Car insurance can be costly on a student budget, but there are easy ways to save. Read our guide and learn how to save money on car insurance as a student
The cost of car insurance for students is typically 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 earn any no claims discounts.
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.
Thankfully there are many ways to save on student car insurance, including choosing the right car, tailoring your details, and of course comparing quotes.
The type of car you drive can have a significant effect on the cost of your insurance, as some cars are more costly to repair and some are considered to be higher risk. If you want to save money on your car insurance while you’re a student you should consider cars with smaller engines and better safety and security features. Insurance for GTi/sport models and modified cars tends to be most expensive as owners of these vehicles make the most claims.
Learn more in our guide on the cheapest cars to insure.
You can reduce your insurance costs by making a few simple changes to your policy. Most insurance policies come with a compulsory excess if you need to claim, but you can reduce your annual premium by offering to pay a voluntary excess on top of this. Just make sure you can afford the excess if you need to make a claim, and think about whether a high excess makes sense for you — for example if your car is worth £500 you wouldn’t want to pay a £500 excess to get it repaired after an accident.
You should also consider adding an older/more experienced driver (such as a friend or relative) to your policy if they are likely to use the car occasionally. Remember you should not put another driver as the main driver on your policy if they aren’t going to be the most regular user of the car — this is called fronting and is illegal.
It’s likely you will be driving fairly few miles as a student. You might live close enough to walk to lectures, or perhaps you’re planning to leave your car at home when you move away to study. Take some time to work out the amount of miles you are likely to drive – you might be surprised at how lower mileage can result in lower premiums (in the insurer’s eyes you are less of a risk).
Telematics insurance is great for student drivers, as it rewards careful driving and the costs can be lower for those with low mileage. Read our guide to telematics insurance for student drivers to find out more.
If you’re a young or new driver you could benefit from taking an advanced driving course such as Pass Plus. Many insurers consider those with a Pass Plus certificate to be at a lower risk of having an accident as they have demonstrated proficiency in more advanced driving, such as driving at night or on the motorway. The exact cost depends on where you live and how long your training takes (it takes about six hours to complete, but can take longer if you struggle to reach the required standard in each module), but the average cost is around £150.
Some insurers offer Pass Plus drivers discounts on their insurance of up to 35% (but note that this varies quite significantly based on the insurance provider as well as your circumstances). As well as potentially reducing your premiums, advanced driving courses are also a great way to get more practical experience on the road and learn how to become a safer driver in the long run.
Using the tips above you should be able to get your premium reduced while still being covered in the event of an accident, but the best way to save on car insurance is to compare quotes from different providers. Create a quote below to see how much you could save.