Cheapest car insurance for college students

The cheapest car insurance for college students

While many of the best car insurance companies provide affordable rates for college students, some are more generous than others. Below, Bankrate’s insurance editorial team selected five top car insurance providers that offer competitive rates for college-aged drivers either on their parents’ policy or on a standalone policy, according to April 2024 auto insurance rate data pulled from Quadrant Information Services.

Each company is listed with its Bankrate Score, which shows how well each insurance provider performs overall on a five-point scale. Our team calculates Bankrate Scores by analyzing each company’s average premiums, coverage offerings, discount options, complaints filed with the National Association of Insurance Commissioners (NAIC), mobile app, J.D. Power score for customer service and AM Best rating for financial strength. The closer a company scores to five, the better it performs across each category.

How to save on car insurance for college students

While most college students age into a more affordable insurance bracket during their time at school, you don’t have to wait to save on car insurance.

Shop often

As the tables above illustrate, not all insurers treat college students the same way — and an individual carrier might charge higher or lower rates over time. Shopping around for quotes at least once a year can help you stay on top of the lowest available prices.

Lower your mileage

The less time a driver spends on the road, the less likely they are to get into an accident. That’s why many insurance providers will offer lower premiums to those who drive fewer miles.

Explore pay-as-you-go insurance

Some insurance providers offer pay-per-mile insurance or telematics systems that track driving. If you have a car at school but don’t drive often, this type of usage-based insurance could reduce your rate significantly.

Drive a used car

Used cars are typically less expensive to insure and can be easier to repair than new cars since they lack more complex technology than the latest models. You may also earn lower premiums if the car has extra safety features such as anti-lock brakes, electronic stability control, forward-collision warnings and automatic emergency braking.

If you’re considering buying your teen their own car to bring to college, consult the list of safe vehicles for teens issued each year by Consumer Reports and the Insurance Institute for Highway Safety (IIHS).

Ways for college students to save on driving

Between fuel, vehicle maintenance and insurance premiums, the cost of driving can add up quickly. Here are some ways to save.

Fuel: Take the bus or join a gas rewards program

High gas prices can cut into a college student’s budget significantly. Consider these steps to reduce your overall gas usage:

• Choose a car with good gas mileage: If you’re buying a new (or used) car, look at the EPA’s guide to the most fuel-efficient vehicles in every vehicle class — and avoid gas guzzlers like large SUVs and pickups. 
• Use public transportation when possible: If your college town has a public transit system, learn its routes and opt for the bus or train when you can. 
• Invest in a bicycle: A bicycle is a great option to consider, especially for students in urban areas. In cities and college towns, there are often options for low-cost bike sharing or rentals.
• Carpool with your classmates or colleagues: If you must drive, consider setting up a carpool or car-sharing arrangement with classmates or colleagues who live along your route. Just be sure to talk to your insurer if you’re exchanging money for gas and maintenance to make sure you’re still covered.
• Get a gas rewards card: Gas rewards cards can offer discounts on gas. Sometimes, rewards programs offer partnerships with other businesses like grocery stores, so purchases earn points that can be redeemed for discounts on gas.
• Find the cheapest gas stations close to the campus: Gas prices often fluctuate and you can use tools or apps that will point you to the gas station with the cheapest price available.

Maintenance: Find a trusted shop and learn to DIY

Maintenance costs should be factored into buying a vehicle as well, as they can be a large portion of your car budget. Here are some tips to save on maintenance:

• Find a mechanic you trust: Some auto repair shops and dealership service centers overcharge for repairs — and young drivers could be easier targets for dishonest merchants. Ask around in your college town and read customer reviews to find a reliable mechanic. 
• Ask about student savings programs for oil changes: When getting car maintenance done, such as going in for an oil change, ask if a student discount is available. Some large chains, including Jiffy Lube, do offer discounts for college students.
• Utilize free tire and air fill-up services: You can often find free or cheap self-service tools at gas stations, including air for tires. Keeping your tires properly inflated can improve your car's performance.
• Research DIY repairs: Some car maintenance tasks, like oil and spark plug changes, are reasonably easy and affordable to do at home. Do your homework before you start to ensure that you have the proper tools and safety procedures in place.

Car insurance discounts for college students

Most insurance companies offer at least one auto insurance discount designed specifically for college students, such as:

• Good student discount: Earning good grades in school demonstrates responsibility, which may correlate with responsible driving. A B average or 3.0 GPA is the most common eligibility requirement for this discount. 
• Driver education discount: Some insurers, like Geico, offer discounts to young drivers who complete an approved driver’s education discount. All household members below a certain age may need to complete the course in order to earn the discount. 
• Distant student discount: Families with a college student attending school far from home without a car can sometimes receive a discount based on the time the student is not using the vehicle. Typically, a student must attend school at least 100 miles from home in order to qualify. 
• Safe driver discount: While most insurers offer a safe driving discount to all drivers, some offer specialized programs for young drivers, such as State Farm’s Steer Clear or American Family’s Teen Safe Driver program. 
• Membership discounts: Some insurers, like Geico, offer discounts to students in certain fraternities, sororities and honor societies as well as alumni organizations. 
• Education discount: Once you’ve completed a college degree, you may be eligible for a discounted rate from many insurance companies. 
• Military discounts: Some insurers, such as Geico and Liberty Mutual, offer unique discounts to members of the U.S. military.

What do parents need to know about insuring a college student?

For parents sending their child off to college, there are a number of things to consider regarding insurance coverage. It may be helpful to sit down as a family and go over the policy so everyone involved understands the coverage and how to utilize it if needed.

• Decide whether or not to keep your college student on your policy. Having a college student on your car insurance policy is likely to make the premiums increase, but it is also likely the cheapest option to provide coverage for the student. If a car is jointly owned by the student and parent, the student may be required to remain on the insurance policy. If the student owns their own car, they can get insurance in their own name but will likely have to pay more. Talk with an agent about your options to determine what’s best for your family.
• Let your insurance provider know when your child starts college. It can be beneficial to keep your student on your insurance policy regardless of whether they are taking a car to college. They may be eligible for a student discount that offers a more affordable rate. Additionally, removing them from your coverage may result in a lapse of coverage that can lead to higher rates later on when they are added back to the policy or seek out their own insurance policy.
• Consider your college student’s job. If a student will have a job at college that will require them to drive, whether it is as a delivery driver or for a driving service like Uber, standard car insurance will likely not be sufficient to cover those activities. Insurance providers will typically offer options for additional coverage, but it is best to reach out to your insurance company and discuss how to make sure your student is covered by your policy.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-22 (base: 40 years) applied. Driver aged 18-22 on own policy is a renter. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.