If you’re going away to college and intend to bring a car, make sure to examine how this may affect your car insurance. You may need to get your own car insurance policy, or you may be eligible to stay on your parent’s policy if certain conditions are met. Having the proper coverage in place will help ensure that you are protected in the event of an accident.
You may be looking for ways to save if you are a teen driver or have a minor driver listed on your policy. Adding a younger driver can raise the cost of car insurance, but the good news is that certain firms offer lower average rates for college students (like students living at home) than others. Furthermore, numerous businesses provide competitive college students’ car insurance discounts.
Best Car Insurance for College Students
While many of the best car insurance providers offer college students discounts, some are more generous than others. According to 2023 auto insurance rate data obtained by Quadrant Information Services, Businessyield’s insurance editorial team picked the five best car insurance providers that offer lower-than-average rates to college-aged drivers on their parent’s policy.
Cheapest for College Students – Geico
Geico’s low rates and a plethora of discounts make it the finest affordable car insurance company for college students in our opinion.
While quotes vary based on where you live, Geico routinely provides affordable auto insurance rates to college-aged drivers.
Geico also provides discounts to members of college-related organizations like as alumni clubs, fraternities, and sororities. So, if you’re a college student participating on campus, you might be able to get good, discounted vehicle insurance rates. To discover if you qualify, get a quotation online by selecting the button above or chat with an insurance agent.
Cost of full coverage car insurance for young drivers in college
| Insurer | Six-month premium |
| Geico | $388 |
| Nationwide | $478 |
| Progressive | $590 |
| State Farm | $644 |
| Allstate | $872 |
Best for discounts: State Farm
State Farm provides a broad range of vehicle insurance discounts to all of its customers, but some of the finest ones are reserved for student drivers.
State Farm’s good-student discount provides eligible college students with annual auto insurance savings of up to 25%. The eligibility standards vary by state, but normally the driver must be a full-time student with at least a 3.0 grade point average (out of 4.0). Fortunately, the discount is available until drivers reach the age of 25, even if they graduate from college before then.
State Farm’s student away-at-school discount is ideal for college students who live on campus and do not need a car. It provides discounts to drivers who reside more than 100 miles away and keeps their cars at home. College students are only eligible for the discount if they drive their car while on vacation or during a holiday.
State Farm’s Steer Clear program allows all drivers under the age of 25 to save money on auto insurance. Drivers can examine and enhance their driving skills by using educational resources and self-logging noteworthy events that occur throughout their journeys. If they do not commit any violations or have any accidents on their journeys, they will be eligible for a discount.
Best option for infrequent drivers – Metromile
Metromile is an excellent insurance provider for college students who drive seldom but still want the convenience of owning a car at school.
Drivers can enter their current auto insurance costs into Metromile’s pricing system to compare and determine whether switching companies make sense. Your monthly premium will be made up of a basic cost and a per-mile fee, so less driving equals reduced insurance rates. Metromile promises that its insurance will save you money if you travel less than 12,000 miles per year, which is the national average.
Depending on the state, Metromile does not charge policyholders for driving more than 250 miles each day. College students or new drivers can think of this as a cap on the amount they can be charged if they opt to drive home or on a road trip. Metromile will not charge drivers in New Jersey for more than 150 kilometers per day.
The company’s main disadvantage is its restricted availability.
Metromile is currently only available in the following states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. If Metromile isn’t accessible where you live, check with your insurance provider about a low-mileage discount, which is available from most car insurance carriers.
Best smartphone apps – Allstate
College students are constantly on the go, therefore they require an insurer with sophisticated mobile apps. Allstate provides two options for drivers: Allstate Mobile and QuickTrip.
Allstate Mobile allows users to view their plan information, manage claims, and contact an insurance agent in real time. The best aspect is that you may file a claim directly from the app. This saves you from making extended phone conversations during a difficult period.
The QuickTrip app from Allstate is a trip optimizer that saves time and mileage. Drivers can add as many sites as they want, and the app will calculate the best multi-stop route for the day. This is an excellent supplementary benefit for college students, particularly those with demanding schedules.
While Allstate has excellent mobile apps, it also has a large network of agents that can answer your questions in person. This might be a tremendous help for college students who are inexperienced with the complexities of their auto insurance coverage.
However, college students should be aware that Allstate’s premiums are frequently among the most expensive among major insurers. As a result, student drivers must carefully assess how they will prioritize service quality over cost.
Allstate has nearly 12,000 exclusive agencies around the country, so there is most certainly one near you. Finally, Allstate provides an excellent smartphone experience while still providing excellent in-person help.
How to Save Money on Car Insurance for College Students
Consider the techniques outlined below to save money on student car insurance whether you’re a college student with a car on campus or the parent of one.
It’s also important to remember that not all college students will pay the same amount for car insurance, as younger drivers typically pay more than older drivers. An 18-year-old college student, for example, will almost certainly pay substantially more than a 25-year-old.
| Age | Six-month premium |
| 18 | $3,590 |
| 19 | $3,009 |
| 20 | $2,667 |
| 21 | $2,227 |
| 22 | $2,064 |
| 23 | $1,920 |
| 24 | $1,799 |
| 25 | $1,604 |
#1. Maintain the student on the parents’ policy.
Having a college student on their parents’ policy should result in lower auto insurance premiums for the family in general, especially if the other members of the family have good driving records. Auto coverage in a parent’s name is typically less expensive because the parents have a long history with the insurance company.
On the other hand, a college student on the family policy may hike rates for the parents if they get into an accident behind the wheel. We recommend looking into the cost of an individual policy for the student as well as pricing for putting (or keeping) them on the family policy.
If students are attending college far away from home, their insurer may compel them to get a separate car insurance policy. While some firms are more accommodating to young drivers who remain on their parent’s policies, it is still critical to be upfront. If you file a claim on your parents’ policy and your insurer is unaware that you have moved out, your claim may be denied or even canceled. As a result, it’s usually preferable to consult with your carrier about your possibilities.
#2. College students’ car insurance discounts.
Many insurance companies provide discounts to college students if you (or your parents) want to save money on your car insurance rate now that you’re in college.
1. Resident Student Discount
If your car is titled in your mother or father’s name and you leave it at their house while you reside on campus, you may be able to save them a few dollars. If your college is more than 100 miles away, your parents may be eligible for the “resident student” discount because you won’t be using the family car as often now that you’re at school.
2. Good Grades Discount
The benefits of good grades on your car insurance policy do not end when you graduate from high school. Most insurance companies provide a good student discount for single, full-time students under the age of 25. If you continue to obtain good grades in your further education courses, ask your agent if you qualify for a discount on your car insurance premium.
3. Multiple Policy Discount
College students who rent an apartment and have their own auto insurance policy may be eligible for a discount by bundling their car insurance and renters insurance policies. Many insurers provide discounts to consumers who have multiple policies with them.
4. Anti-theft Devices Discount
Before relocating, it’s a good idea to look into local crime statistics. This may assist you in choosing an apartment in a safer neighborhood and preparing for life in your new surroundings. If you’re heading away to college with your car, now might be a good time to get an anti-theft device for it. This may reduce the likelihood of your belongings being stolen and may also result in a discount on your car insurance.
There is no one-size-fits-all car insurance recommendation for college students. Each student has unique demands, which may influence the level of coverage required and the monetary amount of the premium. Speak with your insurance provider to develop a policy that meets your needs.
Car Insurance For College Students Away From Home
Most states allow out-of-state college students to remain on their parent’s car insurance as long as their primary address remains at their parents’ home. You may be required to obtain your own policy instead, depending on your state, insurer, and other considerations. After you’ve clarified the following, your insurer can tell you if you’ll need your own policy:
- If you’re driving to college (and who owns it)
- The ZIP code in which the car will be parked
- Whether you are on or off campus,
Car Insurance for International Students
Unless you are a U.S. student traveling to Canada, car insurance does not cover drivers abroad. If you’re studying in another nation, you’ll need your own car insurance policy that covers you everywhere you go. Find out more about foreign car insurance.
Car Insurance For College Students at Home
If you visit home on weekends or school holidays and drive your parents’ cars, you should continue on your parent’s car insurance policy as a college student. Progressive, in fact, mandates college students who are away from home but occasionally drive their parents’ automobiles to be on their parent’s car insurance policy.
Is there an age limit for students to remain on their parent’s car insurance?
The rules for car insurance are the same whether you’re an 18-year-old living at home, a 19-year-old college student, or an adult living with your parents. You can continue to share a car insurance policy regardless of your age if you share a permanent address or if the car is usually parked overnight at your parent’s house.
What is the procedure for adding a college student to my car insurance policy?
If you intend to add or keep a college student on your policy, notify your car insurance company before your child moves out. You must supply the ZIP code of the college, confirm that your home is still your student’s primary residence, and go over any limits for covering out-of-state students.
Other insurance that college students may require
In addition to obtaining the appropriate types and amounts of car insurance, college students may want to consider purchasing the following types of coverage to assist protect their family’s finances.
#1. Renters insurance:
Your college student may or may not be protected by your homeowner’s or renter’s insurance policy, so check with your insurance agent. This insurance may assist pay for the repair or replacement of damaged or stolen belongings, or it may pay out if a visitor is wounded in your child’s space. It may also cover living expenses if a student’s off-campus residence or rental house becomes uninhabitable while repairs are being completed following a covered loss.
#2. Life insurance:
If you co-signed student loans for your college student, you may want to have that loan protected by life insurance if they pass away. A term life insurance policy, which is usually affordable and only lasts for a set number of years, is one alternative. You will need your adult child’s permission to acquire a life insurance policy.
Who Has the Cheapest Car Insurance for College Students?
The auto insurance policies offered by AAA, USAA, and Travelers are among the most affordable for college students. These three firms charge an average of $850 per year for coverage, which is less than the cost of the typical student’s policy overall. Car insurance for college students is more expensive than it is for older drivers; nevertheless, students can save money by shopping around for better deals and comparing different estimates.
How Much Is the Average Car Insurance for a College Student?
The annual premium for auto insurance for a college student is approximately $1,257, which breaks down to approximately $105 per month. College students may not pay as much for coverage as younger teens, but they normally pay higher auto insurance premiums than more experienced drivers due to their age and relative lack of driving experience. This is because college students typically have less driving experience than younger teens.
Do College Students Need Car Insurance?
Every state has a minimum requirement for liability insurance for motor vehicles, with the exception of New Hampshire and Virginia. Even if your state does not mandate the purchase of auto insurance, it is still a prudent investment, particularly if you have younger drivers in your household.
Why Is Car Insurance More Expensive for College Students?
Because young drivers have less experience on the road and are at a higher risk for accidents, the average cost of vehicle insurance for young drivers is higher. This includes the costs associated with college students who drive. According to the findings of the Insurance Institute for Highway Safety, drivers between the ages of 16 and 19 have a higher risk of being involved in a fatal collision for every mile driven compared to drivers who are 20 years or older.
Do College Students Need Car Insurance?
All but two states mandate drivers to have auto insurance at all times they are operating a motor vehicle on public roads. A college student needs to be listed as a driver on the family’s auto insurance policy even if he or she will only be driving the car during vacations at home.
Be aware that some universities have strict policies that prevent first-year students from using campus parking. Know the rules of your school before you get in trouble.
Do College Students Get Discounts on Car Insurance?
While the specifics of student discounts on auto insurance can vary widely from company to company, there are many options for saving money. One common incentive is to reward good academic performance by lowering rates for students who keep their GPA above a certain threshold. In addition, some insurance companies provide special discounts to full-time college students who live off campus and use the family car only on rare occasions.
Can College Students Stay on Their Parents’ Insurance?
It’s possible for college kids to keep their auto coverage with their parents. Significant savings may result, but before applying, families should verify that they qualify.
In most cases, a student who is living at home and driving a vehicle that is titled to a parent can remain covered by that parent’s auto insurance policy. For students living in a dorm or attending school out of state, this is a common concern. Many auto insurance providers, however, will not cover a student if their name is on the title of the car and their primary address is different from their parents’ primary residence. Make no assumptions about your policy or what is and is not covered without first consulting the company you use.
Car Insurance For College Students FAQs
Why is car insurance so expensive for college students?
Students tend to pay higher rates for coverage because they are young, and insurance companies consider young drivers to be riskier.
Can I stay on my parents car insurance if I'm in college?
If you live at home or are a full-time college student, you can normally remain on your parent’s car insurance policy as a listed driver. That implies you’re still protected if you drive your parents’ cars.
Can I insure my car under my parents name?
You cannot be on your parent’s car insurance if the car is registered to you and you are the only owner. Your parents will be unable to insure your car unless they are identified as owners.
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