Best car insurance for college students: Travelers
The best car insurance company for college students among national carriers is Travelers, with a score of 4.53 out of 5. GEICO is second at 4.41, and Nationwide is third.
Rates are important, but college is stressful enough without worrying if your car insurance company has your back. To find the best car insurance for college students, we ranked car insurance companies based on National Association of Insurance Commissioners (NAIC) complaints data, AM Best financial stability ratings, and average rates for college students aged 18 through 21.
| Company | NAIC | AM Best | Survey Score | Average annual premium* | Insurance.com score |
|---|---|---|---|---|---|
| Travelers | 0.60 | A++ | 4.41 | $2,365 | 4.53 |
| GEICO | 0.60 | A++ | 4.26 | $2,919 | 4.41 |
| Nationwide | 0.64 | A | 4.41 | $2,732 | 4.32 |
| State Farm | 0.87 | A+ | 4.37 | $3,072 | 4.24 |
| Allstate | 1.20 | A+ | 4.35 | $4,137 | 3.94 |
| Progressive | 0.60 | A+ | 4.15 | $5,187 | 3.94 |
| Farmers | 1.24 | A | 4.31 | $4,237 | 3.89 |
| USAA** | 1.16 | A++ | 4.55 | $2,780 | 4.32 |
*on a parent's policy, full coverage with 100/300/100 liability and $500 deductibles
**USAA is only available to military members, veterans and qualifying family members
The three best car insurance companies for college students
Travelers, GEICO and Nationwide are the three best nationally available car insurance companies for college students, based on Insurance.com rate and survey data, NAIC complaints data and AM Best financial stability scores.
Travelers Insurance
Travelers has the cheapest rates of all of the national companies we ranked, averaging $2,365 a year on a parent's policy, and offers the following discounts that college students can take advantage of:
- Good student (6%), for students with a B average (3.0 GPA) or better, or in the upper 20% of the class
- Student away at school (6%), for students at school more than 100 miles away from home without a car
- Driver training (4%), for students who complete an approved course
GEICO
Our No. 2 company for college student car insurance, GEICO has average rates of $2,919 a year and offers the following discounts for college students:
- Good student (8%), for students with a B average or better
- Student away from home (19%), for students at school more than 100 miles away
- Driver training (10%), for completing an approved course
- Student organization/group/alumni, for members of certain school groups
Nationwide
In third place with average annual rates of $2,732, Nationwide offers a solid good student discount at 17%, but a lower student-away discount. You may qualify for the following:
- Good student (17%), for students aged 18 to 24 with a B average or better
- Student away from home (3%), for students away at school more than 100 miles from home
- Safe driver, for students with no at-fault accidents or major violations in the past five years
How much is car insurance for college students?
The average car insurance cost for college students is $3,792 at age 18 and goes down to $2,866 at age 21, when on a parent's policy. On a solo policy, the average cost for an 18-year-old is $7,498 a year.
Here's a look at the cost of car insurance for a college student on a parent's policy from age 18 to 21.
| Age | Average annual premium: parents and student together | Average annual premium: student cost on parent's policy | Avg annual premium, solo policy |
|---|---|---|---|
| 18 | $6,865 | $3,792 | $7,498 |
| 19 | $6,645 | $3,572 | $5,718 |
| 20 | $6,361 | $3,288 | $5,173 |
| 21 | $5,939 | $2,866 | $4,215 |
Best car insurance for college students away from home
GEICO is the best car insurance company for college students away from home among national carriers, coming out on top when the student away discount is factored into the scoring. That's based on our analysis of rates, customer satisfaction, financial stability and the student away from home discount. Travelers comes in second.
| Company | NAIC | AM Best | Survey Score | Average annual premium, with student away discount | Student away discount % | Insurance.com score |
|---|---|---|---|---|---|---|
| GEICO | 0.60 | A++ | 4.31 | $1,818 | 19% | 4.57 |
| Travelers | 0.62 | A++ | 4.36 | $2,115 | 6% | 4.56 |
| State Farm | 0.87 | A+ | 4.37 | $1,514 | 26% | 4.47 |
| Nationwide | 0.64 | A | 4.41 | $2,556 | 3% | 4.34 |
| Allstate | 1.20 | A+ | 4.35 | $3,437 | 8% | 4.04 |
| Progressive | 0.60 | A+ | 4.15 | $5,187 | 0% | 3.93 |
| Farmers | 1.24 | A | 4.31 | $3,709 | 6% | 3.88 |
| USAA* | 1.16 | A++ | 4.55 | $2,780 | 0% | 4.32 |
*USAA is only available to military members, veterans and qualifying family members.
Cheap car insurance for college students
Erie Insurance has the cheapest car insurance for college students at $1,379 a year on a parent's policy, but is a regional carrierAn insurance carrier is the company that provides your car insurance policy and pays claims.. Travelers is the cheapest among national carriers at $2,365 a year.
Compare rates below for a full coverage policy by carrier, with 100/300/100 liability limits and $500 deductibles.
| Company | Parents alone | College student on parents' policy: additional cost | College student on their own policy |
|---|---|---|---|
| Erie Insurance | $2,070 | $1,379 | $3,754 |
| Travelers | $2,164 | $2,365 | $4,285 |
| Auto Club Group (AAA) | $2,224 | $2,452 | $4,130 |
| Nationwide | $2,932 | $2,732 | $6,543 |
| GEICO | $2,748 | $2,919 | $4,558 |
| Auto-Owners | $2,637 | $2,971 | $4,617 |
| State Farm | $3,047 | $3,072 | $6,086 |
| Mercury Insurance | $3,222 | $3,634 | $7,670 |
| Allstate | $4,271 | $4,137 | $6,615 |
| Farmers | $4,090 | $4,237 | $7,636 |
| Auto Club Enterprises (AAA) | $4,426 | $4,493 | $8,087 |
| Amica | $3,453 | $4,567 | $6,791 |
| Progressive | $2,566 | $5,187 | $6,177 |
| American Family | $5,061 | $6,682 | $7,062 |
| CSAA Insurance (AAA) | $3,324 | $6,769 | $6,784 |
| USAA | $1,574 | $2,780 | $3,637 |
Car insurance discounts for college students
Most car insurance companies offer multiple discounts that can help students save money. Here are some common types of discounts to ask insurance companies about.
Good student discount
Students who maintain a certain academic standard, such as a 3.0 GPA, are often eligible for a discount. The average good student discount is 14%, although Nationwide offers an average discount of 17%.
Student away discount
College students who are attending school more than 100 miles away from home may be eligible for this discount. State Farm has the highest discount at 26%.
Driver’s education discount
Taking a driver's training course can improve your driving skills and encourage safer driving habits. Available to students who complete a safe driving course. The average driver's training course discount is 7%.
Low mileage discount
If you don’t drive much while at school, you could qualify for an average car insurance discount of as much as 14%; the average is 7%.
Other discounts for college students
You may qualify for one or more of these other common car insurance discounts:
- Advance purchase: 7%
- Paperless billing: 3%
- Anti-theft device: 1%
- Airbags: 1%
PEOPLE ASK
Can out-of-state college students stay on a parent’s policy?
Yes. As long as your permanent home address is your parents’ address, you can stay on their insurance.
How to save money on auto insurance for college students
Insuring a younger driver is likely to be costly no matter what you do. However, there are several steps you can take that will make it less expensive.
- Add them to a parent’s policy (or keep them on). This will increase the cost of the parent’s policy, but the combined plan will be much cheaper overall.
- Take advantage of discounts.
- Teach and require safe driving habits.
- New car/safety features. Some insurers offer discounts for new cars. Of course, this often overlaps with cars that have a lot of safety features.
- Avoid filing unnecessary claims.
- Raise your deductible. If you can afford a higher deductible out-of-pocket if a claim is filed, increasing your deductible can save you money on your annual premium.
Is car insurance for college students cheaper when added to a parent’s policy?
College students will generally save money by being on their parents’ auto insurance policy. That’s because they can take advantage of the parent’s discounts and history with the company.
PEOPLE ASK
Is there any age limit for students to stay on their parents’ car insurance?
No. As long as you live with your parents, you can stay on their car insurance.
As you can see below, teens pay more for car insurance when they take out a solo policy than when added to a parent’s policy, in some cases by more than $3,000 a year.
Methodology
National and state average rates are based on three coverage levels: state minimum, 50/100/50 liability-only, and full coverage with 100/300/100 liability and $500 deductibles.
For college students, averages are based on our full coverage data set. This data set is based on:
- Bodily injury liability of $100,000 per person and $300,000 per incident
- Property damage liability of $100,000 per incident
- Comprehensive and collision deductibles of $500
- Drivers aged 18-21
- Honda Accord LX
- Good credit
- A clean driving record
- 12-mile commute, 10,000 annual mileage
Rates for college students are based on the cost of an individual policy, with the exception of rates for college students away from home, which are based on a college student on a parent's policy; the away from home discount only applies in this situation.
Rates are fielded by Quadrant Information Services from 170 insurance companies and from 34,588 ZIP codes in all 50 states and Washington, D.C.
FAQ: Best car insurance for college students
Can you be on your parents’ car insurance if you don’t live with them?
Yes, as long as you are temporarily away from home and their home address is your permanent residence, such as when you are away at college. However, once you have moved out entirely, you will need your own policy.
What insurance company is best for college students who live away from home?
GEICO is the best national carrier overall, with a rating of 4.57 out of 5. Erie Insurance, a regional carrier, has the lowest rates for students away from home at college at $1,379 annually on a parent's policy.
Is it better for a college student to stay on a parent's insurance policy?
Yes. College students pay much lower rates on a parent's policy because they can benefit from extra discounts. The average cost of a solo policy with full coverage at age 18 is $7,498 a year, while the cost of that same driver on a parent's policy is $3,792 a year, a difference of $3,706 a year.
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August 14, 2026
