Auto insurance for students is often more expensive. In the UK, its premiums could cost over £1,000 on average, which can still go higher depending on the car type and university. Conversely, regular drivers only pay around £470.
There are two reasons for costlier student car insurance. First, students are typically inexperienced drivers, so their insurance risks are higher. Second, their university accommodations might be prone to burglary, increasing their insurance risks even more.
The good news is that there are several ways to lower the cost of student auto insurance. Check them out here.
Buy a car in low insurance group
Every car belongs to a particular insurance group. Thatcham Research categorizes them on the basis of extensive research, usually depending on the damage, replacement parts, repair costs, repair time, new car price, performance, brakes, whiplash, numbers, and security.
If you want inexpensive car insurance, opt for cars with a lower insurance group, which tend to lower risk and are cheaper to replace or repair. Specifically, the most cost-effective are those in group 1, such as the latest models of Skoda CityGo, Chevrolet Spark, Volkswagen Up, or Seat Mii.
Opt for higher voluntary excess
An excess is the amount you need to pay in the event of a claim. There are two kinds of it: compulsory excess and voluntary excess. A compulsory excess is a non-negotiable amount your insurer sets. In contrast, a voluntary excess is the amount you choose and agree to pay for a car insurance claim on top of a compulsory excess.
The excess level is usually higher for new, inexperienced drivers and those who drive cars in high insurance groups. The idea is the higher the risk, the higher the excess. On a positive note, it can be cost-saving, especially if you’re an infrequent driver with lower risk.
Increasing your voluntary excess means a lower annual premium depending on the level and type of coverage. However, this also means you’ll have to pay more if you claim your insurance.
Hence, before deciding on an excess amount, consider the amount of money you can afford to pay in case of an emergency. Ensure that if you make a claim, you can afford to pay not only the compulsory excess but also the voluntary excess on your policy.
Tailor your policy to your needs
In addition to higher voluntary excess, opt for a low-mileage car insurance policy if you don’t drive often or far away. It’ll be more inexpensive since most insurance providers think you have your car safely stored and stay less on the road, which translates to a lower likelihood of making a claim.
If you’re a foreign student, only purchase coverage and add-ons you need during your stay in the UK since you’re only temporarily staying in the country. This particularly benefits a foreigner renting a car in the UK who can’t use their country’s insurance abroad.
For example, American students can’t use their coverage in the UK, even if they’re Medicare Part C/Medicare Advantage. To explain Medicare Advantage plans, they’re a bundle of hospital, medical, wellness, and prescription drug coverage. In short, they provide all of your Medicare, which is supposed to be great but can’t be used outside the US.
If you’re renting a car, common car insurance options for foreign students include short-term policies lasting up to 30 days. However, they usually have higher premiums than the locals, even if you have good driving records in your home country.
Alternatively, the car owner can add you to their car insurance policy as a named driver. Although they might have to pay extra for the changes they make in their policy, the amount you share for this is typically cheaper than temporary car insurance. Let’s talk more about this below.
Add a named driver
A named driver is someone you add to your existing auto insurance policy. It can be your partner, spouse, family member, friend, or a foreign driver. They must have the permission to drive your insured vehicle.
If the named driver is in an accident while driving your car, they’ll have the same level of coverage as you. However, in this case, your no-claims discount will be affected if you need to make a claim.
On a positive note, adding a named driver can lower your insurance premiums, especially if you’re a new and young driver. For example, if you add your parents as named drivers to your car insurance, the overall risk may be reduced since they’re experienced drivers.
Add car alarm systems
In the UK, many uni areas have higher crime rates, significantly increasing car insurance premiums. If you live in these areas and can’t move out, install security systems in your vehicle, such as immobilizers and alarms. This doesn’t reduce the likelihood of auto burglary but also can help to lower your car insurance premium.
Conclusion
There are more cost-saving options available in addition to the tips mentioned here. Hence, it’s always wise to run your research, seek guidance from a more experienced driver, or consult professional help to make informed decisions.
