Gephardt Busts Inflation: What you need to know about car insurance for college students

SALT LAKE CITY — Goodbye to sleeping in, summer tans, and over-worn flip flops. Heading off to college means changes to routines. That could also mean students and/or their parents may be missing out on ways to save on car insurance.

“Anytime your driving habits change, you should discuss that with your agent,” said insurance agent Aaron Henderson of the Thomas Insurance Agency.

Back to school often means driving less. If the plan is to leave the car at mom and dad’s house to save on the cost and frustration of on-campus parking, you also qualify for what’s commonly called a distant college student discount.

“It’s just a discount knowing that they’re not driving nearly as much and they don’t have a car with them,” Henderson explained.

Or maybe you keep your car but you’re not driving as much: consider switching to a pay-as-you-go plan. By only paying a few cents per mile, it can mean big savings.

And studying hard does more than keep your parents off your back or help you land a good job. Getting good grades can help college students save on their insurance premiums. And a good GPA can save you more than might think.

“Anywhere between $100 and $400 per policy term,” said Henderson. “So, that’s some real money.”

Some students can fall into a bit of a trip when they question why they should insure their car if it’s just going to be parked all year. Some might let their policies lapse. Insurance companies see that as a big red flag and, in the future, when you sign up again, you will often be financially penalized for that gap in coverage.