The Best Car Insurance for College Students in 2023
Having a car in college can be a major convenience, but selecting car insurance for college students is difficult given varied discounts, rates, and features. Read on to know the best car insurance for college students.
To simplify the process, we’ve put together a list of the best student car insurance companies across several criteria.
This includes price, available discounts, and more.
Read about which companies we consider to have the best auto insurance for college students.
Cheapest Car Insurance for College Students
Finding car insurance for college students can be difficult, given the high rates for inexperienced drivers and unique students.
Geico’s low rates and discounts make it the best and cheapest car insurance company for college students.
While quotes vary depending on where you live, Geico consistently offers college-aged drivers low auto insurance rates.
Geico also offers discounts to members of college-centered groups, like alumni associations, fraternities, and sororities.
So, if you’re a college student involved on campus, chances are you can receive good, discounted auto insurance rates.
2. State Farm
State Farm’s good-student discount offers up to 25% in annual auto insurance savings to eligible college students.
The eligibility requirements vary by state.
However, the driver must be a full-time student and have a grade point average of at least 3.0 (out of 4.0).
Fortunately, the discount lasts until drivers turn 25 years old, even if they graduate from college.
State Farm‘s student away-at-school discount is great for college students who live on a campus where a car isn’t necessary.
Metromile’s quoting system allows drivers to enter their current auto insurance premiums so they can compare and see if switching companies make sense.
Your monthly premium will consist of a base cost plus a per-mile fee, which means less driving equals lower insurance costs.
Metromile claims that if you drive fewer than 12,000 miles per year, which is the national average, you will save money with its insurance.
Allstate Mobile allows users to access their plan information, manage claims and instantly connect to an insurance agent.
You can file a claim right from the app, which we consider the best part.
This saves you from long phone calls during what is usually a stressful time.
Allstate’s Quick Trip app is a trip optimizer, which saves time and mileage.
Drivers can enter as many locations as they wish to visit, and the app will find the optimal multistep route for the day.
Best Car Insurance for College Students
While many of the best car insurance companies provide discounts to college students, some are more generous than others.
Below, are five car insurance providers that offer lower-than-average rates to college-aged drivers on their parents’ policy (according to 2021 auto insurance rate data pulled from Quadrant Information Services).
Although Allstate has the steepest premium on our list, college students can for apply discounts to bring down the cost of its auto insurance.
College students around the age of 18 can save $402 a year with Allstate by applying both excellent student and distant student discounts.
College students who can maintain a GPA of at least 2.7 may qualify for a good student discount.
If your young driver is attending school at least 100 miles from their primary residence, they may also be eligible for a distant student discount.
- Allstate offers money-saving programs such as Smart Student and teenSmart.
- If your student qualifies for an outstanding student and distant student discount, they could save $402 per year.
- Allstate has the highest premiums for full coverage insurance.
- The company has the second-lowest Bankrate Score.
Students on their parents’ policy pay an average of $2,118 for their insurance each year with Farmers, the second-highest rate.
This rate reflects the added cost of a teen joining their parents’ policy.
Maintaining good grades or appearing on the Dean’s List or Honor Roll may result in savings, and so might attending college more than 100 miles from home without a vehicle.
By taking advantage of distant students and good student discounts, an 18-year-old driver may save an average of $400 on their annual premium cost.
- Students who make the Dean’s List or Honor Roll may be able to save.
- Farmers offer a student discount.
- Farmers’ youthful driver discount applies to any driver under 25 who is the child or grandchild of a policyholder.
- Farmers’ insurance isn’t initially cheap for college students, on average.
- The company has the second-highest full coverage premium on our list.
- The company received more than average complaints filed with the NAIC.
If you’re looking for cheap car insurance, you may want to get a quote from Geico.
Geico’s average annual cost for full coverage car insurance for 18-year-olds on their parents’ policy is $1,519, the lowest rate on our list.
By taking advantage of distant students and good student discounts, the average student rate comes down to $1,269 per year for full coverage.
College students can get other discounts to bring down the cost of the auto policy.
Geico also offers discounts for membership in several organizations.
- Geico offers discounts to more than 800 membership groups.
- College students can qualify for good student or distant student discounts.
- The company’s full coverage rate for college students without discounts is the lowest on our list.
- Geico doesn’t offer a 24/7 helpline like some of its competitors.
- Geico does not offer gap coverage.
- The company received more complaints than average filed with the NAIC.
Progressive’s average annual cost for full coverage car insurance for 18-year-olds on their parents’ policy is $1,727.
Eligibility for its good student discount requires a “B” letter grade or higher.
In addition to the standard good student and distant student discounts, Progressive also offers Snapshot.
This is a usage-based car insurance discount for infrequent and safe drivers.
To qualify for the distant student discount, college drivers must attend school at least 100 miles from their primary residence.
They must also be 22 years of age or younger and not have a vehicle with them at school.
- Some college students drive infrequently.
- Progressive allows drivers to pay based on usage.
- The company offers good student and distant student discounts.
- Progressive typically ranks lower than the industry average in customer satisfaction.
- The company received more complaints filed with the NAIC than average.
5. State Farm
Students with State Farm pay an average annual cost for full coverage car insurance of $1,615 a year when added to their parent’s policy, the second-lowest rate on our list.
State Farm offers up to 25% in annual savings for eligible college students who can maintain a GPA of at least 3.0.
Students attending school away from their primary residence without a car may also be eligible for a distant student discount.
- State Farm has the second-lowest full coverage premium on our list, without discounts.
- College students who qualify for both distant students and good student discounts save more than any other company on our list.
- The company doesn’t offer gap insurance to its customers.
- State Farm received more than average complaints filed with the NAIC.
Car Insurance College Students
USAA and State Farm were the cheapest auto insurance companies for college students on average, coming in at around $200 to $275 per month.
However, these companies might not be the perfect match for you.
Auto insurance for college students is often expensive, but you want to get the right policy as well.
You should always compare auto insurance quotes from as many companies as possible.
See below rates from some of the best car insurance companies for college-aged drivers.
|Company||Avg. 6 Mo. Premium||Avg. Monthly Premium|
Car Insurance for 19-Year-Old College Student
If you’re a 19-year-old freshman or sophomore student buying your car insurance policy, you’ll find you get slightly cheaper rates than when you were 18 years old.
We found that the cheapest car insurance company, on average for 19-year-old students, is State Farm, for $2,462 per year.
However, Allstate and GEICO offered our sample driver very similar pricing, showing the importance of shopping around.
|Company||Average Annual Rate|
Car Insurance for 20-Year-Old College Student
Rates continue to drop as students get older.
If you’re a 20-year-old sophomore looking for car insurance, we found that Allstate is the cheapest company on average;
It cost our sample student $2,180 per year. GEICO and State Farm are also competitively priced, as they are for other ages.
|Company||Average Annual Rate|
Car Insurance for 21-Year-Old College Student
Junior or senior students looking for cheap car insurance should start by getting a quote from GEICO.
Our sample 21-year-old driver paid an average of $1,695 per year, notably cheaper than Allstate or State Farm, the next-closest competitors.
|Company||Average Annual Rate|
Best Car Insurance for College Students
Searching for the best and cheapest car insurance for students is not a quick process.
It requires time and research to find the best company for your needs.
While price is a driving factor, it’s also important to evaluate a car insurance company on its customer service and ease of use.
Regarding the price, it’s also important to examine every available discount, particularly those geared to both high school and college students.
These could lead to big savings on your car insurance rates.
1. State Farm
A national fixture in the car insurance industry, State Farm has served teen drivers for many decades, providing affordable rates and quality customer service.
State Farm was consistently one of the cheapest companies for students who want to remain on their parent’s policy.
And for students aged 16 to 18 who need to buy an individual policy, it’s the cheapest option on average by far.
2. Best Student Car Insurance for Discounts: State Farm
While State Farm offers several discounts, such as multi-vehicle discounts and discounts for bundling home and auto insurance;
The company also offers several discounts that could help students lower their base rates, which are already cheap.
Based on our analysis, State Farm is one of the best carriers for home and auto insurance bundles.
USAA specifically caters to active and retired members of the military and their families, so their car insurance products are not available to everyone.
For those who do qualify, they offer some of the lowest car insurance rates available for all drivers, including students.
With an AM Best “A++” financial strength rating, the company can deliver on its customer’s claims.
Not surprisingly, today’s student drivers are well-versed in using technology, and they often prefer to use that technology to conduct their business.
With Allstate Mobile, they will have control over their car insurance policy in the palm of their hand.
Using the app, they can access digital proof of insurance cards, view their policy documents, and file a claim with QuickFoto Claim.
They can access roadside assistance, pay their premiums, and contact their agent.
They also can access Drivewise, which monitors their driving behavior and rewards good habits with additional savings.
Car Insurance for College Students
But you may be able to reduce your costs by staying on a parent’s policy, working with an insurance company that offers insurance discounts to younger drivers, or limiting how much you drive.
One of the reasons car insurance companies tend to charge young drivers more is that they’re considered more likely to be in a car crash.
Drivers ages 16 to 19 are almost three times more likely than drivers ages 20 and older to get into a fatal accident.
So before you head off to school, here are three things to know as you consider your insurance options and potential ways to save on coverage.
1. College Students May Be Able to stay on a Parent’s Policy
One way to keep your auto insurance rates down is to stay on a parent’s policy.
This may be possible even if you go to school out of state, as long as one of your parents is listed on the title of the car you drive.
But if you have your car and you’re the only person listed on the title, you’ll probably have to get a separate policy, which will cost more.
If you plan to live at home while attending college, you may be able to stay on a parent’s policy. If you don’t own the vehicle.
2. College Students, As Younger Drivers, Typically Pay More For Car Insurance
While insurance providers typically charge younger drivers, like college students, higher car insurance rates, the amount you’ll pay depends on many factors. But remember:
If you can stay on a parent’s policy, you’ll typically pay less.
If you need to have a car at school and staying on a parent’s policy isn’t an option, buying your own policy can be expensive. Here are a few of the factors that can influence your rates.
Location: Auto insurance companies establish rates based on where the car is located.
If your vehicle is in an urban area, rates may be higher than if it were in the suburbs or a rural area.
Age: Typically, the younger you are, the higher your rates will be. Insurance premiums tend to drop significantly after you turn 25 if you have a decent driving record.
How much you drive: In general, the more you drive, the higher your insurance premium will be because you’re more likely to get into an accident.
If you don’t plan to drive much while you’re at school, a pay-per-mile policy might save you money.
3. College Students May Be Able to Get Discounts on Car Insurance
Although some factors that affect rates, such as your age are out of your control, there are things you can do to reduce your cost.
Many companies offer a variety of car insurance discounts you may be able to take advantage of. Here are some examples, though these can vary by insurance provider and state.
Resident Student Discount: If you’re going away to school but plan to keep your car at home and remain on a parent’s policy, your parent may be able to get a discount since you won’t be driving much.
Good-Student Discount: If you hit the books and maintain a certain GPA (this can vary by the insurance company), you could qualify for a good-grade discount.
Multiple Policy Discount: Insurance companies often offer discounts to people who purchase more than one policy, such as an auto policy and renters insurance.
Anti-theft Device Discount: If you take extra steps to protect your car from being stolen, like installing a car alarm, you may qualify for a reduced rate.
Driver Training Discount: If you’re under 21 and take a course in safe driving or driver education, you may qualify for a discount.
Organization Member Discount: Some car insurance companies offer discounts to members of certain fraternities, sororities, honor societies, or other student organizations.
Car Insurance for High School Students
Buying car insurance as a high school student raises some important considerations — namely when a student should be added to the family policy, and how much it will cost.
Car insurance companies use your driving record as a rating factor when determining rates. On average, adding a teen driver to a car insurance policy will increase the premium by more than $100 per month.
Given their lack of driving experience and tendency to take risks behind the wheel, teen drivers are seen as very risky, and expensive insurance clients.
A Straight Life Policy Has What Type of Premium
Teen drivers should typically be added to their parent’s insurance policy once they’re licensed and using a vehicle.
Some states require teens to be added to their family’s car insurance policy if:
1. They have a learner’s permit
2. They are of driving age but not licensed (usually listed as a non-chargeable excluded driver)
Cheap Car Insurance Options for High School Students
The next and probably more prevalent concern for car insurance for high scholars is cost.
Because of their lack of driving experience, teenagers are the most expensive age group to insure.
If you’re looking for affordable car insurance for your high school-aged driver, start with USAA.
If you don’t qualify for USAA coverage, consider State Farm.
|Company||Avg. 6 Mo. Premium||Avg. Monthly Premium|
Auto Insurance for College Students
See discounts specific to younger drivers or students, along with usage-based telematics programs on offer from some top insurance companies below.
|Car Insurance Company||Student Discounts||Telematics Programs|
|Allstate||Good student, safe driving program, student away from home||Drivewise|
|GEICO||Good student, driver education course||DriveEasy|
|Liberty Mutual||Good student, student away at school||RightTrack, ByMile|
|State Farm||Good student, driver training, student away at school||Steer Clear, Safe & Save|
|USAA||Good student, driver training||SafePilot|
College Student Car Insurance
If you’re a college student with a car on campus or the parent of one, consider the methods listed below as a way to save money on student car insurance.
It’s also worth recognizing that not all college students will pay the same amount for car insurance, as younger drivers tend to pay more than older drivers.
For example, an 18-year-old college student will probably pay significantly more than a 25-year-old.
The average cost of car insurance is $1,655 per year for full coverage.
The best and cheapest car insurance for students is from Geico.
We hope you found this article useful.