the following reasons, a lot of families choose to keep their college students under their policies:
1. More savings:
Sharing a policy is often way more affordable since the cost of coverage is often split between the family.
2. Family members can share cars:
Family members are covered when driving each other’s cars hence they aren’t required to inform the insurance company about the details of who’s driving the vehicle.
3. Convenience:
Managing one policy is simpler than managing two. Additionally, the student is protected throughout their summer or winter break when they go home.
Students can typically continue to receive their parents’ insurance through college as long as they maintain their parents’ house as their permanent address. However, students will still require their coverage if they want to remain in their homes and move out completely.
How much is the car insurance for 18-year-old college students?
As per analysis, college students who are added to a policy cause a doubling of auto insurance costs. However, the average cost of adding a college student to a car insurance policy is $2,333 every year.
This is the cost of full coverage rates for 18-year-old college students driving an older car and included on a two-parent or guardian policy.
What are the car insurance costs for a college student in a two-adult household?
The average auto insurance prices for a policy that includes two adult citizens and a driver who is a college student, ages 18 to 22, are listed below.
| Age | Average annual rate, a college student drives an older car | Average annual rate, college student shares a family car |
| 18 | $5,044 | $5,255 |
| 19 | $4,766 | $4,858 |
| 20 | $4,602 | $4,625 |
| 21 | $4,311 | $4,026 |
| 22 | $4,211 | $3,871 |
How can 18-year-old students save on car insurance?
To ensure that students are getting desirable car insurance coverage at reasonable rates, researching car insurance could be a smart move. The process is quite similar to choosing health insurance for students. Some ways to save money on car insurance are:
1. Notify your agent or insurance company:
Before doing anything on this list, students should contact the insurance company or agent and inform them about the details. Assuming that the car will be taken to the school, it is essential to report the new location where the car will be kept to ensure full coverage if there is any accident or theft.
However, if the vehicle is already on a policy, it can stay that way provided the student’s address remains the same as the family address. This is usually the simplest way.
2. Use the benefits of student discounts:
Numerous discounts offered to student drivers might result in significant savings. This is crucial since adding an 18-year-old driver to a family auto insurance policy with full coverage can be expensive, sometimes double the annual premium, though the precise rates might vary greatly.
3. Student away-from-home discount:
If a student is studying at least 100 miles away from home, they are eligible for “distant-student discounts.” Generally speaking, they offer a 15% to 30% break. But be sure to look into any age limitations. For instance, only people who are 22 years of age or younger are eligible for the discount.
While a student is away at school, accepting the distant-student discount is usually preferable to completely removing them from the policy. One benefit of continuing coverage is that it will enable him or her to drive on weekends and vacations.
4. If the student drives an older vehicle, think about lowering coverage:
The youngest driver in the family frequently operates the oldest car. Should the vehicle being driven to college be old enough, certain extra insurance policies might no longer be financially justified. Removing it will result in significant premium savings.
The coverage categories in question are comprehensive and collision. Collision and comprehensive insurance are sometimes purchased together, but they can also be purchased individually. Collision pays for damage the driver does to their car, while comprehensive insurance covers theft and repairs for accidents caused by theft or bad luck, such as hail damage and shattered windshields.
Do male college students pay more than females?
Although female college students pay a lot for car insurance, male college students tend to pay more. This is because teenage male drivers are viewed as more risky to insure due to their probability of having more accidents than female drivers.
Average car insurance cost for college students based on gender:
| Gender | Female | Male |
| 18-year-old | $5,684 | $6,467 |
| 19-year-old | $5,156 | $5,857 |
| 20-year-old | $4,937 | $5,568 |
| 21-year-old | $4,345 | $4,751 |
| 22-year-old | $4,189 | $4,537 |
The difference between what men and women spend on car insurance is smaller as college students get older. For instance, the average rate for a male student who is eighteen years old is 14% more than that of a female student of the same age. The gender gap narrows to just 8% when comparing pupils who are 22 years old.
Cheapest car insurance for 18-year-old college students?
Finding a car insurance provider with good financial strength ratings, trustworthy customer service, and the possibility to customize your coverage is essential when searching for a policy, whether you’re seeking one for yourself or your family.
The lowest car insurance for 18-year-old drivers is displayed in the table. However, bear in mind that these are average rates and that each driver’s specific premium will differ depending on several rating variables, including the make and model of the vehicle, driving history, and claims history.
| Insurance company | Average annual cost to add 18-year-old to a parent’s policy |
| USAA | $1,153 |
| Erie | $1,469 |
| Geico | $1,539 |
| Auto-Owners | $1,820 |
| State Farm | $1,822 |
| American Family | $1,881 |
| Travelers | $1,900 |
| Nationwide | $1,937 |
| Progressive | $2,097 |
| Overall average | $2,103 |
How to find the best car insurance for 18-year-old college students?
Students can apply many of the same techniques that they would use to find the greatest bargain on other insurance products in their quest for the cheapest auto insurance.
Take into account the following advice to locate the best deal on young driver insurance and reduce their auto insurance premiums:
1. Explore options:
Shop around to locate the most cost-effective policy that suits your needs. Take the time to obtain auto insurance quotes from several providers.
2. Policies that combine insurance:
A lot of insurance providers give savings when you combine your auto insurance with your renters’ or homeowners’ insurance.
3. Finish a defensive driving course:
Completing a defensive driving course can help you become a better driver and show insurance companies that you are a responsible person. The student may be eligible for a reduction in their auto insurance rates as a result of this driver’s education.
4. Consider your alternatives for deductibles:
A greater deductible can result in a cheaper insurance cost. However, in the event of an accident, you will have to pay more out of pocket. As such, carefully assess your ability to pay the deductible in the event of a claim.
5. Keep a clean driving record:
Adhering to safe driving practices is essential for both your health and your ability to get cheap insurance. To prevent an increase in your premiums, stay out of accidents and driving infractions.
6. Driving habits:
When calculating premiums, insurance companies take into account factors including annual mileage and driving history. Inform your insurance provider that your student won’t be driving frequently to see if they will reduce your premium.
What are car insurance discounts for college students?
Many insurance companies give discounts to college students, so if you or your parents want to save money on your vehicle insurance rate now that you’re in college, here is your chance.
1. Student discounts for residents:
You might be able to give your parents or guardians a little extra cash if you leave the automobile you usually drive, which is titled in their name while you reside on campus, at their house. Since you’re away at school and won’t be using the family car as often, your parents might be eligible for the “resident student” discount if your college is at least 100 miles from home.
2. Discount for good grades:
Benefits from a good grade on your auto insurance coverage continue after you graduate from high school. Up until the age of 25, unmarried full-time students can receive a good student discount from most insurance carriers. If you maintain good grades in college, find out from your insurer if you might receive a discount on your auto insurance premium.
3. Discount for several policies
Bundling renters’ insurance and auto insurance may result in a reduction for college students renting apartments and possessing individual policies. Many insurance companies give their clients who have several policies with them discounts.
Frequently Asked Questions:
1. How much is the insurance for an 18-year-old student in NYC?
An 18-year-old driver in New York must spend, on average, $313 per month or $3,758 annually for inexpensive car insurance.
2. What is the best insurance for first-time car owners?
The top insurers for new drivers are Liberty Mutual, State Farm, USAA, Geico, and Erie Insurance. New drivers may have to spend up to $3,000 a year on car insurance, depending on their location, type of vehicle, age, and other circumstances.
3. What type of insurance can students take?
If you are the primary provider for your family, having life or term insurance for students can provide you the assurance that they will be financially stable in your absence and won’t have to worry about covering monthly costs.
4. Should a college student own a car?
Initially, there may be an allure to purchase an inexpensive car to free up funds for other purchases. But you must avoid purchasing a vehicle that is prone to malfunctioning and is unreliable. You would find it difficult to move around and go about your everyday business, such as going to work or college, as a result.
Conclusion:
Choosing auto insurance when you’re eighteen can be challenging, and the price might vary greatly depending on whether you’re taking out a policy on your own or continuing to be covered by your parent’s insurance.
Premiums are on the higher side for 18-year-olds starting their own insurance business; the average full coverage policy currently costs $6,488 yearly, while the minimum coverage is $1,952.
Teenage drivers pay higher rates for auto insurance because they have less driving experience and are more likely to be involved in collisions. In comparison to drivers in their 30s or 40s, even an 18-year-old with a spotless driving record will probably pay significantly more for auto insurance.
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