Buy Insurance By The Mile?

Car OdometerIn this economy, more and more students are going directly into college after having graduated from high school. This always means more expense for the family as far as college related costs and also transportation related costs.

In the area of transportation related costs, there are things students can do in order to help minimize the impact their insurance will have on the family finances.

  • High grade point averages can mean lower insurance rates as high grade point averages are indicative of a student that is more mature and has accepted the burden of responsibility.

There is another interesting way that insurance premiums can be reduced without minimizing the amount of coverage the student receives.

  • College freshmen can sign up for a completely different form of coverage. The rate for this coverage depends on how much the student drives each year.

This ‘by-the-mile’ type of insurance can provide struggling students with much lower premiums. This can amount up to 25% off the normal cost of premiums. This plan is suited for students that will drive 12,000 miles or less during the year.

Students can take advantage of this rate by only using their vehicles for transportation when other forms of transportation are inadequate.

Those forms of transportation can include the student’s own two feet, or a bicycle. In areas surrounding colleges, generally you will find plenty of sidewalks to walk on and plenty of bike lanes if the student chooses that mode of transportation. This is good for the finances, good for the health and good for the environment.

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