Keeping Cars Off Campus Can Save Students Money, Says IIAA
18 August 1999
Keeping Cars Off Campus Can Save Students Money, Says IIAA ALEXANDRIA, Va., Aug. 18 -- Attention college-age drivers and
parents: Do you want to save money on your auto insurance this school year?
Then consider leaving the car at home, suggest the Independent Insurance
Agents of America (IIAA) and College Parents of America (CPA).
Students who leave their cars at home when they head back to campus this
fall may save themselves or their parents hundreds of dollars on their auto
insurance bills and avoid the headaches and additional expenses associated
with accidents, speeding tickets and parking citations at the same time.
Nearly 70 percent of college students use their or their parents' cars at
school and about one in three has had an at-fault accident, speeding ticket or
other moving violation in the past two years, according to IIAA and CPA. High
rates of at-fault accidents and other traffic violations continue to be the
primary driving force pushing up the auto insurance rates of young drivers.
There are two types of auto insurance credits available for college
students who leave their cars at home.
Lay up credit. This credit, which can be applied to any car that is not
being used, is not unique to students, but can be applied to them. With a lay
up credit, the student would pay only 10 percent of the regular liability
premium -- so a 6-month premium of $500 would go down to $50.
Children away at school credit. This credit applies only to students who
are on their parents' policy and who go to school more than 150 miles from
home. Basically, students would be charged the same lower premiums they would
pay if they were married -- a savings of about 25 percent.
"Some companies will even allow policyholders to take both credits, saving
them even more money," points out Parsons, Kansas-based independent agent
Keith Maloney of Maloney Insurance & R.E., Inc. Maloney recently saved one
couple over $400 by applying both credits while their son attended college in
Boston.
If you must take your car to school, never fear. There are other ways to
save money on your auto insurance. Most students know that maintaining a good
driving record will help keep their insurance costs down, but many don't
realize that making the dean's list might, too. A number of companies offer
auto insurance discounts for students with good grades.
As we all know, auto insurance for younger drivers can be costly, but
there are ways they can lower their premiums. For more tips on saving money on
auto insurance, as well as information about other insurance college students
may need, visit IIAA's Web site, located at http://www.independentagent.com.
Consumers can also contact College Parents of America at
http://www.collegeparents.org, or by calling toll-free 888-256-4627.
To order a copy of IIAA's free auto insurance publications, "The
Consumer's Independent Guide to Auto Insurance," "Filing Your Auto Insurance
Claim" and "After an Accident," call toll-free 1-800-261-IIAA.
