Car insurance for students is the most expensive when you look at averages across age ranges. Simply put, college students often pay thousands of dollars more than anyone else. Therefore, finding cheap car insurance for students can be difficult, but it’s not impossible.
There are some companies that offer affordable student car insurance that is not only cheap but worthwhile to have. Companies such as Erie, Geico, Travelers and Progressive offer affordable premiums and the type of car insurance that builds customer loyalty for years to come.
To select the best car insurance for students, we considered factors such as:
- Financial strength
- Customer satisfaction
- Amount of discounts
- Average amount of yearly/monthly premiums
Finding affordable auto insurance for college students can be challenging, so it’s also important to know which companies offer the best deals.
The 6 Best Car Insurance for College Students
- Erie: Best for Cheap Premiums
- USAA: Best for Customer Service
- Geico: Best for Discounts
- AAA: Best for Emergency Roadside Assistance
- Travelers: Best for Claims Processing
- Progressive: Best for Customized Coverage
Compare the Top Auto Insurance for Students
| AVERAGE PRICE FOR 19 YEAR OLDS* | Average Student Discount | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. POWER OVERALL CUSTOMER SATISFACTION** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Erie | $2,601 | N/A | A+ | 848/1,000 | |
| Pin USAA | $2,637 | Varies | A++ | 891/1,000** | |
| Pin Geico | $3,008 | Up to 15% | A++ | 843/1,000 | |
| Pin AAA | $4,755 | Up to 14% | A+ | N/A** | |
| Pin Travelers | $3,666 | Up to 8% | A++ | 824/1,000 | |
| Pin Progressive | $3,761 | Varies | A+ | 829/1,000 |
Information accurate as of: 11/20/2020
*Data from Bankrate.com
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale. AAA uses different third-party providers to underwrite its policies, so scores may vary per location. USAA is not officially ranked due to eligibility restrictions.
Erie
Hands down one of the cheapest insurance providers for college students.
Best for Cheapest Premiums
Why we chose it
Why we chose it
Pros
- Cheapest provider for college students based on Bankrate’s data
- Not yet available nationwide
- Fewer complaints than would be expected with a company of its size
Cons
- Doesn’t offer as many discounts
- No smartphone app
Types of Coverage Offered
- Personal item coverage
- Pet coverage
- Travel expense coverage
Discounts Available
- Pay in full
- Driver training course
- Vehicle storage
- Bundling
- Multiple vehicles
Further Reading on Reviews.com:
USAA
While USAA only serves military families, it provides some of the best customer service year after year.
Best for Customer Service
Why we chose it
Why we chose it
Pros
- Awesome customer service
- Financially strong
- Great online resources
Cons
- Not the cheapest in the business
- Not as many discounts
Types of Coverage Offered
- Military Uniform Coverage
- Replacement Cost Coverage
- Identity Theft Coverage
Discounts Available
- Multiple Policies
- Claims Free
Further Reading on Reviews.com:
Geico
Offers a wide range of discounts to help you get an affordable premium.
Best for Discounts
Why we chose it
Why we chose it
Pros
- Large array of discounts
- Great mobile app
- Cheap even without discounts
Cons
- Average customer support rating
- May be difficult to find a local agent
Types of Coverage Offered
- Ridesharing insurance
- Mechanical breakdown insurance
Discounts Available
- Accident free
- Federal employee
- Multiple vehicles
- Safety equipment
- Defensive driving
- Good student
- U.S. military
*J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
Further Reading on Reviews.com
AAA
Never worry about getting stranded with AAA’s emergency roadside assistance.
Best for Emergency Roadside Assistance
Why we chose it
Why we chose it
Pros
- Great roadside assistance
- Joining AAA comes with multiple benefits outside of insurance
- Financially strong
Cons
- Offerings depend on what state you’re in
- Must join AAA to access auto insurance
Types of Coverage Offered
- Pet coverage
- Gap insurance
- Custom equipment coverage
Discounts Available
- Safe driver
- Multiple car
- Multiple policy
- Paid in full
- Accident free
- Safety features
**AAA uses third-party providers to underwrite its policies and score may vary per location.
Further Reading on Reviews.com:
Travelers
One of the strongest companies when it comes to processing claims.
Best for Claims Processing
Why we chose it
Why we chose it
Pros
- Fast processing of claims
- Easy to get a quote online
- Many discounts
Cons
- Rideshare insurance not available in every state
- Customer satisfaction rates could be higher
Types of Coverage Offered
- Gap insurance
- Rideshare insurance
- New car replacement
- Responsible driver
Discounts Available
- Multi-car
- Multi-policy
- Safe driver
- Paid in full
- Good student
- Defensive driving course
- New car
Further Reading on Reviews.com
Progressive
Allows you to fully customize your insurance package.
Best for Customized Coverage
Why we chose it
Why we chose it
Pros
- Truly customizable insurance policies
- Strong online and mobile tools
- Few amount of complaints for a company of its size
Cons
- Average customer satisfaction
- Could be financially stronger
Types of Coverage Offered
- Rideshare
- Gap insurance
- Pet injury
- Custom parts
Discounts Available
- Automatic payments
- Paperless
- Multi-policy
- Multi-car
- Good student
- Distant student
- Online quote
Further Reading on Reviews.com
- Progressive auto insurance review
- Progressive homeowners insurance review
- Progressive renters insurance review
- Progressive motorcycle insurance review
*Data from Bankrate.com
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
Top 3 Cheapest Car Insurance Companies for College Students
Car insurance rates are influenced by a variety of factors, including:
- Credit score (in most states)
- State
- Age of car
- Type of car
- Driving history
- Insurance history
- Type of coverage
Companies may quote you an annual premium that is more or less than the following averages. Nevertheless, the companies below offer some of the cheapest car insurance plans for college students. Keep in mind that these companies may not offer policies in all states.
| Company | Average Annual Full Coverage Premium* |
| Concord Group | $736 |
| North Carolina Farm Bureau | $1,426 |
| American National | $1,444 |
*Data from Bankrate.com
Auto Insurance Discounts for Students
Some of the best car insurance student discounts include:
- Good Student Discount: Maintain a 3.0 GPA and your insurance company will likely give you a discount because teenagers with good grades are statistically more likely to be safer drivers than students with lower GPAs.
- Driver’s Education/Defensive Driving Discount: Further your driver’s education and most companies will reward you with savings. Double check with your state’s requirements, but many teenage drivers can qualify for this discount by taking a course online.
- Military Discount: Serve your country and reap the awards. People who join the military often qualify for savings with their insurance provider. Plus, they qualify for USAA insurance, which is one of the best insurance providers in the country.
- Distant College Student Discount: If you’re away from your car and not driving that much while at a school, many insurance providers offer savings to reflect the amount of time you’re actually driving.
Top 5 States with the Cheapest Car Insurance for Good Students
| State | Average annual premium for 19-year-olds with discount* | Average annual premium for 19-year-olds without discount* | Savings |
| Hawaii** | $1,294 | $1,294 | 0% |
| Maine | $2,509 | $2,341 | 7% |
| North Dakota | $2,822 | $2,620 | 7% |
| Iowa | $2,850 | $2,676 | 6% |
| Ohio | $2,854 | $2,699 | 5% |
*Data from Bankrate.com
**Hawaii does not use age as a rating factor when pricing policies.
Should You Take Your Car to College?
If you take your car to college, you won’t be stuck limiting your grocery shopping to what you can carry back home. Plus, having a car makes it easier to get a job off campus.
But there are a few reasons not to take your car to college, including:
- Parking may be extremely difficult
- You may have to pay extra for a parking pass
- Many colleges discourage students from taking a car, and some even make it against the rules
And then there’s insurance to consider. If you leave your car at home, your insurance provider will likely offer extra savings. Often called “Student away at school,” this discount still allows you to drive your car when you’re home, but it expects you to leave it there when you go back to school.
Can You Stay on Your Parents Insurance?
Sometimes it makes sense to stay on your parent’s insurance, especially if it saves them money. If you’re getting a lot of discounts for them, such as a good student discount, it might make sense for everyone if you stay.
Another reason to stay is for your insurance history. Insurance companies don’t like to see large gaps between coverage. Even though you may have a solid reason for not needing a policy, it may behoove you in the long run just to stay put.
However, it’s better to get your own insurance policy if:
- You get married/you no longer plan to live at home: Though there’s no age limit on when you have to get your own policy, if you no longer live at home, most insurance companies require you to be taken off of your parents’ policy.
- You buy a car in your name: If you own your own car, you need to get your own insurance policy.
- Your parents have a bad driving record: It might be financially advantageous for you to have your own policy if your parents have a bad driving record.
Why Your Friends Can’t Drive Your Car
There are many reasons that you shouldn’t let your friends drive your car. First and foremost, if they get into an accident, you and your insurance provider may be deemed financially responsible if your friend is found to be at fault. This means you will be the one expected to pay for any damages should they exceed your policy limits. And if the other person decides to sue, you will be the one taken to court. When this happens, even if it’s just a fender bender, you can also expect your monthly and yearly premium to go up.
There’s also overall safety to consider. Each car accelerates, turns, and brakes a little differently from one another. If your friend wants to take your car on the highway, they could be putting themselves in danger if they don’t have much driving experience.
What is Covered By Car Insurance
- Bodily injury: If you injure someone else in an accident, your insurance provider will cover their medical costs up to your policy limit.
- Property damage: Damage another car or person’s property, and your insurance provider will pay for repairs up to your policy limit.
- Personal injury protection: Should you get into an accident, this coverage option covers you and your passengers’ medical costs up to your policy limit.
- Uninsured/ underinsured motorist protection: This protects you in the event you get into an accident with a person who has little to no insurance protection.
- Collision: No matter who is considered at fault, collision protection will pay for your car’s repair or replacement up to your policy limit.
- Comprehensive: If your car is damaged while you’re not driving it, this coverage option will pay for its repair/replacement up to your policy limit.
What is not covered by Car Insurance
- Any amount that exceeds your policy limit: If you get into an accident that does more damage than your policy accepts, you will be responsible for the remaining amount.
- High performance cars: If you have a highly valuable car, it’s likely that a regular insurance policy won’t cover it. You will need a specialized type of insurance to make sure it is protected.
- Gradual wear and tear: Your insurance provider will not help you replace parts damaged from normal wear and tear, like your tires or brakes. Anything that is considered a loss due to normal usage is not covered.
- Ridesharing: Drive for Uber or Lyft, and you will need a specialized type of car insurance called ridesharing. This is because your car has gone from being a personal use car to a business car.
Methodology
Reviews.com reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s data of car insurance in Georgia, based on the profiles of a 19-year male and female renters with their own car insurance policy. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
Hawaii does not use age as a rating factor.
These are sample rates and should only be used for comparative purposes.
About the Authors
Lauren Ward is a personal finance writer who regularly covers consumer insurance products. Her work has appeared in a variety of online publications, including Bankrate and The Simple Dollar. She graduated from Georgetown University with a BA in Japanese.
