There’s no denying that being a student = having very little money, so having a car at university is probably one of your biggest expenses.
However, for lots of people it’s a necessity, so here are some top tips on how you can save as much as possible on student car insurance.
Looking for insurance can be difficult, but it’s illegal to drive without it so you don’t have the choice to go without. However, there are lots of ways to help keep costs to a minimum.
- When looking for a quote, make sure you answer everything truthfully and correctly – this will avoid any extra costs in the future should you need to make a claimeel
- Feel free to shop around and get lots of quotes on comparison sites such as Confused, Go Compare and Compare the Market, but make sure you also get a quote through our website as you could get a better deal directly
- Try a Telematics or black box insurance policy like Admiral LittleBox – perfect for students, who drive well and are looking to save some money
What is telematics or black box?
Black box, or Telematics, is car insurance which comes with a small box fitted out of sight in your car. The box looks at driving style and measures things like braking and speed. It allows young drivers to show insurers they’re safe drivers and get a better renewal price.
Black box insurance explained
Black box insurance is aimed at new and young drivers who want to be rewarded for their good driving habits.
People in these categories are considered ‘high-risk’ for insurers and will often get a very high quote. However, with black box policies, safe drivers can be rewarded with discounts on their premium.
You’ll have a small unit fitted out-of-sight in your car which records your driving and you’ll receive regular emails with feedback and advice on how to improve.
Some black boxes also come with great extras. Admiral’s LittleBox, for example, comes with free breakdown and theft tracking. You can also use the technology to prove you weren’t at fault in an accident - if you were hit while stationery, you could prove it with a black box.
How could black box insurance save me money?
Most black box policies monitor how well you drive – they look at things like good braking habits and keeping to speed limits. The higher the score you get each month the bigger the discount you’ll get.
Figures from the Association of British Insurers (ABI) show drivers aged between 17 and 24 are three times more likely than other road users to be responsible for “catastrophic claims”.
So by monitoring how you drive with black box technology, safe drivers can be rewarded by having premiums which better reflect their driving habits.
Price comparison site Confused recently released a Car Insurance Price Index for July – September 2015 which shows most motorists are facing annual price rise of 8.1%. But, 17-year-olds are not seeing such a big hike.
A spokesman said: “While average premiums are rising strongly for most motorists, interestingly, prices for drivers aged 17 are going against the trend and have increased marginally by just 0.3% annually. This could potentially be a result of the use of black box technology, as many insurance firms focus their use of black boxes on the younger age groups.”
Want to know more about black box insurance? Check out our mythbuster where we reveal the truth around some of the most common black box insurance myths.
How else can I get cheaper insurance?
There’s no denying students are often in the expensive insurance bracket, but no matter how old you are, there are certain ways to help bring down your car insurance quote.
Here are a few things to try:
- Opt for annual payment if you can afford to do so, that way you’ll avoid interest charges
- If you’ll be using your parents’ car, see how much it would cost to add you onto their policy as a named driver
- Voluntary excess is important – the higher the excess the lower the premium, but make sure you put a figure you can afford in case you ever need to make a claim
- Use a mileage calculator to work out your estimated annual mileage as this can affect your premium
- Check if fitting security features such as alarms or immobilisers will reduce your premium
Overall, the safer a driver you are, the better your price will often be as you’ll be viewed as a lower risk. You may also return a better price if you drive a reliable, mid-range car.
Don't forget to check out our guide on the top 10 cheapest cars for under 25s to insure