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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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Car insurance for students can be expensive, especially if you’re on a high school or college budget. But that doesn’t mean you can’t find a budget-friendly auto policy with coverage that meets your needs.
Use this guide to find the best and most affordable car insurance companies for students. We’ll also provide money-saving insurance tips and answer common questions you might have about managing your auto insurance.
Getting car insurance for high school students is pretty straightforward, but it can get complicated when you go off to college. Where you go to college and whether you take a car with you can affect your car insurance. Knowing how it affects your coverage and budget can help you make the best decision for your finances.
How car insurance works when you go off to college depends on a few factors:
Who the car is titled to
If you’re taking a car with you to college
Whether you’re living on campus
Where the vehicle will be when not in use
If the car is in your parents’ name, stays with them, and you keep your primary residence at their home, your insurance can stay the same.
But if you’re taking the car with you, let your insurance company know where the vehicle will be parked to make sure you’re covered if you have to file a claim while at school.
Many colleges have several transportation options, like buses, bikes, and car-sharing companies, so taking a car with you might not be necessary. Discuss your options with your parents and insurance agent to find the best solution.
“Most students are eligible to stay on their parents ’ car insurance policy if they go to another state for college” as long as they keep their parents’ address as their primary residence, says Rhett Stubbendeck, CEO of LeverageRx. Staying on your parents’ policy might be the cheapest option if you’re not taking a car and it’s not in your name.
But every state has different insurance rules, so it’s best to speak with your insurance company to determine your best option. You might have to get your own policy if you’re moving out of state and the car is in your name (but it would have to be registered in that state, as well). It can’t hurt to get a quote for a separate policy; it might be cheaper.
If you’re not taking your car to school in another state and it’s staying with your parents, your auto insurance doesn’t have to change. In fact, if your college is 100 miles or more away from your home, your parents might even get a discount on their policy. Plus, you’re still covered to drive it when you’re home.
But if you take the car to another state, you might have to get insurance in that state. It depends on who owns the vehicle, what state you’re moving to, and your insurance company.
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There isn’t one company that offers the best car insurance for students. The right option for you depends on how often you drive, what discounts you’re eligible for, and whether you’re a high school or college student.
Below are a few insurance companies to consider for the best auto insurance for students.
American Family offers the cheapest average rates for 18-year-old drivers, at $312 per month. It also has the most discounts available for high school students, including its app-based Teen Safe Driver program. Students can save 10% on car insurance after driving 3,000 miles or being in the program for a year.
American Family has excellent auto claims satisfaction, earning 874 out of 1,000 points in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study. It also regularly earns above-average ratings in several regions nationwide.
Multiple available discounts for students
Homeschool students eligible for good student discount
Diminishing deductible and accident forgiveness available
Not available nationwide
Discount savings vary by state
Must download the app to participate in the Teen Safe Driver program
Stubbendeck recommends Allstate as the best car insurance company for college students. Their smart student discount offers up to 25% savings if you qualify for the good student discount, attend school at least 100 miles away and don’t take a car, or complete the teenSMART driver education program.
You can also save on student rates with the Milewise program if the car isn’t driven much while you’re away at school. Allstate scored higher than American Family in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, earning 889 out of 1,000 points.
Available nationwide
Multiple ways to save
Highly rated for claims satisfaction
App has only average reviews (3.9 stars) on Google Play
Might not have the cheapest rates
Scores below average in several regions for overall auto insurance satisfaction
State Farm offers some of the best student discounts on car insurance. Drivers can save up to 25% with the good student discount, and you’re eligible until you’re 25. Students can also qualify for the student away-at-school discount and save up to 30% with the Drive Safe & Save mobile app.
State Farm offers the Steer Clear program as well, which can save you up to 15% on your car insurance if you have a clean driving record and complete the program. The insurer falls between Allstate and American Family in J.D. Power’s 2022 Auto Claims Satisfaction Study and scores above average in all regions except California in the 2022 U.S. Auto Insurance Study.
Multiple high-value discount savings available for students
Available in all states and Washington, D.C.
Highly rated for customer satisfaction
Might not be the cheapest option for students
Above-average NAIC complaint index
Only available through local agents
Metromile might be the best option for cheap insurance for students who don’t bring their car to college. This insurance company charges a flat monthly fee of $29 and then a per-mile rate for each mile driven. The fewer miles you drive per month, the more you’ll save on auto insurance.
Since Metromile insurance is app-based, it offers other features, like vehicle maintenance reports and locating your parked car. You can also get coverage add-ons, like towing, roadside assistance, and glass repairs with no deductible.
Rates based on miles driven
Useful app features
Optional coverages available to customize your policy
Only available in eight states
Not rated by J.D. Power
Only discount option is a multi-car discount
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Although young drivers can be expensive to insure, some companies offer cheap insurance for students. Comparing quotes from different companies can help you find the best coverage for the cheapest price.
We found these insurance providers offer the cheapest rates for student drivers, so start with quotes from these companies first.
Insurance Company | Avgerage Monthly Premium |
|---|---|
| American Family Insurance | $185 |
| Erie Insurance | $200 |
| Travelers | $212 |
| State Farm | $212 |
| Nationwide | $226 |
Our data analysis shows the most affordable car insurance companies for students are American Family, Erie, Travelers, State Farm, and Nationwide. They might be the cheaper options because of available discounts, coverage options, and student-driver program offerings. These average monthly rates are for drivers under 25.
Why pay more for auto insurance as a student when you don’t have to? Here are our top five tips to save money on your car insurance.
Student discounts on car insurance are usually the best way to keep rates low. Most insurance companies let you stack them together to get even more savings.
When shopping for car insurance or talking to your agent about your best options for student car insurance, don’t forget to ask about all the discounts you might qualify for, like:
Student away at school discount (if your car stays at home)
Driver education program discount
If the car you drive isn’t in your name, you can usually stay on your parents’ insurance. It’s generally cheaper to remain on your parent’s policy instead of getting your own.
If your campus is walkable, you have other transportation available, or you don’t need a car, waiting to get your own vehicle and insurance plan until you graduate from college might make sense.
The make and model of your vehicle affect your insurance costs. You can save on insurance by getting an older or less-expensive car while you’re at school. Older cars might only need liability-only insurance, which offers even more savings.
Consider getting a vehicle with modern safety features if you’re taking it to school with you. You’ll be eligible for the safety feature discount, and it will lower your risk of injury if you’re in an accident.
You could save on your car insurance if you don’t drive much and regularly practice safe driving behaviors.
Most insurance companies now offer usage-based telematics programs, which set rates based on the miles you drive, your driving habits, or both. You should also qualify for a safe driving discount with improved driving habits. You may even be eligible for accident forgiveness, which means your rates won’t increase as much or at all if you’re in an at-fault accident.
You might be tired of going to class, but what if doing so could save you money? Passing a defensive driving course can lower your insurance rates by up to 15% with most insurance companies. Plus, you can improve your driving skills, making you more likely to avoid tickets and accidents. Most programs are online and take eight hours or less to complete.
Doing some homework can help you save on car insurance for students. We completed the test by answering the most common questions about student auto insurance.
It depends. The best insurance for students varies on your age, driving record, claims history, vehicle, and coverage needs. Comparing at least three insurance companies can help you find the best student car insurance.
Yes. College students can stay on their parents’ car insurance in most cases. You might have to get your own policy if the car is in your name or you move out of state, though.
If you own your car and it has an active registration but you aren’t bringing it to school, you still need car insurance. You should discuss your options with your agent before canceling your insurance.
If eligible, yes, you can get a student discount on your auto insurance. There are multiple options, including for good grades, being away at college over 100 miles, and being a part of college organizations.
Sources:
J.D. Power. “2022 J.D. Power Auto Claims Satisfaction Study.” Accessed May 26, 2023.
J.D. Power. “2022 J.D. Power Auto Insurance Study.” Accessed May 26, 2023.
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Learn more about us, our team, and what makes us tick.
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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