Get top marks for student savings this year

Published:

23/08/2010

Topic:

Press Release,Money,Credit Cards,Current Accounts

As the dust settles on this summer's batch of A-Level results, those students lucky enough to obtain university places will no doubt have concerns over financing their studies and lifestyle.

• Moving your car to university could add £3,000 to your motor insurance
• Students could save valuable cash by being added to their parents home contents policy

moneysupermarket.com urges parents and students to be savvy with their money when considering motor and home contents insurance options. 

With the average graduate debt approaching £25,000,¹ it has never been more essential to shop around for the best insurance deals. Freshers used to having a car at home should think carefully about whether they want to take it with them to university. Research from Britain's number one comparison site found moving your car from a suburban home to city centre student accommodation could add over £3,000 to the average cost of motor insurance premiums. ²

Steve Sweeney, head of car insurance at moneysupermarket.com, said: "Such a significant increase in price means it's vital to consider whether a car really is needed while away at university. Those who do decide to take their cars with them should notify their insurer so they can amend their policy details to reflect their change in living situation. It's crucial students getting behind the wheel shop around for the best car insurance deals available on the market, in order to guarantee their money stretches as far as possible."

Beware of 'fronting'
Furthermore, for those students tempted to break the law by "fronting" on their parent's motor insurance to save cash - putting their parent down as the main driver when they are not - moneysupermarket.com offers a word of warning; fronting is illegal and is classified as fraud by insurers.

Steve Sweeney continued: "Fronting on your parents' policy may save you money on your premiums in the short term, but if an insurer finds out you are not the main driver and you happen to have an accident near the student halls of residence, your insurance and any potential pay out will be invalid."

Safety at home
Students are one of the most at-risk groups for theft, with those aged 16 to 24 three times more likely to be victims of burglary and other crime than the general population^.3 As such, contents insurance is essential, but rather than adding to the cost of university with an extra contents insurance policy, parents should check whether their existing home insurance policy will cover their children. moneysupermarket.com found some insurers, such as esure will extend the same level of cover provided on a parent's policy, for children away at university, free of charge. ⁴

Julie Owens, head of home insurance at moneysupermarket.com said: "Students shouldn't let a fear of theft or burglary get in the way of their university experience, but with one in three students becoming a victim of crime, it's vital they take out adequate insurance to protect their belongings. With many parents sending their children off to university with a car full of valuables, and personal items such as laptops, academic books, and other electrical items easily costing thousands of pounds, foregoing contents cover could be a risky option.

"Adding a student onto a parent's home contents policy is an obvious way of keeping the costs down, however parents should be aware any claims made will directly impact on their own claims history. It is also essential to make sure you read the small print as cover levels can vary between providers from those on the existing policy."

-Ends-

Notes to Editors:

¹ Push UK, Debt Survey 2010: http://www.push.co.uk/Debt-Survey-2010--Summary/

² Motor insurance premiums:

A student moving from Oxfordshire to Manchester, with their car, will face an increase of £3,157 on average (see tables below)

At home - top five providers
Male student, 19 years old, living in Oxfordshire (OX16) 1 year NCD. Driving Vauxhall Corsa 1.2, 10,000 miles a year, car parked on street

Student Halls - top five providers
Male student, 19 years old, living in Manchester (M13).
1 year NCD. Driving Vauxhall Corsa 1.2, 10,000 miles a year, car parked on street

External student accommodation - top five providers
Male student, 19 years old, living in Manchester (M14).
1 year NCD. Driving Vauxhall Corsa 1.2, 10,000 miles a year, car parked on street. 

³ British Crime Survey 2010 - http://rds.homeoffice.gov.uk/rds/pdfs10/hosb1210.pdf

⁴ Student possessions cover on parents contents cover

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