Monday, March 21, 2011

College students, car insurance, and states that have high rates.

Many prospective college students are now considering where to go to school in the Fall. While cars are not really needed in college, many students want them. In addition, many students will be driving cross-country to their new college homes, thus having a car while in college. A student that has a car has an extra expense. This expense can break your budget. You may want to consider your college choices if you do have a car and money is tight. Some states charge more on average than others. Here are some facts from insure.com.

Where you drive can have a huge effect on the price you pay for car insurance.

Michigan is the most expensive car insurance state. On average, drivers pay $2,541 a year. Michigan has problems that contribute to this high rate, including a high percentage of drivers not having insurance. Michigan also has a law that gives no limit to personal injury payments. That means insurance companies can pay out large sums of money. If you factor in winter weather, a college student in Michigan may be very well off by not using or having a car. Michigan has some fine colleges. If you are from out of state, think twice about having a car.

Louisiana comes in second highest at $2,541. Louisiana jury verdicts have given out large awards. This, like Michigan, raises the amounts insurance companies pay. They also have a high percentage of drivers with no insurance.

Oklahoma third with Oklahoma, $2,197. Again, a high rate of uninsured drivers and bad weather contribute to the cost.

A college student probably can expect to pay anywhere from $1,000 to $2,000 a year for car insurance. California is a tad less than $2,000, while Vermont is the only state less than $1,000 at $995.

You probably would not factor in car insurance costs when making a decision about the college you wish to go to. But, after choosing, you need to think hard about not having a car. Most freshmen will be busy getting used to college life and studying. A car is not needed.

>>Tips for cheaper car insurance for college students.

>>Free college money help.

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