- Best car insurance for college students
- How much is car insurance for college students?
- Best car insurance for college students away from home
- Cheap car insurance for college students
- Car insurance discounts for college students
- Other car insurance companies that offer college student discounts
- How to save money on auto insurance for college students
- Is car insurance for college students cheaper when added to a parent’s policy?
- Methodology
- Frequently asked questions about car insurance for college student
Best car insurance for college students
The best car insurance company for college students is Travelers, with a score of 4.65 out of 5. USAA tied with Travelers, but is only open to military families. Nationwide landed in second place, and GEICO in 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 | 0.52 | A++ | 4.41 | $2,592 | 4.65 |
| Nationwide | 0.63 | A | 4.52 | $2,292 | 4.60 |
| GEICO | 0.69 | A++ | 4.43 | $2,865 | 4.57 |
| State Farm | 0.79 | A++ | 4.52 | $3,073 | 4.53 |
| Allstate | 1.1 | A+ | 4.36 | $3,756 | 4.15 |
| Farmers | 0.86 | A | 4.41 | $4,642 | 3.89 |
| Progressive | 0.71 | A+ | 4.4 | $5,262 | 3.82 |
| USAA | 1.18 | A++ | 4.71 | $2,686 | 4.65 |
Travelers Insurance
Travelers has the cheapest rates of all of the companies we ranked, averaging $4,442 a year, and offers the following discounts 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, for students at school more than 100 miles away from home without a car
- Driver training, for students who complete an approved course
Nationwide
In second place among the companies we ranked with average annual rates of $5,860, Nationwide doesn’t have as many discounts specifically for college students as other companies, but it has the biggest good student discount. You may qualify for the following:
- Good student (17%), for students aged 18 to 24 with a B average or better
- Accident-free, for students with no accidents
- Safe driver, for students with no at-fault accidents or major violations in the past five years
GEICO
Our No. 3 company for college student car insurance, GEICO has average rates of $4,397 a year and offers the following discounts for college students:
- Good student (8%), for students with a B average or better
- Good driver, for students without an accident in the past five years
- Student organization/group/alumni, for members of certain school groups
State Farm
State Farm is our No. 4 pick for college students, with average rates of $6,125 a year, and a solid list of discounts available:
- Good student (15%), for students up to age 25 with a 3.0 GPA or higher, ranked in the top 20% of their class, or on the Dean’s List/Honor Roll.
- Driver training, for taking an approved course.
- Student away at school, for students up to age 25 away at school without a car.
- Safe driving habits, for use of the State Farm usage-based programs that monitor driving habits.
Allstate
Allstate is the No. 5 pick on our list for college students with an average annual rate of $6,762 and offers several discounts for students:
- Good student (11%), for full-time students under age 23 with a B average or better
- Distant student, for students 22 or younger going to school 100+ miles from home without a car
- Teen driver discount, for students 18 and younger
How much is car insurance for college students?
The average car insurance cost for college students starts high for the youngest students and gets cheaper as they age.
Here’s a quick look at how the average annual cost of car insurance for each age, when on their own policy:
- 18-year-old student: $7,146. The average cost of car insurance for an 18-year-old is $4,438 more than the average premium for a 30-year-old.
- 19-year-old student: $5,470. On average, 19-year-old students pay $1,676 less than 18-year-olds, but they pay $2,807 more than a 30-year-old.
- 20-year-old student: $4,970. That’s a decrease of $500 compared to 19-year-olds and $2,307 more than a 30-year-old.
- 21-year-old student: $4,094. At 21, college students pay almost $900 less annually than at 20 years old. Still, 21-year-old students pay $1,431 more than a 30-year-old.
Best car insurance for college students away from home
State Farm is the best car insurance company for college students away from home. That's based on our analysis of rates, customer satisfaction, financial stability and the student away from home discount. GEICO is our second choice, but USAA comes in second if you qualify.
| Company | NAIC | AM Best | Survey Score | Average annual premium | Student away discount % | Insurance.com score |
|---|---|---|---|---|---|---|
| State Farm | 0.79 | A++ | 4.52 | $3,073 | -30% | 4.64 |
| GEICO | 0.69 | A++ | 4.43 | $2,865 | -22% | 4.51 |
| Travelers | 0.52 | A++ | 4.41 | $2,592 | -6% | 4.29 |
| Nationwide | 0.63 | A | 4.52 | $2,292 | -6% | 4.20 |
| Allstate | 1.1 | A+ | 4.36 | $3,756 | -8% | 3.99 |
| Progressive | 0.71 | A+ | 4.4 | $5,262 | -11% | 3.90 |
| Farmers | 0.86 | A | 4.41 | $4,642 | -8% | 3.84 |
| USAA | 1.18 | A++ | 4.71 | $2,686 | -20% | 4.54 |
Cheap car insurance for college students
If the best price is your No. 1 priority, Travelers is your best bet. Unless you qualify for USAA (you come from a military family or are in the military yourself), Travelers has the cheapest car insurance for college students at an average cost of $4,442 a year. If you do have that military connection, USAA will cost only $3,486 a year on average.
| Company | Parent policy | College student added with parent policy | College student on their own policy |
|---|---|---|---|
| GEICO | $2,663 | $5,770 | $4,397 |
| Progressive | $2,706 | $7,505 | $6,490 |
| Allstate | $4,276 | $8,335 | $6,762 |
| State Farm | $3,112 | $6,713 | $6,125 |
| Farmers | $4,107 | $8,997 | $7,118 |
| Travelers | $2,315 | $5,175 | $4,442 |
| Nationwide | $2,898 | $5,355 | $5,860 |
| USAA | $1,705 | $4,677 | $3,486 |
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 12% 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.
Safe driving discount
This discount is available to students who maintain a safe driving record.
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 10%; the average is 7%.
Other discounts for college students
You may qualify for one 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.
Other car insurance companies that offer college student discounts
Those aren't the only insurance companies that offer student discounts to help college students and their parents save on car insurance costs. Here are some others:
- AAA
- Allstate
- American Family
- Auto-Owners
- Erie Insurance
- Farmers
- USAA
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 $1,000 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.
Frequently asked questions about car insurance for college student
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 that live away from home?
There are several insurance companies that have student away from home discounts. Some of the best insurers, in this case, are USAA, Concord, and State Farm. The first two have low average rates and offer student-away discounts.
But not all students will be able to sign up for USAA or Concord. In that case, State Farm is a good option. In addition to having a student away discount, it also offers a good student discount of up to 25%. Ultimately, the best car insurance for you as a college student or for your college student children will depend on your location, your insurance needs and which company can bring the most value to you at the best cost.
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