For some college students, having car is a necessary expense. You may live off campus, you may have a job on the other side of town, or your city lacks a solid public transportation system. Whatever the reason, if you have a car you need to keep your expenses manageable.

A big expense with owning a car is having the proper insurance for it. The average annual car insurance premium for Americans ages 18-25 is $1566. It can be much higher if you live in a major metropolitan city.

How You Can Lower Your Bill

If possible, see if you can lower your premiums without sacrificing coverage.

  • Stay on your parents’ plan – As a college student you can receive some wonderful benefits. One of them is taking advantage of your parents lower premiums. Simply pay them the additional premiums for keeping you on.
  • Increase your deductible – If you have your own plan, see if you can increase your deductible. The higher it is, the lower your premiums are. However, if you have no emergency fund to cover the deductible, then wait.
  • Be a fantastic driver – Avoiding speeding tickets can save you big time. You may already have higher premiums than your family even if you’re a better driver due to your age.
  • Keep your grades up – Being on the deal list isn’t just good for scholarships, you can also a discount on your insurance premiums.

Shopping Around Can Save You Money

It might take some legwork, but looking at other companies can prove to be fruitful. My mother was able to get my brother’s portion of the premium lowered just by mentioning she was hunting for a better deal. Cutting 30% of her bill wasn’t bad for a 10 minute phone call.

As you’re shopping around, have a copy of your current policy. It is easy to forget what your policy exactly covers. I’d also go ahead and ask friends what they think of their own insurance. The cheapest policy might not be the best.

Thoughts on Car Insurance

Have you been able to cut down on your car insurance premiums? Which companies do you recommend?