State Farm and Nationwide offer the most affordable car insurance for college students across age groups, whether on an individual or family policy. Both offer competitive rates, solid coverage and discounts.
Cheapest Car Insurance for College Students
Updated: March 10, 2025
Advertising & Editorial Disclosure
Key Takeaways
State Farm, GEICO, Allstate and Travelers offer affordable car insurance rates for college students, both for individual and family policies.
Staying on a parent’s policy is often the most cost-effective option, significantly lowering premiums compared to buying a separate policy.
Students can save on car insurance with discounts like good student, distant student and bundling discounts, lowering costs while keeping coverage.
What Is the Cheapest Car Insurance for College Students?
Cheapest Car Insurance for College Students on a Family Policy
Nationwide offers the cheapest family policy for college students, starting at $173 per month. Its competitive rates and discounts make it a strong choice for families looking to save on car insurance.
| Nationwide | $173 | $2,074 |
| GEICO | $179 | $2,150 |
| Allstate | $194 | $2,324 |
| Travelers | $197 | $2,358 |
| State Farm | $197 | $2,368 |
| Progressive | $234 | $2,807 |
| Farmers | $249 | $2,987 |
Cheapest Car Insurance for College Students on an Individual Policy
State Farm offers the cheapest individual policy for college students, starting at $203 per month. With budget-friendly pricing and valuable discounts, it’s a reliable option for students seeking low-cost coverage.
| State Farm | $203 | $2,439 |
| GEICO | $217 | $2,600 |
| Travelers | $228 | $2,741 |
| Allstate | $244 | $2,929 |
| Nationwide | $268 | $3,216 |
| Progressive | $319 | $3,826 |
| Farmers | $328 | $3,931 |
Cheapest Car Insurance for College Students by Age
The cost of car insurance for college students varies by age, with younger drivers typically paying higher rates. This section highlights the cheapest providers for students aged 18 to 21, helping young drivers find affordable coverage without compromising financial protection.
Cheapest Car Insurance for 18-Year-Old College Students
GEICO offers the cheapest car insurance for an 18-year-old college student on a family policy at $203 per month ($2,431 per year). State Farm is the most affordable for an individual policy, averaging $247 monthly ($2,966 annually).
| GEICO | $3,594 | $2,431 | $1,163 |
| Nationwide | $4,332 | $2,476 | $1,856 |
| Allstate | $4,180 | $2,673 | $1,507 |
| State Farm | $2,966 | $2,716 | $250 |
| Travelers | $3,566 | $2,829 | $737 |
| Farmers | $6,124 | $3,062 | $3,062 |
| Progressive | $6,246 | $3,115 | $3,131 |
Cheapest Car Insurance for 19-Year-Old College Students
Nationwide offers the most affordable family policy, averaging $172 monthly. Rates for 19-year-old drivers typically decrease slightly compared to 18-year-olds. State Farm provides the lowest monthly rate for individual policies at $211 for 19-year-old students.
| Nationwide | $3,389 | $2,066 | $1,323 |
| GEICO | $2,631 | $2,168 | $462 |
| Travelers | $2,817 | $2,305 | $512 |
| Allstate | $2,899 | $2,326 | $573 |
| State Farm | $2,531 | $2,344 | $188 |
| Progressive | $3,473 | $2,845 | $627 |
| Farmers | $3,657 | $3,111 | $546 |
Cheapest Car Insurance for 20-Year-Old College Students
For 20-year-olds on a family policy, Nationwide offers the cheapest rate at $181 per month. For those needing an individual policy, State Farm is the most affordable, costing $189 per month. Rates continue to drop as students get older.
| Nationwide | $2,989 | $2,170 | $819 |
| GEICO | $2,351 | $2,253 | $97 |
| Travelers | $2,508 | $2,346 | $163 |
| State Farm | $2,272 | $2,353 | $-81 |
| Allstate | $2,571 | $2,380 | $190 |
| Progressive | $3,110 | $2,929 | $181 |
| Farmers | $3,413 | $3,327 | $86 |
Cheapest Car Insurance for 21-Year-Old College Students
Third and fourth-year college students seeking affordable car insurance should consider GEICO. For 21-year-olds, the average individual policy costs $1,824 annually. Nationwide offers the lowest rate of $1,582 for a family policy.
| Nationwide | $2,154 | $1,582 | $572 |
| GEICO | $1,824 | $1,745 | $79 |
| Allstate | $2,067 | $1,915 | $152 |
| Travelers | $2,072 | $1,953 | $119 |
| State Farm | $1,986 | $2,061 | $-75 |
| Progressive | $2,476 | $2,339 | $136 |
| Farmers | $2,532 | $2,446 | $85 |
MONEYGEEK EXPERT TIP
To find the best and cheapest policy, start by determining how much coverage you need. The average annual rates provided are for affordable full coverage policies, which offer strong financial protection in at-fault accidents. While minimum coverage may cost less, it provides much less financial security.
Best College Student Car Insurance Quotes
MoneyGeek's car insurance calculator helps estimate student car insurance costs. For adding a high school student to a family policy, enter the parent's driving profile and click "Continue." Add the student's details, including age, gender and car type, to get an estimate. For an individual college student policy, use your own driver profile to get a personalized cost estimate.
Car Insurance Calculator
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
$192
High
$139
Average
$87
Low
Rates updated:
Mar 24, 2025
| Insurance Carrier | MoneyGeek Score | Average Monthly Payment | ||
|---|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 | |
| 2 |  GEICO | 82 /of 100 | $109 | |
| 3 | 83 /of 100 | $118 | ||
| 4 | 83 /of 100 | $129 | ||
| 5 | 79 /of 100 | $133 | ||
| 6 | 77 /of 100 | $151 |
1
Capital Insurance Group
MoneyGeek Score
94
/of 100
Average Monthly Payment$87/mo
2
GEICO
MoneyGeek Score
82
/of 100
Average Monthly Payment$109/mo
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Best Car Insurance Companies for College Students
Nationwide, USAA and Allstate are the best car insurance providers for college students, offering affordable rates, flexible coverage options and discounts for young drivers. Whether you seek low-cost premiums, military benefits or accident forgiveness, these companies deliver quality protection.
Finding the best and cheapest car insurance for students takes time and research. While price is crucial, consider customer service and ease of use when evaluating your options.
Best Student Car Insurance for Overall Savings: State Farm
Nationwide
MoneyGeek Score:
83/ of 100
Overview
Nationwide is the best car insurance provider for college students, offering affordable premiums, student-focused discounts and flexible coverage options. This combination of savings and benefits makes it an excellent choice for young drivers.
Nationwide discounts for college students:
- Good student discount: For those who maintain a B average (3.0 GPA) or higher
- Student away discount: For college students 100+ miles away who leave their car at home
- Safe driver discount: For maintaining a clean driving record
- Defensive driving discount: For drivers who complete a state-approved defensive driving course
- Multi-policy discount: For bundling auto and renters insurance
Best Student Car Insurance Company for Military Families: USAA
USAA
MoneyGeek Score:
91/ of 100
Overview
USAA serves active-duty military members, veterans and their immediate families, offering auto insurance exclusively to qualified drivers. Known for its A++ AM Best financial strength rating, USAA provides some of the lowest car insurance rates for student drivers, reliable claims service and high customer satisfaction.
Eligible students can access multiple discounts to reduce premiums. USAA also offers a user-friendly website, mobile app and 24/7 customer support, making filing claims or managing policies online easy.
USAA discounts for student drivers:
- Good student discount: For students with a B average (3.0 GPA) or higher
- Driver training discount: For drivers under 21 who complete a qualified training course
- New vehicle discount: For those who drive newer models (typically within three years old)
- Multi-vehicle discount: For insuring more than one car under the same policy
- Bundling discount: For combining auto insurance with home or renters insurance
Best Student Car Insurance for Technology: Allstate
Allstate
MoneyGeek Score:
82/ of 100
Overview
Allstate provides a highly advanced mobile experience, ideal for college students managing car insurance on the go. The Allstate Mobile app offers features like digital ID cards, claim filing, premium payments and direct access to agents. It also includes Drivewise, a telematics program that rewards safe driving with potential discounts.
Allstate discounts for student drivers:
- Good student discount: For maintaining a B average (3.0 GPA) or higher
- Smart student discount: For students under 25 with a clean driving record
- Drivewise® discount: For safe driving habits tracked via the mobile app
- Resident student discount: For students attending school at least 100 miles away without a car
- Multi-policy discount: For bundling auto and renters or home insurance
Cheapest Car Insurance for Students: Buying Guide
To find the best insurance coverage for students, review the sections below for guidance on selecting the right policy. These resources will help you balance coverage and cost to fit your needs.
How to Get Cheap Car Insurance as a Student
Students can use multiple strategies to find affordable car insurance. Here are some tips to help you get started:
Shop around
Avoid settling for the first quote you receive. Instead, use a car insurance calculator to compare rates from various providers. This tool offers a ballpark estimate, helping you identify the most cost-effective option.
Leverage good grades
Many insurance companies offer discounts for students who maintain a certain GPA. Check with your provider to see if it offers a good student discount and its eligibility criteria.
Take a defensive driving course
Completing a defensive driving course can make you a safer driver and qualify you for discounts. Ensure the course is accredited and approved by your insurer. Providers like State Farm and Allstate offer programs for young drivers, which can lead to additional savings.
Opt for usage-based telematics programs
Many insurers offer usage-based telematics programs, which reward safe driving with lower rates.
Look into distant student discounts
Students away at school (usually at least 100 miles from home) may be eligible for a discount if they don't have regular access to a car.
Use a family policy
If possible, stay on your parent's car insurance policy. It's often cheaper to add a student to an existing policy with experienced drivers than to start a new one.
Choose your car wisely
Yolur car type can significantly impact your insurance rates. To lower your premiums, opt for a model known for its safety features and reliability.
Limit your mileage
Some insurance companies offer low-mileage discounts. If you're living on campus and don't use your car often, this can lower your premium.
Consider higher deductibles
Opting for higher deductibles typically lowers premiums. Just ensure you can afford it in case of a claim. Collision and comprehensive coverages have separate deductibles, while minimum coverage usually doesn't include one.
Review your policy regularly
Life changes, and so should your policy. Review your coverage at least once a year to ensure it still meets your needs and budget.
MONEYGEEK EXPERT TIP
There's no such thing as no-down-payment car insurance — usually, the least amount you must pay is one month’s premium upfront to activate coverage. If you come across a company offering no money down to get car insurance, you should question its legitimacy. It may be a marketing ploy to drive business because you must pay something upfront to get auto insurance. And if you can pay in full, it can save you money with many insurers. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Car Insurance Student Discounts for College Students
Students can save on car insurance by getting good grades, taking defensive driving courses and driving less. Family policies and safe vehicles can also lower rates, as can multi-car plans and alumni memberships. The list below outlines these and other situations that can help students get significant savings.
Student Discount | Description |
|---|---|
Good student discount | Maintain a high GPA to qualify. Check with your insurance provider for eligibility criteria. |
Defensive driving course discount | Complete an accredited defensive driving course to become a safer driver and get a discount. |
Student away from home discount | If you're attending school more than 100 miles from home and won't drive often, you can be eligible for this discount. |
Family policy discount | Being added to your parents' existing policy can often be more cost effective than getting your own. Plus, it can prevent a lapse in coverage, which is beneficial for your future insurance rates. |
Low-mileage discount | Some insurance providers offer discounts for low mileage if you live on campus and rarely use your car. |
Safe vehicle discount | Driving a car with excellent safety ratings can also earn you a discount. The safer the car, the lower the risk and your premiums. |
Multi-car discount | If your family has more than one car insured under a single policy, adding yours can qualify you all. |
Alumni and organization discounts | Some insurance companies offer discounts for members of certain student organizations or alumni associations. |
How Long Can College Students Stay on Their Parent's Car Insurance?
Staying on your parent's car insurance policy is often the most cost-effective option for students. However, insurers may have specific requirements about when you can remain on the plan and when you need to switch to your own coverage.
When Can Students Can Stay on Their Parent's Car Insurance Policy?
If any of the following apply to you, you can be added to an existing family policy:
Your permanent address is still your family home
Insurance companies often allow students to stay on a family policy if they still use their parents' home as their primary residence.
You don't own a car while you're away at school
If you're not bringing a car to college, you can usually remain on your parents' policy without affecting their rates significantly.
You live more than 100 miles away from home
If you go to school more than 100 miles away from home and don’t bring your car, you can usually stay on your parent’s auto insurance policy. This can also make you eligible for a distant student discount that applies to the family policy.
You drive only when you're home during holidays or special occasions
If your parents' insurance policy includes a permissive use clause, you may not need your own policy if you only drive occasionally. This clause typically covers infrequent use, often defined as fewer than 12 instances annually.
When Do Students Need Their Own Car Insurance Policy?
For the following situations, you might need or prefer to get your own individual policy:
You moved out permanently and have your own address
When your permanent residence is your family home, you can remain on the family car insurance policy, even if you own a car in your name. This may qualify for a multi-vehicle discount. However, once you establish a new permanent address, you’ll typically need your own policy.
Your school's ZIP code has higher insurance rates, affecting the family policy
Location can impact insurance rates. If your school's area is considered high-risk, consider getting an individual policy if the cost of the family policy increases significantly. However, depending on your circumstances, staying on the family policy may still be cheaper than getting a standalone one.
State laws or insurance company policies require individual coverage
Some states or insurers have specific rules about when a young driver must get their own policy.
Do Learner's Permit Drivers Need Car Insurance?
Learner’s permit holders need car insurance since accidents can happen. Some policies cover permit holders with a licensed driver present, but check with your insurer.
Insurance rates depend on more than age and experience — location, car value and credit history also play a role. In most states, insurers use credit-based scores, which can raise rates for teens with little to no credit history. Pricing varies by insurer, so shopping around is key.
Can International Students Get Car Insurance?
Students can find affordable car insurance by exploring budget-friendly options, comparing rates and leveraging discounts. Providers like GEICO, State Farm and Progressive offer competitive rates for student drivers. Compare quotes to secure quality coverage and save money while staying protected.
Cheapest Car Insurance for Students: Bottom Line
Finding affordable car insurance for students is easier than it seems. Explore budget-friendly options, compare rates and take advantage of discounts to secure quality coverage at a reasonable price. Insurers like GEICO, State Farm and Progressive offer competitive rates for student drivers. Compare quotes to save money and stay financially protected.
Cheap Car Insurance for Young Drivers: FAQ
Young drivers often pay higher insurance rates, making it challenging for students to find affordable coverage. This FAQ can guide you on how and when to secure the most budget-friendly options.
Why is car insurance expensive for students?
Students face high premiums due to limited driving experience. Insurers view young drivers as riskier because they're more likely to be involved in accidents or receive moving violations.
When do you need to get your own policy?
You need your own car insurance policy when you move out permanently, have a car registered solely in your name or attend school in a location with high insurance rates. Some states or insurers also have specific rules about when a young driver must get an individual policy.
Can you stay on your family policy if you move to a college out of state?
You can usually stay on your family's policy when attending college out of state, especially if you still consider your family home your primary residence.
Do your grades affect your car insurance rates?
Maintaining good grades can qualify you for a good student discount. Check with your insurer for specific GPA requirements.
Do you need car insurance as a provisional driver?
Provisional drivers need car insurance. Coverage may extend from a family policy, but confirming this with your insurance provider is crucial.
How do I add a student to a family policy?
Adding a driver to your car insurance is often cheaper than purchasing a separate policy. To add a student to your family policy, contact your insurer and provide details like their name, age, Social Security number and license duration. Once the insurer processes and approves the update, your policy will reflect the new rate, ensuring the additional driver is covered.
Best Affordable Car Insurance for Students: Methodology
Study Overview
MoneyGeek analyzed car insurance quotes for high school and college students using a sample driver profile. The research compared rates for individual and family policies to highlight cost differences, offering insights into the most affordable options for students.
Data Sources and Depth
We collected data from state insurance departments and Quadrant Information Services for our survey. Our sample consisted of 19,516 quotes from six companies in 100 U.S. ZIP codes.
Driver Profile
We used an average driver profile based on a composite of the following criteria:
- Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We created this profile to determine average costs for young drivers across the U.S. and modified it by age to gather age-specific quote data.
Coverage Levels and Deductibles Explained
In car insurance, a deductible is the amount you pay out-of-pocket for certain claims before your insurer covers the remaining costs. A full coverage policy includes comprehensive and collision coverages, each subject to its own deductible:
- Comprehensive coverage: Covers damage from non-collision events like theft, vandalism, fire or falling objects
- Collision coverage: Covers damage from at-fault collisions with objects or other vehicles
For national averages, MoneyGeek used a sample driver with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage under a full coverage policy.
100/300/100 represents the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability per accident
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- DMV List. "DMV List." Accessed February 19, 2025.
- Insurance Institute for Highway Safety . "Fatality Facts 2022: Teenagers." Accessed February 19, 2025.