What’s the one thing that students dread more than either the alarm clock or their latest results? It’s the car insurance renewal. It may sound clichéd but students aren’t renowned for their financial planning ability and even though you know the day will come when that quote is going to land on your doormat, and be thrust into your inbox, it always seems to come as a nasty surprise. But don’t be dismayed as there are deals to be had. Insurers recognise the financial plight of students and, despite the young age of most undergraduates, if you know where to look, some of the best car insurance rates on the market are made available to students.
Of course there are insurers who would prefer not to insure students and so artificially inflate their prices as soon as you tick that box marked ‘Education’ but there are others who are only too pleased to welcome your business.
Let’s get a few things out of the way first. The main factor affecting your premium cost is your age and, unfortunately, being young is an unavoidable route to high insurance prices. Secondly, you’re unlikely to have held a licence for long nor will you have built up much, if any, No Claim’s Bonus. Again, these facts will lead to higher prices. However, as a student as opposed to someone of a similar age who is in employment, you have various advantages you can play to.
UKMM tip #1 – Mileage
The main advantage should be your mileage. Unless you decide to live a significant distance from your university, it’s unlikely you’ll be racking up the miles every day. The chances are that many days will be spent without using the car at all. There are insurance companies, such as Sureterm and GJT Hodgson, who specialise in low mileage policies which could save you a bundle.
UKMM tip #2 – add an older person
It also makes sense to include an older person, such as a parent, as a named driver, even if they won’t be using the car. Insurers will take into account that you may not always be driving the vehicle and will lower the premium accordingly.
UKMM tip #3 – low value insurance
As a poor student, it’s fair to say that you won’t be driving around in a Ferrari and if the car you own is of low value, you should look around for insurers such as Tesco Value Car Insurance who are devoted to low value vehicles.
UKMM tip #4 – student discount!
As well as looking for insurers who match your particular circumstances, you should check out insurers who are actively advertising for students. Endsleigh Insurance are one such company who offer discounts of up to 23%, depending on which University you attend, and include nice little extras such as free replacement vehicles. In fact, in our search for insurance for a typical student, Endsleigh provided the two cheapest quotes by almost £100. They were followed by Hy-performance, Elephant, Admiral and Diamond as the favoured providers.
UKMM tip #5 – home for the summer? Save a bit more.
The tricks don’t stop once you’ve taken out your policy. If you are home for the summer, or even for a month over Christmas or Easter, take a few minutes to inform your insurers as more often than not you will receive a partial refund on your premium, as your family home is likely to be in a more desirable area than your student digs.