about to embark on this next phase of your life. One thing that many new college students don’t think about is automobile insurance. Most high school drivers are protected by their parents’ auto insurance, so parents and kids forget about it until college. College students who are responsible for driving in a new area should familiarize themselves with the specifics of their car insurance policy. In this article, we will discuss the best car insurance for college students, the cost, and reviews of Geico car insurance for college students.
What is Car Insurance for College Students?
Car insurance for college students operates similarly to regular car insurance but is tailored to meet the specific needs and financial constraints of students. Insurance providers offer various policies, including liability coverage, which pays for damages or injuries caused to others in an accident where you are at fault. Additionally, there’s collision coverage, which pays for repairs to your own car after an accident, and comprehensive coverage, which covers non-collision events like theft or natural disasters.
For college students, car insurance costs can be high due to their limited driving experience and higher perceived risk. However, there are discounts available, such as good student discounts for maintaining a high GPA or discounts for completing defensive driving courses. Some students opt for usage-based insurance, where premiums are based on driving habits, potentially saving money for those who drive responsibly.
It’s crucial for college students to research different car insurance providers, compare quotes, and understand the coverage options. Additionally, students should be aware of the insurance requirements in their state and consider the potential financial impact of accidents or damages that may occur while driving. Responsible driving and maintaining a good academic record can help students obtain affordable car insurance rates.
Types of Car Insurance for College Students
There are several types of car insurance options available for college students:
- Liability Insurance: This covers injuries and property damage that you cause to others in an accident. It’s often required by law.
- Collision Insurance: This pays for repairs to your car if you’re in an accident, regardless of who is at fault.
- Comprehensive Insurance: This covers non-collision incidents such as theft, vandalism, or natural disasters.
- Uninsured or underinsured motorist coverage: This safeguards you in the event that a driver with insufficient or no insurance causes an accident.
- Personal Injury Protection (PIP): Also known as no-fault insurance, this covers medical expenses and other related costs for you and your passengers, regardless of who is at fault.
- Gap Insurance: If you total your car, gap insurance covers the difference between its value and your loan or lease balance.
- Usage-Based Insurance: This involves installing a device in your car to monitor your driving habits. Your premiums are based on your actual usage and driving behavior.
It’s impossible to predict what may happen while driving, especially if you’re in an unfamiliar area. Because of this, many college students will drive away from home for the first time; therefore, they need enough car insurance.
Having liability insurance is the bare minimum necessary to legally operate a car in the United States. If you’re involved in an accident, collision insurance can assist in covering the costs of repairs, regardless of who was to blame. If a tree limb fractures your windshield, comprehensive coverage will pay for the repairs.
Also, if you total your car in an accident and owe on your loan or lease, loan or lease payback coverage can help. Not all insurance companies include this coverage, so you should check with your agent to see whether you can add it.
Tips for Finding the Best Car Insurance for College Students
Here are some helpful tips for finding the best car insurance for college students:
#1. Quote Comparison
Car insurance costs might vary significantly from one provider to the next. College students need to know this in particular because of the higher prices they often face because of their younger age.
#2. Make Use of Price Discount
Students should inquire about price reductions for being a good student, studying away from home, or completing a driver’s education. It’s a good idea to call your insurance provider and ask about any savings you may be eligible for that aren’t tied to your academic status.
#3. Think About Your Insurance Choices
The basic liability rules in many states are not sufficient to protect you financially in the event of a severe accident. It is important to do your homework before deciding on the types and amounts of coverage you need because everyone’s situation is unique. As an illustration, full-coverage car insurance may not be worth the cost if you drive an older vehicle with little resale value.
#4. Use the Family Plan Wherever Possible
Most college students can continue to save money on car insurance by remaining on their parents’ plans. However, if a family member has a poor driving record or if you will be attending college in a state where auto insurance is less expensive, it may be more cost-effective for you to obtain your own policy. Your status as a dependent changes when you marry, have children, or relocate permanently, at which point you will need to obtain your own coverage.
How to Get Car Insurance for College Students
Getting car insurance as a college student is not much different than getting it for anyone else. First, you should look at the rates offered by other car insurance companies. What kind and how much protection you need are factors to think about. Given their inexperience behind the wheel, college students may benefit from purchasing supplementary insurance. Your risk of an accident increases when you drive in an unfamiliar location; purchasing some additional insurance could save you money in the event of an accident.
Once you get a few quotes, you can weigh the cost against the level of protection offered to determine which option offers the best value. You get to tailor your policy to your specific needs by determining factors like the deductible amount and the sort of coverage you want to have. These factors will have an impact on the cost of your auto insurance. Drivers with less experience pay more for insurance since they are more likely to be involved in an accident than more seasoned motorists.
Car Insurance for College Students Costs
The cost of car insurance for college students can vary widely based on several factors. These factors include:
- Age: Younger drivers, including college students, often pay higher premiums because they are considered higher risk due to less driving experience.
- Driving Record: A clean driving record with no accidents or traffic violations usually results in lower premiums, while a history of accidents or violations can increase costs.
- Type of Car: The make and model of the car, as well as its age and safety features, can affect insurance rates. Expensive or high-performance cars typically have higher premiums.
- Location: Where the student lives and drives, including the state and city, can impact insurance costs. Urban areas often have higher premiums due to increased traffic and a higher likelihood of accidents.
- Coverage Levels: The type and amount of coverage chosen, including liability limits, deductibles, and additional coverage options, influence the overall cost.
- Discounts: Students may qualify for discounts, such as good student discounts or discounts for completing driver’s education courses.
It’s best for college students to obtain quotes from multiple car insurance providers to find the most competitive costs based on their specific circumstances. Additionally, speaking with insurance agents can help students understand the available discounts and coverage options tailored to their needs.
Cheapest Car Insurance for College Students
The annual cost of adding a college student to a parent’s insurance plan is around $1,610.
Compare prices from USAA if you’re looking for affordable coverage to send your teen off to college. College students between the ages of 18 and 21 have the lowest average annual cost to add to their parents’ USAA insurance, at just $785.
Furthermore, if you’re not a member of the military or a veteran, you won’t have access to USAA’s low rates on car insurance, so your best bet is Geico. Costing an average of $1,061 per year, Geico’s added-student rate for college students is significantly less than the national average of $1,610.
Spending $4,689 annually for a personal car insurance policy is the norm for full-time college students.
Both USAA and GEICO, which cater to college students, offer the cheapest car insurance. Comparatively, a single student may expect to pay an average of $3,656 per year for auto insurance with Geico and an average of $2,933 per year with USAA. Although these fees may seem high when compared to some of our rivals, they may actually be quite reasonable.
What Do Parents Need to Know About Insuring a College Student?
When it comes to insurance, there are a number of considerations for parents sending a child off to college. It could be beneficial to sit down as a family and go over the policy so that everyone is familiar with the coverage and knows what to do if they ever need to make a claim.
#1. Consider Keeping Your College Student on Your Policy
A college student’s car insurance rates will go up if they are added to an existing policy, but this is still the most cost-effective way to ensure the student’s safety on the road. If the student and parent are co-owners of a car, the student may need to keep their name on the policy. The student can get insurance under their own name if they have their own vehicle, but the premiums will likely be higher. It is also possible to add the student to existing insurance, which would likely result in a lower premium.
#2. Tell Your Insurance Company When Your Child Starts College
Whether or not they plan to bring a car to school, it may be wise to keep your kid on your insurance coverage. It’s possible they could get a student rate that’s significantly cheaper. Additionally, dropping them from your insurance policy could cause a lapse in coverage, which could result in higher premiums if and when they are reinstated to the plan or if they decide to shop around for their own insurance.
#3. Think About the Job Situation for Your Student
Standard car insurance is likely to not be adequate coverage for college students who will have jobs that require them to drive, such as delivery drivers or for driving services like Uber. However, it is recommended that you contact your insurance provider to discuss the best way to ensure that your student is covered under your policy, as insurance providers may offer additional coverage alternatives.
#4. Educate Your Child on the Dangers of Renting a Car
Be sure your child knows that they are responsible for ensuring that anyone who operates their vehicle does so legally and with their permission. If the driver was under the influence, the insurance company would not be responsible for covering any expenditures; the vehicle’s owner would. You should expect your insurance company to reimburse you up to your policy’s maximum benefit amount if someone else uses your college student’s automobile and causes damage.
What Is the Best Insurance Company for International Students?
There isn’t a one-size-fits-all answer to the best insurance company for international students, as it depends on individual needs and circumstances. However, several reputable insurance providers offer plans specifically designed for international students. Some of these companies include:
- ISO Student Health Insurance: ISO offers various health insurance plans tailored for international students studying in the USA.
- StudyInsured: StudyInsured provides health insurance plans for international students studying in Canada. They offer coverage for medical emergencies, prescription drugs, and more.
- Guard.me: Guard.me specializes in providing health insurance for international students studying in various countries. They offer coverage for medical services, hospital stays, and other related expenses.
- Compass Benefits Group: Compass Benefits Group offers health insurance plans for international students studying in the USA. Their plans cover medical expenses, prescription drugs, and mental health services.
- Cultural Insurance Services International (CISI): CISI provides insurance coverage for international students studying in the USA. They offer comprehensive plans covering medical care, emergency evacuation, and repatriation.
When choosing an insurance provider, it’s essential for international students to carefully review the coverage options, policy limits, deductibles, and network of healthcare providers. Additionally, considering customer reviews and the provider’s reputation can help students make an informed decision about the best insurance company for their needs.
Best Car Insurance for College Students
The most affordable car insurance carriers for college students were USAA and State Farm, with monthly premiums between $200 and $275. These companies may not be ideal for you, though. The correct policy might help offset the high cost of college student auto insurance. Car insurance quotes from many providers should be compared often. Here are some of the best car insurance options for college students:
#1. Allstate
Allstate, a national leader in the car insurance industry, provides comprehensive plans as well as the most basic options. It provides its customers with roadside assistance services such as towing, battery jumpstarting, and flat tire changes. If you’re a student who drives for a TNC like Uber or Lyft, you might want to check out Allstate’s ridesharing insurance.
Allstate provides a wide variety of insurance protections, and it also provides valuable savings through promotions like:
- Students who maintain a B average, graduate from the teenSMART program, or go to college more than 100 miles from their home receive up to a 25% Smart Student Discount.
- College students who choose to live on campus and participate in the Milewise Program can reduce their monthly car insurance prices based on the number of miles they drive.
AM Best continues to provide Allstate with an A+ (superior) grade for financial stability.
A.M. Tops. “AM Best Affirms Credit Ratings of The Allstate Corporation and Its Key Subsidiaries.” In addition, J.D. Power’s 2021 Auto Claims Satisfaction Study ranked the company above the industry average.
Although Allstate provides online insurance quotes, customers must work with one of its 15,000 local agents in order to actually purchase coverage. Esurance, an affiliate of Allstate, provides similar services for those who want a digital-only interaction.
#2. GEICO
GEICO provides a wide range of insurance options. It provides not only the usual suite of car insurance plans but also renters’ and homeowners’ protection, as well as emergency roadside service and mechanical breakdown coverage.
In addition to its extensive protections, GEICO also provides its customers with approximately twenty different savings. Although the only discount tailored to college students is the 15% Good Student discount, students can still take advantage of other available discounts, such as those for safe vehicles, policy bundling, or long-term customer loyalty to GEICO.
Both clients and professionals in the field give GEICO excellent marks for its reliability as a business and the quality of the service it provides. AM Best continues to affirm the firm’s A++ financial strength rating.
In addition, J.D. Power’s 2021 Insurance Shopping Study ranked GEICO first overall. It’s essential to get a price online before switching insurance companies; nevertheless, students with a troublesome driving record (such as a history of speeding citations) may have problems obtaining GEICO coverage.
#3. State Farm
Currently, college students in 48 states and DC can get car insurance from State Farm.
As the largest insurer in the United States, State Farm naturally provides the most standard kind of car coverage. In addition, it provides ridesharing insurance for independent contractors like Lyft and Uber drivers, as well as roadside assistance, car rental, and travel expense reimbursement. State Farm provides a wide variety of coverage options at already reasonable rates by offering a variety of discounts. The organization offers an astounding 25% Good Student Discount for qualified high school and college students who maintain good marks, with the greatest savings going to college students.
Furthermore, when insuring a college student who uses their car only when they are home from school, State Farm provides a Student Away Discount to help families save money. In addition, drivers under the age of 25 who keep their records clean can benefit from State Farm’s Steer Clear discount.
Additionally well-regarded are State Farm’s financial stability and level of service. AM Best, which rates insurance companies, consistently gives it high marks.
According to the J.D. Power 2021 Auto Insurance Study, the company ranked third in the Mid-Atlantic, first in New York, and either average or above in the rest of the country.
State Farm, on the other hand, is not like other large insurance companies that operate out of a single location. It would rather have all of its insured drivers deal with a local agent in order to give the “good neighbor” experience it advertises. For students who must move hundreds of miles away from family to attend college, this may seem like a formidable challenge.
#4. USAA
For college students, USAA provides the bare bones of car insurance coverage. In addition to providing ridesharing insurance for Lyft and Uber drivers, the company also offers 24-hour roadside assistance, towing coverage, and more.
USAA is a one-stop shop for busy college students because it provides a wide variety of services and products, including banking and health insurance.
It provides substantial savings, although there aren’t many special offers for students. Members who previously had coverage under their parent’s policy when they purchased their own auto insurance are eligible for a 10% family discount and a good student discount from USAA.
USAA provides services in all 50 states, but membership is restricted to active-duty military personnel and their families. USAA does, however, include ROTC members in its eligibility list, so college students who intend to join the armed forces after graduation can still make use of USAA’s savings plans.
It consistently ranks at the top of the industry in terms of service quality and claim processing success. In its 2021 Claims Satisfaction Survey, J.D. Power ranked USAA among the highest, awarding it 909 out of 1,000 possible points. U.S. News & World Report also ranks USAA as its top choice for auto insurance in 2021.
(It is important to note that U.S. News also gave good marks to GEICO, Allstate, and State Farm.)
Do College Students Pay More for Car Insurance?
Do not assume that, since you are a college student, you will be required to pay thousands of dollars in premiums all at once. In order to retain students as customers for the long haul, several auto insurance providers provide preferential rates to those still in school. However, insurance companies view college students as a high-risk group due to their young age. Insurers view college students as a larger risk than people older than 25; as a result, those between the ages of 16 and 25 have to pay a higher premium.
College students may have to pay higher rates for car insurance, despite the fact that there are ways to earn lower premiums once they demonstrate they are safe, responsible drivers. It’s important to remember that insurance costs vary depending on a driver’s gender.
Who Qualifies for USA Insurance?
In the United States, insurance requirements differ across all policies. People who are eligible for health insurance in the United States include citizens, legal immigrants, and some non-citizens. Medicaid is a joint federal and state initiative that offers medical assistance to low-income families and individuals. Medicare is a federal health insurance program that mainly covers people 65 and up, but it does cover certain people under 65 who have disabilities. Individuals and families can also choose private health insurance policies.
For other forms of insurance, like car or home insurance, qualification criteria include things like driving history, vehicle type, and the state of the residence.
Be aware that some insurance companies and government websites may have more up-to-date information on specific eligibility requirements.
Car Insurance for College Students: Bottom Line
In conclusion, car insurance for college students can be worth it for several reasons. Firstly, having car insurance is a legal requirement in many places, so it’s necessary to avoid legal consequences. Secondly, car accidents can happen to anyone, regardless of age or experience, so having insurance provides financial protection in case of accidents, damage, or theft. Additionally, college students may qualify for discounts or special rates, making insurance more affordable. It ultimately depends on individual circumstances and the specific insurance options available, so it’s essential to research and choose a policy that suits your needs and budget.
about to embark on this next phase of your life. One thing that many new college students don’t think about is automobile insurance. Since most young drivers are protected by their parent’s policy during high school, it’s easy for both parents and students to forget about auto insurance until the student leaves for college. College students who are responsible for driving in a new area should familiarize themselves with the specifics of their car insurance policy. In this article, we will discuss the best car insurance for college students, the cost, and reviews of Geico car insurance for college students.
What is Car Insurance for College Students?
Car insurance for college students operates similarly to regular car insurance but is tailored to meet the specific needs and financial constraints of students. Insurance providers offer various policies, including liability coverage, which pays for damages or injuries caused to others in an accident where you are at fault. Additionally, there’s collision coverage, which pays for repairs to your own car after an accident, and comprehensive coverage, which covers non-collision events like theft or natural disasters.
For college students, car insurance costs can be high due to their limited driving experience and higher perceived risk. However, there are discounts available, such as good student discounts for maintaining a high GPA or discounts for completing defensive driving courses. Some students opt for usage-based insurance, where premiums are based on driving habits, potentially saving money for those who drive responsibly.
It’s crucial for college students to research different car insurance providers, compare quotes, and understand the coverage options. Additionally, students should be aware of the insurance requirements in their state and consider the potential financial impact of accidents or damages that may occur while driving. Responsible driving and maintaining a good academic record can help students obtain affordable car insurance rates.
Types of Car Insurance for College Students
There are several types of car insurance options available for college students:
- Liability Insurance: This covers injuries and property damage that you cause to others in an accident. It’s often required by law.
- Collision Insurance: This pays for repairs to your car if you’re in an accident, regardless of who is at fault.
- Comprehensive Insurance: This covers non-collision incidents such as theft, vandalism, or natural disasters.
- Uninsured or underinsured motorist coverage: This safeguards you in the event that a driver with insufficient or no insurance causes an accident.
- Personal Injury Protection (PIP): Also known as no-fault insurance, this covers medical expenses and other related costs for you and your passengers, regardless of who is at fault.
- Gap Insurance: If you total your car, gap insurance covers the difference between its value and your loan or lease balance.
- Usage-Based Insurance: This involves installing a device in your car to monitor your driving habits. Your premiums are based on your actual usage and driving behavior.
It’s impossible to predict what may happen while driving, especially if you’re in an unfamiliar area. Because of this, many college students will drive away from home for the first time; therefore, they need enough car insurance.
Having liability insurance is the bare minimum necessary to legally operate a car in the United States. If you’re involved in an accident, collision insurance can assist in covering the costs of repairs, regardless of who was to blame. If a tree limb fractures your windshield, comprehensive coverage will pay for the repairs.
Also, if you total your car in an accident and owe on your loan or lease, loan or lease payback coverage can help. Not all insurance companies include this coverage, so you should check with your agent to see whether you can add it.
Tips for Finding the Best Car Insurance for College Students
Here are some helpful tips for finding the best car insurance for college students:
#1. Quote Comparison
Car insurance costs might vary significantly from one provider to the next. College students need to know this in particular because of the higher prices they often face because of their younger age.
#2. Make Use of Price Discount
Students should inquire about price reductions for being a good student, studying away from home, or completing a driver’s education. It’s a good idea to call your insurance provider and ask about any savings you may be eligible for that aren’t tied to your academic status.
#3. Think About Your Insurance Choices
The basic liability rules in many states are not sufficient to protect you financially in the event of a severe accident. It is important to do your homework before deciding on the types and amounts of coverage you need because everyone’s situation is unique. As an illustration, full-coverage car insurance may not be worth the cost if you drive an older vehicle with little resale value.
#4. Use the Family Plan Wherever Possible
Most college students can continue to save money on car insurance by remaining on their parents’ plans. However, if a family member has a poor driving record or if you will be attending college in a state where auto insurance is less expensive, it may be more cost-effective for you to obtain your own policy. Your status as a dependent changes when you marry, have children, or relocate permanently, at which point you will need to obtain your own coverage.
How to Get Car Insurance for College Students
Getting car insurance as a college student is not much different than getting it for anyone else. First, you should look at the rates offered by other car insurance companies. What kind and how much protection you need are factors to think about. Given their inexperience behind the wheel, college students may benefit from purchasing supplementary insurance. Your risk of an accident increases when you drive in an unfamiliar location; purchasing some additional insurance could save you money in the event of an accident.
Once you get a few quotes, you can weigh the cost against the level of protection offered to determine which option offers the best value. You get to tailor your policy to your specific needs by determining factors like the deductible amount and the sort of coverage you want to have. These factors will have an impact on the cost of your auto insurance. Drivers with less experience pay more for insurance since they are more likely to be involved in an accident than more seasoned motorists.
Car Insurance for College Students Cost
The cost of car insurance for college students can vary widely based on several factors. These factors include:
- Age: Younger drivers, including college students, often pay higher premiums because they are considered higher risk due to less driving experience.
- Driving Record: A clean driving record with no accidents or traffic violations usually results in lower premiums, while a history of accidents or violations can increase costs.
- Type of Car: The make and model of the car, as well as its age and safety features, can affect insurance rates. Expensive or high-performance cars typically have higher premiums.
- Location: Where the student lives and drives, including the state and city, can impact insurance costs. Urban areas often have higher premiums due to increased traffic and a higher likelihood of accidents.
- Coverage Levels: The type and amount of coverage chosen, including liability limits, deductibles, and additional coverage options, influence the overall cost.
- Discounts: Students may qualify for discounts, such as good student discounts or discounts for completing driver’s education courses.
It’s best for college students to obtain quotes from multiple car insurance providers to find the most competitive costs based on their specific circumstances. Additionally, speaking with insurance agents can help students understand the available discounts and coverage options tailored to their needs.
Cheapest Car Insurance for College Students
The annual cost of adding a college student to a parent’s insurance plan is around $1,610.
Compare prices from USAA if you’re looking for affordable coverage to send your teen off to college. College students between the ages of 18 and 21 have the lowest average annual cost to add to their parents’ USAA insurance, at just $785.
Furthermore, if you’re not a member of the military or a veteran, you won’t have access to USAA’s low rates on car insurance, so your best bet is Geico. Costing an average of $1,061 per year, Geico’s added-student rate for college students is significantly less than the national average of $1,610.
Spending $4,689 annually for a personal car insurance policy is the norm for full-time college students.
Both USAA and GEICO, which cater to college students, offer the cheapest car insurance. Comparatively, a single student may expect to pay an average of $3,656 per year for auto insurance with Geico and an average of $2,933 per year with USAA. Although these fees may seem high when compared to some of our rivals, they may actually be quite reasonable.
What Do Parents Need to Know About Insuring a College Student?
When it comes to insurance, there are a number of considerations for parents sending a child off to college. It could be beneficial to sit down as a family and go over the policy so that everyone is familiar with the coverage and knows what to do if they ever need to make a claim.
#1. Consider Keeping Your College Student on Your Policy
A college student’s car insurance rates will go up if they are added to an existing policy, but this is still the most cost-effective way to ensure the student’s safety on the road. If the student and parent are co-owners of a car, the student may need to keep their name on the policy. The student can get insurance under their own name if they have their own vehicle, but the premiums will likely be higher. It is also possible to add the student to existing insurance, which would likely result in a lower premium.
#2. Tell Your Insurance Company When Your Child Starts College
Whether or not they plan to bring a car to school, it may be wise to keep your kid on your insurance coverage. It’s possible they could get a student rate that’s significantly cheaper. Additionally, dropping them from your insurance policy could cause a lapse in coverage, which could result in higher premiums if and when they are reinstated to the plan or if they decide to shop around for their own insurance.
#3. Think About the Job Situation for Your Student
Standard car insurance is likely to not be adequate coverage for college students who will have jobs that require them to drive, such as delivery drivers or for driving services like Uber. However, it is recommended that you contact your insurance provider to discuss the best way to ensure that your student is covered under your policy, as insurance providers may offer additional coverage alternatives.
#4. Educate Your Child on the Dangers of Renting a Car
Be sure your child knows that they are responsible for ensuring that anyone who operates their vehicle does so legally and with their permission. If the driver was under the influence, the insurance company would not be responsible for covering any expenditures; the vehicle’s owner would. You should expect your insurance company to reimburse you up to your policy’s maximum benefit amount if someone else uses your college student’s automobile and causes damage.
What Is the Best Insurance Company for International Students?
There isn’t a one-size-fits-all answer to the best insurance company for international students, as it depends on individual needs and circumstances. However, several reputable insurance providers offer plans specifically designed for international students. Some of these companies include:
- ISO Student Health Insurance: ISO offers various health insurance plans tailored for international students studying in the USA.
- StudyInsured: StudyInsured provides health insurance plans for international students studying in Canada. They offer coverage for medical emergencies, prescription drugs, and more.
- Guard.me: Guard.me specializes in providing health insurance for international students studying in various countries. They offer coverage for medical services, hospital stays, and other related expenses.
- Compass Benefits Group: Compass Benefits Group offers health insurance plans for international students studying in the USA. Their plans cover medical expenses, prescription drugs, and mental health services.
- Cultural Insurance Services International (CISI): CISI provides insurance coverage for international students studying in the USA. They offer comprehensive plans covering medical care, emergency evacuation, and repatriation.
When choosing an insurance provider, it’s essential for international students to carefully review the coverage options, policy limits, deductibles, and network of healthcare providers. Additionally, considering customer reviews and the provider’s reputation can help students make an informed decision about the best insurance company for their needs.
Best Car Insurance for College Students
The most affordable car insurance carriers for college students were USAA and State Farm, with monthly premiums between $200 and $275. These companies may not be ideal for you, though. The correct policy might help offset the high cost of college student auto insurance. Car insurance quotes from many providers should be compared often. Here are some of the best car insurance options for college students:
#1. Allstate
Allstate, a national leader in the car insurance industry, provides comprehensive plans as well as the most basic options. It provides its customers with roadside assistance services such as towing, battery jumpstarting, and flat tire changes. If you’re a student who drives for a TNC like Uber or Lyft, you might want to check out Allstate’s ridesharing insurance.
Allstate provides a wide variety of insurance protections, and it also provides valuable savings through promotions like:
- Students who maintain a B average, graduate from the teenSMART program, or go to college more than 100 miles from their home receive up to a 25% Smart Student Discount.
- College students who choose to live on campus and participate in the Milewise Program can reduce their monthly car insurance prices based on the number of miles they drive.
AM Best continues to provide Allstate with an A+ (superior) grade for financial stability.
A.M. Tops. “AM Best Affirms Credit Ratings of The Allstate Corporation and Its Key Subsidiaries.” In addition, J.D. Power’s 2021 Auto Claims Satisfaction Study ranked the company above the industry average.
Although Allstate provides online insurance quotes, customers must work with one of its 15,000 local agents in order to actually purchase coverage. Esurance, an affiliate of Allstate, provides similar services for those who want a digital-only interaction.
#2. GEICO
GEICO provides a wide range of insurance options. It provides not only the usual suite of car insurance plans but also renters’ and homeowners’ protection, as well as emergency roadside service and mechanical breakdown coverage.
In addition to its extensive protections, GEICO also provides its customers with approximately twenty different savings. Although the only discount tailored to college students is the 15% Good Student discount, students can still take advantage of other available discounts, such as those for safe vehicles, policy bundling, or long-term customer loyalty to GEICO.
Both clients and professionals in the field give GEICO excellent marks for its reliability as a business and the quality of the service it provides. AM Best continues to affirm the firm’s A++ financial strength rating.
In addition, J.D. Power’s 2021 Insurance Shopping Study ranked GEICO first overall. It’s essential to get a price online before switching insurance companies; nevertheless, students with a troublesome driving record (such as a history of speeding citations) may have problems obtaining GEICO coverage.
#3. State Farm
Currently, college students in 48 states and DC can get car insurance from State Farm.
As the largest insurer in the United States, State Farm naturally provides the most standard kind of car coverage. In addition, it provides ridesharing insurance for independent contractors like Lyft and Uber drivers, as well as roadside assistance, car rental, and travel expense reimbursement. State Farm provides a wide variety of coverage options at already reasonable rates by offering a variety of discounts. The organization offers an astounding 25% Good Student Discount for qualified high school and college students who maintain good marks, with the greatest savings going to college students.
Furthermore, when insuring a college student who uses their car only when they are home from school, State Farm provides a Student Away Discount to help families save money. In addition, drivers under the age of 25 who keep their records clean can benefit from State Farm’s Steer Clear discount.
Additionally well-regarded are State Farm’s financial stability and level of service. AM Best, which rates insurance companies, consistently gives it high marks.
According to the J.D. Power 2021 Auto Insurance Study, the company ranked third in the Mid-Atlantic, first in New York, and either average or above in the rest of the country.
State Farm, on the other hand, is not like other large insurance companies that operate out of a single location. It would rather have all of its insured drivers deal with a local agent in order to give the “good neighbor” experience it advertises. For students who must move hundreds of miles away from family to attend college, this may seem like a formidable challenge.
#4. USAA
For college students, USAA provides the bare bones of car insurance coverage. In addition to providing ridesharing insurance for Lyft and Uber drivers, the company also offers 24-hour roadside assistance, towing coverage, and more.
USAA is a one-stop shop for busy college students because it provides a wide variety of services and products, including banking and health insurance.
It provides substantial savings, although there aren’t many special offers for students. A 10% family discount and a good student discount are available to new USAA auto policyholders who were previously covered under their parents’ policy.
USAA provides services in all 50 states, but membership is restricted to active-duty military personnel and their families. USAA does, however, include ROTC members in its eligibility list, so college students who intend to join the armed forces after graduation can still make use of USAA’s savings plans.
Also, USAA Auto Insurance consistently ranks at the top of the industry in terms of service quality and claim processing success. In its 2021 Claims Satisfaction Survey, J.D. Power ranked USAA among the highest, awarding it 909 out of 1,000 possible points. U.S. News & World Report also ranks USAA as its top choice for auto insurance in 2021.
(It is important to note that U.S. News also gave good marks to GEICO, Allstate, and State Farm.)
Do College Students Pay More for Car Insurance?
Do not assume that, since you are a college student, you will be required to pay thousands of dollars in premiums all at once. In order to retain students as customers for the long haul, several auto insurance providers provide preferential rates to those still in school. However, insurance companies view college students as a high-risk group due to their young age. Insurers view college students as a larger risk than people older than 25; as a result, those between the ages of 16 and 25 have to pay a higher premium.
College students may have to pay higher rates for car insurance, despite the fact that there are ways to earn lower premiums once they demonstrate they are safe, responsible drivers. It’s important to remember that insurance costs vary depending on a driver’s gender.
Who Qualifies for USA Insurance?
In the United States, insurance requirements differ across all policies. People who are eligible for health insurance in the United States include citizens, legal immigrants, and some non-citizens. Medicaid is a joint federal and state initiative that offers medical assistance to low-income families and individuals. Medicare is a federal health insurance program that mainly covers people 65 and up, but it does cover certain people under 65 who have disabilities. Individuals and families can also choose private health insurance policies.
For other forms of insurance, like car or home insurance, qualification criteria include things like driving history, vehicle type, and the state of the residence.
Be aware that some insurance companies and government websites may have more up-to-date information on specific eligibility requirements.
Car Insurance for College Students: Bottom Line
In conclusion, car insurance for college students can be worth it for several reasons. Firstly, having car insurance is a legal requirement in many places, so it’s necessary to avoid legal consequences. Secondly, car accidents can happen to anyone, regardless of age or experience, so having insurance provides financial protection in case of accidents, damage, or theft. Additionally, college students may qualify for discounts or special rates, making insurance more affordable. It ultimately depends on individual circumstances and the specific insurance options available, so it’s essential to research and choose a policy that suits your needs and budget.
Frequently Asked Questions
What is the most basic car insurance called?
Basic car insurance is often known as liability insurance. Basic car insurance typically consists of two types of liability coverage: bodily injury and property damage.
Can I go to USA without insurance?
It’s not mandatory to have travel insurance to visit the USA; you can travel without it if you want.
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