Finding car insurance for college students can be difficult, given the high rates for young drivers and unique student needs. To simplify the process, I’ve put together a list of the best student car insurance companies across several criteria, including price, available discounts and more.
If you’re a college student, you’re likely on a strict budget. You already have to pay for tuition, room and board, text books, and more.
But if you’re driving, you also need to have car insurance. Auto insurance for college students is usually in the back of your mind.
Cheapest Car Insurance For College Students
Shopping for cheap car insurance for college students requires some research because no two car insurance companies offer the same rates.
Overall, the cheapest car insurance company on average for college students varies depending on your age and driver profile.
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Students tend to pay high rates for policies because they are young, and insurance companies consider young drivers to be higher-risk.
Below, we’ve broken out the cheapest car insurance companies by all college ages.
Cheapest Car Insurance for 18-Year-Old College Students
If you keep your vehicle at your parent’s address, the cheapest option is almost always to stay on their policy.
In this case, we found that GEICO is the cheapest company on average, costing our sample 18-year-old freshman college student $2,526 per year.
However, if you’re living away from home and keeping your vehicle with you on campus, you’ll have to buy your own policy.
In this scenario, we found that State Farm is the cheapest company on average, costing the same driver $2,890 per year.
Cheapest Car Insurance Companies For 18-Year-Old College Students
| Company | Parent’s Policy | Individual | Cost Increase for Individual vs. Parent’s Policy |
|
$2,526 | $3,446 | $920 |
|
$2,639
|
$3,521 | $882 |
|
$2,702
|
$2,890 | $188 |
|
$3,177
|
$6,280 | $3,103 |
|
$3,687 | $4,212 |
$525
|
Best Car Insurance For College Students
1. Metromile – Best Car Insurance For Infrequent Drivers
Why It’s Great For Students
Metromile is a great insurance company for college students who drive infrequently but still want the convenience of having their car while at school.
Metromile’s quoting system allows drivers to enter their current auto insurance premiums so they can compare and see if switching companies makes 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.
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Metromile doesn’t charge policyholders for driving more than 250 miles per day, depending on the state.
College students or new drivers can think of this as a cap on the amount they can be charged, should they choose to drive home or go on a road trip.
In New Jersey, Metromile won’t charge drivers for more than 150 miles per day.
The company’s biggest drawback is its limited availability. Currently, Metromile is only available in eight states:
- Illinois,
- Arizona,
- Oregon,
- Virginia
- California,
- New Jersey,
- Washington and
- Pennsylvania.
If Metromile isn’t available where you live, ask your insurance company about a low-mileage discount, which is offered by most car insurance companies.
2. Geico – Cheapest Car Insurance For College Students
Why It’s Great For Students
Geico’s low rates and abundance of discounts make it what we consider the best cheap 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.
Get a quote online by clicking this Link or speak with an insurance agent to see if you qualify.
3. State Farm – Best Car Insurance Discounts For Students
Why It’s Great For Students
State Farm offers all of its customers access to a long list of auto insurance discounts, but some of its best ones are reserved for student drivers.
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. But typically 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 before then.
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State Farm’s student away-at-school discount is great for college students who live on a campus where a car isn’t necessary.
It offers savings to drivers who live more than 100 miles from home and keep their car at home.
To be eligible for the discount, college students may only drive their car while they’re home on vacation or during a holiday.
State Farm’s Steer Clear program offers all drivers under the age of 25 the opportunity to save money on their auto insurance.
The program allows drivers to review and improve their driving skills through educational materials and by self-logging significant events that occur during their trips.
If no violations or accidents occur during their trips, then they become eligible for a discount.
4. Allstate – Best Car Insurance Mobile Apps For Students
Why It’s Great For Students
College students are often on the move and need an insurer with robust mobile apps. Allstate offers drivers two:
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 QuickTrip 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 multistop route for the day.
This is a great extra perk for college students, especially those with tight schedules.
While Allstate offers great mobile apps, it also has an extensive network of agents, which are available to answer your questions in person.
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This can be a huge benefit for college students who may be unfamiliar with the nuances of their auto insurance policies.
College students should be mindful, however, that Allstate’s policies are typically among the most expensive among major insurers.
As a result, student drivers should carefully consider how they prioritize balancing service quality and cost.
Allstate has approximately 12,000 exclusive agencies spread across the country, meaning there’s likely one located near you.
Ultimately, Allstate offers a great mobile experience and doesn’t skimp on in-person support.
The Best Car Insurance Companies For Students
Searching for the best 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 obviously is a driving factor, it’s also important to evaluate a car insurance company on its customer service and ease of use.
With regard to 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.
Best Student Car Insurance Company for Military Families: USAA
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 customers’ claims.
For student drivers, USAA offers a Good Student discount as well as a Driver Training discount for drivers younger than 21, plus a number of other discounts that could reduce your rates.
These include discounts for New Vehicle, Multi-Vehicle and bundling home or renters insurance with your car insurance.
If you need to file a claim or make changes to your car insurance policy, you can do so on the USAA website or use the USAA Mobile app.
In addition, you can call to speak with an agent or use the website’s chat feature with a virtual agent.
Best Student Car Insurance For Overall Savings – State Farm
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.
Best Student Car Insurance for Technology: Allstate
2. Allstate
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, file a claim with QuickFoto Claim, access roadside assistance, pay their premiums and contact their agent.
They also can access Drivewise, which monitors their driving behavior and rewards good driving habits with additional savings.
Of course, student drivers also can log into their accounts on the Allstate website to view their policy information, file and track a claim, make policy changes and pay their car insurance premiums.
Best Student Car Insurance for Discounts: State Farm
While State Farm offers a number of discounts, such as multi-vehicle discounts and discounts for bundling home and auto insurance, the company also offers a number of 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.
In fact, State Farm has a driving habits program called Steer Clear specifically made for young drivers. Students can enroll in the program and get a discount upon completion.
And that’s just one of the company’s many discounts.
For instance, student drivers who get good grades could receive up to 25% off car insurance rates with the Good Student discount.
Also, for drivers under the age of 21 who complete an approved driver education course, you could qualify for the Driver Training discount.
And for college students who only drive while they are at home during school breaks, you could receive the Student Away at School discount.
Car Insurance Advice for International College Students
International College Students seeking to purchase car insurance may encounter a number of obstacles.
Many car insurance companies will require the student driver to have a valid U.S.-issued driver’s license even if the state where they are attending school does not.
Some states require international students to obtain a state driver’s license if they plan to drive a car.
While other states allow them to use a valid driver’s license from their home country provided they also have a valid International Driver’s Permit.
It’s imperative to check with your state’s Department of Motor Vehicles to find out the specific requirements for international drivers.
If you don’t have a local driver’s license, it’s possible you will be placed in a high-risk group of drivers that could increase your car insurance rates.
Car Insurance for College and High School Students
Affordability is important for students, which is why GEICO provides cheap car insurance for college students or high school students with competitive rates and a variety of amazing discounts.
By switching to GEICO, students could save $100, $150, or even $200 on an auto insurance policy. Some of the benefits of a GEICO car insurance policy for students include:
- Discounts, including a good student discount
- Easy to use award winning GEICO Mobile app
- Customer service from dedicated insurance agents
- And more
Get a free online car insurance quote today and see why GEICO is a great choice for students in college or high school.
How To Save Money On Car Insurance For College Students
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 likely pay significantly more than a 25-year-old.
Full Coverage Car Insurance Rates By Age
Comparison Shop Across Multiple Companies To Save On Student Car Insurance
One of the best ways to save money on auto insurance is to shop around and compare rates.
Auto insurance is a highly competitive industry, and in any given area there may be a multitude of competitors.
So, it’s best to take your time in gathering quotes to ensure you’re getting a fair deal.
Consider comparing the quotes you receive to the average cost of auto insurance in your state to get a sense of the price you’re paying.
Get a Discount For Good Grades
Good students drive better, according to insurance companies, and this is typically reflected in auto insurance rates.
Most large insurance companies will discount premiums for full-time high school or college students who meet any of the following requirements:
- Rank within the top 20% of their class
- Student grades must meet or exceed a B or 3.0 GPA
- Rank within the top 20% of certain standardized test scores from the past 12 months
It’s best to ask your particular insurance company about discounts it might offer college students for good grades.
Explore Discounts For a Student Who Will Drive Less While Away
If your child is attending college more than 100 miles from home without the car, you could either qualify for an away-from-home discount or remove the student from the family policy for the time they’re away.
The student can still drive the car during spring and winter breaks, provided they don’t drive for more than a certain number of days in a row, as stipulated by the insurance company.
Also, with the student now driving the car less or not at all, you may be eligible for a further premium reduction based on the reduced mileage.
Be sure to confirm with your carrier what features are available for your policy.
Keep The Student On The Parents’ Policy
Having a college student on their parents’ policy should generally result in lower auto insurance costs for the family compared to buying the student a separate policy. Especially if the other members of the family have good driving records.
Auto policies under a parent’s name tend to be lower-priced because the parents likely have a longer history with the insurance company.
The flip side, however, is that a college student who’s on the family policy could raise rates for the parents if they run into trouble at the wheel.
I recommend exploring pricing for an individual policy for the student and pricing for adding them to (or retaining them on) the family policy.
If students are moving far from home for college, their insurer may require them to purchase an individual policy.
While some companies are more flexible for young drivers staying on their parents’ policy, it’s still important to be transparent.
If you file for a claim on your parents’ policy and your insurer did not already know you had moved out, it may deny your claim or even cancel coverage.
As a result, it’s usually best to discuss your options with your carrier.
Car Insurance Advice for Students and Strategies to Save Money
Finding cheap car insurance for students is no easy task, but it can be done with some time and research. It’s always important to shop around and get personalized quotes from at least three different insurance companies to get a good idea of what’s available for you.
In addition, you can implement the following strategies to further reduce the amount of your car insurance premiums for student drivers:
Help Your Student Develop Good Driving Habits
Many car insurance companies now offer technology to monitor your driving and reward you for good driving habits.
By maintaining good driving habits, you also take great strides in maintaining a clean driving history free of speeding tickets, DUIs or car accidents.
This clean driving history also results in lower car insurance rates.
Get a “Safe” Vehicle For Your Student
Car insurance companies evaluate the car you drive based on how safe they think it is.
For example, does it have a strong safety rating? Does it come outfitted with specific safety features like airbags and antilock brakes?
Generally speaking, car insurance companies see sedans as safer vehicles than sports cars.
Seek Out All Available Discounts
While you definitely want to ask about discounts specifically for student drivers, ask the agent for a list of all available discounts to make sure you take advantage of all you can.
For instance, some car insurance companies offer discounts for cars with specific safety features, like those listed above.
In addition, they also offer discounts if you can pay for your policy in full.
If you make monthly payments, you can still get discounts for setting up automatic payments as well as for paperless billing.
Tips For College Students Shopping For Auto Insurance
You may be wondering whether you need your own auto insurance policy now that you’re moving away from home.
The answer depends on where you’ll be living while attending school and who owns the vehicle you’ll be driving.
Frequently Asked Questions – Car Insurance For College Students
Do Students Need Their Own Insurance, or Can They Stay on a Parent’s?
Simply put, students need their own insurance policy when they no longer live at home and continue to drive every day.
If they live independently from their parents, they need to purchase their own car insurance policy.
However, if students live away from their parents — for instance, away at college — but don’t drive, they can remain on their parent’s car insurance policy.
In fact, if the student lives more than 100 miles from home while at college, the parents may qualify for a “student-away-at-school” discount.
Staying on your parent’s policy also benefits you because you won’t have a lapse in coverage, which will be favorable when shopping for your own policy in the future.
If you do have your own policy, but drive your parent’s vehicles when visiting for special occasions, it’s possible you could be covered under your parent’s policy if they have a permissive use clause on their policy.
Under this clause, driving their vehicle usually is limited to less than 12 instances per year.
Therefore, unless you are living on your own and independent of your parents. It’s best to stay on your parent’s car insurance policy to get the cheapest rates and best car insurance for students.
Who Has The Best Car Insurance For College Students?
Geico has the best average rate for college-age drivers at $388 per month.
But State Farm has the best discounts, including discounts for good grades and driver training as well as an away-at-school discount.
What Is The Cost of Car Insurance For an 18- Year-Old College Student?
A typical 18-year-old student pays about $598 per month for car insurance if they have their own policy and bring their car with them to campus.
But you can reduce your rates by sharing a policy with your parents or qualifying for discounts, like one for getting good grades.
Can I stay On My parents’ Car Insurance If I Move Out For College?
In most cases, college students can stay on their parents’ car insurance when they go to school — if you haven’t moved out permanently.
Many families decide to keep their college students on their policies for the following reasons:
-
Convenience
It’s easier to manage a single policy rather than two. Plus, the student is covered when they return home for the summer or winter break.
-
More savings
Sharing one policy is usually more affordable, as you split the cost of certain coverages.
-
You Can Share Cars
You’re both covered when driving each other’s cars, so you don’t have to let the insurance company know who’s driving which car when.
As long as you keep your parents’ home as your permanent residence, you can usually stay on your parents’ insurance through college.
If you decide to fully move out and keep your car at your own residence, however, you’ll need your own policy.
Now you have it, best car insurance for insurance students.
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