The average cost of a college student’s policy can give you a good idea of what to expect, but it’s not always a great indication of what you’ll end up paying. There are many variables that impact your rates, and each insurance company weighs them differently.
Coverage types purchased
The type and amount of coverage you purchase plays a major role in your car insurance costs. Every state (except New Hampshire and Virginia) requires drivers to carry some level of liability of auto insurance.
Depending on where you live, you may also need to purchase additional types of coverage, including uninsured motorist insurance, medical payments coverage or personal injury protection.
If you lease or finance your vehicle, you’ll also likely be required to buy collision and comprehensive coverage. Even if you aren’t required to carry these types of coverage, adding them to your policy can help you cover the cost of repairs caused by a collision or non-collision event, like a storm, fire, flood or theft.
Drivers in major metropolitan areas that have higher instances of theft, car accidents and vandalism typically pay more for coverage when compared to drivers in suburban areas.
Other factors, like the cost of medical care, repair costs and even weather trends can also lead to locationally-based differences in coverage costs.
Younger drivers pay more for coverage because they’ve spent less time on the road and are a higher risk for accidents and insurance claims. But as your college students gets older, look for rates to start to decrease around age 25, assuming they have a good driving record.
Based on data from the National Highway Traffic and Safety Administration, male drivers are more likely than females to have riskier driving habits, like speeding, not wearing a seat belt or driving under the influence. Because insurers base prices on risk, male drivers might pay more for car insurance.
Several states, including California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania, forbid insurers from using gender to determine a driver’s car insurance rates.