The Perfect Blueprint of Auto-insurance for College Students

Car Insurance for College Students

 

Auto insurance is a contract between the insurance company and the customer. Auto insurance aims to protect against the financial losses that may occur due to accidents or thefts. Also, the customer has to pay a premium every month so that the insurance company can pay for the financial losses. 

Importance of Auto-Insurance Policy

The auto insurance policy covers the following losses for its customers:

  • Property losses - deal with the damage or theft of the customer's vehicle.
  • Liability losses involve the insurance company taking the legal responsibility to pay for others' vehicle damage or bodily injuries. In simpler terms, when the customer damages someone else's vehicle, the company is liable to pay for the losses. 
  • Medical - deals with the insurance company paying for treating injuries, operations, and sometimes the funeral expenses. 

It is vital for college students to sign-up for auto insurance because it provides financial protection to the students if they get into a car accident or damage someone else's car. Furthermore, auto insurance can also cover losses of some unexpected dangers like fire, hail damage, or vandalism. Moreover, students or anyone must have auto insurance in several states. Consequently, if they drive without auto-insurance, they may face license suspensions or hefty fines. Therefore, they should sign up for an auto insurance policy to avoid massive financial losses. 

Types of Auto-Insurance Policies for Highschool Students

There are several types of auto insurance policies. Here we'll discuss six types of Auto insurance policies. 

1. Bodily Injury Liability

This type of policy covers the injuries that the policyholder and the family members listed cause to others. Moreover, this policy also covers these individuals when they drive other people's cars with their permission.

2. Medical Payments/ Personal Injury Protection (PIP)

This policy deals with the cost of treating injuries to the policyholder or the family members listed. PIP also covers the lost wages due to the accident and the cost of replacement for driving the car. It also covers funeral costs in some cases. 

3. Property Damage Liability

Property Damage Liability deals with the payment of damage that policyholders may cause to other's vehicles. Moreover, it also includes damage to state properties like lamp posts, telephone poles, buildings, or fences. 

4. Collision 

Collision policy covers the payment for the damage to the policyholder car, which occurs due to a collision between two vehicles. This type of coverage comes with a deductible amount, which ranges with the premium. 

5. Comprehensive Coverage Policy

This particular type of auto insurance covers the cost of the damage to the car, which may have resulted from factors other than collision. The elements may include natural disasters like fire, hail, falling objects, earthquakes, flood, vandalism, and even animal damage. Likewise, this type of policy also comes with a deductible. 

6. Uninsured Motorist Coverage

This particular type will reimburse the policyholders if an uninsured driver hits them. Furthermore, this type of policy helps when the at-fault driver is short of paying insurance for the losses.

Best Auto Insurance Companies for High School Students

There are several companies that offer attractive insurance rates for high school students. Some of the companies' policies will be discussed below: 

  • Allstate is very affordable auto insurance for students. This company provides a discount on the insurances on factors like good grade, resident student, and multi-policy discount. Moreover, Allstate provides incentives by combining renter as well as car insurance for students. This will save a lot of money for students. 
  • Metromile is the next company on the list. It is perfect for college students who drive relatively less. Moving on, the customers have to pay per mile for the insurance. Therefore, this can help save a lot of costs, and it also offers less deductible payment. Metromile is an ideal solution for low mileage drivers like students. 
  • Geico is another auto-insurance company that provides attractive insurance discounts for students. A full-time student can qualify for a good student discount, good driver, and student organization discount. With Geico, students can save a couple of dollars on insurance. 
  • Farmer is another insurance company that offers several incentives. Students maintaining a good GPA can qualify for a good student discount after providing proof of documentation. 

Conclusively, it is safe to say that auto insurance is vital for students to provide financial security. Choosing the best company will help to avail discounts that can be beneficial for students because they already incur a high cost.