Updated: November 5, 2025
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GEICO is the cheapest car insurance company for full coverage family policies at $203 monthly. It consistently provides the lowest rates for all college-age groups.
State Farm is the cheapest car insurance company providing individual quotes for college students, with policies starting at $61 monthly.
Family policies deliver the cheapest car insurance for college students. Students who stay on their parents' coverage save an average of $288 annually, though savings vary from $4 monthly to $43 monthly by insurer.
College students get the cheapest car insurance rates at age 21 when insurance policy premiums drop 30% to 40% between freshman and senior year and individual rates become cheaper than family rates.
After analyzing the lowest car insurance rates and available student discounts, MoneyGeek found that GEICO, Travelers, State Farm, and Allstate offer the most affordable options for college students.
GEICO offers the most affordable family policies at $42 per month. State Farm's individual policies start at $49 a month. Students who remain on their parents' policy save an average of $288 per year compared to purchasing their own coverage.
| GEICO | $42 | $47 | 15% |
| Travelers | $41 | $49 | 15% |
| State Farm | $48 | $49 | 2% |
| Allstate | $49 | $57 | 0% |
Family policies are the cheapest way to insure college students, with GEICO being the cheapest company for most ages and coverage levels. Minimum coverage rates start at just $46 monthly, while adding comprehensive and collision coverage increases premiums to $170 monthly.
State Farm offers the cheapest car insurance rates for college students across all coverage levels, who need their own coverage. Basic minimum liability starts at $61 monthly for 18-year-olds with State Farm, while GEICO's premiums are $70 monthly for the same coverage. The price gap widens when adding comprehensive and collision coverage. State Farm's rates start at $218 monthly, while Nationwide's comparable coverage costs $353 monthly, a 62% premium increase. Use our comparison table below to find the cheapest student car insurance based on age and preferred coverage level.
Full coverage with higher liability limits follows the same pattern. State Farm provides college students the cheapest rates, averaging $247 monthly, versus Nationwide's $361 monthly for 18-year-olds. Students choosing individual policies benefit most from State Farm's consistent pricing, especially when upgrading from basic liability to comprehensive coverage.
Your insurance needs depend on your living situation and driving habits while in school. If you attend college far from home, you may qualify for distance-based discounts that reduce your premiums by 10% to 30%.
Students attending institutions more than 100 miles from home might be eligible for savings if they don't have regular access to a car. Assess whether it makes more financial sense to remain on your family's policy or secure your own coverage based on your circumstances.
Rate differences between insurers exceed $500 for identical coverage. College students switching from family to individual policies see the largest variations—State Farm charges $61 monthly for 18-year-olds, while some competitors charge $100+ for the same state minimum coverage.
Use MoneyGeek's car insurance quote tool to compare rates from leading providers. If you are attending school out-of-state, verify that your coverage extends across state lines before making the switch.
Your insurance needs depend on your living situation and driving habits while in school. If you attend college far from home, you may qualify for distance-based discounts that reduce your premiums by 10% to 30%.
Students attending institutions more than 100 miles from home might be eligible for savings if they don't have regular access to a car. Assess whether it makes more financial sense to remain on your family's policy or secure your own coverage based on your circumstances.
Not all insurance providers are equal, especially when serving college students. Companies vary in their claims processes, customer service quality and treatment of young drivers.
Read our insurance company reviews that compare insurers based on satisfaction ratings, claim response times, affordability and other factors during busy college years.
Good grades save you money on insurance. Most insurers offer good student discounts of 10% to 25% if you maintain a B average or 3.0 GPA. State Farm, Allstate and USAA all provide these discounts for full-time students under 25.
While young drivers face higher insurance premiums, college students can access discount opportunities designed for their circumstances. Beyond the good student discount, several lesser-known discounts are suited to college life.
For a comprehensive overview of auto insurance discounts, visit our complete guide.
Student Discounts | Discount Eligibility |
|---|---|
Good student discount | Maintain strong academics (usually a B average or 3.0 GPA or ranking in the top 20% of your class) and provide proof (transcript/report card). |
Distant student/Student away discount | College students who live more than 100 miles from home without regular access to the family car qualify for distant student discounts. This saves 10% to 30% on premiums. |
Academic achievement program discounts | Some insurers offer academic achievement programs for college students beyond the standard good student discount. Qualifications may include Dean's List or President's List achievements, special recognition for challenging majors or programs and additional savings for maintaining high GPAs throughout college. |
The best choice depends on your situation. Students staying on family policies should consider GEICO for consistent low rates, while those needing individual coverage often find State Farm most affordable.
Car insurance is expensive for college students because drivers under 25 have less experience and higher accident rates, which results in higher premiums. But college students can find more affordable coverage by maintaining clean driving records and qualifying for student discounts.
Most college students should remain on their parents' policy if possible because family plans often provide better rates and coverage. You can stay on your family's policy if your permanent address remains your parents' home, your car is titled in your parents' name or jointly with them, and you still depend on them financially.
Most insurance policies allow college students' roommates to use their car through permissive use coverage. But if a roommate frequently uses the vehicle, you'll need to add them to your policy. Check with your insurer for specific rules because coverage limits may be lower for drivers not listed on your policy.
Out-of-state college students can keep their family coverage if their permanent residence remains at their parents' home.
College students don't need to change their car insurance during short breaks.
To add a college student driver to a family policy, contact your insurer with the student's license information, enrollment proof and personal details.
To find the best and cheapest policy for a college student, start by determining how much coverage the student needs. The average annual rates provided are for affordable full coverage policies. While minimum coverage may cost less, it provides much less financial protection.
Students face some of the highest car insurance rates because insurers view young, inexperienced drivers as high-risk, making it critical to understand whether staying on a parent's policy or buying individual coverage saves you more money. We built this analysis to show you the actual cost differences between these options and identify the most affordable insurers for student drivers.
We analyzed car insurance quotes using student driver profiles and compared rates for individual policies versus family coverage. Our research reveals which approach costs less based on your age and whether you're in high school or college.
We collected data from state insurance departments and Quadrant Information Services, analyzing 19,516 quotes from six companies in 100 U.S. ZIP codes. This sample provides accurate national averages while capturing regional pricing variations that affect what students actually pay.
We used a student driver operating a Toyota Camry LE with a clean driving record, logging 12,000 miles annually. We modified this profile by age to gather age-specific quote data for high school students (16-18) and college students (18-22), showing how rates change as young drivers gain experience.
Our analysis used 100/300/100 liability limits with a $1,000 deductible for comprehensive and collision coverage under full coverage policies. This represents $100,000 bodily injury liability per person, $300,000 per accident, and $100,000 property damage liability per accident.
Understanding deductibles: A deductible is what you pay out-of-pocket before your insurer covers the remaining costs. Comprehensive coverage handles damage from noncollision events like theft, vandalism, fire, or falling objects. Collision coverage pays for damage from at-fault accidents with objects or other vehicles. Each coverage type has its own deductible, while liability coverage typically doesn't include deductibles.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
