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Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated the top auto insurance providers
130
Providers ReviewedOur team looked at over 100 of the top auto insurance providers in the U.S., from national providers like USAA, Travelers and State Farm to regional providers like Erie Insurance.
8,500
Data Points AnalyzedTo properly score each auto insurance provider, we looked at cost data, claims processes, customer review scores, industry standing, available discounts, coverages and add-ons.
800
Research HoursOur team put in the time so you don’t have to, evaluating cost data, reading customer reviews and researching companies to determine the most reliable options for coverage.
8,500
Customers SurveyedWe asked thousands of customers to describe their experience with their auto insurance provider to understand how real customers feel about their insurers.
Learn more about our methodology and editorial guidelines.
Why Is Car Insurance So Expensive for Young Drivers?
Being young with less driving experience often leads to higher car insurance rates. According to the Insurance Institute for Highway Safety (IIHS), the fatal crash rate for drivers aged 16 to 19 is nearly three times higher than the rate for drivers aged 20 and older. Auto insurers are aware of this fact, which is why they commonly deem young motorists as high-risk drivers. Car insurance for new drivers is priced accordingly, as prices are highest at the ages of 16 and 17.
Average Car Insurance Rates for Young Drivers
The average cost by age for a full-coverage auto insurance policy can be found below. The typical price for those aged 16 to 25 is far higher than the national average, which is $167 per month or $2,008 per year for a full-coverage plan. This national average estimate reflects the profile of a 35-year-old driver with a clean driving record and good credit history.
How Can I Get a Good Student Discount?
The criteria for earning a good student discount vary between car insurance companies, but our research team found that many reputable insurers enforce the same or similar requirements. In order to receive a good student discount, make sure to do the following:
Earn Good Grades in School
Discount eligibility relies on good grades, as they’re the deciding factor when it comes to earning a good student discount. Most insurers require you to have at least a B average while enrolled in high school or in university as a full-time college student. Be sure to check with your auto insurance company to confirm its specific criteria and whether or not you meet the standards.
Submit Proof of Good Grades
Once you’ve confirmed that your grades qualify you for a good student discount, provide proof of your marks to the auto insurer. This usually involves sending a copy of your latest report card or transcript, though this varies somewhat based on the auto insurance provider.
Shop for Car Insurance Quotes
It’s best to shop around for car insurance quotes from various providers to see if another option will give you better rates as a teen or student driver. Quotes are free and easy to obtain online, so spending a bit of time researching various companies and their good student discounts could save you considerable money.
Can Home-Schooled Students Get a Good Student Discount?
Several reputable car insurers mention accepting home-schooled students for good student discounts, so you’ll likely still qualify. However, check with your auto insurance company since acceptance and documentation varies between providers.
Car Insurance Companies With Good Student Discounts
We’ve researched and ranked the top auto insurance companies that offer good student discounts and were impressed by State Farm, Geico and USAA. Below, you’ll find more information about these three standout providers.
State Farm: Best Customer Experience
Better Business Bureau (BBB) rating: A
AM Best financial strength rating: A++
State Farm ranked well in our comprehensive review due to its reasonable costs, reputation, various coverage options and strong customer service. It offers a generous good student discount with savings of up to 25% if student drivers maintain high grades. Students can qualify until they reach the age of 25, which is longer than with many other car insurers.
Additionally, home-schooled students are eligible for this discount if they’ve taken certain national standardized tests within the past 12 months and ranked in the top 20% of test-takers. Both traditional and home-schooled students must submit proof of test scores or grades in order to receive the State Farm good student discount.
Read more: State Farm insurance review
State Farm Car Insurance Rates by Age
Below are State Farm’s average full-coverage car insurance costs for the ages that are eligible for a good student discount. It’s best to speak with a licensed State Farm agent to learn more about what your exact discount could look like.
| Age | State Farm Average Annual Rate |
|---|---|
| 16 | $5,514 |
| 17 | $3,714 |
| 18 | $3,340 |
| 19 | $2,924 |
| 21 | $2,322 |
| 25 | $1,952 |
*Cost data for 17, 18, 19, and 21 year olds based off 2022 information
Geico: Best for Budget-Conscious Drivers
BBB rating: A+
AM Best financial strength rating: A++
Our team chose Geico as an affordable option for most drivers due to the consistently low rates offered to a variety of customers. Full-time high school or college students can qualify for a good student discount as long as they maintain at least a B average in their courses. Geico’s offering can provide a good student discount of up to 15% off of your potential car insurance cost.
There’s no specific mention of good student discounts in relation to home-schooling on Geico’s website. Home-schooled students should ask a Geico agent directly to see if they qualify for the same good student discount as traditional students.
Read more: Geico insurance review
Geico Car Insurance Rates by Age
Below, you’ll find Geico’s national average rates for full-coverage car insurance based on age. Savings with this discount will vary by student and grade point average (GPA), so speak with your insurance agent to learn more about your exact potential discount.
| Age | Geico Average Annual Rate |
|---|---|
| 16 | $5,307 |
| 17 | $3,646 |
| 18 | $3,161 |
| 19 | $2,485 |
| 21 | $1,844 |
| 25 | $1,807 |
*Cost data for 17, 18, 19, and 21 year olds based off 2022 information
USAA: Best for Military Members
BBB rating: Not rated
AM Best financial strength rating: A++
USAA offers some of the best car insurance rates on the market, but coverage is only available to active military members, veterans and their families. If you’re a student with a parent in the military — or if you’re in the military yourself — be sure to consider the USAA good student discount. Note that this good student discount is not available for USAA members in Hawaii or North Carolina.
To qualify for the USAA good student discount, you must be a full-time student in high school, college or vocational technical school. Eligible students are between the ages of 16 and 25 and fulfill at least one of the following goals:
- Rank in the upper 20% of your class
- Have a grade average of B or higher
- If number grades are used, have at least three out of four points on a four-point scale
- Be included on an honor roll, a dean’s list or a similar achievement list
You’ll need to mail or fax proof that you’ve met these requirements to receive the USAA good student discount. You can also have your application completed by a school official. In addition, you’ll need to renew and recertify that you qualify for this discount on a yearly basis.
Read more: USAA insurance review
USAA Car Insurance Rates by Age
The table below has USAA’s full-coverage national averages based on the ages that qualify for a good student discount. USAA doesn’t explicitly state how much you can save on your auto policy with this discount, so it’s best to contact a representative to find out more.
| Age | USAA Average Annual Rate |
|---|---|
| 16 | $6,431 |
| 17 | $3,398 |
| 18 | $2,897 |
| 19 | $2,261 |
| 21 | $1,609 |
| 25 | $1,825 |
*Cost data for 17, 18, 19, and 21 year olds based off 2022 information
Other Auto Insurers With Good Student Discounts
While State Farm, Geico and USAA offer some of the best overall rates among auto insurance companies, there are other insurers that have good student discounts. Alternative insurers with their own good student discounts include:
- Travelers
- Liberty Mutual
- Auto-Owners Insurance
- Progressive
- Nationwide
- Country Financial
- American Family Insurance
- Farmers
- Allstate
We recommend getting quotes from various car insurers before picking up a coverage plan. That way, you’ll be able to secure the best possible auto insurance rates and discounts.
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Other Car Insurance Discounts for Students
The good student discount is just one way for young drivers to save money on their car insurance premiums. There are plenty of other student car insurance discounts on the market that could offer even greater savings.
Additional auto insurance discounts that could benefit students include:
- Driver’s education discount: Some car insurance providers offer discounts to student drivers if they take an approved driver’s education or driver training course.
- Defensive driving course discount: Taking a defensive driving course could qualify many policyholders for additional savings.
- Student away at school discount: If you’re a college student who lives away from home and rarely drives, you could be eligible for another discount.
- Multi-car discount: Student drivers who share their policy with another person such as a parent could save more money.
- Vehicle safety features discount: If a student drives a vehicle with safety features like air bags or an anti-theft system, they may qualify for additional savings.
- Usage-based insurance: Telematics insurance apps reward students for safe driving if they avoid behaviors such as speeding, hard braking and late-night driving.
While it’s rare for young drivers to find extremely affordable auto insurance, higher rates could drop considerably if you combine one or more of these opportunities with a good student discount.
More Ways To Save on Car Insurance
While car insurance discounts can reduce the rates you’ll pay for coverage as a student driver, there are a few other techniques that can lower your premiums even more. We’ll run through a few of them below.
Maintain a Clean Driving Record
The easiest way to get a cheap car insurance policy is by being a good driver. Not only could you qualify for a safe driver discount, but you could also see your rates decrease faster than for other teen drivers. This means avoiding reckless practices such as speeding, texting while driving, and being on the road late at night.
Increase Your Insurance Deductible
Drivers who set higher auto insurance deductibles agree to pay more out of pocket before their insurer covers remaining vehicle damages. However, these policyholders will also pay a lower rate per month for their insurance coverage plan.
Bundle Insurance Coverage Plans
If you also have renters or homeowners insurance, you could save a considerable amount of money by bundling these policies with your car insurance. Expect to receive a far lower rate together than if you were to pay for these coverages separately.
Look for Driver Affiliation Discounts
Many auto insurance companies offer savings for members of certain fraternities and sororities. Because of this, it’s worth checking whether you could qualify for lower rates if you’re a member.
Good Student Discount: The Bottom Line
While car insurance prices are typically high for teens and young drivers, you could see lower auto premiums if you take advantage of a good student discount. It’s smart to compare car insurance quotes from several reputable companies to see which ones offer prices and discounts that fit your needs.
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Good Student Discount: FAQ
Most insurers accept a report card or your most recent transcript from high school or university to verify that you’re eligible for a good student discount. We recommend contacting your specific car insurer to find out exactly what proof it requires.
Our research shows that many insurers offer good student discounts of anywhere between 10% and 25% off your typical rate. Each insurer’s discount varies, however, and factors such as your GPA can affect your final discount.
Most insurers require a B average or better for a driver to receive a good student discount, which equates to a 3.0 GPA. We recommend checking with your specific car insurance company to confirm its criteria for this discount.
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.
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
