Car insurance discounts for students in 2026

Top car insurance discounts for students

The top discount for students is the student away from home discount, which averages 14%. For students still living at home, the good student discount offers the best savings, which saves 12% on average and up to 17% at Nationwide.

Good student discount: Lower rates for good grades

The good student discount is offered to drivers with a B average or equivalent grades, and applies to college students 25 years old and under.

The average good student discount is 12%, but here are some top companies and the discounts they offer:

Allstate: 11%
Farmers: 13%
GEICO: 8%
Nationwide: 17%
Progressive: 7%
State Farm: 15%
Travelers: 6%
USAA: 7%

Driver education discount for completing driving courses

A driver education discount is available from many major insurance companies and is provided for completing an approved course. The availability of this discount varies by state.

The average driver education discount is 7%. Here’s a look at the average driver education savings from top insurers:

Allstate: 10%
Farmers: 9%
GEICO: 10%
Progressive: 9%
State Farm: 6%
Travelers: 4%
USAA: 5%

College student away from home discount: For students off at school

The student away from home discount is only available to college students who go away to school at least 100 miles from home and don’t bring a car along with them. The average discount is 14%.

To get this discount, the student will need to be on a parent’s car insurance policy. Age limits vary, but this discount usually applies to students 25 and under.

Telematics usage-based discounts: Save for good driving habits

Usage-based discounts are based on driving data collected by telematics, either via a device or an app. Drivers can earn a discount based on good driving habits ranging on average from 5% to 12%.

Most major companies have a usage-based driving program, and they often promise big discounts, but most drivers see a modest reduction. Here’s a look at some average telematics discounts by company.

Allstate: 10%
Farmers: 11%
GEICO: 10%
Nationwide: 12%
Progressive: 12%
State Farm: 9%
Travelers: 10%
USAA: 5%

Low mileage discount: Fewer miles, lower rates

If you drive fewer than 12,000 miles a year, you could see an average discount of 7%. All you have to do to get a low-mileage discount is update the annual mileage on your policy; you may be asked to provide proof.

While the discount depends on how low your mileage is, here are some averages:

Allstate: 10%
Farmers: 14%
GEICO: 5%
Nationwide: 13%
Progressive: 4%
State Farm: 7%
Travelers: 9%
USAA: 3%

Other ways to save on car insurance when you’re away at college

To save money on car insurance while away at college, consider putting your car in storage, signing up for a pay-per-mile program, or choosing a classic car policy if your car qualifies.

Planned non-operation and stored car insurance

Planned non-operation allows you to register your car without the need for insurance that meets state minimums. A PNO-designated vehicle cannot be driven. In fact, it can't even be towed or parked on public streets, and in some states (such as California), drivers must turn in the vehicle's license plates.

You can still insure your car against theft or other damage with a comprehensive-only car insurance policy called stored car insurance, which will prevent a lapseWhen your auto insurance coverage ends because you missed a payment or did not renew it on time. A lapse in auto insurance coverage may result in paying higher premiums for a new policy. in coverage.

Pay-per-mile car insurance

Pay-per-mile plans allow you to pay a lower base rate and then a per-mile rate for every mile you drive. This can be a good way to save money for people who drive fewer miles.

Pay-per-mile insurance isn’t available everywhere, although some major companies have started offering it.

Classic car insurance

If your car is over a certain age (usually 25 years), you may be able to get classic car insurance. However, classic car policies may limit the number of miles you can drive (and specify that the car be garaged when not in use), so be sure to check the fine print when signing up.

How to qualify for student car insurance discounts

While the qualifications differ depending on the company and which discount you’re applying for, college students can save by keeping good grades, completing a driving course, signing up for usage-based insurance, and notifying your insurer if you're going to be away at school.

Maintain a good GPA. Most insurance companies require a B average or better to get the good student discount.
Complete a defensive driving or driver education course. While this discount isn’t available in all states or from all companies, a course may earn you a discount and will improve your driving skills.
Notify your insurer if you are going away to school without a car. You’ll need to attend school at least 100 miles away without a vehicle to get the student away discount.
Sign up for a usage-based insurance program. Using a telematics system shows the insurance company that you’re a good driver and qualifies you for discounts.

What are the best companies for student car insurance discounts?

Consider these car insurance companies for the best and biggest student car insurance discounts.

Nationwide: Best if you’re on your own policy. With the largest average good student discount at 17%, Nationwide is our top pick for college students. It also offers double-digit discounts for low mileage and its usage-based program.
State Farm: Best for students away without a car. The second-highest good student discount at 15% and a large 30% average discount for a student away from home without a car make State Farm an excellent choice for students. Parents can also get an average discount of 11% on car insurance if they bundle home insurance with State Farm.
Farmers: Best for students away with a car. At 13%, Farmers’ good student discount is the third-largest, and it offers double-digit discounts in every other category except student-away, which doesn’t apply if you are taking a car. That includes the largest of the low-mileage discounts at an average of 14%, and an 11% discount for bundling with home insurance.

Student car insurance discounts by carrier

Take a look at the table below to quickly compare the available discounts for students from each carrierAn insurance carrier is the company that provides your car insurance policy and pays claims..

Company	Premium before discount	Premium after discount	Dollar difference	Percentage discount
Allstate	$8,737	$8,097	$640	7%
Farmers	$12,109	$11,668	$441	4%
GEICO	$5,972	$5,729	$243	4%
Nationwide	$8,531	$8,452	$79	1%
Progressive	$9,626	$9,432	$194	2%
State Farm	$7,537	$7,219	$318	4%
Travelers	$5,566	$5,173	$393	7%

How much is car insurance for students?

On average, an 18-year-old on a solo policy pays $7,498 a year, while that same driver costs $3,792 a year when added to a parent’s policy. That’s for a full coverage policy with 100/300/100 liability limits and $500 deductibles.

The cost of car insurance for students depends on the driver’s age and whether they are on their own policy or covered on a parent’s policy.

The table below shows how rates vary by age and a solo policy vs. staying on a parent’s policy. Note that the parent rate indicates the additional amount on top of the coverage for two parents, in a household with one vehicle.

Age	Avg, annual premium - solo	Average annual premium - parent policy
18-year-old	$7,498	$3,792
19-year-old	$5,718	$3,572
20-year-old	$5,173	$3,288
21-year-old	$4,215	$2,866

FAQ: Car insurance discounts for college students

Why do college students pay more for car insurance?

College students pay more for car insurance because they are young drivers and statistically more likely to file a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing.. Students away from home without a car pay significantly less due to the reduced risk.

Can you cancel your car insurance when you're away from home?

No. In all states but New Hampshire, car insurance is required by law on all registered vehicles. Canceling your insurance can result in penalties, including fines and suspension of your license and registration. If you're storing your car while away at school, check your state's laws for planned non-operation, and consider reducing coverage to the minimum required while the car is not in use. If your car is insured on a parent's policy, ask about a student away from home discount to reduce insurance costs while you're away.