The typical college student paid more than $30,000 in tuition and fees for one academic year. It is understandable why college students find it difficult to pay for additional fees when one considers that this does not include other living expenses like room and board, transportation, clothing, and cell phone bills. Car insurance can also be a significant added cost.
In the search for cheap car insurance for college students, in this article, we offer the best car insurance companies we’ve found for college students.
What is Auto Insurance?
Auto insurance is an insurance contract under which the insurer (insurance provider) guards the insured’s (you) vehicle in the event of an accident, theft, loss, or damage. Upon payment of the agreed-upon annual premium, as specified in your insurance, this protection becomes effective.
Accidents, acts of nature, or theft may cause damage to your vehicle. Auto insurance relieves your stress and guarantees that you won’t be responsible for unexpected financial losses. It is a necessary piece of basic personal insurance.
Types of Auto Insurance
The most typical forms of automobile insurance are as follows:
#1. Third-Party Insurance:
Third-party insurance is a kind of insurance coverage that guards you only against losses and damages brought on by a third party—not your own. Note that this insurance is required and is the most fundamental kind of auto insurance you need for your vehicle.
#2. Comprehensive Insurance:
A sort of insurance policy known as “comprehensive insurance” protects you, your car, and third parties from loss and damage. It offers complete protection against wrongful death, bodily harm, and unintentional damage to third-party property, as well as losses incurred by the covered vehicle.
#3. Collision Insurance:
Collision insurance protects you from mishaps or damage to your car that arise from colliding with another car or an object, like a tree or a pole, etc., essentially something that is your fault.
What does Auto Insurance Cover?
What an auto insurance policy typically covers is as follows:
#1. Property Damage:
Your car, another driver’s car, and damage to third parties’ property, such as a fence, building, or utility pole, can all be covered by the insurance policy.
#2. Bodily Injury:
This addresses the responsibility for any harm or fatalities brought on by driving, whether by you or another motorist.
What Auto Insurance Does Not Cover
Here are a few things auto insurance does not cover:
#1. Natural Disaster:
Auto insurance does not cover any damage to your car that results from an earthquake, a flood, a storm, or any other natural disaster. Note that these natural occurrences are classified as “acts of God” and are not covered by insurance.
#2. Loss of Personal Belongings:
The damages from a break-in and vandalism are covered by your auto insurance. However, you won’t be reimbursed if any of your goods were taken throughout the process.
#3. Carelessness:
If your negligence caused the damage to your car, the insurance company can deny your claim. You might have forgotten to lock your car or left your key inside. As a result, make sure you always practice safety precautions and environmental awareness.
#4. Someone Else’s Car:
You cannot file a claim for an accident you cause while operating someone else’s vehicle. Therefore, only claims for the car that are registered in the insurance holder’s name will be covered by the insurer.
Best Car Insurance for College Students
Due to local state laws, the cost of fixing cars, the price of medical bills, and the volume of claims, different insurance companies offer cheaper insurance for college students in different places.
| State | The cheapest car insurance company for college-age students | The cheapest company’s annual cost to add a college student to a parent’s policy |
| Alabama | Geico | $489 |
| Alaska | Umialik | $580 |
| Arizona | Root | $992 |
| Arkansas | Southern Farm Bureau | $846 |
| California | Grange | $730 |
| Colorado | Geico | $1,160 |
| Connecticut | Geico | $755 |
| Delaware | Progressive | $762 |
| Florida | Geico | $1,539 |
| Georgia | Georgia Farm Bureau | $869 |
| Hawaii | 21st Century | $286 |
| Idaho | Oregon Mutual | $554 |
| Illinois | Automobile Club of Missouri | $618 |
| Indiana | Pekin Insurance | $555 |
| Iowa | Grinnell Mutual | $535 |
| Kansas | Geico | $609 |
| Kentucky | Kentucky Farm Bureau | $462 |
| Louisiana | Southern Farm Bureau | $1,299 |
| Maine | Concord Group | $559 |
| Maryland | Geico | $602 |
| Massachusetts | Safety Group | $443 |
| Michigan | Secura | $738 |
| Minnesota | North Star | $567 |
| Mississippi | Progressive | $1,026 |
| Missouri | Geico | $607 |
| Montana | Progressive | $953 |
| Nebraska | American National | $341 |
| Nevada | Geico | $1,054 |
| New Hampshire | MMG Insurance | $552 |
| New Jersey | NJM | $435 |
| New Mexico | Central Mutual | $502 |
| New York | Main Street America | $783 |
| North Carolina | Travelers | $204 |
| North Dakota | North Star | $297 |
| Ohio | Central Mutual | $520 |
| Oklahoma | Oklahoma Farmers Union | $648 |
| Oregon | Geico | $831 |
| Pennsylvania | American National | $770 |
| Rhode Island | Travelers | $812 |
| South Carolina | American National | $323 |
| South Dakota | Farm Bureau Mutual & Kemper Direct (tie) | $515 |
| Tennessee | Penn National | $609 |
| Texas | Nationwide | $853 |
| Utah | Geico | $355 |
| Vermont | Geico | $583 |
| Virginia | Penn National | $423 |
| Washington | Pemco | $624 |
| West Virginia | Encompass | $802 |
| Wisconsin | Rural Mutual | $485 |
| Wyoming | American National | $607 |
| Source: Quadrant Information Services. Note that average costs are based on rates nationwide from large auto insurance companies for drivers aged 18 to 21. | ||
Car Insurance for College Students in Florida
College students in Florida must pay $1,539 for auto insurance.
Cheap Car Insurance for College Students
While you’re away at school, you can be eligible for some discounts, depending on your state and insurance provider. Here are some frequent car insurance specials for college students.
#1. Good student.
Many insurers provide discounts to full-time students who maintain strong academic standing (usually a B average or higher), score well on standardized tests, or are recognized by their school’s dean’s list or honor roll. However, you must meet the age criteria, submit your school records, or submit test results.
#2. Student away from home.
Consider leaving the car at home if the distance to your college is greater than 100 miles. College students who use the family car just while they are home for breaks or holidays may qualify for reductions from some insurance companies. Additionally, leaving the car behind can lower your risk of receiving penalties or getting into accidents that raise your premiums, which can ultimately lower your insurance expenses.
#3. Fraternity, sorority, and honor society.
You might be qualified for a discount if you belong to a qualifying fraternity, sorority, or honor society.
#4. Military.
You may qualify for a discount on your auto insurance if you participate in a Reserve Officers’ Training Corps (ROTC) program.
#5. Student and alumni organizations.
Alumni associations and college organizations like the American Medical Student Association may offer discounts to their members.
#6. Safe driving.
Avoiding traffic infractions and collisions may result in a discount, though it won’t be applied until you’ve demonstrated your driving safety for at least three to five years.
#7. Young driver training.
Some insurance providers will offer a discount if you complete a course to advance your driving abilities and fall within the permitted age range.
#8. Young volunteers.
If you complete the necessary number of volunteer hours and meet the age restrictions, you might be eligible for a discount.
The table below lists the ten biggest auto insurance providers’ discounts for college students.
| College student discount | Geico, Liberty Mutual, and USAA* |
| Good student | Allstate, American Family, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers and USAA* |
| Student away from home | Allstate, American Family, Liberty Mutual, Progressive, State Farm and Travelers |
| Fraternity and sorority | Geico |
| Military | Allstate, American Family, Liberty Mutual, Progressive, State Farm, and Travelers |
| Student organizations | Geico |
| Safe driving | American Family, Geico, Nationwide, State Farm and Travelers |
| Young driver training | Allstate, Geico, Travelers and USAA* |
| Young volunteer | American Family |
What is student insurance in the USA?
Student health insurance is a way for college students to safeguard their money so they can cover unforeseen accidents and illnesses without having to pay hundreds or thousands of dollars out of pocket.
What GPA qualifies students for an auto insurance discount?
To make sure you are eligible for a good student discount, make sure your grades are strong enough. For the most part, auto insurance providers require a GPA of 3.0 or better to be eligible for a good student discount.
Do college graduates get cheaper car insurance?
Not typically. Due to their age group, college graduates often pay higher premiums.
What insurance is best for students?
#1. A parent’s health insurance plan
While leaving for college may entail leaving your parent’s home, it doesn’t necessarily imply being completely independent. The Affordable Care Act (ACA) permits you to remain on your parents’ health insurance plan until you turn 26 if you have been covered by it up until this point.
Furthermore, that indicates that their health plan may be able to provide coverage for the duration of their time in college. Therefore, you may now devote all of your time and effort to furthering your education as a result. There’s a good probability that by the time you turn 26, you’ll have graduated or landed a job with health benefits.
Regardless of whether you attend school full-time, part-time, or not at all, you can continue to be covered by your parents’ health insurance. Additionally, you will still have access to health insurance through their plan if you need to take a summer break or a gap year.
#2. University-sponsored insurance
If your parents are unable to provide you with health insurance, your university may be able to help you find a reasonable plan. Many colleges provide student health plans to help with medical costs since they mandate that all students have insurance.
Most student health plans are governed by the ACA. This means that there will be no annual or lifetime benefit caps on the ten essential health benefits, which include hospitalization, preventative care, prescription medicines, emergency treatment, and more.
Furthermore, depending on the university you attend, many plans exist for students. So, if you have any inquiries, get in touch with your school to find out if their insurance is the best alternative for you.
#3. Income-based plans
An income-based plan is the next choice for health insurance for college students. Only Americans with a financial need as determined by their yearly household income, the federal poverty threshold, and specific non-financial situations are eligible for these programs.
Medicaid is the most popular health insurance program for low-income Americans, despite the fact that many people confuse it with Medicare. Each state has a different Medicaid program. Medicaid services in one state might not be available in another.
You can be eligible for a catastrophic health plan if you’re at least 30 and encounter a particular hardship. Plans with catastrophic coverage feature low premiums but high deductibles. They rank among the least expensive solutions for students who don’t have serious medical issues. Additionally, if you match the coverage standards, it may be able to pay for you if they experience a medical emergency.
#4. Employer-sponsored health insurance
Many college students work while they study. Even though many small businesses are not required by the federal government to provide health insurance, many nevertheless do so since it’s a fantastic way to recruit and keep employees.
Therefore, you might be eligible for a few employer-sponsored health benefits as a student, depending on your employer.
How much does the average college student spend on insurance?
Student health insurance policies typically cost between $1,500 and $2,500 a year. This number, meanwhile, fluctuates a lot between schools.
What is the GPA requirement for Allstate Good Student Discount?
If you fit one of the following criteria and are under 25 and single, you can qualify for the Allstate Good Student Discount: Your GPA is 2.7 or higher, and your average grade is a B or higher. Additionally, you must have finished the teenSMART driver education course successfully.
Do car insurance companies check your GPA?
Insurance companies only look at your grades if you’re requesting a good student discount. Given that the cost of adding a teen driver to an insurance policy can quadruple, these car insurance discounts can be a wonderful way to save money on coverage.
What does GPA insurance cover?
Accidental injuries or fatalities are covered by GPA insurance, commonly called group personal accident insurance. Additionally, it is often made available to groups of people, such as employees or customers.
How can a broke college student afford a car?
Having a co-signer is one of the best ways to get a student auto loan authorized. A parent, relative, or other adult with strong credit who agrees to apply for the loan with you is considered a co-signer.
Does education level matter for car insurance?
Higher-educated drivers—those with master’s and doctoral degrees—pay the least for auto insurance. However, drivers with less education are deemed by insurance firms to be more reckless than those with more education.
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