Compare the best college student auto insurance to see what fits best for you.

According to the study website EducationData.org, the average college student in the 2019-2020 academic year spent nearly $33,000 a year on tuition, fees, and room and board. Add to that other living expenses like travel, food, and mobile phone bills, and it's easy to see why college students struggle to afford extra expenses. And car insurance may be a significant extra cost.

We have compared an average premium, available student discounts, customer loyalty and more than 20 leading national brands to identify the 6 companies we are recommending in our quest for cheap car insurance for college students.

Below you'll find auto insurance deals from our advertising partners, followed by our comprehensive list of the best car insurance providers for college students that we've found.

2021's Best Car Insurance for College Students

1. Overall best– Allstate

Allstate is the country's fourth largest car insurance company, according to the Insurance Information Institute. With nearly 10% of the market, it's no surprise that Allstate offers comprehensive coverage as well as major discounts to college students.

Select More Than 2 Insurance Companies for Best Rates In Your Location:

Coverage

Allstate, one of the nation's largest auto insurance providers, provides everything from basic coverage to a full plan. Allstate offers a roadside assistance programme that covers towing, battery restart, and rental car reimbursement, among other benefits. Allstate also provides rideshare protection, which is helpful for students who work for a Transportation Network Company (TNC) like Uber or Lyft to supplement their income.

We chose Allstate as the “best overall for college students” because of the discounts it provides. There are some examples:

• A Smart Student Discount of up to 25% for those who maintain a B average, complete the teenSMART educational programme, or attend college at least 100 miles from where their car is garaged;

• The Milewise programme is based on a monthly number of miles that can save college students living on campus a lot of money on a long term basis.

Availability

Allstate, the nation's fourth largest auto insurance provider, has more than 15,000 local agents and sells automobile insurance plans in all 50 states. However, due to the company's structure, you can only purchase insurance from an Allstate agent. If you want an entirely online experience, you can still obtain many of Allstate's benefits through Esurance, its affiliate business.

Customer Satisfaction

AM Best rates Allstate's financial strength as A+ (Superior),3 and the firm achieved above-average scores in J.D. Power's 2020 Auto Claims Satisfaction Study. Allstate has an A+ record with the Better Business Bureau and has settled all grievances lodged with them in the last three years.

2. CHEAPEST CAR INSURANCE- Geico

GEICO is the perfect choice for university students looking to take inexpensive auto insurance. GEICO claims that 15 minutes will save you 15 per cent or more on automobile insurance with some of the lowest average industry premiums.

Coverage

GEICO not only provides what each state needs, but it also provides a wide range of coverage quantities and sizes. GEICO provides emergency roadside assistance, mechanical failure coverage, rideshare insurance, and gap insurance in addition to regular auto insurance plans, as well as other policies such as renters and homeowners insurance.

Discounts

GEICO still has some of the lowest prices in the market, but it still has a long list of nearly 20 discounts. While the only discount explicitly for college students is the 15% Good Student discount, students can also take advantage of daily discounts, such as discounts for cars with safety features and discounts for those who package GEICO policies or remain with the company for years.

Availability

Car insurance plans from GEICO are valid in all 50 states. Students with a troublesome driving record, such as a history of speeding violations, may have difficulty accessing GEICO coverage, so it's best to get an online quote before making the move.

Customer Satisfaction

GEICO regularly wins high marks from its consumers as well as industry experts. AM Best has given the business an A++ ranking for financial strength. In addition, J.D. Power ranked GEICO first in its 2020 Insurance Shopping Report.

3. Best Student Discount – State Farm

State Farm is the leading private passenger car insurance provider in the United States, with a 16.1 percent market share in 2019. College students, on the other hand, will benefit particularly from the company's Good Student and Student Away at School discounts, which can result in more than a 25% savings on annual auto insurance premiums for students under the age of 25.

Coverage

State Farm provides the most popular forms of car insurance, as one can expect from the country's largest insurance provider. Aside from the standard forms of auto insurance, The company also provides Lyft and Uber with gap insurance, road side emergency assistance, rental car and reimbursement of travel expenses, and rideshare insurance.

Discounts

Although State Farm offers a number of benefits to help make its low prices even better, its college students can save the most money thanks to the company's 25% Good School and University student discount. Government Farm offers a discount for a student who drives only when they are not in school, allowing families to save more money when insuring a student from university. Finally, the State Farm's Steer Clear discount saves drivers under 25 who have an additional 15% clean driving record.

Availability

State Farm offers college student auto insurance in all 50 states. However, the firm does not operate in the same way as most other corporate insurance companies, which distribute insurance through a central headquarters. Instead, State Farm intends to have its advertised "good neighbour" experience by requiring all insured drivers to work with a local agent. This can be a deal breaker for college students who end up studying hundreds of miles away from home.

Customer Satisfaction

AM Best continues to give State Farm the highest ranking for financial health. According to the J.D. Power 2020 Auto Insurance Report, the company ranked first in the Mid-Atlantic and New York regions, and second or higher in the majority of other regions.

4. Best for Infrequent motorists – Metromile

Metromile, if you haven't heard of it, is a California-based auto insurance agency that specialises in plans for drivers who ride less than 10,000 miles per year. Although this makes Metromile's service a very niche market, it is a viable choice for college students who do not drive often on campus.

Coverage

Metromile has all of the usual forms of auto insurance coverage, with one exception: the monthly premium is dependent on your driving period. How so? The company charges a base rate as well as a small fee per mile. All you have to do is instal Metromile's Pulse system in your car and then use the mobile app to monitor your mileage, which is available from both the Apple App Store (4.7 stars, 18,000 ratings) and Google Play (3.9 stars, 800+ ratings). Aside from this peculiar payment arrangement, Metromile provides many benefits such as roadside assistance, towing coverage, rental car reimbursement, and a $0 deductible on glass repairs. Its mobile app will help you find your parked vehicle and provide updates on the health of your vehicle, which is particularly useful for college students who may not be familiar with car maintenance.

Discounts

Metromile does not have several extra discounts because it only charges you based on your real driving period. It does, however, limit your daily maximum expense at 250 miles (150 miles in New Jersey), so consumers never have to think about paying exorbitant fees for occasional road trips.

Availability

Metromile is currently accessible in only eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. To further narrow the field, Metromile's system needs an ODB-II diagnostic port, so only drivers with vehicles from 1996 or later are eligible.

Customer Satisfaction

J.D. Power and AM Best do not score Metromile. The organisation does, however, have an A+ ranking and accreditation from the Better Business Bureau. Metromile also has a Consumer Advocate ranking of 4.4 out of 5 stars (“excellent”) for financial power.

5. THE PERFECT FAMILY POLICY- Auto-Owners Insurance

Auto-Owners Insurance is one of the oldest auto insurance companies in the United States, having been in business for over 100 years. While coverage is only available in 26 states, student discounts make it a viable choice for college students who are already covered by their parents' insurance policies.

Coverage

Auto-Owners, as a standard insurance agent, provides all of the standard auto insurance policies that most drivers are looking for. In addition, the organisation provides service benefits such as roadside assistance, towing coverage, rental car reimbursement, gap coverage, and reduced car value coverage. Auto-Owners, in particular, has an add-on policy known as the Personal Automobile Plus Package. It covers stolen personal belongings in your car, identity theft, mobile phones lost or destroyed in a collision, and more. This can be a good policy to add for families who are concerned about theft or harm to a car parked on campus.

Discounts

Auto-Owners, like the majority of the other auto insurance providers on this list, offers a variety of discounts. In addition, some of the most important discounts are available to university students directly. Students with an Average B (or better) of up to 20 per cent are saved by the company's Good Student Discount and students with a School Discount are saved more than 100 miles from home without vehicle.

Availability

Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Iowa, Idaho, Indiana, Illinois, Kentucky, Kansas, Michigan, Minnesota, Missouri, North Dakota, North Carolina, Nebraska, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wisconsin are the only states where Auto-Owners works.

Customer Satisfaction

Auto-Owners Insurance has a high level of customer satisfaction. In the 2020 Insurance Shopping Study, J.D. Power ranks it above the industry average for claims satisfaction and above average in three of its operating regions in the 2020 Auto Insurance Study (it was ranked below average in the Florida region). In addition, AM gives the organisation an A++ rating. Best for financial well-being. One area where Auto-Owners falls short is in its technological offerings. The company has a decent website with some customer access, but no mobile app is available.

6. MOST SUITABLE FOR MILITARY FAMILY – USAA

For college students who have served in the military, are participating in an ROTC programme, or are the offspring or partners of active or former military members, USAA auto insurance provides some of the industry's lowest premiums as well as exceptional customer support. Indeed, J.D. Power ranked USAA as one of the top-rated carriers in the country for claims satisfaction.

Coverage

For college students, USAA provides the mandatory minimum car insurance. The company also provides round-the-clock roadside support, towing coverage and Lyft and Uber rideshare insurance. Since USAA also provides financial services and health insurance, among other products, it provides a one-stop shopping opportunity for busy college students who need to keep everything coordinated in one location.

Discounts

While USAA provides major discounts, it does not provide many student-specific discounts. The Good Student discount, which is available to high school and college students (ages 16-25) who hold a B average, fits the bill. A 10% Family Discount is also available for insured members who begin their own policy after being protected by their parents' USAA auto policy.

Availability

While USAA provides coverage in all 50 states, participation is limited to service personnel, their families, and children. However, ROTC members are included in USAA's eligibility list, so students who choose to join the armed forces after graduation can still save with USAA while attending college.

Customer Satisfaction

USAA car insurance is consistently rated highly for customer service and claim satisfaction. J.D. Power gave USAA one of the highest scores, 890 out of 1,000, in its 2020 Claims Satisfaction Survey, and U.S. News & World Report named USAA the top pick for car insurance in 2020. (It should be noted that GEICO, Allstate, and State Farm were also highly rated by U.S. News.)

FAQs

What Is the Average Cost of Car Insurance for College Students?

Car insurance premiums are usually determined by a number of factors, such as the driver's age, driving background, credit score, and geographic location. Insurance premiums can vary greatly depending on the specifics of the vehicle you're insuring and the coverage amounts you choose. Because of these factors, auto insurance premiums vary from person to person. However, the prices for new drivers and college-age individuals may be significantly higher. According to a millennial investing and personal finance site, the average 20-year-old paid $3,816 (or $318 per month) for auto insurance in 2020, while the average 25-year-old paid $2,184.

What Is Covered by Car Insurance?

Although there are always exceptions, most auto insurance plans will cover the following:

• Property liability and crash coverage include damage to your car and other cars involved in an accident with you.

• Injuries to yourself or those involved in an accident with you are covered by bodily injury liability and personal injury insurance.

• Theft and other liabilities to your car that occur when it is parked or not moving are covered by comprehensive coverage.

• In the case of a complete loss, the present value of your car.

Many of the above-mentioned coverages are optional in some jurisdictions, so it's important to understand the coverage options before purchasing an auto insurance policy. Furthermore, auto insurance does not cover repairs, automotive maintenance, vehicle interiors, or aftermarket or nonstandard components (unless specified in the policy).

Is Car Insurance Needed for College Students?

Everyone who gets behind the wheel of a vehicle at any time is expected to have car insurance since all but two states require it in some way. And if a student only intends to drive a family vehicle while home from college for the summer, the student must be covered by an automobile insurance policy.

Are there any car insurance discounts for college students?

While specific discounts differ by car insurance company, many companies do offer discounts that are only available to college students. A common example is a discount for being a good student, which offers a rate reduction to students who maintain a certain grade point average. Furthermore, some auto insurance firms provide discounts to college students who attend college away from home and only sometimes drive a family vehicle.

Should College Students Retain Their Parents' Health Insurance?

College students will be able to stay on their parents' auto insurance policy in some situations. This can result in substantial savings, but families must ensure that their condition meets the eligibility criteria. If a student lives at home and drives a car titled to a parent, they can usually remain on their parents' car insurance policy. This also extends to students who live in a dorm or attend school out of state during the school year. Many auto insurance companies would not allow students to stay on a family policy if the name on the vehicle's title is that of the student and their primary address is not the same as their parents' primary residence. Before assuming something about your policies and what is or is not allowed, always consult with the organisation you use.

In Conclusion

While car insurance for college students can be expensive, there are ways to cut costs. Though we strongly suggest the six insurance companies on this list, drivers should always compare prices before choosing a car insurance company.

How We Select the Best College Student Car Insurance

We compared the average prices and discount rates for students of nearly 20 insurance firms for the right car for college students. We also looked at each company's status with four rating agencies: the Better Business Bureau, AM Best, J.D. Power, and Consumer Advocate.