When you’re a college student, your dollars don’t go very far. After paying for tuition, rent, books, and fees, you’re lucky if you have a few bucks left on the weekend for a couple of beers. The last thing you want to do is pay too much for your student car insurance.
Fortunately for you, there are a number of companies that offer special discounts on car insurance for college students. Car insurance is expensive, especially for younger drivers, but there are options for you that can save you some money.
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If you own a car, you are likely required to carry at least a minimum level of liability insurance. If you hit someone, your liability insurance will cover their repairs. And if someone hits you, their liability insurance will cover your repairs.
However, if you get in an accident that doesn’t involve another car that is your fault, you’re out of luck. You’ll have to pay for the repairs on your own unless you have collision insurance.
Here are a few great options for college students.
Best Car Insurance Companies for College Students
State Farm is generally not known as one of the cheapest places in the world to get your auto insurance, but for college students it can be. They offer up to 25% off for college students who get good grades.
Parents will be happy to hear that, as well as the fact that State Farm offers resources to help you drive more safely. Steer Clear is a way for new drivers to learn more about safe driving, with a sort of gamified method of teaching safer driving. Anyone who completes this program and maintains a safe driving record is going to get 15% off of their car insurance. Discounts vary by state.
First of all, we should say up front that USAA is only available to active duty military members, veterans, Department of Defense employees, and their families. So if you don’t fall into any of those categories, best to skip to the next insurance company on the list.
If you do qualify, though, keep reading, because you’re in for a very pleasant surprise: USAA offers discounts for good grades and safe driving. If your kids attend school over 100 miles from home and don’t take their car, congratulations, you’re going to get a discount. Qualifying car owners should check out USAA for a quote, as this isalmost always the best insurance option for customers affiliated with the U.S. military.
Amica is a smaller insurer, and as such you might not have heard of it. The same types of discounts we’ve talked about elsewhere can apply with Amica, but you’re also going to get roadside assistance, including for losing your keys.
That can be a big help to college students who are forgetful or prone to losing things. For parents it can mean a little bit of extra peace of mind when sending your kids off to college. A dead battery or a flat tire? No trouble. Amica will be there to help out.
Never heard of American Family? You’re not alone. It might be one of the best-kept secrets in the world of insurance, despite being one of the largest insurers in the United States.
But depending on what market you live in, you might be paying a lot less for your auto insurance, especially for your college student, if you go with American Family. The company boasts great customer service ratings, and offers similar discounts to USAA for both good grades and going to college without a car. Check them out.
Factors Considered in a College Student’s Rate
In addition to the standard factors that go into car insurance rates for young drivers, such as location and vehicle, car insurance rates for college students are often affected by these factors:
- Safe driving
- Whether or not they have their car at school
Check Your Insurer and Shop Around for the Best Student Car Insurance Rates
Many times your best option might be sticking with your present insurer and calling them up to ask how your policy and premiums might change when the kids go off to college. They might have their own little-advertised student discount, or you may be able to keep your child on your current policy but receive a discount just because they’re not going to be using your car for upwards of nine months out of the year.
However, it always pays to shop around with other car insurance companies first and see what your options are. Of course, if you were thinking about making a switch anyway, what better time than when your kids are going off to college? Compare quotes, weigh the prices and the benefits and see which car insurance policy is best for you, your college student, and your family.
Is car insurance cheaper if you’re a student?
Sort of. It’s cheaper than being a young person who isn’t in college if you are eligible for a good student discount, or a discount for going to school away from home and not bringing your car. However, car insurance companies still consider that most college students are young drivers, so a student may still have a higher insurance rate than a more experienced driver with a clean driving history.
How much is a good student insurance discount?
Student discounts can range from about 5% to 25%, depending on the company you choose. They vary from company to company.
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