Car insurance for college students is expensive—young drivers pay 2-3x more than adults. But smart students can cut costs by 50% or more with the right discounts and strategies.
This guide covers:
✔ Why students pay so much
✔ Cheapest insurance companies
✔ Best discounts to use
✔ How to save while away at school
By the end, you’ll know how to get affordable coverage without sacrificing protection.
Why Is Car Insurance So Expensive for College Students?
1. Age & Inexperience
- Drivers under 25 pay the highest rates
- First-year drivers have 3x more crashes than experienced ones
2. Location Matters
- Urban campuses (like NYU or UCLA) = higher premiums
- Rural schools (like Iowa State) = lower rates
3. Car Choice Impacts Cost
- A used Honda Civic costs $1,200/year to insure
- A new Mustang can cost $3,500+/year
5 Cheapest Car Insurance Companies for Students (2024)
| Company | Best For | Avg. Annual Cost |
|---|---|---|
| State Farm | Best good student discount | $1,800 |
| GEICO | Lowest overall rates | $1,600 |
| USAA | Military families | $1,400 |
| Progressive | Rideshare drivers | $2,000 |
| Nationwide | Students with multiple cars | $1,900 |
Note: Prices are for 18-22-year-olds with clean records.
7 Best Discounts for College Students
1. Good Student Discount (Up to 25% Off)
✔ GPA of 3.0+ earns big savings
2. Away-at-School Discount (Up to 30% Off)
✔ If you leave your car at home most of the year
3. Defensive Driving Course (5-15% Off)
✔ Complete a 6-hour online course
4. Pay-in-Full Discount (Avoid Monthly Fees)
✔ Save $50-$100/year by paying upfront
5. Multi-Car Discount (Up to 20% Off)
✔ Stay on parents’ policy to save
6. Low-Mileage Discount (Up to 15% Off)
✔ Drive under 7,500 miles/year
7. Alumni or Fraternity/Sorority Discounts
✔ Some insurers offer group rates
Should You Stay on Your Parents’ Policy?
✅ YES if:
✔ You’re under 26
✔ The car is in their name
✔ You drive occasionally
❌ NO if:
✔ You have DUIs/tickets (raises their rates)
✔ You own the car
✔ You’re married
Cost Comparison:
- Parent’s policy: +$800/year
- Own policy: $1,600+/year
FAQs About Student Car Insurance
❓ Can I get insurance if I don’t own a car?
✅ Yes! Non-owner policies cover rentals/borrowed cars.
❓ Does living in a dorm affect rates?
✅ Yes—urban dorms cost more than rural campuses.
❓ What’s the cheapest car for a student?
✅ Used Honda Civic, Toyota Corolla, or Subaru Outback.
❓ Do I need insurance if I don’t drive at school?
✅ Yes—but ask about a “parked car” discount.
Final Verdict: How Students Can Save
✔ Compare 5+ quotes (rates vary wildly)
✔ Use every discount possible (GPA, low mileage, etc.)
✔ Drive a safe, used car (no sports cars!)
✔ Consider public transit (drop coverage if possible)
🎓 Need Affordable Insurance? Compare Student Quotes Now!