You can get a Shelter good student discount if you have at least a B average. Student drivers can save as long as they are unmarried, 25 years old or younger, and a full time high school or college student. Students can also qualify by being ranked in the top 20% of their class or being included in the Dean's List, Honor Roll, or another school list designating scholastic achievement. To earn the discount, you must have an active driver's license and show proof of eligibility by age 19, though you can continue to get the discount until age 25.
Young drivers are usually quite expensive to insure since they lack driving experience. However, Shelter offers a good student discount because having good grades shows the insurer that you are responsible off the road, meaning you’re more likely to be responsible in the driver’s seat as well.
Shelter good student discounts vary by state, but it’s always worth the effort of checking if they are available in your location.
Yes, Shelter offers gap insurance as an optional policy add-on. Shelter gap insurance pays the difference between a totaled car’s actual cash value and the policyholder’s loan or lease balance, up to any limits specified by your policy, though it’s worth noting that Shelter's gap coverage does not pay the policyholder’s deductible.… read full answer
The cost of Shelter gap insurance depends on factors like your state and your vehicle’s value. Regardless, purchasing gap insurance from an insurance company is usually a better investment than purchasing this coverage from a dealership, where the cost is often rolled into your loan and charged interest. Plus, you can cancel Shelter gap insurance once your car is worth more than your loan or lease balance.
For more information, check out WalletHub’s complete guide to gap insurance.
It’s likely that your car insurance is so high because your driving record is poor, your car is costly to insure, you live in a high-risk location, you’re carrying too much coverage, or you’re not taking full advantage of discounts. The average car insurance premium has also increased by more than 50% in the past 10 years.… read full answer
8 Reasons Why Your Car Insurance Is So Expensive
1. You Have a Poor Driving Record
Your driving record is probably the most important factor in determining your car insurance rates. If your record is poor, with accidents and driving violations, and you have a history of claims, your rates will be high. You will also pay more than average if you’re bad with credit, young (especially young and male), or unmarried.
2. Your Vehicle Is Expensive to Insure
Insurance companies like safe, boring cars that nobody wants to steal for joy-riding or parts. If you choose to drive something large, fast, luxurious, statistically unsafe on the road, or popular with thieves, you will pay more.
3. You Live in a High-Risk Location
Where you live has a large impact on your premiums. Some areas of the country have much higher insurance costs than others. A number of factors go into this, such as the history of accidents in the area, population density, the number of uninsured drivers, crime statistics, bad weather patterns, etc. Also, if you live far from work and have a long daily commute, the high annual mileage could raise your rate.
4. You Have High Coverage Amounts
If your coverage limits are high and your deductibles are low, you will be happy if you need to make a claim, but not as happy when you’re paying your premiums. If the insurance company risks having to pay out more in the future, you will have to pay more now.
5. You Are Not Taking Advantage of Discounts
Insurers offer a very wide variety of discounts. Valued customer discounts offer savings for things like loyalty, multiple cars and policies, and paying online. Driver discounts may apply if you are a good driver, good student, belong to a certain profession or organization, are married, or more. Your car may also qualify for a discount if it has equipment that makes it safer to drive or harder to steal. Discounts are available to nearly everyone, and you may qualify for some that you aren’t getting credit for yet.
6. You Are Too Young or Too Old
Teens are statistically more likely to cause car accidents than the average driver, so insurance companies charge them the highest premiums. Drivers who get their license at 16 years old usually see their premiums decrease with every year of experience, however, and age 25 is generally considered a turning point when premiums become considerably lower.
Experienced drivers in their 40s and 50s are often the cheapest to insure. But rates begin to rise again after age 65.
7. You Have a Low Insurance Score
Every major insurance company uses a credit-based insurance score to calculate premiums where allowed by law. Like credit scores, insurance scores are based on credit report information, only they are used to predict a driver’s likelihood of filing a claim. The rationale is that individuals who are careful with their money tend to be careful drivers, too.
However, insurance scores are controversial, so they are banned in Massachusetts, Hawaii, and California. Most other states also have restrictions on their use, which can be found on the state insurance regulator’s website.
8. Costs Increasing Overall
Record-setting natural disasters, more phone-related car accidents, high rates of insurance fraud, and expensive-to-repair car technology have all increased costs for insurance companies. As a result, insurers have been raising their prices to cover their expenses.
From 2010 to 2019, the average cost of car insurance increased by more than 50%. Prices have gone up every year. This steady rise in insurance costs has outstripped other consumer costs. Even skyrocketing hospital costs lag slightly behind car insurance.
Overall Cost Increases from 2010 to 2019
Car Insurance: 52.2%
Hospital Services: 49.1%
Cost of Living: 17.2%
Physician’s Fees: 15.7%
You can’t reverse this industry-wide inflation. But if you want to lower your own insurance costs, address as many of your personal factors as you can. Then get quotes from multiple insurance companies and compare.
College students can get car insurance discounts for having good grades or for going to college far away from the car they drive. College students can also qualify for general car insurance discounts, such as driver's education and good driver discounts. Since most college students are young drivers, car insurance companies consider them … read full answerhigh-risk and usually charge them higher premiums, making discounts all the more important.
To qualify for a good student discount, drivers usually need to be under 25 years old and unmarried, with a B average or better. Additionally, distant student discounts are designed for students who do not have a car with them at college and who attend school more than 100 miles away from home. You can see which major car insurance companies have these student discounts below.
Car Insurance Discounts for College Students by Company
Most college students can save money on car insurance by staying on a family policy. However, if your permanent residence is different from your parents’ and you drive full-time, you will likely need your own policy. It also might be cheaper to buy your own policy if you go to school in an area with lower car insurance rates or if one of your family members has a poor driving record that increases premium costs.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.