Find Your Perfect Policy: 866-843-5386
Full Coverage Averages
• Annual Premium: $2,233
• Monthly Premium: $186
Read our Allstate review.
✓ Mileage-based plan available
✓ Three ways to earn a student discount
X Higher-than-average rates for traditional unlimited mileage
Full Coverage Averages
• Annual Premium: $1,468
• Monthly Premium: $122
Read our State Farm review.
✓ Safe driving discount specifically for young drivers
✓ Student-away-from-home discount
X No student discount for part-time students
Full Coverage Averages
• Annual Premium: $1,114
• Monthly Premium: $93
Read our GEICO review.
✓ Cheap rates
✓ Affiliation discount includes some Greek life organizations
X Subpar bundling discount may not be right for families
Are you running into impossibly high rates for car insurance? Insurance for college students tends to be more expensive than for older drivers because companies consider young people to be risky due to their relative lack of driving experience. Our in-depth research involved reviewing thousands of auto insurers and picking the best auto insurers with diverse rates, student discounts, and coverage options for those with a bad driving record. In addition to price, we considered other factors, including collision coverage, safe driving incentives, and accident forgiveness.
At AutoInsurance.com, we believe drivers of all ages should be able to find affordable rates and reliable car insurance plans, and we’ve done the research to make it happen. Below, we dive into the car insurance providers that provide the best value for college student drivers.
Discover more handy auto insurance info and check out the best auto insurance providers for low-income drivers and the top ways to lower car insurance costs.
Editor’s note: We updated this page on April 23, 2024, to ensure all data and figures are correct.
If you drive an older vehicle, you might not need to purchase comprehensive and collision — typically two of the most expensive coverages. These coverages pay out the cash value of the car, minus your deductible. For example, if you’re paying an extra $1,000 annually for full coverage with a $1,000 deductible, and your car is worth less than $2,000, it’s not worth it to purchase the extra coverage.
Campuses are often more walkable and better connected by public transit. If you’re using your car only occasionally, a mileage-based plan could save you money. Allstate, Nationwide, and Metromile are examples of companies that offer auto insurance programs where you pay a base rate plus a per-mile rate. These companies usually cap your daily mileage at 250, so you won’t pay a lot if you do go on a road trip.
Most often, staying on your parent’s policy will be cheaper than buying your own policy. There are some exceptions; for example, if your parents live in a particularly expensive area for car insurance or members of your household have a history of accidents or violations on their record. Note that if you want to stay on your parents’ policy, their names must be on the vehicle title.
Best Auto Insurance for College Students Taking a Car to School: Allstate
Best Auto Insurance for Younger College Students: State Farm
Best Auto Insurance for College Students on Their Own Policy: GEICO
Best Auto Insurance for ROTC/Military College Students: USAA
Best Auto Insurance for High-Risk College Students: Direct Auto
Company | Average annual full coverage cost for college students on a family policy | Average annual full coverage cost for college students on an individual policy | Student discount grade requirement | Full time required for student discount | Maximum age for student discount | Marital requirement for student discount | Other relevant discounts available |
---|---|---|---|---|---|---|---|
Allstate | $2,233 | $4,998 | 2.7 GPA (B-minus average) with other options to get discount | No | 25 | Single | Multi-car, student away from home, mileage-based, TeenSMART (Allstate-specific driver education) |
State Farm | $1,468 | $4,223 | 3.0 GPA,
(B average), top 20% of class, or dean’s list/honor roll |
Yes | 25 | None | Multi-car, student away from home, driver education, Steer Clear (State Farm-specific driver education) |
GEICO | $1,114 | $3,799 | B average (3.0 GPA) | Yes | 25 | Not stated | Multi-car, driver education, membership affiliation (including some Greek life organizations) |
USAA | $825 | $3,079 | 3.0 GPA,
B average, honor roll/dean’s list, or top 20% of class |
Yes | 25 | None | Multi-car, driver education |
Direct Auto | $2,892 | $5,572 | Honor student, dean’s list,
B average, or top 20% of class |
Yes | None | Single | Multi-car, driver education |
Between Allstate’s flexible student discount and its pay-per-mile option, it’s a good choice for students who need to take their vehicle to school. Because attending school away from home is just one way to earn its student discount, you won’t miss out on a specific away-from-home discount. And its pay-per-mile option can save occasional drivers who still need their car at school a lot of money.
Many companies offer student discounts, but Allstate stands out for offering several paths to earning the discount.
If you are under 25 and unmarried, you can qualify for Allstate’s Smart Student Discount if you meet any one of these three conditions:
Because of its flexible nature, the Smart Student Discount can provide significant savings for many types of students. If you are a part-time student, you can still save by completing a safe driving program. If you live close to home, you can still save by getting good grades.
Such diverse options make Allstate’s student discount more compelling than other insurance providers’ offerings. Older or married students are disqualified from receiving this deal, though older, married people receive lower rates than teens in general.1
Some students do not use their car on a regular basis. Perhaps you drive home a few times a semester, but you don’t need to drive to class every single day. In that case, Allstate’s pay-per-mile insurance, Milewise, may be the most affordable student option.
With Milewise, you pay a daily base rate as well as a per-mile rate instead of a preset monthly or annual premium. For instance, if your daily rate is $1.50 and you pay $.06 per mile, here’s what you might pay for insurance per month:
Average Daily Miles Driven | Total Monthly Cost |
---|---|
5 | $55.80 |
10 | $65.10 |
25 | $93 |
Allstate caps its mileage charge at 250 miles per day, so you won’t pay extra for driving a longer distance in a single day. And if you’re still on your family policy, Allstate lets you choose which vehicles are classified as pay per mile, so your parents can keep their regular policy.
For certain low-mileage students, this option can save up to 72 percent annually. Be sure to calculate how many miles you drive during your daily life as a student, on average, before you choose this plan.
Milewise is available in the following states: Arizona, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin, and Washington D.C.
TIP:
If Allstate does not offer Milewise in your state, Nationwide is another major provider that has a mileage-based insurance program.
Part of the reason the cost of auto insurance is so high for young drivers is that they are more likely to get into an accident. According to the National Safety Council, drivers age 16 to 19 account for nearly 10 percent of drivers in crashes, despite making up only 3.6 percent of total licensed drivers. Similarly, drivers age 20 to 24 account for 13.5 percent of drivers in crashes, while representing only 7.5 percent of total licensed drivers.2
Age range | Proportion of total licensed drivers | Proportion of licensed drivers involved in accidents |
---|---|---|
16 to 19 | 3.6% | 9.3% |
20 to 24 | 7.5% | 13.5% |
25 to 34 | 17.5% | 22.6% |
35 to 44 | 17.0% | 17.5% |
45 to 54 | 16.1% | 14.2% |
55 to 64 | 17.0% | 12.0% |
65 to 74 | 13.3% | 7.1% |
75+ | 8.0% | 3.4% |
After an at-fault accident, auto insurance costs typically rise by 40 to 50 percent. When you purchase accident forgiveness, your rates won’t increase after an accident, even if it was your fault.
Allstate lets you purchase this coverage right off the bat, and protection kicks in the day you sign up. Many companies require drivers to have an accident-free record for three to five years before they can purchase accident forgiveness, which may not be possible for college students, many of whom have had their license for only a few years.
Accidents happen to even the safest of drivers, which is why we generally recommend college students and their families purchase this coverage.
State Farm is the nation’s largest insurance provider and has particularly good rates for students in their early college years. We like it for its easy claims process, high-quality mobile app, and multiple discounts for safe drivers.
State Farm offers a program called Steer Clear to help young adults sharpen their driving skills and save on their premiums. To qualify for Steer Clear, you must meet these requirements:
Once you complete the program, State Farm automatically sends your certification to your insurance agent, who will then apply a discount to your coverage. This program helps younger students improve their driving and save up to 15 percent on car insurance.
State Farm offers a solid discount for high-achieving students, but it is slightly less flexible than Allstate’s version. This discount is available if you are a full-time student under age 25 and meet one of the following conditions:
Not only is this option a bit more restrictive than Allstate’s, but the grade requirements are slightly higher. Still, it represents a solid route to savings for young students who get good grades in their full-time programs.
If your parents list you on their State Farm car insurance policy and you don’t need to use a car while at school, you may qualify for State Farm’s Student Away at School discount. In order to participate in your program, you must meet these criteria:
It’s a great option for students who live on walkable campuses and want to avoid the hassle of bringing a car to school.
With the exception of USAA (which requires a military affiliation), GEICO has the lowest rates for college students on our list. It’s a budget-friendly choice for students buying a policy separate from their family.
Students will pay more for their own policy than they would on a family policy. GEICO is known for its affordability, and its rates for college students are no exception. College students on their own policy will pay an average of $3,799 annually, which is less than the national average of $4,668.
A downside of GEICO is that the company does not underwrite its own home or renters policies, and its bundling discount is not as high as those of some other companies; however, this may be less of a concern to college students who live on campus and don’t need renters insurance.
GEICO is a good choice for those planning to purchase full coverage and minimum coverage alike, though college students who drive an older car will see the biggest savings, as they can sometimes drop collision and comprehensive coverage.
Many students drive used vehicles, which are not only cheaper to insure, but may not be worth insuring with comprehensive and collision. If your car’s value is minimal and you have a high deductible, you may be better off saving the money you would spend on collision and comprehensive premiums. For example, let’s say your car is worth $3,000 and your deductible is $1,000. On average, collision and comprehensive add about $1,000 to $1,500 to your annual premium. If you pay $3,000 for these coverages over two years, then get into an accident and pay a $1,000 deductible, you’ll have shelled out $4,000 in total, which is more than the value of your car.
TIP:
You can find your car’s value online with Kelley Blue Book or Edmunds.
If your vehicle is more than 10 years old, has over 100,000 miles, or is worth less than a few thousand dollars, and you have a deductible of $1,000 or more, it’s worth considering the value of comprehensive and collision coverages.
It’s important to note that if you financed your vehicle, your lender may require you to hold collision and comprehensive coverages. And keep in mind that if you drop these coverages and get into an accident or your car is stolen, you’ll have to pay out of pocket.
GEICO offers discounts to members of over 500 organizations, including fraternities and sororities. If you’re a member of Greek life, you can check GEICO’s website to see whether you’re eligible for a discount.
GEICO’s extensive discount list also includes a 15 percent Good Student Discount for drivers who meet the following criteria:
GEICO does not state marital requirements for the Good Student Discount, though some customers report that female drivers must be unmarried, while male drivers can be married or unmarried to qualify.
USAA has the lowest rates for college students, and with high customer and claims satisfaction scores, the company doesn’t compromise on quality of service. The company sells insurance exclusively to military members and their families.
USAA is available only to individuals affiliated with the U.S. military and their families. This includes:
If you, your parent, or step-parent falls into any of these categories, you are eligible for USAA membership. If you are not in the military, your parent or step-parent must sign up for USAA before you can become a member.
The following family members are eligible:
For example, if your parent is divorced from a military step-parent and isn’t remarried, they likely qualify for USAA membership.
NOTE:
For a child of a deceased military member or veteran to be eligible for USAA, their parent must have joined USAA while still living.
The following groups are not eligible for USAA membership:
USAA’s Good Student Discount has similar requirements to those of other providers. To qualify, applicants must meet these conditions:
Note that this discount does not renew automatically. You will have to reapply each year to prove you are eligible. The discount is not available in Hawaii or North Carolina.
If your family has had a USAA insurance policy for at least three years, you can get a legacy discount of up to 10 percent on your first individual auto insurance policy. To qualify, you must be under age 25 and have had a cleaning driving record for at least three years.
USAA’s family discount is a great value for students moving away from home who are off their family’s policy for the first time.
Insurance companies already consider young drivers risky to insure, and if you also have a DUI or another major violation, standard insurance companies may turn you down. Direct Auto specializes in high-risk auto insurance and is a good choice for college students who have trouble finding coverage elsewhere.
Direct Auto’s Good Student Discount provides up to 10 percent off your car insurance if you meet all of the following conditions:
While it may be slightly less flexible than other companies’ student savings offerings, Direct Auto’s Good Student Discount is unique in that it is available for nontraditional adult students. If you are headed back to school for a career change or a master’s program, you may qualify for savings even if you are over the age of 25.
Direct Auto offers some of the most customizable payment options in the industry, which is helpful for college students strapped for cash or those with nontraditional income streams. The company lets you choose the day of each month on which you’d like to make your payment, helping you align it with payday.
Another way to reduce monthly costs is to elect to pay more upfront as a down payment, which could be a good option if you have the cash from a graduation gift or a paid summer internship.
Additionally, Direct Auto provides some of the most flexible ways to pay your premium. You can auto-pay online with a credit or debit card, pay by e-check, or even pay with cash at a local Direct Auto or partner location — options that can benefit students, who often have cash-based income.
If you plan to stay on your parents’ insurance while at school, Direct Auto’s multi-car discount can help you save up to 25 percent on your premium. The typical multi-car discount is 10 to 25 percent, placing Direct Auto’s at the top of the range. Just make sure that each vehicle on the plan is registered in the same household and to the same policyholder. And parents, learn how to add your teen to your policy.
The average annual cost of adding a college student to a family policy is $1,643, while the average cost for college students who purchase their own policy is $3,972. The amount you pay for car insurance varies depending on many factors, including your age, gender, location, and car.
If your parents’ names are on your vehicle title and you share a permanent address (even if you live at school during the semester), it is likely a good idea to stay on their insurance. This can give you access to multi-car and multi-policy discounts to keep rates low if you keep your car at home during the school year. Additionally, you may benefit from your parents’ older ages or good credit scores, which tend to lower auto insurance rates.
Intentionally lying to an insurance company constitutes fraud and can result in fines, community service requirements, or even jail time. If you haven’t truly achieved the required grades, lying to achieve a good student discount is not worth the possible penalties. Instead, consider an insurance company with lower grade thresholds and multiple paths to a student discount, like Allstate, or one that doesn’t factor grades into your discount at all, like Erie. If you have achieved the required grades but are concerned about your parents viewing your transcript, you can send your transcript directly to your insurance agent.
Most car insurance providers allow you to remove a child from your plan when they leave for college as long as they are attending school at least 100 miles away. This is known as a “student away from home” discount. If your child is attending a school closer than 100 miles, insurers deem them likely to return home frequently and use the car.
Auto insurance for teen drivers. Insurance Information Institute. (2023).
https://www.iii.org/article/auto-insurance-teen-drivers
Age of Driver. National Safety Council. (2023).
https://injuryfacts.nsc.org/motor-vehicle/overview/age-of-driver/
Enroll and enjoy Steer Clear® insurance savings. State Farm. (2023).
https://www.statefarm.com/insurance/auto/discounts/steer-clear
Learn About Good Student Discounts or Get a Quote. Direct Auto Insurance. (2023).
https://www.directauto.com/why-direct/get-discounts/good-student-discount