Question 1

Must students have car insurance at university?

Accepted Answer

It is a legal requirement for everyone who owns and drives a car to have at least third-party car insurance in place. This applies to students who have a car at university.

Third party insurance will cover you for injury or damage caused to others, but it won’t cover you for damage to your own vehicle.

If you don’t have a valid student car insurance policy:
You may be given a fixed penalty of £300 and six points on your licence
Your car could be clamped, seized or destroyed

If your case is referred to the courts, you may face an unlimited fine and be disqualified from driving.

Question 2

How does being a student affect car insurance?

Accepted Answer

The cost of car insurance for students is generally higher than average, as most student drivers are under the age of 25 and are considered to be more of a risk on the roads than older drivers.

Students are also are more likely to be new drivers, meaning they haven’t been able to build up a no claims discount.

Students are also likely to be driving with other students in the car with them so could be held responsible for injures to their friends if involved in an accident. Insurers have to pay out more to young people who suffer life-changing injuries, as the compensation must last their lifetime.

Even mature students may find their car insurance costs more than expected, as listing your occupation as ‘student’ puts you in a high-risk category.

You may also be subject to higher premiums based on your new address if you’re moving away to study. Some university accommodation is in high crime areas, so be prepared for this if you want to take your car with you.

Don’t be tempted to change your occupation or address on your application in an effort to save money — honesty is always the best policy, as providing false information is considered as fraud.

Question 3

Do I need to insure my car if I don’t use it?

Accepted Answer

If you are leaving your car at home while you’re at university, or you don’t plan to use it while you’re studying, you may still need to buy car insurance. The only way around this is if you declare your vehicle off the road with a Statutory Off Road Notification (SORN).

If you have a SORN, you won’t be able to drive your car at all and you will need to leave it parked in a garage or on a driveway or private property – it cannot be parked on a road.

Question 4

Can I get short-term car insurance as a student?

Accepted Answer

If you only drive your car from time to time, for example to drive home for the holidays, you might want to consider temporary car insurance for students.

This can work out cheaper than an annual policy and you can usually take out cover for between one and 28 days.

Question 5

Should I bring my car to university?

Accepted Answer

Even if you don’t drive much while at university, your car will come in useful for trips home or getting around during the holidays. One major benefit of keeping your car at university is that you’ll be eligible to earn a no claims bonus, even if you only drive your car for a few weeks of the year.

Question 6

Should you consider black box insurance?

Accepted Answer

A black box installed in your car or downloaded as an app on your smartphone will monitor how you drive. The safer you drive, the less you'll pay for car insurance.

Question 7

How can I pay cheaper car insurance?

Accepted Answer

Add a more experienced named driver: If you are not an experienced driver you can cut car insurance costs by adding a named driver who is older and more experienced to the policy. But don’t pretend they are the name driver if you are. That is called fronting and is a crime. Change the type of car you drive: Another factor is the type of car you drive, with the car’s speed, security features, and value all playing a big part – read our guide to the cheapest cars to insure to find out which cars attract the cheapest insurance premiums. Increase your voluntary excess: Opting for a bigger voluntary excess may result in a cheaper monthly premium. But make sure you can afford any voluntary excess if you need to claim. This excess is in addition to the compulsory excess set by your insurer. This is what you will have to pay if you ever have to claim. However, you can also insure your excess, so that if your claim exceeded your excess it too would be paid.  Pay upfront: Pay for your insurance in one go if you can. Spreading the cost of your car insurance over 12 payments, monthly, may seem cheaper but remember you will be paying interest on top of the amount you pay towards your car insurance premium.     Drive less: Limiting your miles makes you less of an insurance risk. Simply because you are reducing your risk of having an accident. When you take out your car insurance policy the insurer always asks for an estimate of your maximum annual mileage. You need to try and you’re your mileage low, although you need to be realistic as to how much you will drive.  Install extra security: Having an alarm or immobiliser is considered a theft deterrent and by deterring car thieves you can reduce your car insurance. Not all insurers will offer this, so check first. Do an advanced driving course: Some insurers will offer a discount for drivers who have completed an advanced driving course. There are several recognised providers such as the Institute of Advanced Motorists and the Royal Society for the Prevention of Accidents. Shop around: Shopping around, aim for a month before your car insurance renewal comes up could also save you money. It may be your current car insurance is the cheapest available but because pricing changes it’s always best to stay vigilant. Consider a multi car insurance policy: If your parents’ driveway is heaving with cars it may make more sense to try and include all those cars and yours on one policy. Some insurers allow you to take out a single multicar policy including for children at university. Check to see if you can reduce your insurance costs with a multi-car insurance policy. Don’t own a car: This might sound like a drastic alternative but if you don’t always need access to a car, maybe you can borrow a friend’s or family member’s car. Many insurers offer short term and temporary car insurance which, in some cases can be taken out for just a day. Compare quotes for short-term or temporary car insurance.