Student insurance – what do I need?

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Insurance can be expensive for young people, so what can you do to make it more affordable without reducing the level of cover?

Heading off to university is one of the most exciting times of your life, but it’s pretty daunting too. It’s probably the first time you’ve had to take care of yourself and perhaps the first time you’ll be buying your own insurance for your car and possessions.

Whether you’re the one paying for your insurance or not, it won’t come as too much of a shock that insurance prices for young people are quite high.

According to Confused.com’s price index, car insurance prices have gone up by 16% year on year and it’s the same story for home insurance costs which are also on the up. Research from Consumer Intelligence shows home insurance policies increased by 1.8% with the average premium costing £124.

Younger people will see the brunt of the price increases. The Guardian reports people under the age of 25 could see car insurance increase by more than £1,000. We’ve all heard the reasons many times before. Statistically, younger drivers are more likely to have an accident and so their premiums are likely to be higher.

There has never been a better time to get smart with the way you buy and the good news is Admiral offers plenty of opportunities to do just that.

Student car insurance

Although young people do face higher insurance prices, our analysis shows they are willing to make sacrifices to stay on the road. A few simple tips can make sure it’s not as big a sacrifice as you fear.

1. Choose your car wisely

You can reduce your premiums by your choice of car. Models such as the Nissan Qashqai and Seat MII are tremendously good value; they have smaller engines and great safety ratings, which make them more attractive from an insurers’ point of view. Our guide to the 10 cheapest cars for drivers under 25 to insure will give you an idea of the best cars to choose. You should also avoid modifying your car as this can also increase premiums.

2. Pay for your insurance annually

With annual premiums reaching more than £1,000, the obvious choice is to pay in monthly instalments. However, this can sometimes work out more expensive. If you have the money, try paying upfront – it will be cheaper in the long run as monthly payments are often higher due to the APR.

3. How much cover do I need?

Comprehensive policies offer the greatest level of protection in the event of you needing to make a claim. In contrast, a third party policy will only cover the cost of repairing damage to the other car involved in an accident, but not your own.

While there is a preconception that comprehensive cover is the most expensive, this isn’t always the case. Statistically, safer drivers tend to opt for this type of cover so opting for such a policy can reduce your premiums. When taking out car insurance, it makes sense to run a comparison of all levels of cover based on your personal circumstances.

4. Increase your excess

This is the amount you agree to pay towards the cost of a claim. A higher excess can reduce your premiums, but you could be left out of pocket if you do have to make a claim so weigh up which is most cost effective for you. See our handy guide for more information on how the voluntary excess can affect your outgoings.

5. Try black box insurance

Admiral’s Black Box insurance, LittleBox, is a great way to reduce your premiums. It monitors your driving style and rewards the most careful drivers with a discounted premium at renewal. Often the fact you have a black box in place may make you subconsciously drive more safely reducing the risk of having an accident and making a claim.

Black box insurance, or Telematics insurance, is aimed at new and young drivers who want to be rewarded for their good driving habits.

Student home and contents insurance

When you become a student it’s likely to be your first time away from home, which means it could be the first time you think about which is the best contents insurance for students.

You may well be bringing all sorts of valuable possessions with you when you leave home to study, such as a laptop, smartphone, camera, tablet or TV. But many people don’t get these insured assuming they are covered by their parents’ home insurance policies. Though Admiral Platinum Insurance does cover this, that won’t necessarily be the case.

That can be a mistake because if you’re in shared accommodation, your items may be more vulnerable than usual and homes without security measures are five times more likely to be burgled than those with simple security measures, according to police data.

A standard contents insurance policy will cover things like your clothes, books and musical instruments, while you can extend cover for more high-risk items such as your gadgets.

With Admiral Tenants Insurance, we’ll cover your contents, or your belongings, while you are living in a shared home or flat, or a communal space (such as university halls).

Think about your contents and what you want to insure. Your parents may well be able to extend their home insurance policy to cover your belongings while they are at university.

If you pay upfront it can save money, as with the car insurance. Again, this only really works if you can afford it in the first place.

Combine your insurance policies

If you’re heading off to university with both your car and belongings, you might save money by adding both to one policy. Here at Admiral, we’ve recently launched MultiCover Insurance, which allows you to cover both your belongings and your car in one policy.

As well as giving you a guaranteed MultiCover discount, it will save you time as you won’t need to arrange separate policies and have separate renewal dates to remember.

When you leave for university, the chances are you’ll have enough on your plate so any time you save will be very useful indeed. See our guide on MultiCover insurance for more information.

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