After analyzing the cheapest car insurance rates and available student discounts, Auto-Owners, GEICO and Travelers, Nationwide and State Farm offer the cheapest car insurance for college students. Our analysis shows GEICO offers the cheapest family policies starting at $46 monthly, while State Farm's individual policies begin at $61 monthly. Students that stay on their parents' policy save an average of $288 annually and see substantial rate drops each year.
Cheapest Car Insurance for College Students: Most Affordable Rates of 2025
Updated: August 29, 2025
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Most Affordable Car Insurance for College Students: Key Takeaways
GEICO is the cheapest car insurance company for full coverage family policies at $203 monthly, and 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.
Cheap Car Insurance for College Students
Data filtered by:Results filtered by:
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Age:18
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Coverage Level:State Minimum Liability Only
| GEICO | $46 | $70 | 33% |
| Travelers | $51 | $67 | 24% |
| Nationwide | $54 | $97 | 45% |
| State Farm | $57 | $61 | 8% |
| Allstate | $57 | $90 | 36% |
Cheapest Car Insurance for College Students on a Family Policy
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. Full coverage with higher liability limits costs $203 monthly, providing more financial protection for just $33 more.
College students' car insurance rates drop each year. Nationwide offers the steepest rate reductions as students progress on their academic journey and offers the lowest full coverage rates for college students in their 20s.
Data filtered by:Results filtered by:
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Age:18
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Coverage Level:100/300/100 w/ $1000 Deductible
| GEICO | $203 | $2,431 |
| Nationwide | $206 | $2,476 |
| Allstate | $223 | $2,673 |
| State Farm | $226 | $2,716 |
| Travelers | $236 | $2,829 |
Cheapest Car Insurance for College Students on an Individual Policy
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 cheapest premiums are $70 monthly for the same coverage. The price gap widens when adding comprehensive and collision coverage. Despite the cost increase, State Farm's most affordable rates provide excellent value and start at $218 monthly. Nationwide's comparable coverage costs $353 monthly, which is 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, cheap pricing, especially when upgrading from basic liability to comprehensive coverage, where affordable premiums are harder to come by.
Data filtered by:Results filtered by:
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Age:18
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Coverage Level:State Min - No comp_coll
| State Farm | $61 | $735 |
| Travelers | $67 | $803 |
| GEICO | $70 | $835 |
| Allstate | $90 | $1,083 |
| Nationwide | $97 | $1,164 |
Cheapest Car Insurance for 18-Year-Old College Students
GEICO offers the cheapest family coverage for 18-year-old students with premiums averaging $160 monthly. State Farm provides the cheapest individual rates at $201 monthly. Students staying on their parents' policy save an average of $76 monthly. Nationwide offers the biggest family discount, saving college students $131 monthly compared to going solo.
| GEICO | $160 | $238 | 33% |
| Nationwide | $170 | $302 | 44% |
| Allstate | $182 | $283 | 36% |
| State Farm | $184 | $201 | 8% |
| Travelers | $187 | $238 | 22% |
Cheapest Car Insurance for 19-Year-Old College Students
Sophomore year brings cheaper insurance rates for 19-year-old college students. Progressive has the cheapest family policy, priced at $134 monthly and offers the most affordable individual rates at $165 monthly.
| Progressive | $134 | $165 | 18% |
| GEICO | $143 | $174 | 18% |
| Travelers | $153 | $188 | 19% |
| Allstate | $158 | $196 | 20% |
| State Farm | $159 | $171 | 7% |
| Nationwide | $180 | $296 | 39% |
Cheapest Car Insurance for 20-Year-Old College Students
Junior year brings a pricing shift where family policies lose their edge with most insurers. Progressive provides the lowest costs regardless of policy type for 20-year-old students. with the cheapest family policy rate of $138 monthly and offers the best individual rates at $148 monthly.
State Farm flips the script entirely, charging $159 monthly for family coverage but just $154 monthly for individual policies. This creates a strategic decision point for 20-year-olds. Most insurers now show smaller gaps between family and individual rates, with average family savings dropping to $23 monthly.
| Progressive | $138 | $148 | 6% |
| GEICO | $148 | $155 | 4% |
| Travelers | $155 | $167 | 7% |
| State Farm | $159 | $154 | -4% |
| Allstate | $161 | $174 | 7% |
| Nationwide | $189 | $261 | 27% |
Cheapest Car Insurance for 21-Year-Old College Students
Senior year, college students get the cheapest car insurance rates of their college career. Progressive leads at $43 monthly for family policies and $45 monthly for individual coverage. Due to Progressive's minimal $2 monthly difference, the choice between family and individual policies becomes less critical.
GEICO maintains competitively cheap rates with premiums averaging $115 monthly for family coverage, while Nationwide offers the highest family discounts, saving drivers $50 per month on their premiums. State Farm retains its affordable pricing structure, quoting 21-year-old students $139 monthly for family coverage but only $134 monthly for individual policies.
| Progressive | $43 | $45 | 4% |
| GEICO | $115 | $120 | 5% |
| Travelers | $129 | $138 | 7% |
| Allstate | $130 | $140 | 7% |
| Nationwide | $134 | $184 | 27% |
| State Farm | $139 | $134 | -4% |
HOW MUCH CAR INSURANCE COVERAGE DO COLLEGE STUDENTS NEED?
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, which offer strong financial protection in at-fault accidents. While minimum coverage may cost less, it provides much less financial security.
Compare College Car Insurance Quotes
MoneyGeek's car insurance calculator gives you personalized rate estimates based on your situation as a college student. Whether you stay on your parents' policy or get your own coverage, this tool helps you compare rates and find insurance that fits your college budget.
Car Insurance Calculator
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
$192
High
$139
Average
$87
Low
Rates updated:
Aug 31, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 |  Progressive | 79 /of 100 | $133 |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
How to Get Cheap Car Insurance as a College Student
Car insurance costs add another layer of stress when you're already juggling tuition, textbooks and living expenses. College students face different insurance challenges than high school teens or young adults with full-time jobs, but knowing your options can save you serious money during college.
Compare Multiple Quotes for Maximum Savings
The most important step in finding cheap car insurance for college students is to compare quotes from multiple insurers. Different companies use various methods to calculate their rates, which can lead to rate differences exceeding $500 for identical coverage.
Use MoneyGeek's car insurance quote tool to quickly compare rates from leading providers based on your situation. Contact local agents familiar with your college town, as they may provide insights and uncover savings opportunities.
Understand Your College-Specific Coverage Needs
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 coverage based on your circumstances.
Research Company Ratings and Reviews
Not all insurance providers are created 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.
Maximize Discounts for College Students
Take advantage of your academic performance. Many insurance companies offer discounts for students who maintain a certain GPA.
Best Car Insurance Discounts for College Students
While young drivers face higher insurance premiums, college students can access discount opportunities designed for their circumstances. Beyond the widely available good student discount, several lesser-known discounts are tailored to college life. These specialized savings options recognize the unique living situations, reduced driving habits and institutional affiliations common during your higher education years.
For a comprehensive overview of auto insurance discounts, visit our complete guide. Below, you'll find discounts applicable to college students to help make your coverage more affordable.
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) to get the cheapest premiums. Typically requires full-time enrollment and being under the age of 25. |
Distant student/Student away discount | Some insurers offer academic achievement programs for college students beyond the standard good student discount. lowering even the cheapest rates. 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. |
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. |
Greek organization membership discounts | Several insurers partner with fraternities and sororities to offer organization-specific discount programs, special rates for chapter officers or leadership positions and combined discounts when multiple members from the same chapter use the same insurer. |
Alumni discounts | Some of the cheapest car insurance companies offer discounts for members of alumni associations. |
Should College Students Stay on Their Parents' Car Insurance?
Staying on your parents' car insurance policy is often the most cost-effective option for college students. However, insurers may have specific requirements about when you can remain on the plan and when you need to switch to your own coverage.
When Should a College Student Stay on Their Parents' Policy?
Staying on your family's auto insurance policy during college can save you hundreds annually if you meet certain qualifications. The following scenarios show that maintaining family coverage makes financial sense, even if you're living away from home during the academic year.
The student lives on campus
Students living in campus-approved housing should stay on their parents' policy. This arrangement often provides college students with the cheapest car insurance coverage compared to independent policies.
The student owns a vehicle
Some insurance companies allow student-owned vehicles included on their parents' policies, but requirements vary between insurers. Always verify policy rules with your insurance provider to maintain the cheapest coverage possible.
Student residency status
You're considered a dependent student temporarily residing elsewhere solely for school. Insurance companies typically extend coverage. This classification helps college students access cheaper car insurance rates through family policies rather than expensive individual coverage.
The student occasionally drives
Students who drive infrequently may qualify for the cheapest car insurance through their parents' permissive use clause. Be sure to ask your provider about its occasional use limits; exceeding them could void coverage and result in expensive out-of-pocket costs.
When Should College Students Buy an Individual Policy?
As your independence grows during college, specific circumstances make getting your own auto insurance policy necessary. Consider transitioning to an individual policy if you've established a permanent residence away from your parents' home, achieved financial independence or encounter specific state laws or insurer requirements that require separate coverage.
Permanent Relocation
Students must obtain a car insurance policy when establishing permanent residence away from their parents' home. This can result from signing a year-long lease off-campus with no intent to return home, changing the driver's license address or registering to vote elsewhere.
These changes typically increase insurance costs compared to remaining on a parent's policies, making it smart for students to shop for the most affordable car insurance rates.
Financial Independence
Insurance companies often require separate policies when college students achieve financial independence. College students that are no longer claimed as a dependent by their parents, independently finance or own a vehicle, or you work full-time while attending school part-time. Even with independent policies, college students usually find cheaper car insurance by maintaining good grades, choosing higher deductibles, and bundling with renters insurance.
State Laws or Insurer Rules
Specific state regulations or insurance company underwriting guidelines may mandate a separate policy based on age, residency or car ownership.
Best Car Insurance for College Students: Bottom Line
College students have several excellent insurance options, with Auto-Owners, GEICO and Travelers leading our rankings for service quality and affordability. Family policies typically offer better value than individual coverage, with savings averaging $288 annually. However, this changes as you progress through college. Rates generally decrease each year, and individual policies become more competitive by senior year.
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. Don't overlook good student discounts and usage-based programs, which can provide additional savings. Most importantly, review your coverage annually as your needs and circumstances change throughout college.
Cheap College Student Car Insurance: FAQ
These questions cover what college students ask us most about car insurance, from coverage options and costs to managing your policy while you're in school. Whether you're living in dorms, going to college out of state or figuring out what happens after graduation, these answers help you make smart insurance choices without breaking your budget.
Why is car insurance expensive for college students?
Insurance companies determine college students’ rates based on statistical risk. Drivers under 25 have less experience and higher accident rates, which results in higher premiums for them. However, college students can find more affordable coverage by maintaining clean driving records and qualifying for student discounts.
Should college students stay on their parents' policy?
Most students should consider remaining on their parents' policy if possible, as 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.
Can roommates or friends drive my car while at college?
Most affordable insurance policies allow college students' roommates to use their car through permissive use coverage. However, if a roommate frequently uses the vehicle, you'll need to add them to your policy. Check with your insurer for specific rules, as coverage limits may be lower for drivers not listed on your policy.
Do college students living out of state need to change their car insurance?
Out-of-state college students can keep their affordable family coverage if their permanent residence remains at their parents' home. The student must notify their insurer where the car will be parked to maintain cheap rates.
How does living on campus vs. off-campus affect college student insurance?
College students living on campus can stay on their parents' more affordable policy regardless of distance. Off-campus housing requires updating your address, which may increase or decrease cheap rates based on neighborhood safety. Always inform your insurer when your housing situation changes.
How is college student car insurance affected if the student leaves their car at home?
If the college student attends school more than 100 miles away and leave your car at home, inquire about the distant student discount. This can lower your insurance premium by 10% to 30%. Staying listed on your parents' policy helps maintain your continuous insurance history and ensures you have coverage when driving during breaks.
How can I save money on car insurance as a student?
One way to save and get cheap insurance is by comparing quotes from multiple insurance providers, as rates can vary by hundreds of dollars for the same coverage. Look for student-specific discounts, such as those for academic achievers (which can provide up to 25% off for maintaining a GPA of 3.0 or higher), students living away from home and those who complete a defensive driving course. If you don't drive frequently, consider usage-based insurance, which can help lower your premium.
What happens to college students' insurance during summer breaks or when home from school??
College students don't need to change their car insurance during short breaks. For extended summer breaks, consider temporary storage coverage for cheaper rates while maintaining continuous protection.
How do I add a college student driver to a family policy?
Contact your insurer with the college student's license information, enrollment proof, and personal details. When adding them to your policy, ask about student discounts to keep coverage affordable.
Can international college students get affordable car insurance in the U.S?
International college students can get cheap car insurance with a valid driver's license recognized by their state. An International Driving Permit may be acceptable initially. They must also provide proof of their student visa status and, in some cases, a U.S. credit history. Compare multiple insurers; some specialize in affordable coverage for international college students.
Cheapest Auto Insurance for College Students: Methodology: Methodology
Study Overview
MoneyGeek analyzed car insurance quotes for high school and college students using a sample driver profile. The research compared rates for individual and family policies to highlight cost differences, offering insights into the most affordable options for students.
Data Sources and Depth
We collected data from state insurance departments and Quadrant Information Services for our survey. Our sample comprised 19,516 quotes from six companies in 100 U.S. ZIP codes.
Driver Profile
We used an average driver profile based on a composite of the following criteria:
- Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We created this profile to determine average costs for young drivers across the U.S. and modified it by age to gather age-specific quote data.
Coverage Levels and Deductibles Explained
In car insurance, a deductible is the amount you pay out-of-pocket for comprehensive and collision claims before your insurer covers the remaining costs (Note: Liability coverage typically doesn't include deductibles). A full coverage policy includes comprehensive and collision coverages, each subject to its own deductible:
- Comprehensive coverage: Covers damage from noncollision events like theft, vandalism, fire or falling objects
- Collision coverage: Covers damage from at-fault collisions with objects or other vehicles
For national averages, MoneyGeek used a sample driver with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage under a full coverage policy.
100/300/100 represents the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability per accident
Learn more about MoneyGeek's methodology.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.