Statistics have shown that most auto accidents that occur around California is linked to young adults due to distraction, drinking and driving and other unforseen circumstances. As a young adult or college student it is wise you place your vehicle under a legit insurance scheme to avoid losses that might occur in the future.
Searching for Car insurance for college students in California can be challenging, to reduce the stress we’ve compiled a list of the best student auto insurance carriers considering some important factors such as pricing, discounts and more.
So if you are interested to know the best car insurance for college students in California and other important details that would help you save money while insuring your vehicle stick to this article.
Why Is Car Insurance Important For College Students
Car insurance also called vehicle insurance, motor insurance or auto insurance is a type of insurance that provides financial protection against physical damage of our vehicles, which may arise as a result of traffic collisions or any other form of accidents.
This type of insurance also carters for instances like car theft, vehicle damages from weather or natural catastrophes.
Car insurance is important for college students because raising money as a student to purchase a new vehicle might be difficult but with the help of an insurance company you can get a new vehicle should any damage occur to your old vehicle.
What Does Car Insurance Cover?
A car insurance policy might include a variety of coverage options, some of which are required in most jurisdictions and others that are optional. The following are the most typical coverages:
1. Bodily injury liability coverage:
If you’re at fault in an accident that causes an injury to another driver or their passengers, this coverage will assist pay for any associated costs up to your policy limits.
2. Liability coverage for property damage includes:
This insurance covers any damage to another driver’s vehicle or other property, such as a neighbor’s fence.
3. Collision coverage:
In the event of an accident, collision insurance can protect your vehicle.
4. Coverage that is comprehensive:
Comprehensive coverage, often known as “other than collision,” protects your car from damage caused by things like flooding, falling trees, and fires. If your automobile is stolen, it is also covered. It’s optional, much like collision coverage.
5. Personal injury protection (PIP)/medical payments (MedPay):
MedPay or PIP, which is required in some jurisdictions, pays for medical bills and related expenses if you or a passenger in your car is injured in an accident.
6. Coverage for uninsured or underinsured motorists:
This insurance can cover the difference if you’re ever in an accident with someone who doesn’t have automobile insurance or whose insurance isn’t enough to cover the damage they’ve caused. In some states, it is required.
If you’re leasing a car or have an outstanding auto loan, gap insurance is a separate type of policy that you should investigate. Gap insurance will cover the difference between what your auto insurance company pays you and what you still owe on your lease or loan if your automobile is declared a total loss after an accident.
Many insurers also provide additional specific types of plans, such as antique or classic car insurance and ride-share insurance for persons who drive for firms like Uber or Lyft, in addition to the foregoing coverages.
If you use your car for business, you might require commercial auto insurance coverage instead of a personal one.
Also Read: How To Get Cheaper Car Insurance As A College Student
What Does Car Insurance Not Cover?
Wear and tear, persons who regularly use your car but aren’t mentioned on your policy, and driving on a ridesharing platform aren’t covered by a standard car insurance policy. However, you may sometimes supplement your car insurance coverage by purchasing a supplemental policy or warranty.
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Here’s a list of a few things not covered by your car insurance:
1. Damages caused by natural calamities
While your car insurance may cover collisions and accidents, natural calamities like earthquakes, floods, etc are not placed or compensated. Ideally, insurance companies place natural disaster like floods, earthquakes under the “Act of God” clause which fall under permanent exclusions in car insurance.
2. Your personal belongings
In a case where your car is damaged and vandalized, your insurer pays for the damages caused to your car alone. What this entails is that if any of your personal belongings like your laptop or other valuables in inside the car, your insurance company won’t pay for the damage caused.
3. In case of theft, make sure you file a police complaint
If your car gets stolen, you need to file a police report to seek adequate compensation. In a case where your car is stolen as a result of your carelessness, your claim is likely to be rejected on the grounds of carelessness.
4. If you use your car for business purposes
If your insurance policy covers individual use and not business use, your insurer won’t grant your claim in a situation where you encounter an accident while using your car for business purposes.
5. No coverage hen you are using someone else’s car
If you are driving someone else’s car or the car is rented and you encounter an accident, the claim for the damages will be rejected outrightly. The insurer will only cater for claims that have been made for the car registered under the insured’s name.
Do students Get A Discount On Car Insurance?
When it comes to car insurance, you don’t get any special savings if you’re a student.
However, just like any other driver, there are a number of things you can do to assist keep costs down.
Taking out telematics or black box insurance is one of them. Also, be cautious about the type of vehicle you drive. Insuring smaller, less powerful cars, for example, is typically less expensive.
Is Car Insurance Expensive For Students?
Because most students are between the ages of 17 and 25, they are designated as ‘young drivers.’
Statistics suggest that young drivers are more likely to be involved in accidents and file insurance claims. As a result, they’re regarded as a higher risk, and the cost of auto insurance coverage reflects this.
Even mature students’ rates may rise as a result of being classified as a student risk, regardless of age or driving experience.
For many students, prices are also high because they are frequently inexperienced, new drivers who haven’t had time to accumulate several years of no-claims discount.
The location of your home might also affect the cost of your insurance. Universities are frequently located in densely populated areas, some of which have higher crime rates. Due to these hazards, cars parked overnight on the street in these types of neighborhoods will cost more to insure.
Best Car Insurance For College Students California
1. AAA Insurance
AAA is one of the best car insurance for college students California, it offers the lowest prices and a range of discounts, including good-student, student-away-at-school, and new-young-driver discounts.
You must be an AAA member to be covered by this insurance company. The cost of membership for this program in California is $38-$90 per year.
Average Annual Premium: $792
GEICO has one of the best insurance programs in United states, it has diverse coverage options, and college students are eligible for discounts.
There website is very easy to navigate and you can choose a plan that best suits your pocket.
It is also among the best car insurance companies for college students in California.
Average Annual Premium: $973
3. Travelers Insurance
Travelers is one of the most affordable insurance options for college students in California.
They offer discounts for good students, students away from school, and driver training. Customers can also select for Travelers’ optional “Responsible Driver” plan to avoid having their rates raised as a result of an at-fault collision or minor moving offense.
Average Annual Premium: $879
4. The Hartford
Hartford is a popular insurance company that is best known for its AARP auto insurance program, but they also offer affordable coverage to college students.
Young adults or college students in California can take advantage of there offers.
Average Annual Premium: $1,293
5. USAA Insurance
This insurance is only for members of the military and there families, so if you are eligible you can take advantage of this low cost option.
USAA also offers a number of discounts to college students, they also combine auto insurance with renters insurance and other types of coverage.
Average Annual Premium: $879
Esurance is also another decent option for college students, they offer low cost insurance programs also provide discounts for good students, on-time payments and associatons.
Progressive is another top-notch insurance program, they rank high in assessments of low-cost vehicle insurance, and its rates for college students are no exception. A variety of discounts are available to college students, including young drivers, distant students, and good student discounts. Additionally, the organization provides a Name Your Price feature, which can assist college students in locating a cost-effective policy. It is one of the best car insurance for college students in California.
Average Annual Premium: $1,004
7. State Farm
State farm insurance also has the best car insurance for college students in California, State Farm offers competitive prices as well as a choice of optional add-ons such as ridesharing insurance, travel expenditure coverage, and rental reimbursement. Good student, student-away-from-school, and driver training discounts are also available to college students. State Farm among the nation’s largest insurer.
Average Annual Premium: $1,251
Allstate also has great insurance programs for college students, they offer affordable prices and also have the option of pay-per-mile insurance, which is the best insurance option for college student who use there vehicles only on few occasions.
College students who maintain outstanding grades or complete the TeenSMART driving education program may be eligible for a “smart student” discount.
Average Annual Premium: $1,268
9. Liberty Mutual
Liberty Mutual also have affordable rates for college students, as well as reductions for good students and students away from school. Various add-on options, such as rental car reimbursement and roadside assistance, are available to college students. The company’s website and claim systems are also basic and easy to use.
Average Annual Premium: $1,228
Investing in car insurance is a great opportunity for students to curtail future damages. It is good to select the best car insurance for students in California when venturing into an insurance program.
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