Best car insurance discounts for students

Car insurance discounts for students

Nearly all major car insurance companies offer some form of discount for students. The discount options may vary depending on whether the student has their own policy or is listed on someone else’s policy. Discount eligibility and amount may also vary greatly between providers.

Good student discount

Students who earn good grades might qualify for cheaper car insurance through a good student discount, generally reducing total costs by 10 to 25 percent. To qualify, drivers must typically be full-time students who earn a 3.0 GPA or higher. Most major insurance companies offer good student discounts to drivers on both standalone and family policies, but there's usually an age cap, with the discount expiring at age 23 or 25. Students may need to periodically send a report card or transcript to their insurance company to maintain eligibility.

Driver training discount

In addition to the good student discount, many insurers offer discounts for completing an approved driver education or defensive driving course. Given that students and young drivers statistically have a higher accident risk, completing this course demonstrates a commitment to safe driving, prompting car insurance providers to offer discounts as a reward. Depending on your driver's education program curriculum, you may already be eligible for this discount, but contacting your provider is likely the fastest way to determine your eligibility.

Distant student discount

Students away at college without their vehicle may earn a distant student discount, sometimes called a “student away at school” discount, to reflect the fact that they don't have access to any insured vehicles most of the year. Many carriers have their own unique eligibility requirements, such as residing over 100 miles away from home or maintaining full-time enrollment status. Again, speaking to your provider will likely be the fastest route to learning whether you qualify.

Affiliation discounts for students

As students head out into the world and become members of organizations and workplaces, they may have more opportunities to save money on their car insurance premiums. An affiliation discount is usually negotiated by a college, business or organization on behalf of its members or employees. Affiliation discounts are typically exclusive and may include special insurance features and perks on top of the discount. Below are some of the more common types of affiliation discounts.

University and alumni

Many larger organizations, including universities, have their own discounts with select insurance carriers. These discounts may be extended only to staff, or they may be more widely available to alumni associations and enrolled students. Check with your university to see what partnerships and alumni discounts they may have with car insurance companies.

Sorority, fraternity and honors societies

Larger sororities, fraternities or societies sometimes have their own negotiated discounts. Geico advertises these types of discounts the most, but they may be available from other carriers as well.

Military

Students who are also in the military may earn additional military discounts from certain insurers. Savings opportunities may be available for policyholders who are deployed or who garage their vehicle on base. Even if a military discount is not offered, reduced coverage might be available for vehicles in storage while military members are away from home for extended periods.

Telematics discounts for students

Telematics programs are becoming increasingly popular with many insurers. These programs use an app or in-car device to monitor your driving habits in real time. You may earn discounts for demonstrating safe driving habits, but note that some carriers may penalize you for poor driving habits with increased premiums. One popular telematics program is State Farm's Steer Clear, which is designed specifically for drivers under the age of 25. It includes a training course that young drivers take to improve their driving skills, and driving hours can be recorded on the mobile app.

The cost of car insurance for college students

One of the most eye-opening stats about young drivers is that the fatal crash rate per miles driven for 16- to 19-year-olds is almost three times the rate for drivers ages 20 and over, according to the Insurance Institute for Highway Safety. That tripled risk costs insurance companies money — and makes it harder for young drivers to find cheap student car insurance. 

Fortunately, students can reduce this financial burden by exploring discounts and remaining on their parents' car insurance policy throughout their school years rather than getting a policy of their own. You should be eligible for inclusion on your parents’ policy if you live at home or are living at college while pursuing your degree.

Below, we’ve compiled average full coverage rate data from Quadrant Information Services for students listed on their parents' policy to compare against the cost of a student on their own policy. Note that your rates may vary based on your location, carrier and other personal rating factors.

How much can I save with student discounts?

The exact amount you can save on car insurance with student discounts will usually vary by provider. For example, State Farm advertises a good student discount of up to 25 percent, while Geico caps theirs at 15 percent and only applies it to certain coverage. In most cases, however, insurance carriers don't publicly advertise an exact discount amount, so it's worth asking an agent or getting quotes from a range of carriers with the good student discount applied.

Cheapest car insurance companies for students

As each company sets its own premiums using proprietary rating algorithms, each also offers its own suite of available discounts with different savings opportunities. Although some companies might have higher overall base rates, they could still be competitive if they provide more young driver discounts than other carriers.

The table below showcases some of the cheapest insurers for students listed on their parents’ policy. It’s important to note that the average rates shown below don't include student discounts, and discount availability may vary by state. For a complete list of student discounts from various insurers, you should get in touch with the company directly.

Average cost of car insurance for a student by state

Each state sets its own car insurance minimum requirements and has its own risk factors, so rates may vary considerably based on where you live. For instance, drivers in states that require no-fault insurance tend to pay higher premiums. Additionally, states that are at higher risk for weather-related disasters or have a higher population density (leading to heavier traffic and more accidents) may have higher-than-average rates.

In the table below, you’ll find average full coverage premiums in each state for students of various age groups listed on their parents' policy with student discounts applied.

Other discounts for students 

Students can also save money by utilizing more general discounts that are not as dependent on age or academics. Here are some of the most popular policy and vehicle discounts available:

• Payment discounts: Just opting into autopay, paying your annual bill in full or enrolling in paperless billing could earn you discounted rates. These discounts are typically small, but when combined they can add up to useful savings. 
• Bundling: Providers will typically offer you a discount on your total premium if you also purchase renters or homeowners insurance alongside your auto insurance policy.
• Safe driver: Insurance companies tend to reward policyholders with a discount for avoiding car accidents and traffic tickets.
• Safety ratings: Vehicles with higher safety ratings have a better chance of preventing injuries during a car accident, which is highly valued by insurance providers — so much so that they are generally willing to offer a discount.
• Low-mileage discounts: If your driving frequency is low or limited to local routes, you might qualify for a discount based on your annual mileage. Alternatively, you could enroll in a pay-per-mile program designed for low-mileage drivers.

Frequently asked questions