Depending on the location and setting of your college campus, you might need to bring a vehicle with you to school. But because most college students are still newly licensed, you might find that auto insurance rates are very expensive. This is especially true if you are no longer on your parents’ policy.
To help you find the cheapest car insurance for college students, we evaluated average rate data from a variety of insurers and shared some tips for saving money on your coverage.
| Insurance company | Best for | Monthly/annual cost of minimum coverage | Monthly/annual cost of full coverage |
|---|---|---|---|
| Geico | Discounts | $100/month $1,211/year | $285/month $3,427/year |
| State Farm | Customer satisfaction | $75/month $903/year | $228/month $2,739/year |
| Progressive | Online resources | $110/month $1,320/year | $410/month $4,928/year |
| Allstate | Safe drivers | $90/month $1,080/year | $307/month $3,692/year |
| Nationwide | Endorsements | $203/month $2,4385/year | $342/month $4,107/year |
| Metromile | Infrequent drivers | $6/month $75/year | $100/month $1,200/year |
| Travelers | Hybrid vehicles | $236/month $2,837/year | $361/month $4,343/year |
| USAA | ROTC students | $62/month $755/year | $205/month $2,466/year |
Geico
Out of the best cheap car insurance companies for drivers under 25, Geico has the best discounts. Geico offers more than a dozen discounts, with savings for safe drivers, good students, taking a driver’s ed course, completing a defensive driving program, insuring a new vehicle, and insuring a car with safety features like anti-lock brakes and airbags.
State Farm
State Farm is our top-pick for drivers under 25 who have no tickets or accidents on their driving record. If you enroll in State Farm’s Steer Clear program, you can qualify for a lower car insurance premium by demonstrating good driving behaviors every time you get behind the wheel. State Farm also offers a variety of other discounts, including savings of up to 25% for getting good grades in school.
Progressive
Progressive has some of the best online tools and resources, which can be helpful if you’re looking for the cheapest car insurance policy. You can use Progressive’s AutoQuote Explorer tool to compare rates from multiple insurers, or use the Name Your Price Tool to build a car insurance policy based on your specific budget.
Allstate
Allstate has the highest car insurance premiums out of the companies we reviewed, but it can be a good option for teen drivers. Young drivers under 25 can qualify for a smart student discount if they meet Allstate’s grade requirements or get teenSMART® certified. Allstate’s teenSMART® training program aims to help young drivers reduce the risk of accidents and comes with a discount in most states.
Nationwide
Nationwide is our recommendation for drivers under 25 who want to customize their car insurance policy with endorsements. Nationwide has a wide selection of optional policies, including accident forgiveness, gap insurance, rental car coverage, and roadside assistance. The company also has some unique perks, like a vanishing deductible program.
Metromile
Because college students may only drive during summer break or over school holidays, it makes sense to buy coverage for them only for the miles they drive. Metromile saves consumers money by charging a low monthly fee and a surcharge for the number of miles you drive. Metromile says it saves its drivers an average of $741 per year.
Travelers
College students who have a “B” average or better on their grades are eligible for a special discount from Travelers, and students attending and residing at a school more than 100 miles away from home may also qualify for a discount. If the student also drives a hybrid vehicle, they are eligible for the hybrid vehicle discount. Age restrictions and other exceptions may apply.
USAA
USAA is one of the top-rated car insurance companies on the market, but you can only purchase coverage if you or someone in your immediate family is in the military. USAA also issues coverage to students in ROTC programs and students at U.S. Service Academies.
How Much Does Car Insurance Cost for College Students?
According to data from The College Investor, the average cost of car insurance for college students is about $3,816 per year for a full coverage policy. However, keep in mind that your actual rate will depend on many personal factors, including your ZIP code, age, driving record, the make and model of your vehicle, and what discounts you might qualify for.
Methodology
To find the average car insurance premium for college students, we gathered rate data published on insurers’ websites and received our own sample quotes for a 20-year-old female in New Brunswick, New Jersey, for a 2018 Honda Civic.
These rates are meant to estimate what college-aged drivers might pay for auto insurance. Actual rates are personalized based on the driver’s unique profile and coverage needs, and might vary based on the average rate data we collected.
How to choose the best auto insurance for College students
There are many different car insurance companies on the market, whether you’re attending college in New Jersey or in another state. Each insurer has unique pros and cons, so it’s important to review multiple insurance companies and compare them based on some key features.
Customer satisfaction
First, take a look at J.D. Power’s U.S. Auto Insurance Study, which rates the largest insurance companies based on overall customer satisfaction. You can also check J.D. Power’s U.S. Auto Claims Satisfaction Study to see insurer ratings for overall claim satisfaction.
Financial strength
We recommend reviewing the financial strength ratings for the insurance companies you’re considering. Organizations like AM Best, S&P, and Moody’s score insurance providers based on their financial stability and balance sheet strength. A company with strong financials is able to meet policyholder obligations and has the funds to pay claims.
Complaint index
Before you choose an insurance company, check the insurer’s rating with the National Association of Insurance Commissioners (NAIC). The NAIC maintains the Complaint Index database, which tracks the number of complaints an insurer receives in relation to its size. Companies with more complaints than expected may have issues with customer service, billing, or claim handling.
Coverage options
Every driver has different coverage needs, so it’s a good idea to make sure the insurance company offers the types of coverage you want. For example, maybe you’re looking for specialty coverages, like new car replacement, accident forgiveness, or OEM parts coverage. Not all insurers offer these endorsements, so review the coverages available as you compare insurance providers.
Discounts
Many insurance companies offer discounts to help drivers save money on their policies. As a college student, you might be eligible for special discounts, like savings for getting good grades in school or leaving your car behind when you attend college more than 100 miles away from home. Taking advantage of discounts can help you get a much cheaper rate, so look for insurance companies that offer multiple discounts you qualify for.
How to save money on car insurance as a college student
There are a variety of ways that college students can potentially save money on their car insurance. Here are a few suggestions:
Look for discounts: Car insurance discounts are a great way to get a lower premium. In addition to student discounts, you can often find discounts for taking a defensive driving course, being a safe driver, having no recent claims or traffic violations, and paying your premium in full.
Bundle your policies: Bundling your car insurance policies could help you get a discount on your combined premium. For example, if you have renters insurance for your off-campus apartment, consider buying your auto insurance from the same company to save money.
Consider pay-per-mile insurance: If you only use your car occasionally (and drive short distances), you might benefit from a pay-per-mile insurance policy. With mileage-based insurance, you pay a flat rate each month and a small fee for each mile you drive, so it’s often cheaper than traditional insurance.
Stay on your parents’ policy: If you still have the same permanent address as your parents’, you can usually stay on their policy, even if you attend college in another state. Staying on your parents’ insurance is usually cheaper than buying a policy on your own.
