Updated: June 2, 2025
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College students can save an average of $913 annually by staying on a family policy, with Nationwide offering the lowest family policy rates at $173 monthly. For students who need individual policies, State Farm leads with competitive rates at $203 monthly.
Insurance rates typically decrease with each year of college, with potential savings of 33-50% between freshman and senior year. The most dramatic decrease occurs at age 21, with some individual policies becoming comparable to family rates.
Based on comprehensive analysis of rates, discounts, and service quality, Nationwide, USAA, and Allstate emerge as the top providers for college students, offering competitive premiums and student-specific discounts tailored for campus life.
College students can access unique discount opportunities including the Good Student Discount (typically requiring a 3.0 GPA), Distant Student (for those attending school 100+ miles from home) and bundling discounts, which help lower costs while keeping coverage.
College students already face financial pressure without the added burden of overpaying for car insurance. Our analysis of rates from major insurers highlights the best options for students.
Our research shows that State Farm and Nationwide offer the most competitive rates for college students, with considerable differences depending on whether you have your own policy or remain on your family's coverage.
For students who maintain their parents' address as their primary residence, staying on a family policy offers significant savings and comprehensive coverage. Nationwide leads with premiums starting at just $173 monthly, saving you up to $913 annually compared to the most expensive option.
| Nationwide | $173 | $2,074 |
| GEICO | $179 | $2,150 |
| Allstate | $194 | $2,324 |
| Travelers | $197 | $2,358 |
| State Farm | $197 | $2,368 |
| Progressive | $234 | $2,807 |
| Farmers | $249 | $2,987 |
For students who need their own policies (typically those who live off-campus year-round, are financially independent, or own their vehicle outright), State Farm leads with competitive rates starting at just $203 monthly, saving you up to $1,492 annually compared to the most expensive option.
| State Farm | $203 | $2,439 |
| GEICO | $217 | $2,600 |
| Travelers | $228 | $2,741 |
| Allstate | $244 | $2,929 |
| Nationwide | $268 | $3,216 |
| Progressive | $319 | $3,826 |
| Farmers | $328 | $3,931 |
Your age plays a role in determining your car insurance rates during college. Insurance companies price policies based on statistical risk, and younger drivers have less experience behind the wheel. The good news? Each birthday during college can trigger automatic rate decreases with most insurers.
Typically, price decreases with each year of college, with potential savings of up to 33-50% between freshman and senior year depending on your insurance company.
GEICO offers the cheapest car insurance for an 18-year-old college student on a family policy at $203 per month ($2,431 per year). State Farm is the most affordable for an individual policy, averaging $247 monthly ($2,966 annually).
The difference between family and individual policies is most dramatic for 18-year-olds, with savings up to $3,131 annually by staying on a parent's policy.
| GEICO | $3,594 | $2,431 | $1,163 |
| Nationwide | $4,332 | $2,476 | $1,856 |
| Allstate | $4,180 | $2,673 | $1,507 |
| State Farm | $2,966 | $2,716 | $250 |
| Travelers | $3,566 | $2,829 | $737 |
| Farmers | $6,124 | $3,062 | $3,062 |
| Progressive | $6,246 | $3,115 | $3,131 |
Nationwide offers the most affordable family policy, averaging $172 monthly. Rates for 19-year-old drivers typically decrease slightly compared to 18-year-olds. State Farm provides the lowest monthly rate for individual policies at $211 for 19-year-old students.
At 19, rates begin to decrease, with an average 8-12% reduction from freshman year premiums.
| Nationwide | $3,389 | $2,066 | $1,323 |
| GEICO | $2,631 | $2,168 | $462 |
| Travelers | $2,817 | $2,305 | $512 |
| Allstate | $2,899 | $2,326 | $573 |
| State Farm | $2,531 | $2,344 | $188 |
| Progressive | $3,473 | $2,845 | $627 |
| Farmers | $3,657 | $3,111 | $546 |
For 20-year-olds on a family policy, Nationwide offers the cheapest rate at $181 per month. For those needing an individual policy, State Farm is the most affordable, costing $189 per month.Â
At this age, some companies begin to offer similar rates for family and individual policies, with State Farm actually charging less for an individual policy. Junior year is when many students should consider reevaluating their policy. In this example, if you're with State Farm, an individual policy now offers savings. For other carriers, family policies remain advantageous but with diminishing benefits.
| Nationwide | $2,989 | $2,170 | $819 |
| GEICO | $2,351 | $2,253 | $97 |
| Travelers | $2,508 | $2,346 | $163 |
| State Farm | $2,272 | $2,353 | $-81 |
| Allstate | $2,571 | $2,380 | $190 |
| Progressive | $3,110 | $2,929 | $181 |
| Farmers | $3,413 | $3,327 | $86 |
Fourth-year college students seeking affordable car insurance should consider GEICO. For 21-year-olds, the average individual policy costs $1,824 annually. Nationwide offers the lowest rate of $1,582 for a family policy.
At 21, insurance rates decrease most dramatically, with some individual policies now comparable to family rates. Seniors see average decreases of 15-25% from junior year, making this an ideal time to reevaluate coverage before graduation.
| Nationwide | $2,154 | $1,582 | $572 |
| GEICO | $1,824 | $1,745 | $79 |
| Allstate | $2,067 | $1,915 | $152 |
| Travelers | $2,072 | $1,953 | $119 |
| State Farm | $1,986 | $2,061 | $-75 |
| Progressive | $2,476 | $2,339 | $136 |
| Farmers | $2,532 | $2,446 | $85 |
To find the best and cheapest policy, start by determining how much coverage you need. 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.
Navigating car insurance during college presents unique challenges that differ from those faced by teen drivers and working young adults. Making informed insurance decisions can save you hundreds or even thousands of dollars throughout your college career.
The most important step in finding affordable insurance is to compare quotes from multiple insurers. Different companies use various methods to determine their rates, which can lead to price differences exceeding $500 for identical coverage. Use MoneyGeek's quote tool to quickly compare rates from leading providers based on your specific situation as a student. Additionally, don't hesitate to contact local agents who are familiar with your college town, as they may provide insights and uncover potential savings opportunities.
Your insurance needs will vary depending 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 can reduce your premiums by 10-30%. Students attending institutions more than 100 miles from home might be eligible for significant 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 unique circumstances.
Not all insurance providers are created equal, especially when it comes to 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 that are important during busy college years.
Take advantage of your academic performance. Many insurance companies offer discounts for students who maintain a certain GPA. Additionally, consider completing an accredited defensive driving course which enhances your safety on the road and may qualify you for extra discounts.
MoneyGeek's car insurance calculator generates personalized insurance estimates based on your unique college student profile. Enter your information - including state, age, gender, credit score, driving record, vehicle details, coverage level, and zip code - to receive accurate quotes. Military affiliates can also indicate their status for potential discounts. Whether you're staying on a family policy or need individual coverage, this tool helps you compare options and find affordable insurance that fits your college budget and lifestyle.
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.
Rates updated:
Jun 09, 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 | 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.
Finding affordable, quality coverage as a college student requires comparing insurers specializing in young driver needs. Based on our comprehensive analysis of rates, discounts, and service quality, State Farm, USAA, and Allstate emerge as the top providers for college students. These companies offer competitive premiums, student-specific discounts, and policy features designed for campus life.
While comparing rates is important, also consider factors like claims satisfaction, mobile app functionality and customer service accessibility. Our rankings below evaluate insurers across multiple criteria to help you find the right affordability and coverage quality balance.
Nationwide is the best car insurance provider for college students, offering affordable premiums, student-focused discounts and flexible coverage options. This combination of savings and benefits makes it an excellent choice for young drivers.
Nationwide discounts for college students:
USAA serves active-duty military members, veterans and their immediate families, offering auto insurance exclusively to qualified drivers. Known for its A++ AM Best financial strength rating, USAA provides some of the lowest car insurance rates for student drivers, reliable claims service and high customer satisfaction.
Eligible students can access multiple discounts to reduce premiums. USAA also offers a user-friendly website, mobile app and 24/7 customer support, making filing claims or managing policies online easy.
USAA discounts for student drivers:
Allstate provides a highly advanced mobile experience, ideal for college students managing car insurance on the go. The Allstate Mobile app offers features like digital ID cards, claim filing, premium payments and direct access to agents. It also includes Drivewise, a telematics program that rewards safe driving with potential discounts.
Allstate discounts for student drivers:
There's no such thing as no-down-payment car insurance — usually, the least amount you must pay is one month’s premium upfront to activate coverage. If you come across a company offering no money down to get car insurance, you should question its legitimacy. It may be a marketing ploy to drive business because you must pay something upfront to get auto insurance. And if you can pay in full, it can save you money with many insurers. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
While young drivers face higher insurance premiums, college students have access to unique discount opportunities specifically designed for their circumstances. Beyond the widely available Good Student Discount, there are several lesser-known discounts 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 that could help make your coverage more affordable.
Student Discount | Description |
|---|---|
Good Student Discount | Maintain strong academics (usually a B average/3.0 GPA or ranking in the top 20% of your class) and provide proof (transcript/report card). Typically requires full-time enrollment and being under the age of 25. |
Distant Student/Student Away Discount | If you're attending school more than 100 miles from your permanent address and only drive during breaks or occasional visits home, you can be eligible for this discount on your parents' policy. |
Academic Achievement Programs | 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 Memberships | 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 insurance companies offer discounts for members of alumni associations. |
Staying on your parent's 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.
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.
You live in campus-approved housing, such as dorms or student apartments, and your parent's home is your permanent residence where your driver's license is registered and where you return during college breaks.
The car is titled to your parent or jointly with them. Some insurers allow a
student-titled car if it's primarily garaged at the parents' address, but rules may vary by insurer.
You are considered a dependent student temporarily residing elsewhere solely for
school. This often applies even if attending college out-of-state.
If your parents' insurance policy includes a permissive use clause, you may not need your own policy if you only drive occasionally. This clause typically covers infrequent use, often defined as fewer than 12 instances annually.
As your independence grows during college, there are specific circumstances when getting your own auto insurance policy becomes 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 necessitate separate coverage.
You establish your own permanent residence. This can result from signing a year-long lease off-campus
with no intent to return home, changing your driver's license address, or registering to vote elsewhere.
You are no longer claimed as a dependent by your parents, you independently finance or own a vehicle solely in your name, or you work full-time while attending school part-time.
Specific state regulations or insurance company underwriting guidelines may
mandate a separate policy based on age, residency, or car ownership.
These top questions address the most common concerns college students have about coverage options, costs, and policy management during their academic journey. Whether you're living on campus, studying out of state, or preparing for post-graduation life, these answers will help you make informed insurance decisions while balancing your student budget.
Insurance companies determine their rates based on statistical risk. Drivers under the age of 25 typically have less experience and higher accident rates, which results in higher premiums for them. Several other factors can also influence your insurance rate, including your location, the type of vehicle you drive, your driving record, your credit history (in most states), and the coverage options you choose.
Most students should consider remaining on their parents' policy if possible, as family plans often provide better rates and coverage. You can usually stay on your family's policy as long as your permanent address remains your parents' home, your car is titled in your parents' name or jointly with them, and you are still considered financially dependent on them.
Most insurance policies include "permissive use" coverage, which allows for occasional borrowing of your vehicle with your permission. However, if a roommate frequently uses your car, you might need to add them to your policy. It's important to check with your insurer for specific rules, as coverage limits may be lower for drivers who are not listed on your policy.
In most cases, you can stay on your family's insurance policy as long as your permanent legal address is still your parents' home. However, it is important to notify your insurer about where the car will primarily be parked, as this can impact your coverage.
Campus housing typically allows you to remain on your parents' insurance policy, even if you attend college out of state. However, if you move to off-campus housing, you may need to update your garaging address, which could affect your insurance rates based on the neighborhood. Always inform your insurer when your housing situation changes.
If you attend 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 10-30%. Staying listed on your parents' policy helps maintain your continuous insurance history and ensures you have coverage when driving during breaks.
One way to save is by comparing quotes from multiple insurance providers, as rates can vary by hundreds of dollars for the same coverage. Additionally, look for student-specific discounts, such as a good student discount (which can provide up to 25% off for maintaining a GPA of 3.0 or higher), distant student discounts, and discounts for completing a defensive driving course. If you don't drive frequently, consider opting for usage-based insurance, which could also help lower your premium.
For short breaks, you usually don't need to make any policy changes. However, if you have an extended summer break, you should inform your insurer if your car's primary location changes. If you won't be driving for 2 to 3 months, consider asking about storage coverage options to lower your costs while still maintaining continuous coverage.
The policyholder should contact their insurance provider with the student's full legal name, date of birth, driver's license information, and potentially proof of enrollment. Ask specifically about student discounts when adding the driver.
Yes, they can, but the process involves a few extra steps. International students need 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. Some insurance companies specialize in policies for international students, so it's a good idea to compare quotes from multiple providers.
College students encounter unique auto insurance challenges that set them apart from both high school students and working adults. Staying on a parent's policy, when possible, can help save on premiums while ensuring adequate coverage. It's important to take advantage of college-specific discounts, such as those for good students, distant students, and for completing defensive driving courses.
Adjust your coverage based on your academic calendar and living situation. Also, plan ahead for transitions like moving, studying abroad, and eventually graduating. Make sure to compare quotes from multiple providers to find the best combination of protection and affordability throughout your educational journey.
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 consisted of 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:
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 certain claims before your insurer covers the remaining costs. A full coverage policy includes comprehensive and collision coverages, each subject to its own deductible:
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:
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.
