Heading off to college is an exciting time. For many teenagers, it is a challenge of living on their own, making new friends, and in fact handling adult situations. Between tuitions, room, board, and books fees, you probably don’t have much room in your budget so one cost you might not be expecting is car insurance. Therefore you might be looking for best car insurance for college students among which State Farm, Auto-Owners Insurance, Geico, Safeco, AAA are some of the leading best car insurance companies for college students.
Best Car Insurance companies for College Students
The best car insurance for college students provides extensive coverage and incentives, offers various discounts and allows drivers access to resources that can make car insurance more available to younger generations.
We looked at the best insurance companies, rating the top seven on the basis of the price, coverage, and discounts available to college students. In this analysis , we found that State Farm has the best insurance for college students overall.
|Rank#||Best Car Insurance for College Students||Our Overall Rating||Good Student Discount||Student Away at School Discount|
|5||AAA||15%||Up to 48.7%|
|7||Allstate||Varies||Up to 37%|
1. State Farm: The best car insurance for college students
State Farm is a leading provider of many insurance products, including home insurance, life insurance, automobile insurance and rental car insurance. This company provides high-quality car insurance for college students due to its competitive rates, discounts and extensive coverage.
Best of State Farm discounts for college students
Here are some of the State Farm incentives that make automobile insurance accessible for college students:
|Steer Clear ®||A driving refresh course that is available to drivers under the age of 25.|
|Drive Safe & SaveTM||State Farm’s use-based savings programme|
|Student away at school discount||For drivers under 25 years of age living away from school who only use an insured vehicle at home.|
|Good student discount||Up to 25% off for high school graduation.|
|Driver training discount||For students under 21 years of age who complete an approved Driver Education course.|
Programs like Steer Clear in particular are what make State Farm the first choice for car insurance for college students.
Rating for State Farm
Pros and Cons
Comprehensive coverage of deals
Extensive choice of discounts
Positive feedback of customers
Simple online quotes method
Score A+ from the BBB
Recorded Autopay Errors
Not open to new customers in Massachusetts or Rhode Island.
2. Auto-Owners Insurance: Best Coverage For Students
Auto-Owners Insurance has discounts for good students and an add-on coverage that is particularly beneficial to younger drivers. Many of the discounts for college students include:
|Good student discount||Drivers who maintain a B or higher-grade point average could save up to 20% on college students’ car insurance.|
|Student away at school discount||Students who attend school more than 100 miles away from home without an insured car can receive extra discounts.|
|Teen Driver Tracking Discount||If you have GPS permanently installed in your car, you will be eligible for extra savings.|
Options for coverage
In addition to traditional automobile liability insurance coverage, Auto-Owners Insurance has the following special coverage features that may be particularly beneficial for less experienced drivers. Find the following add-ons for auto insurance for college students:
Road Trouble Service
Whether you’re stuck without petrol, locked out of your vehicle, have a flat tyre, or experience some technical failure like a dead battery, someone will meet you where you are going to get you moving again.
After an accident that immobilises the car, the cost can be added up easily. This helps pay for the rental car and delay of the ride.
Personal car plus kit
This is a package with more than 10 additional coverages at one cost to protect you from identity fraud, locking locks, changing your mobile phone, and more.
3. Geico: Good Customer Satisfaction rate
Geico has low rates, generous discounts, and high satisfaction and reliability scores that make it one of our top options for college students in car insurance.
The image of Geico is overwhelmingly positive. See the overview of Geico 's scores by industry experts below:
Discounts for high school students
When it comes to insurance policies, Geico consumers can opt for liability limits and buy extra insurance coverage, such as roadside assistance and rental car refunds. Some of the incentives and additional insurance packages that make this insurer particularly favourable to car insurance for college students include:
|Driver’s education discount||This savings opportunity is available to young drivers who have completed an accredited driving training course.|
|Good student discount||Full-time students between the ages of 16 and 24 are eligible for up to 15% discounts to retain the B average or higher.|
|Mechanical breakdown insurance (MBI)||Mechanical breakdown insurance provides cover for some mechanical vehicle components in the event of a breakdown. It will save you hundreds to thousands of dollars in repair.|
- A+ ranking from the BBB and A++ ranking of financial strength from AM Best
- Many options for coverage
- High level of satisfaction of the customer
- Accessible in 50 countries
- Average quotes experience
4. Safeco: Robust student discount
Safeco 's Teen Safety Incentive Program offers a range of discounts for young drivers, not just teenagers, making it a good choice for college students. Some offers include:
|Good student discount||This is available to any full-time student with a minimum GPA of 3.0 (B).|
|Driver training programme||Complete an approved Driver Education course to obtain this discount.|
|Distant student discount||If you are going to school more than 100 miles away from home and don’t have a ride, you’re going to get reduced rates on your car insurance.|
Safeco also provides some major advantages to passengers, including medical compensation, injury forgiveness, and a reduced deductible. These types of coverage will result in a good car insurance policy for college students:
Reimbursement for first aid
This includes up to $ 12,000 in refunds for first aid given to you or your passengers after an accident.
Good drivers will not see a significant rise in rates following their first default allegation.
Safeco also offers useful coverage for ride-share insurance that could help college students who work for ride-share programmes like Uber or Lyft save money.
5. AAA: Best Roadside Assistance to College Students
AAA or triple A insurance is best known for its top-rated roadside assistance service, which may be of benefit to college students with less driving experience. Yet it also has attractive rates for student car insurance. AAA also provides AAAdrive / AAA OnBoard Discount as a safe driving discount programme based on usage. For more information of available discounts for college student car insurance via AAA, see the table below:
|AAA Member Discount||You can earn a discount based on your years with AAA prior to purchase of auto insurance.|
|AAA Security Check Discount||Have a AAA safety inspection of your vehicle and get a discount on your insurance premium.|
|AAADrive / AAA OnBoard Discount||This is the AAA smartphone app that monitors your driving habits and issues discounts based on safe driving.|
|Secure Driver Discount||If you’re a good driver, you can save up to 20% on your car insurance policy. You must complete an approved safety course for the defensive driver.|
|Loyalty||Gain up to 5% off after one year of continuous car insurance coverage.|
|Safety features mounted in your car||You can gain this discount if you have anti-theft features, motorised seatbelts, airbags, and other safety features.|
|Homeowners||Save up to 37% if you own a home.|
6. Essurance: Best Tech for College Students
Esurance is considered to be a high-tech alternative to conventional car insurance providers, which may be particularly enticing to college students. Bear in mind that Esurance is not available in every state.
The insurer provides general liability auto insurance coverage, as well as extras such as rental car refund, loan / lease distance coverage, and roadside assistance.
Some discounts that could help college students save money include:
|Quick 5 discount||Save 5 percent of your policy by starting an online quote.|
|Renters plus discount||If you buy a policy for Esurance renters, save on Esurance car insurance.|
|Good student discount||Save up to 10% as a full-time student under the age of 25 who retains the B average.|
|Defensive driver discount||Complete the approved defensive driving course and save up to 10% of your monthly cost.|
7. Allstate: The best local service available
Allstate stands out with its numerous local members who can support you in person or by phone if you have a concern about your programme. The provider appears to be more costly than the others on our list, but has extensive coverage and great discounts, including:
|Smart student discount||Full time college students under the age of 25 who maintain an average of B-or better, complete the teenSMARTTM programme or attend school more than 100 miles from home qualify for this discount.|
|Drivewise ®||The Allstate Safe Driving Initiative tracks driving patterns through the Allstate Drivewise app. The data obtained from this app will never be used against you to raise your premiums, it can only qualify you for car insurance discounts for college students.|
|EZ Pay Plan Discount||Set up automatic withdrawals to make and save your car insurance premiums.|
|Claim satisfaction guarantee||This guarantees a quick, fair, hassle-free operation, or you can get your money back.|
|Allstate injury forgiveness||Your first accident will not result in a rise in your monthly premiums.|
How much is the cost of car insurance for college students?
There are several things to consider when you’re looking for the right car insurance for college students. In addition to the amount of coverage, one of the most important factors for college students is cost.
According to the Insurance Information Institute, introducing a young driver to the policy could lead to a 50-to 100-percent rise in plan costs. There are many variables that decide the cost of auto insurance for college students, including inexperience relative to older drivers and lower odometer miles. In the same way, college students appear to speed up or have dangerous habits, such as not wearing a seatbelt or texting while driving – and, in the worst case, driving under influence.
Because of these habits, finding the cheapest auto insurance for college students can be difficult. After all, insurers will request more coverage than that provided to adults. Other variables that impact your premium include
- Your zip code
- Driving history or background
- The kind of car you’ve got
Type of coverage available for college students
Most college students have no idea as to which forms of auto insurance can come into play in common circumstances, such as accidents or stormy weather.
Some of the key forms of coverage include:
1. Liability insurance scheme
Liability coverage is at the centre of every car insurance programme. Liability insurance is required to function legally in almost all states. It pays for damage to other vehicles and property that you cause in an accident, up to the amount you select, known as the cap. It also accounts for the medical bills of those who have been injured in an accident that you cause. It’s not about damage to your own vehicle. Yet, more than a third assumed it covered all the mishaps in your own car.
2. A comprehensive insurance coverage
Comprehensive and accident coverage are optional protections, mostly bundled together. Comprehensive pays up to your car’s real cash value for fire , flood, hail, animal collisions, dropping objects and vandalism, minus your deductible. Comprehensive pays out, too, if the vehicle is stolen.
3. Collision coverage
Collision is also an optional coverage which covers damage to your car in an accident, regardless of whose fault it was.
How to get cheap car insurance for college students
You will be happy to know that car insurance premiums are dropping until you have more experience behind the wheel. After the age of 20, you can find that your auto insurance premiums start to fall, and by the time you hit the age of 25, the premium should be much more manageable.
Here are a few guidelines on how to make car insurance more accessible for younger drivers, too:
1. Stay on your parent’s insurance
As a driver listed as one of the policy multiples, your driving record will be added along with others, so that your parents’ safe driving habits will help you save money on your premium.
2. Try pay-per-mile insurance
This choice is better for college students who don’t drive a lot. For a business like Metromile, consumers pay a monthly rate plus a few cents a mile. Metromile rates start at $30 a month, this company is one of the few providers to sell this type of vehicle.
3. Ask for discounts
At the end of the day, be sure to ask your current company if there are any discounts you might apply for that you haven’t capitalised on yet. If all else fails, don’t be afraid to move auto insurance companies to find the cheapest automobile insurance for college students. This will help you better protect your personal finances and save money.
4. Get listed as a driver on the cheapest household car:
If you are on your parents’ insurance, and your family has a range of vehicles, you can save money by assigning yourself to a single vehicle, the cheapest to insure. Check your policy and double-check it with your insurer, as some companies will automatically assign young drivers to the most expensive vehicle unless you tell them otherwise.
5. Notify your insurer of your change of address
If you go to an out-of-state college and take your car or your parents’ car with you, you must ensure that you meet all the minimum car insurance standards in the state in which you live for the school year. If your home-state auto insurance provider doesn’t do business in the state where you go to school, you will need to purchase a new policy. If this is the case and you can keep your policy, check to make sure the policy restrictions are changed to satisfy the state requirements.
Frequently asked questions
1. Is car insurance better if you are a student?
Yes, car insurance is typically cheaper if you are a student, but you have to be a good student. If you are not a student, or if you have a poor score, you can not apply for a good student discount.
2. What are different discounts available for college students?
There are a lot of best discounts for college students provided by different car insurance companies, main ones include:
Resident student discount:
Some car insurance companies typically provide resident student discounts to students who attend college at least 100 miles away from their parents ’ home and will NOT be driving while away.
Occasional Driver Discount:
If you leave your car behind, your parents could bump you down to an occasional or pleasure-only driver who could save money on insurance.
This option might not be applicable to all car insurance companies. Ask your agent if this option exists.
Good student discount:
Finally, you might still be eligible for a good student discount. They’re not all over when you graduate from high school!
If you manage to get the grades needed for your company’s discount, you will be able to use them for cheaper car insurance during college.
3. How much car insurance is there for a 20-year-old?
A 20-year-old driver should expect to pay an average of $3,000 per year for auto insurance. But every situation is special, and you might find a higher or lower price.
4. Do I need car insurance in college?
Yes, 50 states require you to insure any registered vehicle that you choose to drive on public roads. In Virginia, you can drive uninsured if you pay an annual uninsured motorist fee of $600. There’s no charge at all in New Hampshire.
5. If I take my car to college, can I just stay on the policy of my parents?
Yes, Many insurance carriers will allow you to continue on your parent’s plan if one or more of the following conditions apply:
- Your car is named after your parents.
- You live with your parents when you’re at school.
- You live in school, but your permanent address is still the home of your parents.
6. What’s not covered by car insurance?
Towing and labour as well as roadside assistance
If your car breaks down, you need a new battery or you have a flat, your insurance will not help you out. Luckily, AAA is pretty inexpensive, starting at just $40 a year.
Repairs and rentals
If your car becomes inviolable due to age, damage or an accident, a warranty can cover repairs and/or rentals, but not your insurance.
Theft of personal property
If anyone steals a laptop or a violin from your car, it’s not normally protected by your car insurance. You or your parents homeowners insurance or renters insurance are likely to; send them a call to verify.
Balanced expenses as a college student have never been more complicated such that thinking of car insurance for college students seems like a matter of stress. There are a lot of bills to pay, in addition to food and clothes. Finally, you’re going to have to set aside some bucks to party hard and enjoy the perks of youth.
But as you can see, there are plenty of choices for college students to get the best car insurance rates. My suggestion is to compare a few of these companies to see where you are going to get the absolute best offer.
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