Best Car Insurance for College Students in 2024 (2024)

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Average Cost of Car Insurance for College Students

In the tables below, we’ll look at the average cost of car insurance from top providers for college students aged 18 through 21.

Average Rates for 18-year-old College Students

Based on 2022 rate data, the national average for full coverage car insurance for 18-year-old drivers is $4,958 per year. Progressive and Travelers may not be the best choices for college students this age, but Geico and USAA are the cheapest options.

Average Rates for 19-year-old College Students

Nineteen-year old college students pay on average about $3,708 per year for full coverage car insurance. Luckily, USAA, Geico, State Farm and Travelers all fall below this average.

Average Rates for 21-year-old College Students

College students who are 21 and older will start to see much lower prices for full coverage car insurance than teen drivers. The national average rate for 21-year-olds is $2,786 per year, but USAA, Geico and State Farm offer rates lower than this.

Types of Car Insurance for College Students

Apart from costs, most details about car insurance for college students are the same as for other motorists. New drivers have the same minimum required coverage as others, and they generally have the same coverage options and discounts.

Standard Coverage Types for College Students

At the very least, you’ll need a car insurance policy that satisfies your state’s minimum coverage requirements. That usually includes liability car insurance policies and medical coverage in some locations. Here’s a look at some standard insurance plan components, and what they cover:

• Bodily injury liability coverage: Medical costs and lost wages for other parties in accidents you cause
• Property damage liability coverage: Damages to other vehicles and property in accidents you cause
• Personal injury protection (PIP): Your medical expenses and lost wages, regardless of who is at fault for an accident
• Medical payments coverage (MedPay): Medical expenses but not lost wages, regardless of who is at fault for an accident
• Uninsured motorist coverage/underinsured motorist coverage (UM/UIM): Accident-related expenses if the at-fault driver lacks sufficient auto insurance

On top of these offerings, most experts recommend full coverage policies that include these important but optional choices:

• Collision insurance: Covers damages to your vehicle resulting from an accident, regardless of who is at fault.
• Comprehensive coverage: Covers damages to your vehicle that aren’t from an accident including damage caused by floods, vandalism, fires and severe weather.

Additional Coverage Options for College Students

Insurance companies also offer add-ons that help to manage other costs related to owning a car. Many of these options only cost a few extra dollars per month and provide services that may be especially helpful for college students.

• Roadside assistance: Covers emergency roadside services such as fuel and fluid delivery, tire repair and towing needs.
• Rental car reimbursem*nt: Provides for the cost of a rental car while your vehicle sits in the repair shop.
• Accident forgiveness: Keeps your rates from rising dramatically following an at-fault accident.
• Gap insurance: Covers some or all of the difference between what you owe on a vehicle and what it’s worth after a total loss incident.
• Rideshare insurance: Insurance from rideshare companies like Lyft and Uber often comes with high deductibles, and your standard auto policy won’t cover you when you’re driving for them. Rideshare insurance gives you protection when you drive your car for work instead of only for commuting to your job.
• Mechanical breakdown insurance (MBI): Similar to an extended car warranty, MBI policies cover the cost of mechanical repairs to your vehicle.

It’s not required for college students to include these options when shopping for car insurance, but they may provide peace of mind for some younger motorists.

Why Is Car Insurance for College Students So Expensive?

Insurers base car insurance premiums on the likelihood that they’ll need to pay out on a claim following an accident. Drivers with higher risk factors, like less experience behind the wheel or a history of traffic violations, are more likely to get involved in an accident, so they generally pay more for coverage.

Young drivers are some of the most likely to be involved in car accidents, especially fatal ones. According to fatality data posted by the Insurance Institute for Highway Safety (IIHS), the fatal crash rate in the United States for drivers aged 16 to 19 years old is three times higher than it is for drivers aged 20 and older.

Factors That Affect Car Insurance Rates for College Students

Age plays a significant role in your premiums, but it’s not the only element. Insurers use many factors to determine how much drivers pay for coverage, so not all college students pay the same rates.

Below, we’ve listed some of the most critical factors that determine your car insurance rates, depending on the state you live in:

• Types of coverage: Basic policies that only span the minimum requirements are the cheapest car insurance options for college students, but these also expose motorists to larger financial risks.
• Coverage limits: The lower your coverage limits, the lower your premiums will likely be. However, you’ll be personally responsible for any damages that exceed your coverage limits.
• Driving history: People with clean driving records typically get the lowest rates. Any at-fault accidents or traffic violations in your driving history will likely raise your prices.
• Deductible: In most cases, you can choose the deductible that you’ll pay for covered repairs. The lower your deductible, the more you’ll usually pay for insurance.
• Credit score: Not all states allow insurers to use credit scores as a factor in your premiums, but bad credit scores raise rates considerably in places that do.
• Location: Insurance premiums vary widely across state lines as regulations and risk factors change. Rates vary within states, too, with drivers in rural areas paying less on average than those in urban areas.
• Vehicle: The value of your vehicle, based on its make, model, age, condition and mileage, is also a factor in your premiums.

The best way to find out how much you’ll pay for car insurance as a college student is to compare auto insurance quotes from multiple providers before making a final decision.

How To Get the Cheapest Car Insurance for College Students

While there isn’t any way around the fact that car insurance coverage for young drivers is more expensive, many discounts or cost-reducing solutions are available. While you wait for rates to go down with age, there are a few actions you can take to reduce the cost of car insurance for college students.

Stay on a Family Insurance Policy

In the U.S., drivers can stay on their parents’ policies until the age of 26. It’s often much cheaper to stick with a current auto insurance plan than to buy your college student their own policy — most insurers charge less for the additional plans than they do for individual policies.

There are potential downsides to including a student on a parents’ car insurance policy, though. If a person has earned discounts for avoiding accidents and moving violations, for example, they could lose those savings if anyone on their own car insurance policy is involved in one.

Leave the Car at Home

Some insurers offer a discount for full-time students who leave their vehicle at home while attending school elsewhere. Students who seldom return home or don’t drive much when they do may also benefit from a usage-based car insurance policy that charges by the mile.

Maintain Good Grades

Many insurers offer discounts to students who maintain solid grades in school, providing an excellent opportunity to save on car insurance for college students. These good student discounts vary by the company but generally follow one of the standards outlined below:

• Maintaining at least a B average or a 3.0 GPA
• Ranking within the top 20% of one’s class

These are just guidelines. Be sure to check with your insurance agent to learn about your provider’s exact requirements.

Take a Driving Course

Many insurers offer discounts for completing an approved defensive driving or driver education course, which help students to become more responsible on the road. Learning safe driving techniques can help young drivers avoid accidents and keep their car insurance rates low.

Seek Out Other Discounts

We’ve mentioned student away at school discounts, good student discounts and driver training discounts, but insurance companies often offer more ways to save. These common car insurance discounts can help to reduce how much you’ll pay for auto coverage:

• Multi-policy discount: Bundle auto coverage with other insurance products, such as renters insurance or life insurance
• Multi-car discount: Insure multiple cars under the same policy
• Safe driver discount: For drivers who haven’t gotten into any accidents or received a speeding ticket for a certain period of time; also known as a good driver discount
• Organization discount: Available to members of student-related organizations such as fraternities, sororities or university alumni groups

Reduce Your Coverage

The types of coverage you hold and how much of each you have are major factors in determining your auto insurance rates. Getting rid of unnecessary coverage is a fast way to bring rates down.

Keep in mind that the less coverage you’ve got, the more risk you take on. Given that younger drivers like college students are more likely to get involved in an accident, you’ll want to weigh that risk with your potential car insurance savings.

Consider a Telematics Program

Telematics insurance programs use GPS-enabled mobile apps to monitor your driving habits. They can observe whether you speed, how hard you brake or accelerate and how often you pick up your phone while driving.

Insurance companies advertise telematics programs as ways to save money on insurance. While some drivers find significant savings from these programs, it’s important to note that they can also raise rates.

Best Car Insurance for College Students: The Bottom Line

The best car insurance for college students depends on your current situation, but there are many options for affordable coverage. Car insurance for college students will most likely be more expensive than for older drivers. However, companies offer plenty of ways for students and younger drivers to save.

The only way to know for sure which company offers the best prices for you is to get instant quotes for yourself. You can compare car insurance quotes online from multiple companies to see which one offers the best rates. Before you sign, be sure to ask about what discounts are available.

Best Car Insurance for College Students: FAQ

Below are frequently asked questions about the best car insurance for college students.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.