Car insurance for college students (2025)

Car insurance for college students

You might take out your car insurance policy once you're 18 and away at college. At age 18, the average cost for a solo policy is $7,146 a year, dropping to $4,094 a year by age 21.

These rates will vary by location, your driving record, the type of car you have and other factors. If you do decide to take out your own policy, here's a look at the average premiums by age.

Car insurance for college students away from home

If you're away from home for college and stay on your parents insurance policy, you'll save a significant amount of money on insurance rates. For an 18-year-old, the average monthly cost is $340, while at 21 it's $253.

While the family policy overall is more expensive, the amount being charged for the teen is a lot lower. An 18-year-old will save $256 a month this way.

How much is car insurance for college students by company?

An 18-year-old driver on a parent's policy will find the best price at Nationwide, which charges $2,663 a year. Nationwide remains the cheapest car insurance company through age 21.

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. These rates are the amount charge on a parent's policy.

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.

How car insurance works for college students

Car insurance for college students works one of two ways: you can stay on your parents' insurance, or you can take out your own policy. Here are a few things you should know about how it works:

• Whether you take a car with you or not, you can still be insured on your parents' policy as long as their home remains your permanent residence.
• If you attend school in a different state, your insurance company will automatically adjust your coverage to meet the required minimums in that state.
• If you have moved out of your parents' home permanently, you will need your own insurance policy.
• You can only get the student away from home discount if you're on a parent's policy.

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

There are a number of ways to get cheap car insurance for college students:

1. Shop around. Rates vary widely by company and some companies have ore favorable rights for younger drivers.
2. Get all of your discounts. Ask about all of the available discounts; college students can qualify for more that just good student discounts (although that's a big one) and every bit helps.
3. Raise your deductibles. Higher deductibles mean lower rates, so choose the highest deductible you can afford.

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

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 on a parent's policy are based on the same parameters as above, but based on a 40-year-old driver with the addition of drivers age 18-21.

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.

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