Be sure to make student savvy savings this academic year

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.

The average student debt now stands at a whopping £23,000 on average, 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 premium.

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 policy. 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."