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Cheap Car Insurance for College Students

Car insurance student discounts and good driving habits can help you save some cash, but the best way to save is to be included in a parent's or guardian’s policy.

Congratulations! You’ve graduated from high school and are heading off to college. With new courses to take, a campus to explore, plus tuition and student loans to deal with, car insurance probably isn’t top of mind.

But auto insurance is an important consideration for students taking a car to college, or hoping to drive their family car back home. While car insurance for college students can be expensive, there are ways to lower rates and find a cheap policy.

How much is car insurance for college students?

Our analysis found that adding a college student to a policy almost doubles the cost of auto insurance. The average cost of adding a college student to a car insurance policy is $2,333 per year, according to NerdWallet’s analysis of full coverage rates for 18-year-old college students driving an older car and included on a two-parent or guardian policy.

Car insurance costs for a college student in a two-adult household

Below are the average car insurance rates for policies with two older adults and a college student driver, ages 18 through 22.

Car insurance costs for a college student in a one-adult household

Below are the average car insurance rates for policies with one older adult and a college student driver ages 18 through 22.

Rates for college students can be high, but will decrease as you get older and practice safe driving. If you do plan to purchase your own insurance policy, don’t pick the first company you come across — shop around and compare quotes to ensure you get the cheapest rate available.

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Compare car insurance rates

Should you stay on a parent or guardian’s policy?

In most cases, staying on a parent or guardian’s car insurance policy will yield the cheapest rates. Rates for young adults tend to be high because they have shorter driving histories and greater probability of getting into an accident than older drivers. By remaining on your parents' policy instead of getting your own, you can take advantage of their established driving history and get a lower rate.

As a college student, insurers will likely allow you to stay on your parents’ policy as long as your permanent address is the same as theirs. But if you plan to live near campus year-round, you may need to get your own coverage.

Since insurers consider ZIP codes to set rates, a stand-alone policy could be cheaper if your parents live in a city and your college is in a rural or suburban area.

Male college students pay more than females

Female college students can pay a lot for car insurance, but in general, male college students will pay higher rates. That’s because male young drivers are seen as riskier to insure because this demographic tends to get into more accidents than their female counterparts.

Cost of car insurance for a college student in a two-adult household, by gender

As college students age, the gap between what males and females pay for car insurance shrinks. For example, rates for an 18-year-old male student are 14% more, on average, than for a female student of the same age. That difference goes down to just 8% between 22-year-old male and female students.

How to save on car insurance as a college student

Reconsider collision and comprehensive coverage

If you’re planning on driving an old car to college, make sure to not overinsure it with collision and comprehensive coverage you don’t need. These types of coverage pay out only up to the cash value of the car, minus the deductible. If your car’s value is $1,000 and you also have a $1,000 deductible, you’re better off dropping collision and comprehensive insurance.

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The difference between comprehensive and collision coverage

Try usage-based car insurance

College campuses offer a lot of conveniences that may reduce your need for a car, which means usage-based insurance could save you money.

With this kind of insurance, you pay only for the miles you drive, and some of these insurers — like Metromile and Nationwide’s SmartMiles — don’t charge extra after 250 miles per day, so you can take day trips without paying more.

Some insurance companies, like GEICO and Progressive, offer programs that price rates based on your driving habits, such as speeding and hard braking, monitored by a mobile app or tracking device in your car’s diagnostic port. These programs typically result in a discounted rate, but if you’re an aggressive driver, your rate could increase.

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Pay-per-mile car insurance: What you need to know

Ask about car insurance discounts for students

Depending on your state and insurance company, you could be eligible for a variety of discounts while you’re off at school. Here are some common college student car insurance discounts.

Good student.

If you’re a full-time student who gets good grades (typically a B average or higher), has high standardized test scores or are on your school’s dean’s list or honor roll, many insurers offer discounts. You’ll need to provide school transcripts or test scores and be within the age requirements.

Student away from home.

If your college is more than 100 miles away, consider leaving the car at home. Some insurers offer discounts to college students who drive the family car only when they’re home for breaks or holidays. Plus, by leaving the car behind, you’ll reduce your risk of getting tickets or causing accidents that increase your premiums, which can keep your insurance costs down in the long run.

Fraternity, sorority and honor society.

If you’re a member of a qualified fraternity, sorority or honor society, you may be eligible for a discount.

Military.

If you’re part of an ROTC program, you could get a discount on car insurance.

Student and alumni organizations

. Discounts may be available to members of college organizations, such as the American Medical Student Association, or alumni associations.

Safe driving.

While this discount won’t take effect until you’ve proven yourself a safe driver for at least three to five years, avoiding traffic violations and car accidents could mean a discount.

Young driver training.

If you complete an educational program to improve your driving skills and are within an allowed age range, some insurers will provide a discount.

Young volunteer.

You could qualify for a discount if you complete a required number of volunteer hours and are within the age requirements.

College student discounts from the 10 largest car insurance companies are in the table below.

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Car insurance discounts: Your guide to getting the best price