by Alexis Whaley

Created on: June 09, 2009

College is an exciting time for new things, a lot of hard work, and fun. It's also a time to try out a bit of independence. But nowadays it is also quite expensive in addition to being during a time in life when it is hard to find jobs that pay much. Hence, the term starving student.

Buying car insurance is baffling to everyone the first time. Here are some tips to help you figure out what to consider when shopping:

Stay on your parents' insurance policy as long as you can. The rates will be lower because of your parents' driving records and history with the company. If you are buying your own car, and the car will be registered in your name, you do have to buy your own policy. But if the car is the same car you drove in high school, or owned by your parents, keep it on their policy. If you want to pay for it, negotiate a monthly amount with them that you can contribute. Their insurance agent can give them an idea of what your car currently costs them to insure.

Get good grades. A good GPA can lower your rates. You will need to provide documentation to the insurance company, so study hard!

Maintain a good credit score. A higher credit score affects not only the interest rates you receive on loans and credit cards, but can also affect other accounts and policies. Pay your bills on time and live within your income.

Drive less. If your mileage is below the average, currently 12,000-15,000 per year, you can get lower insurance rates. Moving closer to college to lessen your commute is a good idea if possible; you can save money on insurance, gas, and car maintenance, and it has the added benefit of more time to spend studying.

Buy an older car. Older cars have less value, so are usually insured for lower amounts, resulting in lower payments. However, make sure it has good safety equipment such as the standard air bags and seat belts. If you buy a really old car that doesn't have that, rates will increase. Any kind of additional security on the car, such as a car alarm or computer keys, will also lower insurance rates.

Consider a higher deductible. The deductible is the amount you will pay out of pocket in the case of an accident, before the insurance coverage kicks in. A higher deductible means lower insurance payments. However, if you have a car loan, the lender may require you to have a lower deductible. Check that out before you take out the policy.

Drive safely. If you don't have at-fault accidents, speeding tickets, or moving violations, you will qualify

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