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If you’re a college student, any money you can save is a massive bonus. With the cost of education higher than ever before, spending more than you should on car insurance or any other regular expense would be such a waste of your limited student budget – and you know it!
You’re probably aware of the fact that car insurance is considerably more expensive for younger people (aka, drivers that are not as experienced). It’s another level expensive – and it isn’t surprising that many students would rather not own a car than pay exorbitant premiums.
But – don’t give up your dream of owning a car yet! There are ways to pay less for car insurance if you’re a college student – but you need to dig a little deeper to find the best deals. Some providers offer reasonably-priced auto insurance for college students – mainly through applying student discounts.
In this post, I’ll tell you everything you need to know about student auto insurance – from the best car insurance for college students, to how much you can expect to pay.
How Much is the Average Car Insurance for a College Student?
The cost of car insurance annually in the U.S. is about $1,099 – which works out as just over $90 a month.
The cost for a college student, however, is much higher. Car insurance rates for people under 25 are generally quite high – and if you’re a teen, it’s often a lot more.
For example, according to PolicyGenius, while a 30-year old male can expect to pay $1,038 for car insurance per year, an 18-year old male could pay as much as $4,522! That’s an insane difference.
Based on research commissioned by Carinsurance.com, the average cost for drivers is:
As you can see, young drivers could be paying as much as $5,836 for car insurance annually – which is a lot of money for a broke college student!
Is Car Insurance Cheaper If You’re a Student?
The short answer is YES! Many companies offer discounts for student drivers which help considerably reduce the cost of your monthly premiums (we’re talking up to 20-25% – so make sure you don’t miss out on them).
There are several discounts that companies offer on car insurance for students, such as:
- Good student discount
- Good driver discount
- Family/Multiple plan discounts
- Driver’s education and training discounts
- University and alumni discounts
- Sorority, fraternity, and honors society discounts
- Military discounts
So, which companies offer the best student car insurance discounts right now? Let’s find out.
You’ll need to request a quote from each insurance provider to find out exactly how much you can expect to pay because that depends on various factors, such as your credit score, location, gender, insurance history, annual mileage, and other.
Best Car Insurance Companies for College Students
Here’s my list of the best car insurance companies for college students – and the discounts they offer.
If you’re looking for the most affordable car insurance option for college students, Allstate is where it’s at. The insurer offers a Smart Student Discount to drivers aged under 25, which applies if you meet one of the following requirements:
- You’re in full-time education and getting good grades (B- or above or you have a GPA of 2.7 or above)
- You successfully complete the Allstate teenSMART® driver education program
- You attend school at least 100 miles away from where your car is garaged
If you do meet one of these requirements, you could be saving up to 20% on your car insurance.
Alternatively, you could save up to 10% if you combine your renter’s insurance policy with an auto policy. Multiple policy discounts are something most insurers will offer – and that’s such a smart way to reduce your overall insurance costs.
Allstate Car Insurance Allstate offers a Smart Student Discount to drivers under the age of 25 if you meet their requirements. You can also get a multiple policy discount if you bundle in your renters insurance with Allstate.
Liberty Mutual also offers multiple teen car insurance discounts, such as:
- Good Student Discount: If you’re under the age of 25 and have at least a 3.0 GPA.
- Driver Training Discount: For under 21s who complete the qualifying Driver Training Program.
- Alumni discount: Liberty Mutual partners with 14,000+ alumni associations, employers, and professional associations to bring you up to 10% discount if you are a member of one of them.
Also, if you reside at school more than 100 miles from home and only occasionally drive vehicle, you could qualify for a discount with Liberty Mutual, too.
Metromile doesn’t offer discounts on student car insurance – but it still deserves to be on this list IF you’re a low mileage driver.
I’ve been using Metromile for many years now – and I know that it can save you so much money if you don’t use your car that much.
Metromile takes a different approach to car insurance altogether – you pay for the mileage you use rather than fixed monthly premiums. So, for example, if your base rate is $30, you will be charged that when you purchase the policy – and then each month you’ll pay base rate + per-mile rate for the number of miles you drove over the last month.
Moreover, it offers a multi-car discount, which could save you money on each car’s base rate and per-mile rate.
USAA is another excellent insurance provider for young drivers and teens. It offers a multitude of discounts, such as:
- Good Student Discount
- Driver Training discount
- Safe Driving Discount
- Multi-Vehicle Discount
The only drawback is that USAA is only accessible to those who are on active duty in the military, veterans, or work in the Department of Defence.
But if you or your parents are members of USAA – you could be saving tons of cash on student car insurance.
Get up to 10% off your car insurance with Esurance if you’re a student with good grades (minimum of 3.0 GPA or B average). To qualify for the discount, you’ll need to be in full-time education (high school, college, or university), and be under 25 years old.
The good news is that the discount won’t expire as soon as you graduate – Esurance tends to extend it for up to one year after.
This means you could be saving up to 10% on liability, medical payments, and collision coverages.
With State Farm, you can get cheaper rates as a student in a few ways, such as:
- Steer Clear Safe Driver Program
- Good Student Discount
The Steer Create Safe Driver Program is for drivers aged under 25 who haven’t had any at-fault accidents or moving violations within the past three years. If that’s you, you could save up to 15% (while also learning to become a better driver).
The Good Student Discount can save you up to 25% on car insurance just for getting good grades. The best thing is that those savings then last after you graduate until you turn 25.
American Family also offers student discounts for full-time students who maintain good grades at school or college.
So, if you’re in full-time education and maintain a B average (or rank in the upper 20% of the class), you could be saving up to 25% on car insurance.
American Family offers the following discounts:
- Teen Safe Driver: You could get up to 10% discount on your policy when you drive at least 3,000 miles as part of the Teen Safe Driver Program.
- Away at School: If you’re under the age of 25 and live more than 100 miles away at college, you could be saving on car insurance.
- Young Volunteer: If you’re under the age of 25 and complete 40 hours of volunteering activities per year for a non-profit, you could also be saving on your car insurance policy.
- Generational: If your parents are customers of American Family insurance, you too could be saving on your auto policy.
Amica Mutual is another excellent option to consider when looking for the best auto insurance for college students. It is one of the lesser-known insurance providers, but it’s worth checking it out because of the solid rates and generous student discounts.
Here are the ways to reduce your insurance costs with Amica Mutual if you’re a student:
- Good Student Discount: If you’re aged 15-25, in full-time education, and receiving good grades.
- Students Away at School: If you’re in full-time education, living away from home and without a vehicle.
- Drivers Ed: Discounts for taking a new driver’s class.
- Defensive Driver Discount: You could be saving on car insurance for passing the course.
Additionally, you also get free roadside assistance with Amica Mutual, which is a pretty useful perk. And, if you happen to lose your keys, someone will help you get them from the car if you’ve locked them in, or tow you if you’ve completely lost them.
Car Insurance for College Students
So, there you have it! There are many ways to reduce the cost of student auto insurance – if you do a little research to uncover the best deals. The best car insurance for students should be affordable – or at least offered at a reduced cost.
Your best bet is to compare these car insurance providers after you request a quote from each – and you could end up significantly reducing your car insurance costs.
It’s also worth thinking about other features you may want from your car insurance provider (for example, free roadside assistance offered by Amica Mutual, or the ability to pay per mile rather than a fixed premium each month provided by Metromile).
Knowing what’s important to you will help narrow down the number of options – and make sure the insurer you choose ticks all the boxes for you.