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The Best Cheap Car Insurance for College Students of 2021
Car insurance is expensive, especially for younger drivers, but there are options that can save you some money. There are a few companies that offer special discounts on car insurance policies for college students.
Using our SimpleScore methodology, we regularly monitor and analyze leading insurance providers based on customer satisfaction, coverage options, discounts, accessibility and customer support
The best car insurance for college students of 2021
- Best Student Programs: State Farm
- Best Discounts: Progressive
- Cheapest Premiums: Geico
- Best Mobile Tools: Allstate
The car insurance for college students at a glance
|Provider||Average Annual Premium||Average Monthly Cost||Student Discounts Available||J.D. Power||Simple Score|
|State Farm||$6,336||$528||Student Away at School Discount|
Good Student Discount
Defensive Driving Course Discount
Driver Training Discount
Distant Student Discount
|Geico||$4,652||$387.67||Good Student Discount|
Good Driver Discount
School Organization Discount
Student and Alumni Discount
|Allstate||$10,468||$872.33||Resident Student Discount|
Good Grade Discount
Multiple Policy Discount
What is car insurance?
If you own a car, you are likely required to carry at least a minimum level of liability insurance. This protects you if you hit someone because your liability insurance will cover the repairs. If someone were to hit you, their liability insurance would then 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.
Car insurance protects you from the financial and legal liabilities of an accident. By paying a premium each month, you are paying for protection in case the unthinkable happens on the road.
How to save money on car insurance as a college student
Before shopping for car insurance, it’s important to know what types of coverage you need. The requirements can vary, depending on where you live, what kind of car you drive and your overall driving record.All states require you to carry a minimum level of bodily injury and property damage liability insurance. You may also be required to carry personal injury protection (PIP), uninsured and underinsured coverage and collision and comprehensive coverage.
All states require you to carry a minimum level of bodily injury and property damage liability insurance. You may also be required to carry personal injury protection (PIP), uninsured and underinsured coverage and collision and comprehensive coverage.
It’s important to purchase the right coverage for your needs; while also considering other ways to save. You don’t want to sacrifice quality for price, especially when so many leading insurance providers offer discount programs to help.
There are always standard discounts that you can take advantage of when you have a good driving record or a new car that’s loaded with safety features. However, when you are a student, there are plenty of other ways to save, too.
Many insurance companies will reward you for maintaining good grades.
You can also receive extra discounts if you leave your car at home when you go to college. Don’t worry about those vacations, either, because many “away from home” discounts still allow you to use the car when you visit home on the weekends or for holidays.
Another great way to save is to leverage your parents’ policy for extra savings. You can often get a better insurance rate if you drop your stand-alone policy and instead have your parents add you to their existing policy. Policy terms vary from provider to provider, but in many cases, you get better rates when you stay on your parents’ policy for the first few years of driving. Once you establish yourself as a safe driver with a clean driving record, you can obtain cheaper rates on your own stand-alone auto policy, usually after you turn 19 or 20.
If your driving skills could use some development or your record needs some work, driver safety, and improvement courses can not only clean up your record but also save you a bunch of money, too. Many insurance carriers offer discounts to young drivers if they take a special driver training course. It is popular that some school districts have taken the initiative to provide driver training for their high school students. However, before you enroll in a driver training class, be sure to make sure it’s approved by your insurance company’s discount program so you can qualify for the discounts you want.
Car insurance discounts for teens
Insurance providers know that their policies can get expensive for burgeoning young drivers, so they help out with tons of different discounts that you can use to lower your total insurance premium. These vary from company to company, but most insurance companies offer discounts for policyholders who consistently avoid accidents, speeding tickets and filing claims.
In addition to the standard options, several providers offer their own exclusive discount programs. Progressive’s Snapshot is one such example, using technology to monitor your driving habits. In return, you receive rate reductions when you consistently drive safely. Geico is another example, giving special pricing to alumni and members of certain colleges and organizations.
Some insurance companies have better discounts for college students than others do. Discounts can also vary by location because state insurance laws differ. To get the cheapest insurance rate, you should always obtain quotes from several insurance companies so you can compare premiums, coverages and discounts.
Car insurance for high school students vs. college students
When it comes time for high school seniors to graduate, it’s also time to start planning for college, and an important part of that process is obtaining the appropriate car insurance. For many students, college means a move to a place far away, and the rules for car insurance may not be the same as what you are used to at home.
Many students spend high school as drivers on their parents’ car insurance policy. It’s cheaper for many families to bundle their auto policies together, but it all depends on your needs as a college student.
You will likely be required to obtain your own policy if you plan to live full-time in a primary residence other than your parents’ home. This is sometimes a convenient caveat because you can then bundle both your auto and renters insurance for even cheaper premiums.
If you plan on going away to school but driving your car when you return home for breaks, you can likely remain on your parents’ policy until you graduate college. Many insurers will require that you obtain your own policy by the time you reach 25 years old, although this is different for everyone.
Should you have a car in college?
At The Simple Dollar, one of the questions we are asked the most involves college students and their cars. The decision to take a car to college weighs heavily on most college students’ minds, but it is a personal decision that depends on your specific circumstance.
The need for freedom weighed against the expense and hassle of parking can present quite the conundrum for aspiring graduates. Parking is often minimal on campus, and off-campus parking can be both scarce and expensive.
There is more to consider. While parking can be a nightmare, it is worth it for some students to have reliable, accessible transportation. Bus lines and other public modes of transportation are not always convenient for where you need to go, but a car solves that problem easily. It makes obtaining a job that much easier when you have off-campus employment options, too.
How to choose the best college student car insurance for you
Before you purchase a new auto insurance policy for a college student, there are a few steps you should take in order to find the best insurance policy for you.
- Weigh the pros and cons. For some students, it makes more financial sense to remain on your parents’ policy than it does for you to purchase a stand-alone policy. Before you decide on your auto insurance, consider the kind of pricing and coverage that you can obtain from each policy before making a decision.
- Explore student insurance discounts. Most insurance providers offer special discounts for college students. You can save money for good grades, safe driving and even the groups and organizations that you join at school. These discounts can translate into major savings, giving you more options for your college car insurance.
- Shop your options. Auto insurance is always evolving, and what was once the best deal in town may no longer offer the best pricing. Be sure to actively shop your student car insurance to ensure that you have the best deal and save the most money possible.
- Consider customer support features. If you ever run into trouble on the road, it’s important to have the right kind of help — especially when you are away from home. Before committing to a specific insurance company, explore its customer support features. Some companies may offer a mobile app or live chat for instant support, while others may specialize in in-person support at local branches.
Think about which features are most important to you and then compare your options for insurance.
We welcome your feedback on this article and would love to hear about your experience with the auto insurers we recommend. Contact us at email@example.com with comments or questions.