Affordable Car Insurance for College Students: A Comprehensive Guide

Affordable Car Insurance For College Students: College students face numerous financial challenges, and the cost of auto insurance is one of them. While owning a car can give you more freedom and convenience, paying for insurance can be a burden. If you’re a college student looking for affordable car insurance, you’re not alone. This comprehensive guide will help you understand how to get the best coverage at an affordable price.

Why is car insurance expensive for students?

Auto insurance companies consider many factors when determining the cost of insurance, and age is one of them. In general, younger drivers are considered a higher risk, so their insurance premiums tend to be higher. In addition, college students often have limited driving experience and less established credit histories, which can also affect insurance costs.

How Do You Get Affordable Car Insurance For College Students?

1. Compare Prices: Don’t accept the first quote you get from an insurance company. Shop around to compare rates from different insurers. You can use online comparison websites to easily compare quotes from different companies.
2. Consider a higher deductible: A higher deductible means you pay more out of pocket if you have an accident, but it can also result in lower monthly premiums.
3. Take a driver course: Completing a driver course can show insurance companies that you are a responsible driver and may qualify for discounts.
4. Maintain a good GPA: Many insurance companies offer discounts to students who maintain a high GPA.
5. Choose the right car – The type of car you drive can affect your insurance rates. Consider choosing a car that is cheaper to insure.
6. Bundle your policies: If you have multiple insurance policies, such as homeowners or renters insurance, consider bundling them with your car insurance. This may result in discounts.
7. Consider a usage-based insurance program: Some insurance companies offer usage-based insurance programs, which track your driving and offer discounts based on your driving habits.

The Cheapest Car Insurance For Students – Affordable Car Insurance For College Students

Buying cheap auto insurance for college students requires some research, as the average cost of auto insurance varies depending on the profile of the driver and no two auto insurance companies offer the same rates. In general, the cheapest auto insurance company for college students varies on average based on your age and driving profile.

Students often pay high rates for policies because they are young, and insurance companies view young drivers as higher risk. Below we’ve broken down the cheapest car insurance companies by all college ages.

Average annual averages listed for each age are for an affordable full coverage policy. A full coverage policy offers the best protection in an accident where you are at fault. You may be able to find a cheaper liability policy, but this type of coverage offers the least amount of financial protection.

To find the cheapest and best policy for you, you may need to consider how much car insurance you need before purchasing a policy.

Cheapest Car Insurance For 18-Year-Old Students – Affordable Car Insurance For College Students

If you keep your vehicle at your parents’ address, the cheapest option is almost always to keep it on your policy. In this case, we find that GEICO is the cheapest company on average, costing our 18-year-old college freshman $2,008 a year.

However, if you live away from home and keep your vehicle on campus, you must purchase your policy. In this scenario, we find that State Farm is the cheapest company on average, costing the same driver $2,790 per year.

• Age

Company

Family Policy

Individual Policy

Cost Difference

• 18

USAA

$1,436

$2,096

$660

• 18

State Farm

$2,222

$2,790

$567

• 18

Travelers

$2,298

$3,423

$1,124

• 18

GEICO

$2,008

$3,488

$1,481

• 18

Allstate

$2,211

$4,075

$1,864

• 18

Nationwide

$2,209

$4,217

$2,008

• 18

Farmers

$2,443

$5,805

$3,362

• 18

Progressive

$2,841

$6,031

$3,189

Cheapest Car Insurance For 19-Year-Old College Students – Affordable Car Insurance For College Students

If you’re a 19-year-old freshman or sophomore who buys your car insurance, you’ll get slightly lower rates than if you were 18. The cheapest car insurance company for 19-year-old college students is State Farm, with an average cost of $2,379 per year.

• Age

Company

Family Policy

Individual Policy

Cost Difference

• 19

USAA

$1,327

$1,678

$351

• 19

State Farm

$2,144

$2,379

$235

• 19

GEICO

$2,097

$2,547

$450

• 19

Travelers

$2,197

$2,702

$505

• 19

Allstate

$2,251

$2,830

$579

• 19

Nationwide

$2,016

$3,313

$1,297

• 19

Progressive

$2,715

$3,355

$640

• 19

Farmers

$2,925

$3,501

$575

Cheapest Car Insurance For 20-Year-Old College Students – Affordable Car Insurance For College Students

Rates continue to drop as students get older. If you’re a 20-year-old sophomore or junior looking for auto insurance, we found State Farm to be the cheapest company on average, costing our student sample $2,137 per year. GEICO and Travelers also have competitive prices.

• Age

Company

Family Policy

Individual Policy

Cost Difference

• 20

USAA

$1,217

$1,536

$319

• 20

State Farm

$1,932

$2,137

$205

• 20

GEICO

$1,888

$2,277

$389

• 20

Travelers

$1,974

$2,409

$435

• 20

Allstate

$2,001

$2,510

$509

• 20

Nationwide

$1,792

$2,922

$1,130

• 20

Progressive

$2,438

$3,006

$568

• 20

Farmers

$2,736

$3,269

$532

Cheapest Car Insurance For 21-Year-Old College Students – Affordable Car Insurance For College Students

College juniors or seniors looking for cheap car insurance can start with a quote from GEICO. Our 21-year-old driver paid an average of $1,768 a year, cheaper than State Farm and Travelers, the next closest competitor.

• Age

Company

Family Policy

Individual Policy

Cost Difference

• 21

USAA

$969

$1,207

$238

• 21

GEICO

$1,467

$1,768

$302

• 21

State Farm

$1,697

$1,870

$173

• 21

Travelers

$1,664

$1,996

$332

• 21

Allstate

$1,616

$2,021

$405

• 21

Nationwide

$1,304

$2,100

$796

• 21

Progressive

$1,942

$2,388

$446

• 21

Farmers

$2,043

$2,432

$389

Cheapest Car Insurance For High School Students – Affordable Car Insurance For College Students

No one pays higher auto insurance rates than high school students. The cheapest way to insure a high school-age teen is to add them to a family policy. To add a teenager to a family policy, you must meet the insurer’s requirements. This could include living in the family home, having a parent or guardian on the title to the vehicle the teen will be driving, and any other factors determined by the insurer. Requirements may vary by insurance company and state.

Some teenage drivers may not be eligible for a family policy or require their policy. The following sections provide national average rates for teens aged 16 and 17 on individual and family policies.

Cheapest Car Insurance For 16-Year-Old High School Students – Affordable Car Insurance For College Students

For 16-year-old high school students just starting to drive, we found Nationwide to be the most affordable company for those who stick to their parent’s policy. Nationwide charged our example driver $2,654 per year. State Farm was the second cheapest.

If you’re a 16-year-old college student who needs to buy your policy, State Farm is the cheapest company on average. Our sample controller was quoted at $3,508 per year, significantly cheaper than the competition.

• Age

Company

Family Policy

Individual Policy

Cost Difference

• 16

USAA

$2,149

$3,271

$1,122

• 16

State Farm

$2,787

$3,508

$721

• 16

Nationwide

$2,654

$4,984

$2,330

• 16

GEICO

$2,840

$5,287

$2,446

• 16

Travelers

$3,277

$5,376

$2,100

• 16

Allstate

$3,193

$6,386

$3,193

• 16

Progressive

$3,314

$7,216

$3,902

• 16

Farmers

$3,353

$8,367

$5,014

Cheapest Car Insurance For 17-Year-Old High School Students – Affordable Car Insurance For College Students

As young drivers gain experience, they will find fares more affordable. The cheapest company for those who stay on their parent’s policy is GEICO, which costs our sample family $2,353 a year for a 17-year-old driver. Nationally, it is a close second. Given that their rates can vary, it makes sense to start your search by getting quotes from these two companies.

State Farm is the cheapest insurance company for students who need their policy. He quoted $3,114 a year for a 17-year-old with an individual policy.

• Age

Company

Family Policy

Individual Policy

Cost Difference

• 17

USAA

$1,673

$2,467

$794

• 17

State Farm

$2,475

$3,114

$639

• 17

Travelers

$2,661

$4,105

$1,443

• 17

GEICO

$2,353

$4,132

$1,779

• 17

Nationwide

$2,395

$4,545

$2,150

• 17

Allstate

$2,625

$5,137

$2,511

• 17

Farmers

$2,633

$6,313

$3,680

• 17

Progressive

$3,248

$7,005

$3,757

Do Students Need Their Own Insurance, or Can They Stay on a Parent’s?

Simply put, students need their insurance if they no longer live at home and continue to drive every day. If they live independently from their parents, they must take out their car insurance.

However, if students do not live with their parents, for example in college, but do not drive, they can remain on their parent’s car insurance. If the student lives more than 100 miles from home while in college, the parents may be eligible for a “Student Absent in School” discount. Staying on your parent’s policy also benefits you because you don’t lose coverage, which will be beneficial when you buy your policy in the future.

If you have their policy but drive your parents’ vehicles when you come on special occasions, you may be covered under your parent’s policy if it has a permitted use clause. Under this provision, driving your vehicle is generally limited to fewer than 12 times per year.

So unless you live alone and independently from your parents, it’s best to stick with your parent’s car insurance policy for the cheapest rates and the best student car insurance.

Auto Insurance Tips For College Students And Strategies To Save Money

Finding affordable car insurance for college students is not an easy task, but it can be done with some time and research. It’s always important to shop around and get personalized quotes from at least three different insurance companies to get a good idea of what’s available to you.

In addition, you can implement the following strategies to further reduce the amount of your car insurance premiums for student drivers:

• Buy a “safe” vehicle for your student: Auto insurance companies rate the car you drive based on how safe they think it is. For example, do you have a strong security score? Is it equipped with specific safety features such as airbags and anti-lock brakes? In general, car insurance companies consider sedans to be safer vehicles than sports cars.
• Look up all available discounts: While you want to ask about specific discounts for student drivers, ask the agent for a list of all available discounts to make sure you get as many as possible. For example, some car insurance companies offer discounts for cars with specific safety features, as noted above. In addition, they also offer discounts if you can pay your policy in full. If you make monthly payments, you can still get discounts for setting up automatic payments and paperless billing.
• Help your learner develop good driving habits: Many auto insurance companies now offer technology to monitor your driving and reward you for good driving habits. Maintaining good driving habits will also go a long way toward maintaining a clean driving record, free of speeding tickets, DUIs, or car accidents. This clean driving record also results in lower auto insurance rates.

Car insurance tips for international students

International students looking to purchase car insurance may face several obstacles. Many auto insurance companies require the learner driver to have a valid US-issued driver’s license, even if the state where you attend school does not have one.

Some states require international students to get a state driver’s license if they plan to drive a car, while other states allow them to use a valid driver’s license from their home country as long as they also have a valid international driver’s license. It is imperative to check with your State Department of Motor Vehicles for specific international driver requirements.

If you don’t have a local driver’s license, you could be placed in a high-risk driver pool that could increase your car insurance rates.

Frequently Asked Questions On Affordable Car Insurance For College Students

Who has the best student car insurance?

Geico has the best average rate for college-age drivers, at $388 per month. But State Farm has the best discounts, including discounts for good grades and driver training, as well as a non-school discount.

What is the cost of car insurance for an 18-year-old student?

A typical 18-year-old college student pays about $598 a month for car insurance if they have their policy and keep their car on campus. But you can lower your rates by sharing a policy with your parents or by qualifying for discounts, such as for having good grades.

What types of student discounts are there and how do they work?

Most insurers offer student auto insurance discounts. Be sure to check if you qualify for the following:

1. Good Student Discount: Full-time high school students and students with a minimum GPA of 3.0 or higher may qualify for this discount. They must also be under the age of 25 and single.
2. Distance Student Discount – This discount is available to students who remain on their parent’s insurance policy but do not have regular access to the covered vehicle. They also have to travel more than 100 miles from home to college.
3. Safe Driving Discount: Depending on the auto insurance company, high school, and college drivers can get a discount if they stay claim-free for a certain number of years.

How do I add a student to a family policy?

While it may affect your premium, adding a driver to your auto insurance policy is cheaper than buying a separate policy. Adding a student to your family policy is as easy as calling your insurance company and submitting the necessary information about the additional driver, including their name, age, social security number, and how long they’ve had their driver’s license.

Once your insurance company has received the submitted information, they will update your policy rate. After your insurer has reviewed and approved your application, your additional driver can get behind the wheel knowing he’s covered.

Final Thoughts On Affordable Car Insurance For College Students

The cost of car insurance can be a significant expense for college students, but there are ways to get affordable coverage. Comparing prices, considering a higher deductible, getting a driver’s education, maintaining a good GPA, choosing the right car, combining policies, and considering a usage-based insurance program can help you get the coverage you need at a price you can afford. Affordable car insurance for college students is possible, and with the right strategy, you can get the coverage you need without breaking the bank.