Cheapest Car Insurance for College Students

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Updated: January 23, 2025

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What's the Most Affordable Car Insurance for Students?

State Farm and Nationwide offer the most affordable car insurance for students of most ages, whether on individual or family policies.

Car insurance rates can get expensive for teen drivers and young adults, making affordable options hard to find. Discounts are available for good grades, distance students, defensive driving courses and low mileage, among other things. 

It's important to plan ahead to ensure your car's insurance coverage doesn't lapse. Students can often stay on their parents' policy if they don't own a car and still consider their family home their primary residence. However, having a car at school or moving out permanently requires getting an individual policy.

Learn more about MoneyGeek's methodology.

Cheapest Car Insurance for College Students by Age

Shopping for cheap car insurance for college students requires some research, as the average cost of car insurance varies by driver profile, and no two car insurance companies offer the same rates. Overall, the cheapest car insurance company for college students varies depending on age and driver profile.

Comparing rates from different providers is particularly important when shopping for car insurance for young people. Students tend to pay high rates for policies because insurance companies consider young drivers a higher risk because of their higher probability of accidents and moving violations. Below, we’ve broken down the cheapest car insurance companies by all college ages.

Quickly Find Cheap Student Car Insurance for Your Age

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MONEYGEEK EXPERT TIP

To find the cheapest and best policy for you, first consider how much car insurance you need. The annual policy averages listed for each age are for a cheap full coverage policy. A full coverage policy offers the best financial protection in the event of an at-fault accident. You may be able to find a cheaper liability-only policy, but this type of coverage provides significantly less financial protection.

Cheapest Car Insurance for 18-Year-Old College Students

We found that State Farm is the cheapest company, on average, for an individual policy for 18-year-olds. Its average rate is $2,966 per year for this age group.

When a student leaves their parents' home to attend college with a car and does not change their permanent address to a school area residence, they often can remain on the family policy. Your insurance company, state laws and other factors can influence whether this is allowed, so it is always best to check with your insurer before heading to college.

If you keep your vehicle at your parents' address, the cheapest option is almost always to stay on their policy. In this case, we found that GEICO is the most affordable company, with an average premium of $2,431 per year.

State Farm$2,966$2,716$250
Travelers$3,566$2,829$737
GEICO$3,594$2,431$1,163
Allstate$4,180$2,673$1,507
Nationwide$4,332$2,476$1,856
Farmers$6,124$3,062$3,062
Progressive$6,246$3,115$3,131

Cheapest Car Insurance for 19-Year-Old College Students

If you’re a 19-year-old first- or second-year student buying your own car insurance policy, you’ll get a slightly lower rate than when you are 18. The cheapest car insurance company for 19-year-old students on an individual policy is State Farm, with an average annual premium of $2,531. For 19-year-old students eligible for a family policy, Nationwide is the cheapest option at an average cost of $2,066 annually.

State Farm$2,531$2,344$188
GEICO$2,631$2,168$462
Travelers$2,817$2,305$512
Allstate$2,899$2,326$573
Nationwide$3,389$2,066$1,323
Progressive$3,473$2,845$627
Farmers$3,657$3,111$546

Cheapest Car Insurance for 20-Year-Old College Students

Rates continue to drop as students get older. We found that State Farm offers the cheapest car insurance for 20-year-olds, costing our sample student $2,272 per year for an individual policy. If you are eligible to remain on a family policy, the cheapest car insurance for 20-year-old students is from Nationwide, with an average annual premium of $2,170.

State Farm$2,272$2,353$-81
GEICO$2,351$2,253$97
Travelers$2,508$2,346$163
Allstate$2,571$2,380$190
Nationwide$2,989$2,170$819
Progressive$3,110$2,929$181
Farmers$3,413$3,327$86
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Cheapest Car Insurance for 21-Year-Old College Students

Third- or fourth-year college students looking for cheap car insurance can start by getting a quote from GEICO. On average, car insurance for a 21-year-old averages $1,824 per year for an individual policy. For 21-year-olds eligible to remain on a family policy, Nationwide is the cheapest option at an average of $1,582 per year.

GEICO$1,824$1,745$79
State Farm$1,986$2,061$-75
Allstate$2,067$1,915$152
Travelers$2,072$1,953$119
Nationwide$2,154$1,582$572
Progressive$2,476$2,339$136
Farmers$2,532$2,446$85
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GETTING CAR INSURANCE FOR COLLEGE STUDENTS AWAY FROM HOME

Many providers offer a "student away from home" discount, which can significantly reduce premiums. This discount is usually available to college students who attend school more than 100 miles away and don't drive frequently.

Cheapest Car Insurance for High School Students by Age

Nobody pays higher rates for car insurance than high school students due to their inexperience and other risk factors. The most affordable way to insure a high school-aged teen is to add them to a family policy. Certain insurers have certain requirements to add a teen to a family policy, such as living within the family home and having a parent or guardian on the title of the vehicle the teen drives. Requirements may vary by insurance company and state.

It is illegal for a teen under 18 to purchase car insurance without a parent or guardian as a co-signer. If they get an individual policy, the cost is much higher than being on a family policy. The sections below provide national average rates for 16- and 17-year-old teens on individual and family policies.

Quickly Find Cheap Student Car Insurance For Your Age

Cheapest Car Insurance for 16-Year-Old High School Students

MoneyGeek found that Nationwide is the cheapest company for 16-year-old drivers on their parent's policy. Nationwide charged our sample driver $2,718 per year.

If you’re a 16-year-old with your own policy, the cheapest company on average is State Farm. Our sample driver was quoted $3,732 per year, significantly less than the competition.

Nationwide$2,718$5,108$2,390
GEICO$2,936$5,463$2,527
State Farm$3,055$3,732$678
Allstate$3,292$6,583$3,291
Travelers$3,436$5,622$2,186
Progressive$3,454$7,481$4,027
Farmers$3,562$8,864$5,301

Cheapest Car Insurance for 17-Year-Old High School Students

As young drivers gain experience, they’ll find more affordable rates. The cheapest company on a parent's policy is Nationwide, costing our sample family $2,685 yearly for a 17-year-old driver. GEICO was a close second, with an average annual premium of $2,863. Considering that your rates may vary, it makes sense to start your search by getting quotes from these two companies.

State Farm is the cheapest insurance company for students on their own policy. It quoted $3,312 per year for a 17-year-old with an individual policy.

Nationwide$2,685$4,662$1,978
GEICO$2,863$4,260$1,396
State Farm$3,030$3,312$281
Allstate$3,218$5,292$2,074
Farmers$3,311$6,664$3,353
Travelers$3,316$4,287$970
Progressive$3,572$7,262$3,691
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DO LEARNER'S PERMIT DRIVERS NEED CAR INSURANCE?

Yes, if you have a learner's permit, you need car insurance as there's always a risk of accidents. Some insurance plans cover permit holders if a licensed driver is in the car, but it's best to check with your insurance company to be sure. Ensure you're covered before you start driving lessons to avoid any financial issues.

While it's important to consider age and driving experience, many other factors affect your car insurance rates. For example, your location, the value of your car and even your credit history can influence the cost. Insurers create a proprietary credit-based insurance score based on credit history in all but four states where credit data is prohibited as a rating factor. Since many teens do not have a credit history, this can lead to higher rates. Insurance companies use different pricing models, with some being more lenient towards young drivers.

Best Student Car Insurance Quotes

MoneyGeek's car insurance calculator can help you estimate the cost of student car insurance. To calculate the cost of adding a high school student to a family car insurance policy, enter the parent's driving profile and click "Continue." You can then add a student driver by entering their age, gender and most similar car type to get an estimate for a family policy. To calculate the cost of an individual college student car insurance policy, you only need to use your driver profile to get an estimate.

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$192
High
$139
Average
$87
Low

Rates updated:

Jan 23, 2025

Insurance Carrier
MoneyGeek Score
Average Monthly
Payment
1
Capital Insurance Group

Capital Insurance Group

94
/of 100
$87
2
GEICO

GEICO

82
/of 100
$109
3
State Farm

State Farm

83
/of 100
$118
4
Travelers

Travelers

83
/of 100
$129
5
Progressive

Progressive

79
/of 100
$133
6
Farmers

Farmers

77
/of 100
$151
1
Capital Insurance Group

Capital Insurance Group

MoneyGeek Score
94
/of 100
Average Monthly Payment$87/mo
2
GEICO

GEICO

MoneyGeek Score
82
/of 100
Average Monthly Payment$109/mo
3
State Farm

State Farm

MoneyGeek Score
83
/of 100
Average Monthly Payment$118/mo
4
Travelers

Travelers

MoneyGeek Score
83
/of 100
Average Monthly Payment$129/mo
5
Progressive

Progressive

MoneyGeek Score
79
/of 100
Average Monthly Payment$133/mo
6
Farmers

Farmers

MoneyGeek Score
77
/of 100
Average Monthly Payment$151/mo
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Best Car Insurance Companies for Students

Searching for the best and cheapest car insurance for students is not a quick process; it requires time and research to find the best company for your needs. While price is a driving factor, it’s also important to evaluate a car insurance company on its customer service and ease of use.

In addition, be sure to examine every available discount, particularly those geared to both high school and college students. These could lead to big savings on your car insurance rates.

Best Student Car Insurance for Overall Savings: State Farm

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State Farm

State Farm is the largest U.S. auto insurer by market share and has served teen drivers for many decades. It is the most widely available and provides affordable rates and quality customer service.

State Farm was consistently one of the cheapest companies for students on their parent's policy. For students aged 16 to 18 who have an individual policy, it’s the cheapest on average by far.

Best Student Car Insurance for Discounts: State Farm

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State Farm

While State Farm offers a number of discounts, such as multi-vehicle discounts and discounts for bundling home and auto insurance, the company also offers several discounts that could help students lower their base rates, which are already cheap.

State Farm has a driving safety program called Steer Clear, specifically made for young drivers. Students can enroll in the program and get a discount upon completion.

And that’s just one of the company’s many discounts. The other discounts available to drivers in college and high school are:

  • Distant Student: You might qualify for State Farm's Student Away at School Discount if you are a student under the age of 25 who only drives while you are at home during school breaks.
  • Good Student: High school and college student drivers who get good grades — B average, 3.0 GPA (grade point average), or top 20% class rank — could receive a car insurance rate discount of up to 25%.
  • Driver's Education: Drivers under 21 who complete an approved driver education course could qualify for this discount.

Best Student Car Insurance Company for Military Families: USAA

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USAA

USAA specifically caters to active-duty military, veterans and their immediate family members, so its car insurance products are not available to everyone. For those who do qualify, USAA offers some of the lowest car insurance rates available for all drivers, including students. With an AM Best A++ financial strength rating, the company can deliver on customer claims.

For student drivers, USAA offers a good student discount as well as a driver training discount for drivers younger than 21, plus a number of other discounts that could reduce your rates. These include discounts for new vehicles, insuring multiple vehicles and bundling home or renters insurance with your car insurance.

If you need to file a claim or make changes to your car insurance policy, you can do so on the USAA website or use the USAA mobile app. In addition, you can call to speak with an agent or use the website’s chat feature with a virtual agent.

Best Student Car Insurance for Technology: Allstate

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Allstate

Not surprisingly, today’s student drivers are well-versed in using technology and often prefer to use it to conduct their business. With Allstate Mobile, they will have control over their car insurance policy in the palm of their hand.

Using the app, they can access digital proof of insurance cards, view their policy documents, file a claim with QuickFoto Claim, access roadside assistance, pay their premiums and contact their agent. They also can access Drivewise, a usage-based telematics program that monitors their driving behavior via the app and rewards good driving habits with additional savings.

Of course, student drivers can also log into their accounts on the Allstate website to view their policy information, file and track a claim, make policy changes and pay their car insurance premiums.

Cheapest Car Insurance for Students: Buying Guide

To ensure you get the best insurance coverage option for students, explore the following sections for guidance on choosing the right policy. This will help you find the balance between coverage and cost, tailored to your situation.

How to Get Cheap Car Insurance as a Student

There are multiple strategies students can use to find affordable car insurance. MoneyGeek outlined some of the most effective strategies below to help you get started.

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    Shop around

    Don't settle for the first quote you get. Use a car insurance calculator to compare rates from different providers. This will give you a ballpark figure and help you find the most cost-effective option.

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    Leverage good grades

    Many insurance companies offer discounts for students who maintain a certain GPA. Check with your provider to see if a "Good Student" discount is available and what the eligibility criteria are.

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    Take a defensive driving course

    Completing a defensive driving course can make you a safer driver and qualify you for additional discounts. Make sure the course is accredited and recognized by your insurance provider. State Farm and Allstate offer their own programs for young drivers that you can complete for further discounts.

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    Opt for usage-based telematics programs

    Many insurers offer usage-based telematics programs, which reward safe driving with lower rates.

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    Look into distant student discounts

    Students away at school (usually at least 100 miles from home) may be eligible for a discount if they don't have regular access to a car.

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    Use a family policy

    If possible, stay on your parent's car insurance policy. It's often cheaper to add a student to an existing policy with experienced drivers than to start a new one.

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    Choose your car wisely

    The type of car you drive can significantly impact your insurance rates. Opt for a model that's known for its safety features and reliability to help lower your premiums.

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    Limit your mileage

    Some insurance companies offer low-mileage discounts. If you're living on campus and don't use your car often, this could lower your premium.

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    Consider higher deductibles

    Higher deductibles usually means lower monthly premiums. Just make sure you can afford to pay the deductible in case of an accident. Collision and comprehensive coverages are subject to separate deductibles while liability coverage has no deductible.

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    Review your policy regularly

    Life changes, and so should your policy. Make it a habit to review your coverage at least once a year to ensure it still meets your needs and budget.

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MONEYGEEK EXPERT TIP

"There is 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. They may just be using a marketing ploy to drive business because you must pay something upfront to get auto insurance. And if you are able to pay in full, it can save you money with many insurers." — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

Car Insurance Student Discounts

Students can save on car insurance by getting good grades, taking defensive driving courses and driving less. Family policies and safe vehicles can also lower rates, as can multi-car plans and alumni memberships. The list below outlines these and other situations that could help students score significant savings.

Student Discount
Description

Good Student Discount

Maintain a high GPA and you could qualify for this discount. Check with your insurance provider for eligibility criteria.

Defensive Driving Course Discount

Complete an accredited defensive driving course to become a safer driver and snag a discount.

Student Away from Home Discount

If you're attending school more than 100 miles away from home and won't be driving often, you could be eligible for this discount.

Family Policy Discount

Being added to your parents' existing policy can often be more cost effective than getting your own. Plus, it can prevent a lapse in coverage, which is beneficial for your future insurance rates.

Low-Mileage Discount

If you live on campus and rarely use your car, some insurance providers offer discounts for low mileage.

How Long Can College Students Stay on Their Parent's Car Insurance?

As a student, staying on your parent's car insurance policy is almost always the most affordable way to get coverage. However, auto insurers have requirements for when you can stay on your parent’s plan and when you have to obtain your own individual coverage.

When Can Students Can Stay on Their Parent's Car Insurance Policy?

If any of the following apply to you, you will likely be able to be added to an existing family policy:

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    You still use your family's home as your permanent address

    Insurance companies often allow students to stay on a family policy if they still consider their parents' home their primary residence.

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    You don't own a car while you're away at school

    If you're not bringing a car to college, you can usually remain on your parents' policy without affecting their rates significantly.

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    You live more than 100 miles away from home

    If you’re going to school more than 100 miles away from home and don’t bring your car with you, you can usually stay on your parent’s auto insurance policy. This can also make you eligible for a distant student discount that applies to the family policy.

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    You only drive when you're home during holidays or special occasions

    If you're an occasional driver and your parents' insurance policy includes a permissive use clause, you can generally stay on their policy without needing your own. This clause allows you to drive their car occasionally, often limited to fewer than 12 instances per year.

When Do Students Need Their Own Car Insurance Policy?

For the following situations, you'll likely need or prefer to get your own individual policy:

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    You've moved out permanently and have your own address

    Once you establish a new permanent residence, you'll generally need your own car insurance policy. As long as your permanent address is your family residence, you do not need your own policy. Even if you own a car registered in your name, if your family home is your permanent residence, you can be added to the family policy and even generate a multi-vehicle discount.

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    Your school's ZIP code has higher insurance rates, affecting the family policy

    Location can impact insurance rates. If your school's area is considered high-risk, you may consider getting an individual policy if the cost of the family policy increases significantly. However, depending on your circumstances, it still may be cheaper to stay on the family policy than to get a standalone policy.

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    State laws or insurance company policies require you to have individual coverage

    Some states or insurers have specific rules about when a young driver must get their own policy.

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Can International Students Get Car Insurance?

By exploring budget-friendly options, comparing rates and understanding the discounts available, students can secure quality coverage at an affordable price. Insurers like GEICO, State Farm and Progressive offer competitive rates tailored to students’ unique needs. Start comparing student car insurance quotes today to save money while staying financially protected in 2025.

Cheapest Car Insurance for Students: Bottom Line

Finding affordable car insurance for students doesn’t have to be overwhelming. By exploring budget-friendly options, comparing rates, and understanding the discounts available, students can secure quality coverage at an affordable price. Insurers like GEICO, State Farm, and Progressive offer competitive rates tailored to students’ unique needs. Start comparing student car insurance quotes today to save money while staying protected on the road in 2024.

Cheap Car Insurance for Young Drivers: FAQ

Young drivers often face the highest insurance rates, making cheap car insurance for students challenging to come by. Answers to these frequently asked questions can help you understand when and how to get the most affordable coverage.

Why is car insurance expensive for students?

When do you need to get your own policy?

Can you stay on your family policy if you move to a college out of state?

Do your grades affect your car insurance rates?

Do you need car insurance as a provisional driver?

How do I add a student to a family policy?

Affordable Car Insurance for Students: Methodology

Study Overview

MoneyGeek used a sample driver profile to collect car insurance quotes for high school and college-aged students. We collected quotes for students seeking individual policies and those on family policies to determine the difference in cost.

Data Sources and Depth

For our survey, we collected data from state insurance departments and Quadrant Information Services. Our sample consisted of 19,516 quotes from six companies in 100 U.S. ZIP codes.

Driver Profile

For this page, 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 a car insurance policy, the deductible is the amount of money you will owe if you make certain claims on your auto insurance policy. For example, with a full coverage policy, you have comprehensive and collision coverage, each with a deductible. Once you meet the deductible, your insurer pays its share.

Comprehensive coverage pays for damage to your car caused by events other than a collision, such as falling objects, fire, theft and vandalism. Collision coverage pays for damage to your car caused by an at-fault collision, such as with another car or a light pole.

To obtain national averages, we used 100/300/100 liability limits plus comprehensive and collision coverage with a $1,000 deductible for our sample driver (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.

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About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned 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 5-time Jeopardy champion!

He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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