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Cheap Car Insurance: The Good Student Discount
Unless you’ve been living under a rock it’s probably safe to say you’ve seen the advertisements explaining how much money you can save by taking advantage of car insurance discounts. One of the more intriguing discounts is the one offered for students with good grades. Here’s how it works:
Let’s just say you have a high school or college student being covered under your policy. If that student consistently maintains good grades you might be eligible for a good student discount on your car insurance. Even if you’re already getting cheap car insurance, your price could go lower if your students do well in school. Curious as to why? Keep reading for the complete explanation.
It’s All in the Numbers
Despite what you might believe about insurance rates, they are not set arbitrarily by business executives in custom tailored suits. They are determined using a complicated mathematical formula which takes into account dozens of different criteria. Many of the criteria used are gleaned from national statistics regarding drivers, accidents, and violations. In fact, it is the use of statistical analysis which has made it possible for insurance companies to come up with accurate rates for each individual driver.
When it comes to auto insurance quotes it’s not uncommon to find discounts for student drivers with good grades because of the favorable statistics involved. In other words, statistics show that high school and college students, as a group, have fewer accidents and violations than their peers who are no longer in school. Taking that one step further, those with good grades have even fewer accidents and violations. Though the statistics don’t say why, there are some common sense theories that may offer a reasonable explanation.
It’s assumed by insurance company actuaries that students with good grades are more responsible in most areas of their lives. This would include driving. The assumption being that a student who applies himself diligently in school is the same type of person who will be careful on the road; careful to pay attention, careful to be safe, and so on. While this isn’t always the case 100% of the time, the statistics don’t lie. Students with good grades do better behind the wheel.
A Win-Win for Both
By offering a discount for students with good grades, both insurance company and policyholder come out winners. The insurance company is able to offer the cheapest car insurance possible to parents knowing that their children are statistically less likely to have an accident. That encourages safe driving among students and reduces the risk for the insurance company. For the parent’s part, they get lower annual premiums while still keeping their students covered.
If you’re a parent with students at home you should definitely ask your car insurance company about discounts for good grades. If they don’t offer such discounts you are free to compare car insurance quotes from their competitors. As long as your student is doing well, why not take advantage of it?
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Telematics Insurance Leads The Way For Young Drivers
Vehicle insurance organisations across the globe have been making use of a new and upcoming technological innovation that is controlled by using a tiny black coloured box. These companies see a potential future with this system and realise the need to participate in this developing and innovative niche market. Telematics insurance policies are set to sweep the world and will mean that insurance for young individuals becomes more readily available than at present.
This kind of insurance cover works by GPS and means that satellites can see the actual actions, velocity and motoring style of a driver by getting data originating from a tiny black unit that is set up inside a car. It’s a really sensitive technology, which means that both sensible as well as erratic driving can easily be picked up and processed by the unit. When a motorist can show that they drive with both care and attention, the feedback distributed by the small dark unit can communicate to the insurance company to charge a reduced premium which is related with this kind driving performance. Having said that, in case the motorist drives dangerously, breaks hard or alternatively corners aggressively then they may expect an increased premium at the point of renewal.
So, what does this suggest for different driver types? The innovation happens to be a considerable step forward in the quest for more keenly priced premiums for young drivers. Those people who are able to provide evidence they are driving carefully are able to receive credit for this by way of paying out much less per year for their vehicle insurance. This is surely a good thing as it promotes less hazardous motoring and produces a fairer system of insuring based only on motoring capabilities. Telematics technology is not going to come cheap however. One particular sticking point going ahead is going to be deciding upon with whom the expenses associated with setting up the small device should lay.
Should it be the individual, the insurer or maybe the manufacturer that will pay for the device to be mounted inside the motor vehicle? This is unquestionably a matter which is holding up faster improvements with this solution and at this moment in time there happens to be a mixed bag of opinion on this issue. One factor is for sure however, young individuals are screaming out to obtain this style of pay-as-you-drive package as these drivers try to get on the road at a young age in an effort to start building up their no claims bonus.
Telematics insurance plans are specifically what parents the world over have been looking to find to enable them to get their kids on the road at a reasonable cost. Its level of popularity keeps growing by the month, with year-on-year insurance policy volumes growing five-fold in the past two years. Surely it is really just question of time until this unique format of insurance protection gains legitimate prominence within the market.
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