Be sure to make savvy student savings this academic year

Published:

01/09/2009

Topic:

Press Release,Insurance,Car,Home

As the dust settles on this summer's batch of A-Levels results, those students lucky enough to obtain university places this year will no doubt have concerns over financing their studies and lifestyle. moneysupermarket.com urges parents and students to be savvy with their money when considering contents and motor insurance options. 

• Taking your car to university could cost you an extra £1,690¹
• Adding students to parents home contents policies could save up to £63 a year²
  

The average student debt now stands at a whopping £23,000 on average³, and in the current tricky financial climate it has never been more essential to shop around for the best insurance deals. Taking a car to university may seem like an attractive option, but research from the UK's leading price comparison site reveals there are cost implications involved. For example, moving a vehicle from a 'safer' suburban home with a driveway to 'lively' student-based accommodation, with on-street parking, could result in an increase of £1,690 a year to your motor premium¹.  

Steve Sweeney, head of motor insurance at moneysupermarket.com, said: "Such a significant increase in price means it is vital to consider whether a car really is needed while away at university. Students who do decide to follow this route must ensure they have contacted their provider to amend the policy details to reflect their change in living situation. It is crucial to all motorists but students getting behind the wheel should shop around for the best motor 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, moneysupermarket.com offers a word of warning; fronting is illegal and is classified as fraud by insurers. According to recent research, one in five drivers (19 per cent) have, or are considering, insuring their child's car in their name and then adding the child as a second named driver even if they will be the main driver of that vehicle.

Steve Sweeney continued: "Students considering this route are playing a very risky game. 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. It could prove to be a false economy."

Protecting valuables
When it comes to contents insurance, students looking to protect the contents of their room while living in halls of residence could set themselves back £63 a year by taking out a stand alone home contents policy². Instead, parents should consider adding student children onto their existing home insurance policy, which is often included free of charge, such as Aviva which covers you for up to £5,000².

Julie Owens, head of home insurance at moneysupermarket.com said: "There's no doubt the student lifestyle often runs on a tight budget, but as students are three times more likely to be a victim of theft than any other age group⁵, it is essential for them to have adequate insurance in place to protect their belongings. The cost of personal items such as laptops, academic books, and other electrical items can easily come into their thousands, so 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 worth noting standalone contents policies are often better tailored to suit students' needs - covering much more thoroughly for expensive items such as laptops and academic books."

-Ends-

Notes to Editors:

¹ Motor Insurance Premiums:
A student moving from Oxfordshire to halls of residence in Manchester, with their car, will face an increase of £1,689 on average (see tables below).

At Home - Top five providers
1 Years NCD (Not protected)
Male student, 19 years old, living in Oxfordshire (OX16)
Driving Vauxhall Corsa 1.2, 10,000 miles a year, car parked on Drive

All policies only relate to halls of residence, based on a 19 year old living in halls of residence
Sourced by: www.moneysupermarket.com 25.08.2009

Provider	Annual Premium	Excess
Hastings Essential.com	£1,091.88	£295
insure.co.uk	£1,226.84	£650
Likewise	£1,266.84	£650
Endsleigh	£1,340.92	£550
seventeen.40rty	£1,351.42	£550
Average	£1,255.58

Sourced by www.moneysupermarket.com 25.08.2009

Student Halls - Top five providers 
1 Years NCD (Not protected)
Student, 19 year old studying at Manchester University (M14)
Driving Vauxhall Corsa 1.2, 10,000 miles a year, car parked on street  

Provider	Annual Premium	Excess
Endsleigh	£2,723.42	£550
seventeen.40rty	£2,733.92	£550
Kwik-Fit Insurance	£3,011.22	£400
Performance Direct	£3,119.74	£600
Hastings Direct.com	£3,133.52	£350
Average	£2,944.36

Sourced by www.moneysupermarket.com 25.08.2009

External Student Accommodation - Top five providers
1 Years NCD (Not protected)
Student, 19 year old studying at Manchester University (M14)
Driving Vauxhall Corsa 1.2, 10,000 miles a year, car parked on street 

Provider	Annual Premium	Excess
Quinn direct	£1,604.12	£250
insureyourmotor	£2,700.00	£600
Endsleigh	£2,723.42	£550
seventeen.40rty	£2,733.92	£550
Kwik-Fit Insurance	£3,011.22	£400
Average	£2,554.54

Sourced by www.moneysupermarket.com 25.08.2009

² Stand alone contents insurance:

Provider	Premium	Covers
Cover4Students	£31.50	Possessions and desktop computer are covered at the term time address; College property on loan up to £250; Library books on loan up to £250; Replacement locks & keys up to £50; Laptop and portable equipment (room only) up to £2,000; Death of parent/guardian £5,000.
Barclays	£59.27	Cover for contents temporarily removed from term-time residence; Contents in transit to or from college / university - £1,000 limit for theft from unattended vehicles; Accidental damage to TV, audio and computer equipment up to £250; Replacement locks cover - up to £150; Cover for college property on loan / library books; Personal money - Up to £100; Cover for fraudulent use of credit/debit cards - up to £500; Personal injury - £1,500; Permanent disablement - up to £50,000; Accidental death of fee paying pa rent or guardian - £5,000.
JS Insurance	£63	Theft of Valuable and Personal Possessions; Damage or Loss of Personal Possessions to Escape of water, Storm or flood; Landlords Contents up to £1,000; Lock replacement up to £50; Legal Liability to £500,000

Cover based on 19 year old (born 01.01.1990)
Residing in halls of residence at Manchester University (M13)
Pure £4,000 cover, no extra options such as property or personal computers selected
Sourced by www.moneysupermarket.com 25.08.2009

Student Possessions Cover (included in parents home insurance policy):

Insurance Provider	Covered Under Parents Contents Cover	Cost	Amount Of Cover
Aviva	Yes	Included in contents cover	up to £5,000
Churchill	Yes	Included in contents cover	up to £4,000
Direct Line	Yes	Included in contents cover	Up to 10% of Sum Insured
esure	Yes	Included in contents cover	up to £5,000
M&S Premier	Yes	Included in contents cover	Unlimited

All policies only relate to halls of residence, based on a 19 year old living in halls of residence
Sourced by: www.moneysupermarket.com 25.08.2009

³ According to the 2009 Push Student Debt Survey, students starting university this year should
  expect to owe nearly £23,200 by the time they finish their studies:
  http://push.co.uk/Push-releases-  figures-for-2009-student-debt-survey/

⁴ Research undertaken by Opinium Research based on an online poll of 2,009 British adults between 21st April and 24th April 2009. Results have been weighted to nationally representative criteria. www.opiniumresearch.com

⁵ http://www.homeoffice.gov.uk/crime-victims/how-you-can-prevent-crime/student-safety/

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