Best Auto Insurance Options For College Students

Car insurance can be expensive for college students, but there are ways to get cheaper rates. One way to save money is to stay on your parents' car insurance policy, which is usually much cheaper than getting your own. Another way to save money is to take advantage of car insurance student discounts. For example, many insurers offer discounts for students with good grades or those who are away at school without a car. Comparing quotes from multiple insurance companies is also a good way to find cheaper rates.

Discounts for good grades

Many insurance companies offer discounts for students with good grades. Here are some of the best options:

State Farm

State Farm offers a good student discount of 7% on average. To qualify, students must be full-time students with a B average or be on the dean's list or honour roll. State Farm also offers a student-away-from-home discount of 16% on average.

Geico

Geico offers a good student discount of 5% on average. Students must be full-time high school or college students with at least a B average. Geico also offers a student-away-from-home discount of 20% on average for students attending school over 100 miles away without a car.

USAA

USAA offers a good student discount of 3% on average. Students must be full-time high school or college students with at least a B average. USAA also offers a student-away-from-home discount of 10% on average. However, USAA is only available to military members, veterans, and their families.

American Family

American Family offers a good student discount of 5% on average. Availability may vary by state.

Auto-Owners Insurance

Auto-Owners Insurance offers a good student discount of 8% on average. Students must be full-time students with a B average. Availability may vary by state.

Staying on a parent's policy

College students are usually allowed to stay on their parents' policy as long as their permanent address is the same as their parents' and they are still considered a dependent. However, if a student moves out of state, they may need to get their own coverage, as state laws vary.

It's important to be upfront with your insurance company about your living situation. If a student files a claim on their parents' policy and the company is unaware that they have moved away, the claim may be denied, or coverage could even be cancelled.

While staying on a parent's policy is often the cheapest option, it's worth comparing prices for an individual policy. Although it will likely be more expensive, having a separate policy may be beneficial if other members of the family have poor driving records.

• Explore discounts: If your child is attending college more than 100 miles from home without a car, you may qualify for an away-from-home discount. You can also look into good student discounts, which are offered by most large insurance companies for full-time students who maintain a certain GPA or ranking in their class.
• Consider removing the student from the policy while they're away: If your child is not driving the family car while they're away at college, you may be able to remove them from the policy for the time they're away, which could result in significant savings.
• Be aware of the impact on your rates: Adding a college student to a parent's policy will likely increase rates for the parents. This is because younger drivers are considered higher-risk and more likely to file a claim.
• Understand the limitations: There may be restrictions on how long a college student can remain on their parents' policy. In the U.S., for example, drivers can usually stay on their parents' policy until the age of 26. Additionally, some insurance companies may require the student to have the same permanent address as their parents or for the car to be kept at the parents' address.
• Discuss your options: It's important to communicate with your insurance company about your specific situation. Let them know if your child is moving out of state or if their permanent address is changing. This will help ensure that you have the proper coverage in place and avoid any issues with claims or coverage down the line.

Student-away-from-home discounts

Students who live away from home can qualify for a discount on their car insurance. This is called a student-away-from-home discount, or a distant-student discount.

To qualify for this discount, the student must be under 25 years old and attend a school that is more than 100 miles from home. They must not have a car at school and only use the family car occasionally when they are home on breaks.

The following insurance companies offer a student-away-from-home discount:

• Geico: 20% discount
• State Farm: 16% discount
• Auto-Owners Insurance: 14% discount
• American Family: 16% discount
• USAA: 10% discount
• Travelers: amount of discount not given
• Esurance: amount of discount not given

Safe driving discounts

Good Student Discounts

Most car insurance companies offer good student discounts for full-time high school or college students who maintain at least a B average or a 3.0 GPA in their courses. Some companies also accept home-schooled students for good student discounts if they have taken certain national standardized tests and ranked in the top 20% of test-takers. To qualify for the discount, students usually need to submit proof of their grades or test scores to the insurance company. The discount can range from 10% to 25% off the insurance premium.

Student-Away-at-School Discounts

College students who live away from home and don't drive frequently may qualify for a student-away-at-school discount. This discount is typically offered to students who keep their car more than 100 miles away from their college or university. The average student-away discount is 8%, but it can be as high as 20% with some insurance companies.

Driver Training Discounts

Some insurance companies offer discounts for students who complete an approved defensive driving or driver education course. These courses help students become more responsible and safe drivers, which can lower their insurance rates.

Safe Driver Discounts

Students with a clean driving record may be eligible for a safe driver discount. This discount is usually given to drivers who have not been involved in any accidents or received any speeding tickets for a certain period, typically three years.

Usage-Based Insurance

Usage-based insurance programs use mobile apps or devices to monitor driving habits such as speeding, hard braking, and late-night driving. Safe driving habits can result in significant savings on insurance premiums.

By taking advantage of these safe driving discounts, college students can reduce their car insurance costs and find more affordable coverage options.

Young driver training discounts

Young drivers are often considered high-risk by insurance companies due to their relative lack of experience. As a result, they tend to be charged higher premiums. However, insurance companies often offer discounts for young drivers who complete driver training or driver education courses. These courses teach basic safety techniques and help students become more responsible on the road, reducing their risk of accidents.

Some insurance companies that offer young driver training discounts include:

• State Farm: State Farm offers a Steer Clear young driver discount program for drivers under 25.
• Travelers: Travelers offers a discount for young drivers under 21 who complete an approved driver training program.
• Allstate: Allstate offers a "smart student" discount for drivers who complete the TeenSMART driver education program.
• GEICO: GEICO offers discounts for students who complete a driver training program.

In addition to these national companies, some regional insurance providers may also offer young driver training discounts. It is always a good idea to compare quotes and discounts from multiple insurance companies to find the best deal.

Frequently asked questions