Best and Cheapest Car Insurance For College Students Of 2024

• American Family
• Geico
• Auto-Owners
• State Farm
• USAA

The average cost to add a college student to a parent’s policy is $1,610 a year.

If you’re sending your young adult off to college and shopping for cheap car insurance, get quotes from USAA if you’re eligible. The average cost to add an 18- to 21-year-old college student to a parent’s USAA policy is $785 a year, the lowest in our analysis.

USAA car insurance is only available to members of the military community and veterans, so if that doesn’t apply to you, the next cheapest insurer is Geico. The average cost to add a college student to a parent’s Geico policy is an average of $1,061 a year, which is still below the national average of $1,610 a year.

The average cost for a college student to buy their own car insurance policy is $4,689 a year.

USAA and GEICO also offer the cheapest car insurance for college students who are purchasing their own policies. An auto insurance policy for only the student with USAA averages $2,933 a year, and a policy with Geico averages $3,656. While these costs seem expensive, they can seem like bargains compared to some competitors.

Cheapest Car Insurance for College Students on a Parent Policy

It costs an average of $134 a month to add a college student to a parent’s policy.

Insurance company	Average annual cost for student on a parent’s auto insurance	Average monthly cost for student on a parent’s auto insurance
USAA*	$785	$65
Geico	$1,061	$88
American Family	$1,159	$97
Erie	$1,251	$104
Travelers	$1,296	$108
State Farm	$1,399	$117
National average	$1,610	$134

See MoreSee Less

Source: Quadrant Information Services. Averages are based on rates nationwide from large auto insurance companies for drivers age to 18 to 21.
*USAA auto insurance is available only to members of the military, veterans and their families.

Cheapest Car Insurance for College Students on Their Own Policy

It costs an average of $391 a month for a college student to buy their own car insurance policy. That’s almost three times the average cost of adding a student to a parent’s policy.

Insurance company	Average annual cost for student with their own auto insurance	Average monthly cost for student with their own auto insurance
USAA*	$2,933	$244
Geico	$3,656	$305
Auto-Owners	$3,700	$308
State Farm	$4,123	$344
American Family	$4,326	$360
Erie	$4,375	$365
Nationwide	$4,659	$388
National average	$4,689	$391

See MoreSee Less

Source: Quadrant Information Services. Averages are based on rates nationwide from large auto insurance companies for drivers age to 18 to 21.

*USAA auto insurance is available only to members of the military, veterans and their families.

The cheapest insurance companies for college students will vary by location, due to state regulations, vehicle repairs costs, medical bill costs and the number of claims being made.

State	Cheapest car insurance company for college-age students	Cheapest company’s annual cost to add college student to a parent’s policy
Alabama	Geico	$489
Alaska	Umialik	$580
Arizona	Root	$992
Arkansas	Southern Farm Bureau	$846
California	Grange	$730
Colorado	Geico	$1,160
Connecticut	Geico	$755
Delaware	Progressive	$762
Florida	Geico	$1,539
Georgia	Georgia Farm Bureau	$869
Hawaii	21st Century	$286
Idaho	Oregon Mutual	$554
Illinois	Automobile Club of Missouri	$618
Indiana	Pekin Insurance	$555
Iowa	Grinnell Mutual	$535
Kansas	Geico	$609
Kentucky	Kentucky Farm Bureau	$462
Louisiana	Southern Farm Bureau	$1,299
Maine	Concord Group	$559
Maryland	Geico	$602
Massachusetts	Safety Group	$443
Michigan	Secura	$738
Minnesota	North Star	$567
Mississippi	Progressive	$1,026
Missouri	Geico	$607
Montana	Progressive	$953
Nebraska	American National	$341
Nevada	Geico	$1,054
New Hampshire	MMG Insurance	$552
New Jersey	NJM	$435
New Mexico	Central Mutual	$502
New York	Main Street America	$783
North Carolina	Travelers	$204
North Dakota	North Star	$297
Ohio	Central Mutual	$520
Oklahoma	Oklahoma Farmers Union	$648
Oregon	Geico	$831
Pennsylvania	American National	$770
Rhode Island	Travelers	$812
South Carolina	American National	$323
South Dakota	Farm Bureau Mutual & Kemper Direct (tie)	$515
Tennessee	Penn National	$609
Texas	Nationwide	$853
Utah	Geico	$355
Vermont	Geico	$583
Virginia	Penn National	$423
Washington	Pemco	$624
West Virginia	Encompass	$802
Wisconsin	Rural Mutual	$485
Wyoming	American National	$607

See MoreSee Less

Source: Quadrant Information Services. Averages are based on rates nationwide from large auto insurance companies for drivers age to 18 to 21.
In some cases USAA had the cheapest rate but USAA is open only to those who qualify with a military affiliation.

You’ll find the cheapest auto insurance by adding a college student to a parent’s auto insurance policy. And parents will be relieved to know that they should see the cost drop during the college years.

Age of college student	Average cost per month to add to a parent's policy
Age 18	$175
Age 19	$144
Age 20	$125
Age 21	$93

See MoreSee Less

Source: Quadrant Information Services. Averages are based on rates nationwide from large auto insurance companies for drivers age to 18 to 21.

The average cost of a college student’s policy can give you a good idea of what to expect, but it’s not always a great indication of what you’ll end up paying. There are many variables that impact your rates, and each insurance company weighs them differently.

Coverage types purchased

The type and amount of coverage you purchase plays a major role in your car insurance costs. Every state (except New Hampshire and Virginia) requires drivers to carry some level of liability of auto insurance.

Depending on where you live, you may also need to purchase additional types of coverage, including uninsured motorist insurance, medical payments coverage or personal injury protection.

If you lease or finance your vehicle, you’ll also likely be required to buy collision and comprehensive coverage. Even if you aren’t required to carry these types of coverage, adding them to your policy can help you cover the cost of repairs caused by a collision or non-collision event, like a storm, fire, flood or theft.

Location

Drivers in major metropolitan areas that have higher instances of theft, car accidents and vandalism typically pay more for coverage when compared to drivers in suburban areas.

Other factors, like the cost of medical care, repair costs and even weather trends can also lead to locationally-based differences in coverage costs.

Age

Younger drivers pay more for coverage because they’ve spent less time on the road and are at a higher risk for accidents and insurance claims. But as your college students get older, look for rates to start to decrease around age 25, assuming they have a good driving record.

Gender

Based on data from the National Highway Traffic and Safety Administration, male drivers are more likely than females to have riskier driving habits, like speeding, not wearing a seat belt or driving under the influence. Because insurers base prices on risk, male drivers might pay more for car insurance.

Several states, including California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania, forbid insurers from using gender to determine a driver’s car insurance rates.

Related: How Gender and Age affect Auto Insurance Rates

There may be several ways you can lower your car insurance bill.

Compare quotes

Getting and comparing car insurance quotes from at least three insurance companies can help you find the cheapest car insurance.

Look for discounts

Most insurers offer an array of car insurance discounts, including some specifically designed to help cut insurance costs for college students:

• Students who maintain a 3.0 average (or who qualify a different way) are often eligible for a good student discount.
• Many insurers also offer discounts for college students who are away at school and don’t have a car with them (usually 100 miles or more away from home).

Car Insurance Discounts for Good Grades

You must be a full-time high school or full-time college student for a good student discount. The definition of “good student” can vary by insurance company, but generally you must have one of the following:

• A 3.00 GPA on a 4.00 grading scale.
• A 3.50 GPA on a 5.00 grading scale
• Overall B grade average.
• Ranked in the upper 20th percentile;
• On the Dean’s List, Honor Roll or comparable listing.
• Test in the upper 20th percentile in one of the following standardized tests: PSAT, PACT, SAT, ACT, IA test, CA achievement or TAP.

Adjust coverage

Increase your deductibles. A car insurance deductible is an amount an insurer will deduct from your insurance check after a collision or comprehensive insurance claim. A higher deductible will usually mean a lower premium.

A higher deductible will also leave you on the hook for more out-of-pocket expenses if your car is damaged, so always consider your financial situation before increasing your deductible.

Drop unnecessary coverage. Some coverage types, like comprehensive and collision insurance, may not make sense if your vehicle is older (worth less if it were totaled) and you no longer have a car loan. That’s when it might be time to drop collision and comprehensive insurance.

Avoid having the college student on a separate policy

Car insurance rates for college-age drivers are notoriously high, especially if they’re on their own policy. Adding a college student to a parent policy can lead to significant savings.

For instance, a driver between ages 18 and 21 on their own policy will pay an average of $4,689 a year for coverage. Drivers of the same age who are added to a parent’s policy will pay an average of $1,610 a year. That’s $3,079 less, or 65% less a year.

In addition, adding another driver (and car) to your policy can also unlock multi-vehicle discounts, which can further drive down rates.

To identify the best car insurance companies for college students we evaluated each company based on the following.

Auto insurance rates (50% of the score): We used data from Quadrant Information Services to find average rates from each company for drivers ages 18, 19, 20 and 21 with good driving records. Rates are based on coverage of $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, uninsured motorist coverage and collision and comprehensive with a $500 deductible.

Complaints (20% of score): We used auto insurance complaint data from the National Association of Insurance Commissioners as a reflection of customer service. Each state’s department of insurance is in charge of logging and monitoring complaints against the companies that operate in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials.

Good student discount (10% of score): Companies got points for having a good student discount of at least 5%, based on data from Quadrant Information Services. With high rates for young drivers, every discount can help.

Student away from home discount (10% of score): Companies got points for having a student away from home discount of at least 10%, based on data from Quadrant Information Services. This discount is often given if your student is at school at least 100 miles from home and doesn’t have a car. Because the student isn’t driving the car most of the year, this should be a generous discount from the best car insurance companies for college students.

Accident forgiveness available (5% of score): Accident forgiveness programs allow one at-fault accident without a resulting rate increase.

Collision repair (5% of score): Auto body shop professionals will be familiar with each insurance company’s approach to repairs. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card has grades from more than 1,100 collision repair professionals.

• DUI Vs. DWI: What’s The Difference?
• Cheapest Car Insurance After A DUI (May 2024)
• How Long Does A DUI Stay On Your Record?
• How Much Does Car Insurance Go Up After An Accident?
• Best Car Insurance for High-Risk Drivers
• Best Car Insurance for New Drivers
• Compare Car Insurance Quotes
• Best Car Insurance Companies Of 2024