Student Auto Insurance

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Purchasing student auto insurance is one of the things most dreaded by Americans under the age of 25. Depending on their car, profile, and location, a typical American student will spend anywhere from $4,000 to $14,000 a year on car insurance. And those who buy sports cars should be aware that they are going to be charged some of the highest student car insurance premiums around, regardless of whether they happen to be a good driver or not.

The insurance industry charges American males under the age of 25 (some states set the age at 21) the steepest premiums simply because they have been registering the highest accident rates in the country since as far back as anyone can remember.

Student Car Insurance – NOT a Necessary Evil

Some young drivers opt to go without the whopping cost of auto insurance for students by simply not purchasing any. These drivers fail to consider that, despite its hefty price tag, purchasing student auto insurance can save them from a world of trouble.

If you get behind the wheel without student car insurance and get into an accident, the following things will most likely happen:

• Your license will be suspended
• You could spend time in jail
• You could be ruined financially
• You could put your future in jeopardy

Experts say that one road mishap as an uninsured driver could ruin your credit rating for 10 years!

Ways You Can Lower Your Student Auto Insurance Premium

Many insurance companies are generally willing to lower car insurance for students based on the following factors.

• If you are below age 25, are enrolled fulltime, and are able to maintain a 3.0 GPA, you may be eligible for a discount on your student car insurance.
• If you are a resident of a state that has an accreditation program, which you pass, you can apply for reduction on your student auto insurance. Visit the National Safety Council website (www.nsc.org) to know which states are certified and where you can apply.
• If you drive a car that has an alarm or recovery system, and other antitheft devices, or automatic seat belts, airbags, and other safety features, ask for a discount on your student car insurance premium.

Another way you can save on the bank-breaking cost of student auto insurance is to inquire if the company that provides your parents' car and homeowners insurance (especially if it is the same company) is willing to give you a discount if you purchase your policy from them.

You can also save on hefty premiums by increasing your deductibles. Since you will only pay deductibles (your out-of-pocket expense) when you get into an accident and file a claim, your savings on the premium could, quite easily, cover the cost.

Companies that Offer Discounts

Following are just a few of the insurance companies that offer student auto insurance discounts.

• Allstate Insurance:www.allstate.com
• American Family Insurance:www.amfam.com
• State Farm Insurance:www.statefarm.com