Auto Insurance for College Students (2024)

Entering college is an exciting step for many reasons, but it also comes with responsibilities that young adults might not be fully prepared for. For example, financial issues can be challenging for college students to plan for, especially if it’s their first time managing their own budget.

Car insurance is particularly hard for college students because young adults pay much higher rates. However, finding the right auto insurance company can help young drivers save hundreds on their policies.

While looking at discounts and coverage options is important, one of the easiest ways to find affordable rates is to look at the best auto insurance companies for students. Read on to learn how to save on college car insurance, then compare rates with as many companies as possible to get the best auto insurance for college students.

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Best Car Insurance Companies for College Students

While several factors determine which company will be best for you, an excellent place to start is the 10 companies with the lowest average rates.

Auto Insurance Average Monthly Rates by Coverage Type and Provider

Insurance Companies	Liability Rates	Full Coverage Rates
Allstate	$61	$160
American Family	$44	$117
Farmers	$53	$139
Geico	$30	$80
Liberty Mutual	$68	$174
Nationwide	$44	$115
Progressive	$39	$105
State Farm	$33	$86
Travelers	$37	$99
USAA	$22	$59

Although these companies have the lowest average rates, they don’t necessarily reflect what you’ll pay for your insurance. Different auto insurance discounts, types of car insurance coverage options, and your unique driving characteristics might make a company with higher average rates the best choice for you.

You’ll also see different rates based on if you buy an individual policy or if you can stay on a parent or guardian’s plan. If possible, staying on a parent or guardian’s policy can save you nearly 50% on insurance.

(Read more: Does auto insurance cover my child under my policy?

Start exploring your college student car insurance options from the top 10 most affordable auto insurance companies for students:

Geico

Geico auto insurance offers some of the most affordable insurance for any demographic, including students.

Low rates aren’t the only thing Geico can offer — it also provides a long list of discounts, a user-friendly website and app, and many coverage options.

As a college student, you should take the time to explore Geico discount options. Geico offers traditional student discounts like a good student and driver education, but you can also find special discounts for your university or sorority/fraternity membership.

Travelers

While Travelers auto insurance might not be the most popular insurance provider, it offers some of the lowest rates for college students. With good student, student-away-at-school, and driver education discounts, there’s something for everyone.

Another option for students is to choose the Travelers Responsible Driver plan. Responsible Driver isn’t available to everyone, but you might be eligible if you’re a safe driver with a clean record. Enrollment in the Responsible Driver plan forgives one at-fault accident or minor traffic violation.

USAA

USAA auto insurance has a reputation for low prices, and it doesn’t fail when it comes to students. Not only does it offer the standard student car insurance discounts to help you save, but you can also bundle other policies to reduce rates further. A popular choice for students is to bundle USAA auto coverage with renters insurance.

The only downside to USAA car insurance is that eligibility is limited. Only active or retired military members or their families qualify for USAA membership and coverage.

Esurance

Well-known for its technology-driven approach to insurance, Esurance auto insurance offers affordable rates to college students. Although rates are low, you’ll need to check if you can buy it — Esurance doesn’t sell in every state.

Esurance offers a variety of discounts, including good student, on-time payments, and many other traditional discounts. You might also qualify for special discounts if you attend a Pac-12 school.

Progressive

While Progressive auto insurance offers many of the same discounts you’ll see at other providers, students love how easy it is to find a price that fits their budget.

Progressive offers the Name Your Price tool, allowing drivers to say how much they want to pay. Then, Progressive gives you coverage options to match your budget.

Additionally, Progressive offers a usage-based car insurance program called Snapshot. Snapshot can help save you money as long as you are a responsible driver.

State Farm

As the largest insurance company in America, it’s no wonder that State Farm auto insurance does well with college students. With discounts like student-away-at-school, good student, and driver education, it’s easy to save money with State Farm.

State Farm takes the safety of young drivers seriously and offers several programs to help them save money and better their skills. The Steer Clear app is available for drivers under 25 and features modules to help you learn how to navigate dangerous situations. If you complete the modules, you’ll earn a discount.

You can also take advantage of the Drive Safe and Save discount if you let the app monitor your driving habits.

Allstate

While not the cheapest option for most drivers, Allstate auto insurance is still a good choice for students. With Allstate’s pay-per-mile insurance, students who don’t use their car daily can find affordable rates.

Allstate offers plenty of discounts, but the smart student deal is one unique option. You can earn the smart student discount by maintaining a high GPA or completing Allstate’s driver education program, TeenSMART.

Liberty Mutual

Liberty Mutual auto insurance is a good option for students because it offers low rates, substantial discounts, and a good selection of coverage.

Like many other major providers, Liberty Mutual has a usage-based insurance plan. If you want to capitalize on your good driving habits, consider using Liberty Mutual’s RightTrack.

The Hartford

The Hartford auto insurance may be best known for its AARP car insurance, but it also offers affordable rates for college drivers.

Students under 21 — or under25 in Georgia — are eligible for a driver’s education discount by passing an approved course. You can also enroll in The Hartford’s TrueLane monitoring program to save even more.

Which company is the cheapest for college students?

While AAA offers lower rates, membership is required to buy car insurance. The company with the lowest rates that doesn’t require anything is Geico.

Geico is always a good bet for low rates no matter what demographics you look at, but it strives to help college and high school students find affordable coverage. Consider the following Geico student discounts:

• Good student. The Geico good student discount is available if you maintain a GPA of a B or better.
• Good driver. You can earn this discount by keeping a clean record for at least five years. That means if you started driving at 16, you might be eligible by the time you turn 21.
• Student memberships. Geico offers discounts to various sorority, fraternity, and honor society members.

You might also qualify for an alum discount after you graduate if you go to an eligible school.

While you should always compare rates to find the best price, Geico is worth looking at regardless of what type of insurance coverage you need. 

Full Coverage Auto Insurance Average Rates and Availability from Top Providers

Of course, you might find cheaper insurance elsewhere, but there’s a good chance that Geico will have the cheapest car insurance for college students without requiring membership.

(Read: Geico Auto Insurance Discounts)

Which company has the best discounts for college students?

While Geico consistently offers low rates, you might find cheaper coverage elsewhere. An excellent place to start looking is the company that has the most student car insurance discounts — State Farm.

To get an idea of how many discounts you might be eligible for with State Farm, consider the following options:

• Drive Safe and Save. This monitoring app allows you to save up to 30% when you practice safe driving habits.
• Steer Clear. Drivers under 25 can complete educational modules, log practice driving hours with a licensed adult, and earn certification to save on their monthly rates.
• Good driving. Keep your driving record clean of accidents, traffic incidents, and tickets for three years, and you’ll save on your insurance.
• Defensive driving course. Take an approved driving course to earn a defensive driving discount.
• Good student. State Farm offers up to 25% off if you maintain a 3.0 GPA. You can keep a good student discount until 25, even if you graduate before then.
• Student away-at-school. If you attend a school more than 100 miles from your home address, leave your car at home, and only drive it while visiting, you can earn this discount.

Combine these discounts with other options from State Farm, and you can save quite a bit on your insurance. However, not all discounts are available in every state, so make sure to speak with a representative or check on the State Farm website to see what you might qualify for.

(Read: State Farm Auto Insurance Discounts)

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Which company is the best for infrequent drivers?

Many college students have a car but don’t use it every day There are special options for auto insurance for infrequent drivers. Whether getting to class or work, you might benefit from pay-as-you-go insurance if you spend more time walking than driving.

The best company for infrequent drivers is Metromile. While it’s not as famous as State Farm or Geico, you can find serious savings with Metromile if you don’t spend much time behind the wheel.

With Metromile, you’ll get a base price for your insurance. That price is what you’ll pay each month, no matter what. You’ll also get a per-mile fee, meaning the less you drive, the less you’ll pay. According to Metromile, drivers who put fewer than the national average of 12,000 miles per year on their vehicles will save.

Wondering what happens if you drive home for a holiday break? While it depends on the state, Metromile usually stops charging you after 250 miles in a single day. This allows you to drive home or go on vacation without having to worry about losing too much money.

Unfortunately, Metromile is only available in eight states — Arizona, California, Illinois, Washington, Virginia, Pennsylvania, Oregon, and New Jersey. If you live in a state where Metromile does not operate, ask your current provider about a low-mileage discount.

(Read: Metromile Auto Insurance Review)

Which company has the best mobile app for college students?

A company can offer the best insurance for students, but it won’t count for much if it’s hard to access. Young drivers rely on technology more than ever, and many insurance companies have developed robust apps in response. Perhaps the best on the market is Allstate Mobile.

Allstate Mobile gives you access to your policy information, allows you to start and manage claims, and can help get you in contact with an insurance representative.

However, the Allstate app does more than manage your policy. It has a wealth of other features students might find helpful:

• Drivewise. You can turn on Allstate Drivewise to monitor your driving habits and save up to 40% on your insurance.
• Roadside assistance. If you’re stranded on the side of the road, you can get help by clicking a button. Allstate offers on-demand aid, meaning you don’t need roadside assistance on your policy to get help.
• Crash detection. When the app detects a crash, you’ll get a notification to offer assistance. First, it asks if you need 911. Then, it offers to start a claim or take you to roadside assistance.
• Digital footprint. Explore what types of information companies collect and see your digital identity with this free Allstate tool.
• QuickFoto Claim. Use your phone’s camera to take pictures after an accident and upload them to your Allstate claims representative to shorten the process.

You can also pay your bill, set up auto-pay, and access your insurance cards through the app. Although Allstate might not be the cheapest car insurance for students, its mobile app can help students navigate their policies confidently.

How does age affect your car insurance?

There are a variety of factors that car insurance companies use to determine your insurance rates. One of the biggest is age.

Age is important because young drivers are statistically more likely to drive recklessly, engage in unsafe habits, and file claims. You’ll see lower rates as you age, but prices will be high until you reach about 25.

The chart below shows the difference in average full coverage auto insurance rates for 18- and 25-year-old drivers.

Full Coverage Auto Insurance Monthly Rates for Teen Drivers

Check below for cheap car insurance for students, but remember that your actual rates will differ based on other factors.

(Read: Average Car Insurance Rates by Age)

Cheapest Car Insurance for 18-Year-Old College Students

Although turning 18 means you’re officially an adult in most states, car insurance companies are still wary. At best, 18-year-olds have two years of driving experience, which isn’t a lot of history to look at. For that reason, 18-year-olds will see higher rates. 

Here are the average monthly auto insurance rates for male and female 18-year-old drivers.

Full Coverage Auto Insurance Monthly Rates for 18-Year-Old Drivers

You might notice in the table above that your rates will vary significantly based on if you have an individual policy or if a parent or guardian adds you to theirs.

For example, Geico has the cheapest rates for an 18-year-old driver added to an existing policy, while State Farm offers lower rates for individual plans.

Cheapest Car Insurance for 19-Year-Old College Students

The last year of your teens will see slightly lower rates, but not by much. Whether a first- or second-year student, it can be hard to find cheap auto insurance for students as a 19-year-old, especially since many people at this age need individual coverage. 

Check below to see how rates vary by age and gender.

Auto Insurance Monthly Rates by Age and Gender

Driver	Allstate	American Family	Farmers	Geico	Liberty Mutual	Nationwide	Progressive	State Farm
30-Year-Old Male	$177	$137	$160	$87	$200	$136	$136	$103
30-Year-Old Female	$168	$116	$154	$90	$174	$124	$131	$94
45-Year-Old Male	$160	$117	$133	$80	$174	$115	$105	$86
45-Year-Old Female	$162	$115	$134	$80	$171	$113	$112	$86
55-Year-Old Male	$152	$111	$126	$76	$165	$109	$100	$82
55-Year-Old Female	$153	$109	$127	$76	$162	$107	$106	$82

As you can see, State Farm, Allstate, and Geico offer similar rates. This highlights the importance of shopping around for insurance quotes — other factors like your location, credit score, and discount eligibility can make one company’s rates better for you. 

Cheapest Car Insurance for 20-Year-Old College Students

Although you might have up to four years of driving experience at 20, car insurance companies still consider you an inexperienced driver. For that reason, 20-year-olds still see relatively high rates.

Once again, Allstate, Geico, and State Farm have similar rates. Although insurance is expensive when you’re 20, keep your driving record clean — your rates will drop in a few short years.

Cheapest Car Insurance for 21-Year-Old College Students

Traditional college students might start their senior year as 21-year-olds. Turning 21 comes with a lot of responsibility, especially with safely managing legal access to alcohol.

You might think that turning 21 would increase your rates due to it being the age where people can start drinking, but your rates continue to drop. However, 21-year-olds can find cheap insurance for college students with the following companies.

Twenty-one is the first age when some companies offer average student car insurance quotes for under $2,000 a year. That number will only keep dropping if you keep your driving record clean — the average 25-year-old driver pays about $1,400 for insurance per year.

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How can college students save money on car insurance?

After seeing how much companies charge, it might feel impossible to find cheap car insurance for college students. While rates are certainly higher, there are ways you can lower your bill.

Consider the following tips to save money on your car insurance, but remember that the best way to keep your rates down is to keep your driving record clean.

Stay on a Parent or Guardian’s Policy

One of the best ways to lower rates for young drivers is to keep them on an existing family policy. Most students can save up to half what they would pay by themselves as long as other drivers on the policy have clean records.

Adding a student to a pre-existing policy usually results in lower rates because other drivers on the plan have longer driving histories. This is especially true if the parent or guardian has been a customer of the company for a long time.

Adding a student to a policy only works when the student is considered a home resident. This counts for students still living at home and those who spend the school year on campus. However, you won’t be eligible to be added to a parent or guardian’s plan if you live alone.

(Read: Am I covered under my parents’ car insurance? Or do I need to get my own policy?)

Explore Low-Mileage Discounts

If you drive less than the average American, looking at low mileage discounts is a great way to save on car insurance. Low-mileage students have a few options to save.

First, look for student-away-from-home discounts. Although every company is different, you typically need to attend a school more than 100 miles away from your primary residence and leave your car at home.

You can also consider a low-mileage discount. Not every company offers one, but you can ask a representative to check. Usually, you need to drive fewer than 40 miles a day to qualify.

Finally, most major companies offer a usage-based insurance policy, including:

• State Farm’s Drive Safe and Save
• Allstate’s Drivewise and Milewise
• Geico’s DriveEasy
• Progressive’s Snapshot
• The Hartford’s TrueLane
• Nationwide’s SmartRide and SmartMiles
• Esurance’s DriveSense
• Liberty Mutual’s RightTrack
• AAA’s Drive
• USAA’s SafePilot

Usage-based insurance monitors your driving behaviors, including your miles driven, what time of day you drive, and habits like hard braking or speeding. You can earn lower rates with usage-based insurance if you’re a safe driver.

Keep Your Grades Up

Most companies offer a car insurance discount for good students who maintain a high GPA. While many providers want to encourage their customers to do well in school, there’s another reason behind this popular discount.

Insurance companies keep careful track of claims numbers, and the data shows that students who do well in school are less likely to file a claim.

Whatever the reason for the discount is, it’s a helpful way of saving money. To be eligible, you must meet the following criteria:

• Be a full-time student
• Be under 25
• Maintain a 3.0 GPA, or rank in the top 20% of your class, or rank within the top 20% of certain test scores

Since most companies offer this discount, you’ll probably find it wherever you go. First, however, make sure to ask an insurance representative to double-check that you’re getting your discount.

Compare Quotes

Whether you’re a 16-year-old with a brand new license or an 80-year-old with decades of experience, shopping for quotes is a vital step in getting cheap car insurance.

Car insurance companies look at the following factors when determining your rates:

• Age. Age is a factor regarding auto insurance rates. Young drivers are more likely to get into accidents, and older drivers face age-related issues like decreased reaction time.
• Claims history. If you’ve filed multiple claims, you’ll have higher insurance rates. 
• Credit score. Drivers with lower credit scores are more likely to file claims or miss payments. So, they’ll pay higher rates. However, California, Hawaii, Massachusetts, and Michigan insurance companies can’t use credit scores as a factor. (Read: Best Auto Insurance Companies for Bad Credit) 
• Driving history. Traffic tickets, accidents, DUIs, and other similar charges will raise rates. Auto insurance companies check your driving record to determine rates.
• Gender. Auto insurance rates are different for men and women drivers. Men tend to pay higher rates than females, as statistics show men get into more accidents. However, insurers can’t consider gender in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.
• Vehicle model and make. When setting rates, insurance companies consider safety ratings, crash statistics, and the vehicle’s overall expense.

These factors combine to make unique insurance quotes for you, which is why not all college students pay the same amount for their insurance. To further complicate things, companies treat factors differently.

If you pick the first company you look at, you’ll likely pay much more for the same coverage you could find elsewhere. That’s why comparing quotes from at least three companies is integral, especially since young drivers pay much higher rates.

How to Find the Best Car Insurance for College Students

From the first day of classes to graduation, college students face many challenges. While those challenges are usually opportunities to grow, one challenge you can skip is finding affordable college student car insurance.

You can find affordable coverage by looking at car insurance with student discounts, usage-based plans, and low rates. Make sure to compare plans with as many companies as possible to ensure you find the cheapest rates.

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