College Car Insurance Basics: Tips for Saving Money and Staying Safe at School

As families start planning for college move-in day, many are considering whether to take a car to school. Some students enjoy having the freedom a car brings, allowing them to commute quickly and safely to class, activities and jobs.

If you plan to have your car on campus, it's wise to compare auto insurance rates before you move, especially since rates have decreased significantly since last fall. Whether you are buying a new policy for the first time, or looking to save your parents money, comparison shopping online is easy and can save hundreds of dollars.

"Teen and young adult drivers are the highest risk group for violations and accidents, so their rates will be expensive," said Sam Belden, VP at Insurance.com. "Insurance.com found that drivers ages 18-22 were paying an average rate of $150 a month for their own insurance. On average, young men pay about 10 percent more for auto insurance."

Taking your car to school? Consider these tips:

Purchase a parking permit

Check your school's policy on parking and buy a permit if necessary. The cost of the permit is well worth avoiding the hassle and expense of picking up your car at the impound lot. If you get a ticket, be sure to pay it on time - before it gets mailed home to Mom and Dad!

Choose a car that's less expensive to insure

If you are on your own for the first time, and in sticker shock from the cost of insurance, consider a used car that may not need comprehensive and collision coverage. Or pick a less expensive car to insure. A fuel-efficient Hyundai Sonata costs $1,770 to insure, while quotes for a new Scion averaged $2,850.

Drive safely

Concentrate on driving when you are on the road. Even one accident or ticket can increase your rates on auto insurance coverage by hundreds of dollars. And, don't lend your car to your roommate, because it's your insurance that pays!

Earn a Good Student discount

Students with a B grade average or higher usually qualify for an auto insurance discount of up to 15 percent. Look for low mileage discounts, too, if you drive less than 10,000 miles per year.

Manage credit cards carefully

Late payments will hurt your credit history and lead to higher auto insurance rates in states that permit insurers to consider it when setting rates.