Cheapest Car Insurance for Students on a Budget 2024

State Farm and Nationwide offer the most affordable car insurance for students, whether on individual or family policies.

Teen drivers and young adults often face the highest car insurance rates, making affordable options hard to find. Discounts are available for good grades, distant students, defensive driving courses and low mileage, among other things. Students can often stay on their parents' policy if they don't own a car and still consider their family home their primary residence. However, having a car at school or moving out permanently usually requires getting an individual policy.

Shopping for cheap car insurance for college students requires some research, as the average cost of car insurance varies by driver profile, and no two car insurance companies offer the same rates. Overall, the cheapest car insurance company on average for college students varies depending on age and driver profile.

Comparing rates from different providers is particularly important when shopping for car insurance for young people. Students tend to pay high rates for policies because insurance companies consider young drivers higher risk because of their higher probability of accidents and moving violations. Below, we’ve broken down the cheapest car insurance companies by all college ages.

When a college student must purchase their own auto policy, we found that State Farm is the cheapest company on average, costing our sample 18-year-old, first-year college student $2,966 per year.

When a student leaves their parent’s home to attend college with a car and does not change their permanent address to a school area residence, they often can remain on the family policy. Your insurance company, state laws and other factors can influence whether this is allowed, so it is always best to check with your insurer before heading to college.

If you keep your vehicle at your parent's address, the cheapest option is almost always to stay on their policy. In this case, we found that GEICO is the most affordable company, with an average premium of $2,431 per year.

If you’re a 19-year-old first- or second-year student buying your own car insurance policy, you’ll get a slightly lower rate than when you are 18. The cheapest car insurance company for 19-year-old students on an individual policy is State Farm, with an average annual premium of $2,531. For 19-year-old students eligible for a family policy, Nationwide is the cheapest option at an average cost of $2,066 annually.

Rates continue to drop as students get older. If you’re a college student looking for coverage, we found that State Farm offers the cheapest car insurance for 20-year-olds, costing our sample student $2,272 per year for an individual policy. If you are eligible to remain on a family policy, the cheapest car insurance for 20-year-old students is from Nationwide, with an average annual premium of $2,170.”

Third- or fourth-year college students looking for cheap car insurance can start by getting a quote from GEICO. On average, car insurance for a 21-year-old averages at $1,824 per year for an individual policy. For 21-year-olds eligible to remain on a family policy, Nationwide is the cheapest option at an average of $1,582 per year.

Nobody pays higher rates for car insurance than high school students due to their inexperience and risk factors. The most affordable way to insure a high school-aged teen is to add them to a family policy. Certain insurer's requirements need to be met to add a teen to a family policy, such as living within the family home and having a parent or guardian on the title of the vehicle the teen drives. Requirements may vary by insurance company and state.

It is illegal for a teen under 18 to purchase car insurance without a parent or guardian as a co-signer. If they get an individual policy, the cost is much higher than being on a family policy. The sections below provide national average rates for 16 and 17-year-old teens on individual and family policies.

MoneyGeek found that Nationwide is the cheapest company for 16-year-old drivers on their parent's policy. Nationwide charged our sample driver $2,718 per year.

If you’re a 16-year-old with your own policy, the cheapest company on average is State Farm. Our sample driver was quoted $3,732 per year, significantly more affordable than the competition.

As young drivers gain experience, they’ll find more affordable rates. The cheapest company on a parent's policy is Nationwide, costing our sample family $2,685 yearly for a 17-year-old driver. GEICO was a close second, with an average annual premium of $2,863. Considering that your rates may vary, it makes sense to start your search by getting quotes from these two companies.

State Farm is the cheapest insurance company for students on their own policy. It quoted $3,312 per year for a 17-year-old with an individual policy.

MoneyGeek's car insurance calculator can help you estimate the cost of student car insurance. To calculate the cost of adding a high school student to a parent's car insurance policy, enter the parent's driving profile and click "Continue." You can then add a student driver by entering their age, gender and most similar car type to get an estimate for a family policy. To calculate the cost of an individual college student car insurance policy, you only need to use your driver profile to get an estimate.

As a student, staying on your parent's car insurance policy is almost always the most affordable way to get coverage. However, auto insurers have requirements for when you can stay on your parent’s plan and when you have to obtain your own individual coverage.

There are multiple strategies students can use to find affordable car insurance. MoneyGeek outlined some of the most effective strategies below to help you get started.

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 could help students score significant savings.

International students seeking to purchase car insurance while attending college in the U.S. may encounter a number of obstacles. Understanding the rules for international drivers can help navigate these challenges and find suitable coverage. Many car insurance companies will require the student driver to have a valid U.S.-issued driver’s license even if the state where they attend school does not.

Some states require international students to obtain a state driver’s license if they plan to drive a car, while other states allow them to use a valid driver’s license from their home country, provided they also have a valid International Driver’s Permit. Being aware of the rules for international drivers and the nuances of driving in the U.S. as an international student can help students meet all necessary requirements. It’s imperative to check with your state’s Department of Motor Vehicles to find out its specific requirements for international drivers. If you don’t have a local driver’s license, it’s possible you will be placed in a high-risk group of drivers that could increase your car insurance rates.

Young drivers often face the highest insurance rates, making cheap car insurance for students challenging to come by. Answers to these frequently asked questions can help you understand when and how to get the most affordable coverage.