There are a loads of financial products designed especially for students and car insurance is no exception. So what should you look for from a policy and how can you find value for money?

Which type of insurance is right for students?

Students planning to take a car on campus may find that premiums on an insurance policy sky rocket. This is because "student digs" are typically located in high crime areas meaning there is increased risk of car theft or vandalism. Vehicles often have to be parked on the street too due to a lack of secure parking.

What's more is that young drivers are prone to higher premiums due to their lack of experience on the road and the questionable driving record of their peers.

As such students may prefer third party, fire and theft coverage over a comprehensive policy. Though a comprehensive policy will offer more cover, premiums may be unaffordable so it's worth considering a more basic policy if you can't find a cheap quote. This is particularly advisable for students with cars that have low retail values as they may end up paying more in premiums over a year than the car is actually worth.

Where can students find a cheap deal?

As with any motorist, students should shop around for car insurance using a comparison website. These websites can compare more than 100 insurance deals with one search helping students find the most affordable quote.

To save more money, students should take the Pass Plus course immediately after passing a driving test as this can earn a 35 per cent discount on premiums with some insurers. Look out for rapid bonus schemes too allowing you to earn a full year's no-claims discount in an abbreviated period. There are usually additional discounts available for shopping online, agreeing to a mileage limit and boosting the vehicle's security.

Is there anything else to remember?

Students moving to campus during term time should inform their insurer of a change of address or they may risk invalidating their policies. Pretending the car is still at home with Mum and Dad might save a few pounds in the short-term but it would backfire if a claim was necessary.

Be careful not to ask parents to front a policy either. Though adding parents to a car insurance policy as named drivers can bring premiums down, 'fronting' is illegal and will invalidate a policy. If you're looking for cheap car insurance make shopping around your first step.

Article by: Alex Gregory

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