The Important Guide to Car Insurance for College Students: What You Need to Know
Driving in college can be a more thrilling and exciting experience. For college students who own their cars, it is important to have an insurance policy.
If you are under 25, you will have to pay more than adults. Car Insurance for College Students, Insurance companies charge more when you’re a young college student. That is because young people are more likely to be involved in accidents or collisions than adults.
In 2021-2023, the average college student spent over $35,000 on tuition and fees. That does not include living expenses such as travel, room and board, clothing and cell phone costs.
We compared average premiums, student discounts, customer service, and other factors to identify the six companies we recommend.
Top 3 Car Insurance for College Students of 2023
State Farm
State Farm’s discounts for college students, including the Good Student and Away from School, can save them up to 25% on their annual auto insurance rates.
Pros and cons
- ProsStudents can get special discounts
- Insurance for rideshare is available
- You can also find out more about ConsAgents are required to be local
State Farm auto insurance is available for college students in 48 states, including Washington, D.C. 9 As you might expect, State Farm provides the most popular types of car insurance.
It also offers rental car reimbursements, travel expenses, and rideshare coverage for Lyft or Uber drivers.
State Farm also offers discounts that help to make its rates more competitive. College students can save the most thanks to State Farm’s 25% Good Student Discount.
This discount is available for high school and college students with good grades. State Farm offers an additional Student Away discount that allows families to save even more money when insuring a college student whose car is only used when the student is not at school.
State Farm offers a Steer Clear Discount for drivers under 25 with good driving records.
Allstate
Allstate is the fourth largest auto insurer in the United States. Allstate offers college students comprehensive coverage and discounts due to its 10.4% market share.
Allstate is one of the top car insurance companies nationwide. They offer everything from basic coverage to the full package.
Allstate offers a roadside package that includes towing and battery restart. It also helps with a flat. Allstate offers rideshare coverage for students driving for Transportation Network Companies (TNCs) such as Uber and Lyft.
Smart Student Discounts up to 25 percent for those with a B-average, who have completed the teenSMART program or are attending college within 100 miles of their vehicle is parked.
Milewise Program premiums are based on how many miles you drive each month. That can help college students save a lot of cash if they live on campus.
GEICO
GEICO offers the best car insurance rates for college students. GEICO offers some of the most affordable average premiums in the insurance industry.
GEICO provides a variety of coverage types and amounts. GEICO also offers coverage for mechanical breakdown and renters’ insurance.
GEICO also offers several discounts to eligible policyholders. The only discount available to college students is 15% for being a good student.
However, they can still benefit from other discounts, such as those offered for cars with safety features or for customers who have bundled policies with GEICO and stayed with them for many years.
Do I have to buy car insurance as a college student?
Everyone who drives and owns a vehicle must indeed have Car Insurance for College Students. You should update your car insurance policy if you have one before moving away to study. Include your new address and your job as a student.
Why is student car insurance so expensive?
Whether you are a student or a driver aged 17, running a car will be costly.
There are several reasons why this is the case.
- Age. Insurance providers know that young motorists are more likely than other groups to be involved in accidents. Therefore, premiums will reflect this risk during the first few years.
- No-claims DiscountAs a new driver, you probably need more time to accumulate a discount. It can reduce your insurance rates.
- Your insurance premiums can be affected by where you live. You may also see a higher premium if you live in a large city or town, park your car overnight on the street or are in an area with high car crime rates.
What is the cost of Car Insurance for College Students?
Costs are typically higher for students between 18 and 22 years old than older adults. That is primarily because younger drivers can be more risky. Most parents include their college-age students in their auto insurance policies because of cost savings.
What types of car insurance are available for college students?
Most car insurance details are the same for all motorists, except for cost. New Drivers are required to have the minimum coverage and have access to the same discounts and coverage options as other drivers.
Three types of covers are available:
- The third-party insurance you need is the most basic. This insurance covers damage to another vehicle or injuries caused by you (including passengers).
- Third Party, Fire and Theft Insurance offers the same coverage as third-party insurance but covers you if your vehicle is stolen or destroyed by fire.
- Comprehensive insurance covers the same as before but can also cover damage to your vehicle. You may also be covered for injury, but this is not always the case.
How to Get Cheapest Car Insurance for College Students
There are many ways to reduce the cost of car insurance for young drivers. You can reduce the cost of students’ car insurance while you wait for your rates to drop with age.
Keep your family insurance policy
In the U.S., drivers can remain on their parent’s policies up to age 26. Sticking with your current auto insurance policy is often cheaper than buying your student’s.
That is because, among other things, most insurers offer cheaper plans for additional policies than for individual policies.
However, there are some potential drawbacks to adding a student to a parent’s car insurance policy. A person who has been able to save money by avoiding accidents or moving violations could lose it if someone on their policy gets involved in an accident.
Maintain Good Grades
Students can save money on their car insurance by taking advantage of the discounts many insurers offer. These “good student” discounts vary from company to company, but they generally follow the following standards:
- Maintaining a minimum B average or 3.0 GPA
- The top 20% of your class is a good place to be.
These are only guidelines. Check with your agent to find out the exact requirements of your insurance provider.
Take a Driving School Course
Many insurance companies offer discounts to students who complete a defensive driving course or a driver education program. These courses help students become more responsible drivers. Safe driving techniques will help young drivers to avoid accidents and lower their insurance rates.
Reduce your coverage
Your auto insurance rate is heavily influenced by the types of coverage and how much you have. Get rid of any unnecessary coverage to reduce your rates.
You take on more risk when you have less insurance. You’ll need to balance the risk of an accident with any potential savings you can get on your Car Insurance for College Students.
Conclusion:
This guide will provide you with all the information necessary to make an educated decision when choosing Car Insurance for College Students.
Remember to consider your budget and coverage options and their impact on your driving record. After considering all these factors, you can choose a policy to keep you and your vehicle safe wherever life takes you.
