Heading off to college comes with plenty of new responsibilities—managing classes, living on your own, and yes, figuring out how to afford car insurance. Whether you’re commuting to campus, driving between home and school, or just using a car on weekends, having the right insurance is essential. But for college students, who often have limited driving experience and tight budgets, finding affordable car insurance can be a challenge.
In this guide, we’ll explore the best car insurance options for college students, which companies offer the best rates and discounts, and what steps students can take to save big while staying covered.
Why Car Insurance Is Expensive for College Students
Insurance companies assess risk when setting premiums. College students—especially those under 25—are generally considered high-risk drivers for a few reasons:
- Limited driving experience
- Higher accident rates among younger drivers
- Increased likelihood of distractions while driving
As a result, premiums are higher. But many insurers offer student-specific discounts, and with the right strategy, you can significantly reduce your rates.
Top Car Insurance Companies for College Students
While rates vary by state and situation, these insurers consistently offer affordable and flexible options for students:
1. GEICO
GEICO is a favorite among students for its low rates and wide range of discounts.
Key benefits:
- Up to 15% discount for good students (B average or better)
- Discounts for being accident-free
- Mobile app for managing policies and claims
- Competitive rates for students on family plans
Best for: Students with a strong academic record and those staying on their parents’ policy
2. State Farm
State Farm is known for excellent customer service and multiple discount opportunities for students.
Key benefits:
- Steer Clear® Program for young drivers under 25 (safe driving course with discounts)
- Good Student Discount
- Multi-policy and family plan savings
- 24/7 claims support
Best for: Students looking for personal support and solid discounts for safe driving
3. Progressive
Progressive offers flexible coverage and usage-based discounts ideal for students who don’t drive much.
Key benefits:
- Snapshot® program tracks driving habits and offers discounts
- Good Student Discount
- Competitive rates for part-time drivers
- Online tools for easy comparison and policy management
Best for: Tech-savvy students and those with low annual mileage
4. Nationwide
Nationwide caters to students with useful coverage options and educational discounts.
Key benefits:
- SmartRide® program offers usage-based discounts
- Good Student Discount (typically 10%)
- Accident forgiveness available
- Affordable bundling options with renters insurance
Best for: Students who want extra coverage features without paying premium prices
5. USAA (for military families)
If you or your parents are affiliated with the military, USAA is hands-down one of the best options.
Key benefits:
- Some of the lowest rates in the industry
- Discounts for good students and safe drivers
- Flexible coverage when students move between school and home
- Excellent customer satisfaction
Best for: Military families or veterans attending college
Essential Discounts for College Students
Nearly all insurers offer some form of student-focused discount. Make sure to ask about:
✅ Good Student Discount
Usually requires a B average (3.0 GPA) or higher. Can save students 10% to 25%.
✅ Distant Student Discount
If your school is 100+ miles away from home and you don’t have a car with you, you can still be insured under your parents’ policy at a discounted rate.
✅ Low Mileage Discount
Students who don’t drive much (e.g., less than 7,500 miles per year) may qualify for lower premiums.
✅ Telematics Programs
Safe driving apps or devices (like GEICO DriveEasy or State Farm Steer Clear) reward good driving with up to 30% savings.
✅ Bundling Discounts
Combining auto insurance with renters or life insurance may reduce your overall premium.
Should College Students Stay on Their Parents’ Policy?
In many cases, it’s cheaper and smarter to stay on a parent’s insurance plan—especially if the student is:
- Under age 25
- Driving a family-owned vehicle
- Living at home or temporarily away at school
Pros:
- Lower rates due to parents’ driving history and loyalty
- Continued access to multi-car and multi-policy discounts
- Convenience of shared billing and claims management
Cons:
- If the student gets into an accident, it could impact the family’s premiums
- Parents may not want the extra liability
If a student owns their own car or lives far away full-time, getting their own policy may be necessary.
Ways for College Students to Save on Car Insurance
No matter what company you choose, these tips can help you reduce your premiums:
1. Maintain Good Grades
Submit proof of your academic performance every semester to keep your Good Student Discount.
2. Drive Safely
Avoid speeding tickets, accidents, and other violations—they can dramatically increase your rates.
3. Compare Rates Every Year
Even if you’re happy with your current insurer, compare quotes annually. Rates can change based on your age, driving history, or even your ZIP code.
4. Take a Defensive Driving Course
Some insurers offer additional discounts if you complete an approved driver safety course.
5. Opt for a Modest Vehicle
Sports cars and newer models cost more to insure. Choose a car with strong safety ratings and lower repair costs.
6. Choose the Right Coverage
If you drive an older car that’s paid off, you might skip comprehensive and collision coverage. But make sure you meet your state’s minimum liability requirements.
FAQs: Car Insurance for College Students
Can I get insurance with no driving history?
Yes. Many insurers offer first-time driver policies, though rates will be higher. Taking a driver’s ed course and using a telematics program can help lower costs.
Do I need insurance if I don’t have a car on campus?
If you don’t have a car with you, you may still want to be listed on a parent’s policy. This keeps your insurance history active and ensures you’re covered when driving at home or borrowing a car.
Is renters insurance worth bundling with auto insurance?
Yes—especially if you’re living off-campus. Bundling auto and renters insurance can save you money and protect your belongings from theft or damage.
Final Thoughts
Car insurance is a must-have for college students, but it doesn’t have to drain your bank account. By choosing the right provider, staying on a family plan when possible, and leveraging student discounts, you can find a policy that fits your budget and lifestyle.
The key is to shop smart, maintain a clean driving and academic record, and take advantage of every discount you qualify for. Whether you’re driving across campus or commuting from home, the right coverage gives you peace of mind on the road—without breaking the bank.