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Anyone that is going to be driving on the roads in Canada is going to need vehicle insurance. This applies to university students no matter whether they live at home or on campus. There are a lot of extra costs and expenses that university students get faced with. Having the extra cost of vehicle insurance can be difficult. For them to financially cope with.

Does Being a University Student Affect My Car Insurance Rates?

University Student

Whose rates the vehicle insurance for the University student is going to affect depends. It depends on the specific circumstances. Many university students are still living at home. Every province has its own rules when it comes to insurance. In Ontario drivers living in the same household are automatically considered to be occasional drivers. Meaning that the university student would be an occasional driver. Under the parent’s insurance. Insurance companies make assumptions.

If the student is living in the parent’s household, they will drive the family vehicle on occasion. In this case, the University student is going to affect the insurance rates of the parents. The insurance company is going to factor in the risks. The ones the University students present to them. To do this, they’re going to want to know many details. If the student is only using the vehicle on occasion, then this will get taken into consideration.

Quite often students may be using the vehicle to drive to school. If this is the case, then this is going to have an impact on the insurance rates. It is because the vehicle is being used more often. In most cases, it may mean that that the University student is going to need their vehicle insurance.

Car Insurance for University Students


Some university students need to get their insurance. They need to approach this proactively. It gets accepted that insurance is usually higher for young drivers. The insurance company is going to use a set of metrics. To determine how much they are going to charge for insurance for University students. Some of these metrics will be like what they use for any insurance shopper. Then there will be extra ones that apply to the young student.

Some of the common metrics that will get used will be the gender of the driver. Another common metric will revolve around the type of car that they are going to be using. As it applies to their insurance. Insurance companies do place some emphasis on the vehicles that are being driven. They want to know what risks these vehicles are going to pose for them. There is another factor that gets taken into account. It is that the university students don’t usually have a lot of driving experience. This is another reason why insurance rates are higher for younger people. In most cases, the university students fit into the young people category.

Reducing the Cost of Insurance for University Students

One of the easiest ways is to be able to keep them on the parent’s insurance. Even if there is an increase in the premiums, it won’t be as much. Compared to if the student has to get their insurance. There are risks for the parents in this situation. Some University students get classed as an occasional driver. A few may not maintain a good driving history. Or they end up having to make a claim this could affect the parent’s premiums.

Students need to look for what potential discounts are being offered. Those for University students. If they are shopping for their insurance.

Potential Discounts for University Students

Choice of Vehicle

There is no doubt that university students live a busy lifestyle. It is important that they take time out to insurance shop. There are many insurance companies throughout Canada. Ones that will cater to some discounts for the University student.

Under 25 Discount

Many university students are under the age of 25. Plus, they are full-time university students. There are some insurance companies that will offer a discount for those in this category. In some cases, they can save up to 10% on their car insurance premiums. 10% may not seem like a lot. But if this gets combined with other potential discounts, the savings add up. They can make a big difference.

Bundle Insurance

Some university students rent an apartment when they are away at school. They may have renters insurance. It can get combined with vehicle insurance. This way they can bundle their insurance and get some discounts on both types.

Choice of Vehicle

Another way to save is by choosing the right vehicle. Money is often tight for University students. They don’t mind going with a car that gets classed as more economical. There are many cars in this category that help to create lower insurance premiums. High end or sports types of cars are more to insure.

The Deductible

There is another option for saving some money. By increasing the deductible. This means that the insurance premiums will be a little lower.

These discounts combined with some of the other metrics insurance companies use a good way to create savings. Having a good driving record is also going to help.

Shopping for University Students Insurance

Another way to save money right from the very start is to shop for insurance. Some university students will go with the insurance company their parents are using. There is nothing wrong with this. The parents may have been using this company for many years. They are not aware that there may be better rates out there. The University student can confirm this by getting some online quotes.

This is a process that doesn’t take long to do and provides some valuable information. The information pertains to what various insurance companies are prepared to offer. To the University student based on their particular circumstances. From here the University student can compare the information. That which they get to help them make the right choice. That is going to allow them to find affordable insurance for University students.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.