Auto insurance for college students
Once you're 18 and away at college, you have the option of having your own car insurance policy or staying on your parents' insurance.
Teen drivers generally start on their parents’ or guardians’ car insurance, but things may change when they start college.
Many students head off to college without a car, but still come home on breaks and need to be insured. Others take a car along. There are coverage options and discounts for both situations, whether on a solo policy or a parent's auto insurance policy.
How much is car insurance for college students?
Rates vary by company and by age; the older you are, the less you will pay for insurance. Below are average rates from the largest car insurance companies based on a full coverage policy, with coverage levels of 100/300/100 and $500 deductibles.
| Company | 18-year-old driver | 19-year-old driver | 20-year-old driver | 21-year-old driver |
|---|---|---|---|---|
| State Farm | $1,195 | $1,003 | $887 | $757 |
| Progressive | $2,015 | $1,252 | $1,110 | $874 |
| Geico | $919 | $719 | $634 | $503 |
| Allstate | $1,544 | $1,077 | $936 | $747 |
| USAA | $851 | $643 | $579 | $457 |
Cheapest car insurance for college students
The cheapest car insurance for a college student will depend on a few factors, including where you live and your age. On average, Travelers has the cheapest car insurance for college students, with an average rate of $4,296 at age 18; by age 21, Nationwide is the cheapest at $2,551. If you qualify, USAA is cheaper.
| Age | Company | Average annual rates |
|---|---|---|
| 18-year-old | Travelers | $4,296 |
| 18-year-old | Geico | $4,644 |
| 18-year-old | State Farm | $5,077 |
| 18-year-old | Nationwide | $5,173 |
| 18-year-old | Allstate | $6,871 |
| 18-year-old | Progressive | $7,037 |
| 18-year-old | Farmers | $7,903 |
| 18-year-old | USAA | $3,790 |
| 19-year-old | Travelers | $3,476 |
| 19-year-old | Geico | $3,759 |
| 19-year-old | Nationwide | $4,209 |
| 19-year-old | State Farm | $4,353 |
| 19-year-old | Progressive | $4,591 |
| 19-year-old | Farmers | $5,155 |
| 19-year-old | Allstate | $5,170 |
| 19-year-old | USAA | $3,017 |
| 20-year-old | Travelers | $3,108 |
| 20-year-old | Geico | $3,387 |
| 20-year-old | Nationwide | $3,652 |
| 20-year-old | State Farm | $3,922 |
| 20-year-old | Progressive | $4,171 |
| 20-year-old | Farmers | $4,715 |
| 20-year-old | Allstate | $4,728 |
| 20-year-old | USAA | $2,757 |
| 21-year-old | Nationwide | $2,551 |
| 21-year-old | Travelers | $2,562 |
| 21-year-old | Geico | $2,764 |
| 21-year-old | State Farm | $3,367 |
| 21-year-old | Progressive | $3,401 |
| 21-year-old | Farmers | $3,728 |
| 21-year-old | Allstate | $3,896 |
| 21-year-old | USAA | $2,179 |
Tips for buying car insurance for college students
College students have to shop carefully if they want good, affordable coverage. Here are five tips to help college students find the right car insurance policy.
Understand what type of insurance you need
Before you shop for car insurance, make sure you know what type of coverage you need. For example:
- Can you get by with the minimum liability coverage, or do you need more protection?
- Should you skip collision and comprehensive insurance, or do you need to add it?
- Does it make sense to pay for optional coverage, such as gap insurance or roadside assistance?
Find a good insurance agent
Shopping for auto insurance can be confusing and challenging. A little extra help from an expert can make a big difference.
“We always recommend working with a qualified agent to ensure your policy is appropriate for your insurance needs,” says Justin Yoshizawa, director of product management at Mercury Insurance.
Shop around
As with almost any product, shopping around is the best way to get a great deal.
“Make sure you shop around with multiple carriers to get the best rates and coverages,” Yoshizawa says.
Insurers all have their own individual models for determining how much to charge, and you’ll get a better deal with some insurers than with others.
Ask about student discounts
Before you buy a car insurance policy, make sure you ask about discounts. Lots of insurance companies offer price breaks to students who meet specific qualifications.
“We have a number of ways for college-aged students to save money,” Yoshizawa says.
For example, nearly every insurance company has discounts for students who maintain good grades (good student discount) and a telematics program that rewards those who drive safely.
Most insurance companies also offer discounts on car insurance for college students away from home.
Don’t buy your own insurance policy
Staying on your parents’ or guardians’ insurance policy is usually a better and cheaper option than buying individual coverage for yourself. If you can, stick with their policy.
How to get cheap car insurance for college students
The best way to get cheap car insurance if you’re a college student is to shop around and compare quotes from various insurers. However, other factors also determine how much a college student will pay for insurance coverage.
A college student’s permanent residence will help decide how expensive coverage will be. Students who live at home and commute to school can stay on their parents’ or guardians’ policy. The cost of coverage this way will likely be lower than if they have to get their own policy.
Students who live on campus may still be able to stay on their parents’ or guardians’ policy. Check with your insurer to find out.
Another thing to keep in mind is whose name is on the car title. Students who own a vehicle will likely have to get a policy in their own name.
Car insurance discounts for college students
College students can cut costs by taking advantage of several car insurance discounts. Take a look at some common discounts and the average savings for each, based on 2022 Insurance.com data:
Student away at school discount. If you are the parent of a student who is going away to school and not taking a car, your insurer may cut you a break on your rates. Discounts on car insurance for college students away from home are generally reserved for students who attend a school at least 100 miles from home. The average savings is 16%.
Good student discount. Unmarried, full-time students may get a price break on insurance premiums if they get good grades in their college classes. This discount is typically available up to the age of 25. The GPA requirement can vary, but a 3.0 is common. The average savings is 14%.
Discount for bundling coverage. College students who purchase renters and auto insurance from the same insurer may get a multi-policy discount. The average savings is 9%.
Anti-theft and safety devices discount. Some insurers may offer a price break to students who have cars with anti-theft and safety devices. Savings range from 1-3%.
Methodology
Insurance.com commissioned discount information in 2023 from Quadrant Data Solutions, fielded from a survey of 170 insurance companies in all 50 states and D.C. Rates were fielded for ages 18 through 21 and are an average of male and female driver costs. Discounts are based on a full coverage policy for an 18-year-old driver, with the exception of the student away discount; this is applied to the adult’s policy and is based on a 40-year-old driver. Rates are based on a Honda Accord LX and a clean driving record with good credit.
Source
- Student Insurance - Insurance Information Institute (III)
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