Cheap car insurance for students is not always easy to come by. However, a bit of foresight can help students avail car insurance at a reasonable premium.Students, who are interested in availing cheap car insurance, should focus on the factors that have a direct bearing on the premium charged by the insurance companies. While some of these parameters may seem unfair to students, these have been arrived at by actuaries after due thought and consideration. The key factors, that influence car insurance premium rates, are as follows:
Age of the Insured
Driving Record
Credit Rating and Credit History
Anti-theft Devices Installed in the Car
Multiple Automobiles
Occupation or Education of the Consumer
Lump-sum Premium or Installments
Place of Residence
Multiple Policies with the Same Insurer
Although, the list is not comprehensive, it appears that students are at a definite disadvantage when it come to availing cheap car insurance, for students seem to lack the pre-requisites for availing cheap insurance.

Cheap Car Insurance for Students
Auto insurance for college students is generally expensive. This is due to the following reasons:

Age of the Insured
The insurance premium and the age of the insured are inversely related. Generally, people less than 25 years of age are charged high insurance premiums because the insurance company views such applicants as a risky proposition. This is because the insured is typically unmarried and may not hold a position of great responsibility. Statistically it has been proved that, in time people become more responsible and are less likely to get into accidents. In fact, consumers in the age group of 50 - 65 have the safest driving record.

Credit Rating and Credit History
Students may not have an established credit history or a good credit rating. Most students, who are out of school, rarely give a thought to building their credit history or improving their credit rating. Actuaries have documented a negative correlation between credit rating and insurance claims. Hence, auto insurance companies tend to charge high insurance premiums for students with poor or no credit.

Other Factors
Besides the aforementioned factors, most students may find it hard to avail cheap insurance since they may not have expensive anti-theft devices installed in their car. Moreover, they may own just one automobile thus, negating the chance of having multiple insurance policies with the same insurer. Again, for 'economy' reasons, students may reside in the cheaper parts of the city, thus raising questions about the safety of the insured vehicle.

How to Avail Cheap Car Insurance for College Students?

Driving Record
Every student should focus on maintaining a good driving record and should avoid accidents and driving violations. In other words, students should try making up for the lack of driving experience by focusing on current performance.

Maintain Good Grades
Students, who desire cheap car insurance, should try and maintain good grades since they are a reflection of the willingness of the college graduates to assume responsibility for their life. Willingness to assume responsibility translates to low risk which in turn lowers the insurance premium.

Insurance Status
It has been observed that paying the premium in installments will result in a higher annual premium. This is because insurance companies levy up to 21% surcharge for allowing students the benefit of paying in installments. Hence, as far as possible students should pay the premium in one go.

Building Credit Scores
Every student should try and build his/her credit scores or credit history since good credit scores are indispensable for procuring insurance at a cheap rate of interest. Students can build their credit scores and credit history by getting approved for a secured credit card. A secured credit card automatically gets converted to an unsecured credit card within 18 months, assuming that the student pays the credit card balance regularly. In time, cheap (student) auto insurance will become feasible.