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If you’re a college student, car insurance payments can make up a large portion of your total expenses. And whether you pay your premiums for your own policy, or are on your parents’ policy, your insurance likely costs a lot more than it does for other drivers.
Luckily, you have a few options to help relieve some of the financial pressure. It starts with understanding what goes into car insurance rates for college students, followed by knowing where to look for better rates.
Table of contents
- Why is car insurance so expensive for college students?
- The best car insurance companies for college students
- Cheapest car insurance companies for college students
- How to lower your car insurance rates as a college student
- The cheapest states for car insurance for college students
- How to find car insurance options for college students
- Car insurance for college students FAQs
Why is car insurance so expensive for college students?
College students pay an average of $455 per month for car insurance, according to Insurify’s Auto Insurance Trends Report. The cost is 57% higher than what drivers ages 25–29 pay and 73% more expensive than premiums for drivers in their 30s.
While insurers rely on driving records and age while setting premiums, they also take into account the driver’s education and occupation. Mainly, drivers who have completed college pay lower rates in the long run than drivers who haven’t.
The best car insurance companies for college students
You’re not doomed to pay high premiums simply because you’re a college student. You can find discounts and cheaper rates to pay less for car insurance if you know where to look.
The following companies offer the best car insurance for college students, providing good student discounts, driver education programs, and mobile apps to help you manage your policy.
State Farm - Potential savings: 25%
If you’re a college student with good grades, you could save 25% on premiums through State Farm’s good student discount. The discount can last until you turn 25. Considering the average age of a college graduate is 22 (or 24 for master’s degree graduates), your savings can last the entire course of your education.
State Farm offers additional savings if you move away for school. You can qualify for even lower insurance premiums if you leave your vehicle at home and only drive during school vacations and holidays.
Two additional savings options are available from the company — a driver training discount if you’re under 21 and complete a driver education course, and up to a 30% discount for enrolling in State Farm’s Drive Safe & Save program, a telematics program that uses real-time driving metrics to determine your insurance rates.
Erie - Potential savings: 20%
Erie is among the top three insurers with the cheapest coverage for college students. Even though it doesn’t offer “good student“ savings, the company has several options to help you snag a lower rate.
The company’s youthful driver discount can lower your insurance costs by 20% if you’re under 21. If you live away from home while going to school, you can get a discount for the time you aren’t driving.
Another option to save on premiums with Erie is to take a driver’s education course. These courses help you become a safer driver and unlock another discount so you can shave off a couple more dollars from your premium.
Learn More: Car Insurance Discount Guide
GEICO - Potential savings: 15%
GEICO is a great option for both college and high school students alike, in case you’d like to start saving on auto insurance before you get to college. GEICO also requires students to maintain either a B average or better, similar to other companies. According to GEICO’s website, good students can save 15% on car insurance.
The company has additional options to lower your costs even more. The good driver discount can save you 22% if you haven’t been in an accident within the last five years. You can also qualify for a membership or organization discount for attending specific colleges or universities or belonging to certain fraternities, sororities, honor societies, or alumni associations.
Progressive - Potential savings: 10%
Progressive rounds out the top cheapest auto insurance companies for college students. The company has a good student discount for full-time students up to age 23. You could qualify for the savings if you have a B average or better.
Progressive offers two additional discounts for students — the distant student discount and teen driver discount. If you’re 22 or younger and go to a school that’s at least 100 miles away from home, the distant student discount can lower your car insurance bill if you don’t bring your car with you. For the teen discount, you simply must be 18 or older to qualify.
Cheapest car insurance companies for college students
You can find some of the cheapest car insurance rates for college students from large, national companies such as Travelers, State Farm, and USAA — all with average premiums below $250 a month. Regional insurers like Erie, Clearcover, and Traders also provide affordable rates much below the national average of $455.
|Insurance Company||Average Quote for College Student|
The rates featured on this page are sourced directly from Insurify’s proprietary database of 70 million quotes. Quotes featured from some companies, such as GEICO, USAA, Allstate, and State Farm, were sourced from a third-party database provided through Quadrant Information Services. These quotes were then analyzed to provide an apples-to-apples comparison for what college students can expect to pay with each company.
How to lower your car insurance rates as a college student
Expenses can be high for college students between tuition, books, and other necessities. If you’re like most students, you still want to drive around campus, at home on holiday, or in between semesters without having to pay hundreds of dollars a month.
The good thing is, you still have many options to lower your car insurance rates as a college student. Good student discounts are one of the best ways to find savings, but they aren’t the only option to reduce your car insurance costs while completing your degree. Here are additional ways to save on premiums:
Stay on your parent's policy while attending college. Drivers under 25 are typically charged higher rates when they’re on their own policy.
Complete a driver’s education course to learn defensive driving techniques and refresh your memory of the rules of the road.
Check into student-away-at-college savings if you leave your car at home while attending college in a different city or state.
Compare car insurance quotes with an online comparison-shopping tool to save time and see savings side-by-side.
Consider raising your deductible amount to lower your monthly premium payment.
Drop collision or comprehensive coverage and reduce your coverage to state minimum coverage if you have an older car.
Join a sorority, fraternity, or honor society to unlock savings.
Ask if you can qualify for a discount through your university for being a student or alum.
Best discounts for college students
If you’re younger than 25, you’ll likely pay more for auto insurance than someone older — even if you’ve had a clean driving record for years. But you aren’t doomed to pay high prices. Student discounts are available from many insurers and insurance agents starting in high school, and many carry low rates through college, as well.
Here’s a list of insurance companies that offer the best discounts for college students. When comparison shopping online for your own car insurance policy, look at these companies to check for discounts that could lower your premiums.
The cheapest states for car insurance for college students
Car insurance rates depend heavily on your location, with rates varying widely between states. That means you could score lower premiums if you move from one ZIP code to another for college. Compare quotes in your home state and the state you’re moving to and see if it’s in our top 10 list of cheapest states for car insurance for college students.
|State||Average Quote for College Students|
How to find car insurance options for college students
College students pay some of the highest rates for car insurance compared to other age groups, making it essential to shop around before buying coverage. Using an online comparison platform can make this a lot easier and quicker. Instead of filling out a form for each insurance company, you can fill out one form to get quotes from multiple companies.
When reviewing your offers, look for companies that offer good student discounts. You can also ask about a “student away at school“ discount if you’re moving away for school and plan to leave your car at home.
Car insurance for college students FAQs
You may be able to remain covered by your parents’ policy even while you’re in college. You usually need to have their home as your permanent address, and the car’s title can’t be solely in your name. It’s smart if you’re moving away temporarily for college or commuting to or attending a nearby school. Talk to your insurance agent to find out more.
Staying on your parents’ auto insurance policy as a college student can save you a lot of money on premiums. Luckily, insurers don’t have an age limit for a child who wants to remain on their parents’ car insurance policy. You can continue to be covered even after you graduate, as long as your parents’ home is your permanent residence.
Insurance companies don’t list a maximum age for how long you can stay on your parents’ car insurance. Certain circumstances may require you to get a policy of your own. You may need to purchase coverage in your name if you move away permanently or want to insure a car that’s registered and titled in your name.
If you’re moving out of state for college and leaving your car at home, you may not need car insurance. If you plan to drive when you return home for college breaks, you should remain insured. In this case, you can lower your car insurance premiums by asking your insurer about the “student away from home” discount.
Compare Car Insurance Quotes Instantly
Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
- ConsumerReports.org. "Why Your Education and Job Could Mean You're Paying Too Much for Car Insurance." Accessed November 30, 2022
- Nonpartisan Education. "Table A.1: Typical graduation age, by level of higher education." Accessed November 30, 2022
- State Farm. "Car Insurance for Teens." Accessed November 30, 2022
- State Farm. "State Farm Drive Safe and Save." Accessed November 30, 2022
- Erie Insurance. "Common Insurance Questions, Honest Answers." Accessed November 30, 2022
- Progressive. "Car insurance discounts & information for students." Accessed November 30, 2022
- Progressive. "How long can I stay on my parents' car insurance?." Accessed November 30, 2022