Teens who pass their driving test may feel as if they have finally gained some freedom in life. However, soon they will realize how expensive this freedom can be. Due to high student car insurance rates, owning and driving a vehicle can be very expensive for young adults. Here are some simple yet effective ways to lower the cost of car insurance in Austin, TX for teens and students.
1. Reduce daily driving mileage.
Consider using free public transportation or a campus bus system to decrease the amount of mileage driven per day. Car insurance companies consider the amount of time that the student drives the car when quoting insurance rates. Reducing the annual mileage can also reduce car insurance cost. Cutting out these unnecessary trips may decrease mileage enough that the student is listed as an occasional driver.
2. Maintain a good credit score.
Before insurance companies quote car insurance rates, they will pull the student's credit score. A low score on a credit report can result in a higher monthly premium, so it is important to keep a good credit score. Unfortunately, most students have relatively low credit scores simply because they are not old enough to have adequately developed their credit history. Therefore, students must be focused on doing things to improve their credit scores like paying all credit card bills on time.
3. Trade cars.
Although driving an SUV or a stylish new hot rod may be cool, it can also significantly raise car insurance rates. New vehicles with lots of special features and luxuries are more expensive to insure than slightly older, more basic cars. Students should consider trading in high-liability cars to receive significantly lower car insurance premiums.
4. Get good grades.
Many car insurance companies offer discounts to students who prove to be responsible in the classroom. In most cases, this means that students must maintain at least a B average or be in the top 20% of their graduating class. Students must be prepared to prove their GPA or class rank to the insurance company by submitting documents such as official report cards or transcripts.
5. Get added to a family member's policy.
For some students, it is cheaper to be added to their parents' Texas car insurance policy than it is to get a separate policy of their own. However, it is always best to get several quotes and do some comparison shopping before making a final decision. Young drivers should obtain quotes from several car insurance companies and compare the cost of getting an individual student car insurance policy with the potentially lower cost of being added to a family member's policy.
The relatively high cost of most student car insurance premiums can be a burden on some students who are just starting out on their own. Students already have a lot of other bills to pay that consume most of their available income. However, students who use these tips and keep a clean driving record should be able to enjoy car insurance at a reasonable price.
For more information about student car insurance, please call our local Austin office at 512-454-7799 or visit us online www.texasprimeinsurance.com.