Reader’s Question:

Will insurers give lower rates on good student car insurance?

Tracy

New York, NY

According to the most recent data provided by the National Association of Insurance Commissioners (NAIC), New York comes fourth among states that have the highest car insurance expenditures. Residents had to spend $1,083 to have their cars be legally registered in 2006. This soaring cost in insurance can be attributed to the fact that New York’s car insurance requirements are quite high because of its observance of the no-fault policy. Furthermore, New York City, being greatly urbanized, has a big population, which translates to more cars on the public roads, which in turn translates to a higher possibility of road accidents. Car insurance providers in this state, and particularly those catering to NYC, compensate by increasing the rates.

Students or anyone under twenty-five years of age are customarily assessed with higher car insurance rates. There is a prevalent perception among car insurance providers that drivers belonging in this set are typically inexperienced behind the wheel as compared to more mature or middle-aged drivers. Being inexperienced means being more prone to road accidents and therefore higher in potential to make future claims. One way young drivers can beat this is by availing of good student car insurance. This isn’t a new type of car insurance. It is simply regular car insurance that has been assessed with lower rates because the policy owner qualified for a discount for being a good student. The usual basis for such a qualification is the policy owner’s grade point average.