A good student discount is an excellent way to keep your car insurance costs low. Many insurance companies offer this discount to students who maintain a good grade point average and avoid committing traffic violations. As a student, you will likely not be driving a vehicle on your own, but you can still drive your parents’ vehicle to get around. Your auto insurance policy premium will be lower because the insurance company assumes that you will be a responsible driver.
Young drivers are more expensive to insure because they are inexperienced and more likely to cause an accident. Because of their lack of experience, young drivers are considered high-risk drivers, and their premiums tend to be higher. If you’re a student, you can get a good student discount for your auto insurance premiums. This can reduce your cost by up to 25 percent or 7% on average, depending on your age. Getting a good grade is also perceived as good driving training, and the insurer will therefore lower your rates.
Insurers don’t drive their customers to determine their driving skills. They rely on mathematical equations to assess the risk. These calculations are not perfect, so they have to take the risk on a new driver. They also take into account the length of time the student has had car insurance and whether or not the customer has ever filed a claim. Despite these flaws in these calculations, insurers recognize that students are a higher risk than experienced drivers. For these reasons, they offer discounts to students with a good record.
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