Best Car Insurance For College Students

Key Points:

• State Farm is our pick for the cheapest car insurance for college students.
• Auto-Owners, Geico, Liberty Mutual, and Allstate round out our top five providers for college students.
• Maintaining at least a 3.0 GPA or B average is one of the best ways for college students to save on car insurance.

The best car insurance for college students provides high-quality coverage and benefits, offers numerous discounts, and has tools that help make car insurance more accessible.

Our research team performed an industry-wide insurance review–taking into account financial ratings, customer service reputation, coverage, and discounts–to find the cheapest car insurance for college students. Read on to learn more about our top picks.

Whenever you shop for car insurance, we recommend getting multiple car insurance quotes so you can compare coverage and cost side by side.

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Best Car Insurance Providers For College Students

We looked into the best insurance providers in the nation, ranking the top five based on cost, coverage, and discounts available to college students. In this analysis, we found that State Farm has the best car insurance for college students overall.

Best Car Insurance For College Students

Here’s a quick breakdown of our top five recommendations for college student car insurance:

*You may notice that some auto insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking for this article looks specifically at what insurance providers are best for car insurance for college students.

#1 State Farm: Cheapest Car Insurance For College Students

State Farm is a leading provider of many insurance products including home, life, auto, and renters insurance. In fact, our research team rates it as one of the  best car insurance companies overall. This company offers great car insurance for college students because of its affordable rates, accessible insurance agents, and reliable coverage.

See a breakdown of State Farm’s ratings from industry experts below:

Here are some of the State Farm discounts that make car insurance for college students affordable:

• Steer Clear^®: This is a driving refresher course available to drivers younger than 25.
• Drive Safe & Save™: State Farm’s usage-based savings program rewards good driving habits with car insurance discounts.
• Student away at school discount: Drivers younger than 25 years old living away at school that only use an insured car while at home can save.
• Good student discount: Save up to 25 percent off of auto insurance rates for getting good grades in college.
• Driver training discount: Students under the age of 21 who complete an approved driver education course could earn this discount. 

Programs like Steer Clear in particular are what make State Farm our first choice for car insurance for college students.

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#2 Auto-Owners Insurance: Best Coverage For Students

Auto-Owners is a good option for college students in the 26 states it serves across the United States. 

See a breakdown of Auto-Owners’ ratings from industry experts below:

Auto-Owners Insurance has discounts for good students and add-on coverage that’s appealing to younger drivers. Some discounts for college students include:

• Good student discount: College students who maintain a B or better grade-point average could save up to 20 percent on car insurance.
• Student away at school discount: Students who attend school more than 100 miles away from home without the insured vehicle receive additional discounts.
• Teen driver monitoring discount: If you have GPS permanently installed in your vehicle, you could qualify for additional savings.

Along with standard coverage options, Auto-Owners Insurance offers plans that could be especially useful for less-experienced drivers. Consider these car insurance add-ons for college students:

• Road trouble service: If you’re stranded without gas, locked out of your car, have a flat tire, or experience another mechanical malfunction like a dead battery, someone will meet you where you are to get you moving again.
• Additional expense: After an accident that immobilizes your vehicle, expenses can add up fast. This helps pay for a rental car and trip interruption reimbursement.

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#3 Geico: High Customer Satisfaction Ratings

Because Geico has affordable rates for auto policies, competitive discounts, and high satisfaction and reliability ratings, it’s one of our top choices for college students.

Geico’s reputation is largely positive. See a breakdown of Geico’s ratings from industry experts below:

Geico customers can choose from standard insurance options and purchase additional coverage like roadside assistance and rental car reimbursement. Some of the discounts and add-ons that make this provider good for college students include:

• Driver’s education discount: This savings opportunity is available to young drivers who have completed an approved driving education course.
• Good student discount: Full-time students are eligible for up to 15 percent in savings for maintaining a B average or higher.
• Mechanical breakdown insurance (MBI): Mechanical breakdown insurance provides protection for certain mechanical car components in the event of a breakdown. It can save thousands of dollars on repairs. 

Geico has other discount opportunities that could help young drivers save money, like DriveEasy^®, a usage-based program that functions through an app. It monitors driving habits to qualify students for safe driver discounts.

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#4 Liberty Mutual: Comprehensive Student Discounts

Liberty Mutual is one the larger national insurance providers, and it offers customizable coverage, as well as multiple discounts for teens and other young drivers. It’s a good option for college students looking for affordable car insurance. 

See a breakdown of Liberty Mutual’s ratings from industry experts below:

Liberty Mutual offers multiple discounts that can apply to college students, including the following: 

• Good student discount: This is available to any full-time student with at least a GPA of 3.0 (B).
• Student away at school discount: If you’re the parent of a student who goes to school more than 100 miles away from home and didn’t bring the car, you’ll get discounted rates on your car insurance.
• Claims-free and violation free discounts: If you have a clean driving record that doesn’t include any claims or violations, you’re eligible for a discount.
• Preferred payment discount: If you enroll in automatic payments or pay the whole total in one or two payments, you’ll get a discount.
• Paperless discount: Sign up for paperless payments, and you can save.
• RightTrack: This usage-based mobile app rewards safe driving. Get 10% off just for signing up, and up to 30% more for practicing good driving habits.

Liberty Mutual also offers drivers some noteworthy perks, including accident forgiveness and a deductible fund. These types of coverage can make a strong car insurance policy for college students:

• Accident forgiveness: Good drivers won’t see a major increase in rates after their first at-fault claim.
• Liberty Mutual Deductible Fund: For every extra $30 per year drivers pay toward their premium, Liberty Mutual pays $70, for a savings of $100 per year off deductibles. 

Liberty Mutual also offers 24-hour roadside assistance, teachers’ auto insurance and a lifetime repair guarantee. 

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#5 Allstate: Best Local Service

Allstate stands out for its many local representatives that can help you in person or over the phone if you have a question about your policy. 

See a breakdown of Allstate’s ratings from industry experts below:

The provider tends to be more expensive than others on our list, but it has excellent coverage options and great discounts, including the following:

• Smart student discount: Full-time college students under the age of 25 who maintain an average of B- or higher, complete the teenSMART™ program, or attend school more than 100 miles from home qualify for this discount.
• Drivewise^®: Allstate’s telematics program monitors safe driving habits through the Allstate Drivewise app. The data gathered from this app can never be used against you to increase your rates and can only qualify you for savings on car insurance for college students.
• EZ pay plan discount: Set up automatic withdrawals to make your car insurance payments and save.
• Allstate accident forgiveness: Your first at-fault accident won’t result in an increase in your monthly car insurance premiums.

Allstate also offers roadside assistance programs and a mobile app that gives you quick and easy remote access to your auto insurance policy.

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Car Insurance Coverages For College Students

When searching for student insurance, your state will have minimum insurance requirements that all drivers need to meet, but it’s usually a good idea to go beyond those. For example, no state requires collision or comprehensive insurance, but if you don’t have these types of coverage, you may find yourself in a bind financially in the event that your car is damaged.

Here’s are the basic car insurance options:

• Bodily injury liability: This covers medical bills for other drivers and their passengers in accidents you cause. It is available in per-person and per-accident limits.
• Property damage liability: This covers repair costs for other vehicles in accidents you cause. Liability coverages are grouped together on insurance quotes. Coverage of 25/50/25 would give you $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage liability.
• Collision: This pays for repairs to your car after an accident, no matter who was at fault.
• Comprehensive car insurance: This pays to repair your car after environmental damage from things like falling branches or floods.
• Uninsured/underinsured motorist: This covers you and your car if someone without enough insurance hits your car.
• Medical payments (MedPay)/personal injury protection (PIP): MedPay covers your medical bills after an accident, no matter who was at fault. PIP also covers your medical bills plus lost wages and death benefits.
• Gap insurance: This covers the difference between your car’s value and what you have left to pay on the loan.

If you drive a car, you need enough coverage to protect you in an accident, whether you’re a college student or not.

Students who don’t bring a car to school might consider staying on their parents’ car insurance policy. But whether you have your own car insurance policy or not, you’ll want to have full coverage to protect yourself from financial catastrophes.

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How Expensive Is Car Insurance For College Students?

The amount of coverage you need is an important thing to consider, and so is cost. Let’s take a closer look at some of the insurance costs associated with younger drivers.

What’s the average cost of car insurance for college students?

According to our rate data, a 20-year-old college student with a clean driving history pays a national average of $4,019 a year for a full-coverage car insurance policy. Younger drivers will pay more, but costs go down as a driver gets older. 

Why is car insurance for college students more expensive?

The cost of car insurance for college students is so high because they’re typically young, which means they have less experience behind the wheel than older drivers. Less experience may mean a higher chance of accidents, which means higher prices for insurance. 

This is especially true for college students in their teens–the Center for Disease Control and Prevention (CDC) reported that car crashes are the leading cause of death for American teenagers, and the risk of crashes is higher among drivers between 16 and 19 years old than any other age group. 

Finding cheap car insurance for college students can be difficult. After all, insurers will recommend more coverage than what is offered to adults. Other factors that affect your premium include your zip code, driving history, and the type of car you have.

Ways To Make Car Insurance For College Students More Affordable

You may be glad to know that car insurance rates drop once you have more experience behind the wheel. After the age of 20, you should see your average rates for car insurance start to decline, and by the time you reach 25, your premium should be much more affordable. But what about the few teenage years spent in college?

Here are a few recommendations for ways to make car insurance more affordable for younger drivers:

• Stay on the family policy: As a driver listed as one of multiple on policy, your driving record will be added with others, so your parents’ safe driving habits could help you save money on your premium.
• Try pay-per-mile insurance: This option is best for college students who don’t drive much. With a company like Metromile, customers pay a monthly rate plus a few cents per mile driven. Metromile rates start at $29 per month. This company is one of the few providers that offer this type of car insurance.
• Ask about discounts: Finally, be sure to ask your current provider if there are any discounts you could qualify for that you haven’t capitalized on yet. If all else fails, don’t be afraid to switch auto insurance providers to find the cheapest car insurance for college students. This could help you better protect your personal finances and save money.

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Best Car Insurance For College Students: Our Take

Chances are, the best car insurance for college students is the most affordable. As a freshman in college, the cheapest answer could be staying on your parents’ policy, but if you feel it’s time to get your own, be sure to look for discounts and bonus coverage that could save you money down the line.

Average car insurance rates drop throughout your early 20s, so you might find that the best car insurance for college students changes as you age through college and beyond. The best way to find out which provider will give you good student insurance is to compare personalized quotes from various car insurance companies.

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FAQ: Car Insurance For College Students

Below are some frequently asked questions about car insurance for college students:

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

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