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.

The costs for a young driver’s insurance can be as much as two thousand dollars a year, even more if they have points already against them.

So these students have been driving completely uninsured. This puts them, as well as anyone in the vehicle with them or in any of the vehicles around them, at great financial and physical risk.

Comparison sites for vehicle insurance are normally free and ones that are not connected to any particular insurance company can help save their clients a large percentage on insurance.

Many young drivers believe that all of their possessions in their vehicle at the time of an accident are insured under the vehicle policy. This is not true, personal possessions are not a part of the vehicle, so therefore, they are not covered.

New cars are not always more expensive to insure, it depends on the make and model of the vehicle, the safety features and the anti-theft features. It pays to do research before purchasing a vehicle.

Vehicle owners must also be aware that the cheapest insurance is not always the best. Make sure you understand the features of each insurance quote before accepting one over all others.

High risk drivers include teenagers, because they lack the experience that is really needed to be as safe as possible in every driving situation. Another high risk group, in the eyes of some insurance companies, is the elderly. A lot of companies think that the reflexes and eyesight of this group aren’t as good, so they brand them as high risk.

For people who fall between these age groups, there are specific things that make a person high risk. One of these is divorce, and divorced people’s rates are higher. Other issues that can raise rates are certain medical conditions like epilepsy, past tickets and accidents, and alcohol or substance abuse. If you have a poor driving record from the past, insurance companies are going to assume that you’ll continue that behavior in the future, and that makes you high risk. Past suspension or revocation of license is a problem for most insurance companies, as well. That doesn’t mean you can’t get insurance, but you can generally expect to have a harder time finding it and you can also expect to pay more for it.

First, enroll your teen in an accredited driver’s education program. Completing a driver’s ed program automatically qualifies most teen drivers for a slightly reduced insurance rate over those who simply go straight to the DMV for testing, regardless how well they may do on that testing. Second, encourage your teen to maintain a good grade point average in school, as most insurance companies also consider grades when assessing the risk of that teen behind the wheel of a car. Teens maintaining a GPA over 3.0 tend to receive discounted rates with most insurance companies. Last, assess your teen’s driving abilities yourself and set guidelines for their driving while they are developing their skill as a driver and gaining experience behind the wheel. Sometimes parents are the first to know when a particular driving situation, such as bad weather or long-distance driving, may be beyond their teen’s abilities.

Start with a good driver’s education class, build your teen’s driving skill on a solid foundation, and save money in the process.

What are some things you can do to keep the cost of your policy down? First, reinforce safety among your teenage drivers. The worst thing you want is to have them get in an accident and have your rates increase again. Also, keep the car in your name and try assigning your teen driver to just one vehicle. If your child is a good student, than it is possible you can get a discount for this.

You may also want to look into separate policies for teenagers. Whatever you do, make sure to shop around and find the best policy. It is important that you get the coverage you need at the best price.