Updated: January 20, 2025
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State Farm offers the cheapest car insurance rates for college and high school students on individual policies, while GEICO provides the most affordable family policies for students at both levels.
Young drivers can lower their high insurance costs by qualifying for good student or defensive driving discounts.
Students can often save money by staying on their parent's policy, especially if they don't own a car or live far from home. But if you own a car or move out, you'll likely need your own policy.
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.
Why Trust MoneyGeek? MoneyGeek collected quote data from state insurance departments and Quadrant Information Services to determine the best and cheapest car insurance rates for college and high school students by age for individual and family policies.
Quickly Find Cheap Student Car Insurance for Your Age
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.
To find the cheapest and best policy for you, it's important to first consider how much car insurance you need before buying a policy. The annual policy averages listed for each age are for a cheap full coverage policy. A full coverage policy offers the best protection in the event of an at-fault accident. You may be able to find a cheaper liability-only policy, but this type of coverage provides significantly less financial protection.
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.
| State Farm | $2,966 | $2,716 | $250 |
| Travelers | $3,566 | $2,829 | $737 |
| GEICO | $3,594 | $2,431 | $1,163 |
| Allstate | $4,180 | $2,673 | $1,507 |
| Nationwide | $4,332 | $2,476 | $1,856 |
| Farmers | $6,124 | $3,062 | $3,062 |
| Progressive | $6,246 | $3,115 | $3,131 |
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.
| State Farm | $2,531 | $2,344 | $188 |
| GEICO | $2,631 | $2,168 | $462 |
| Travelers | $2,817 | $2,305 | $512 |
| Allstate | $2,899 | $2,326 | $573 |
| Nationwide | $3,389 | $2,066 | $1,323 |
| Progressive | $3,473 | $2,845 | $627 |
| Farmers | $3,657 | $3,111 | $546 |
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.”
| State Farm | $2,272 | $2,353 | $-81 |
| GEICO | $2,351 | $2,253 | $97 |
| Travelers | $2,508 | $2,346 | $163 |
| Allstate | $2,571 | $2,380 | $190 |
| Nationwide | $2,989 | $2,170 | $819 |
| Progressive | $3,110 | $2,929 | $181 |
| Farmers | $3,413 | $3,327 | $86 |
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.
| GEICO | $1,824 | $1,745 | $79 |
| State Farm | $1,986 | $2,061 | $-75 |
| Allstate | $2,067 | $1,915 | $152 |
| Travelers | $2,072 | $1,953 | $119 |
| Nationwide | $2,154 | $1,582 | $572 |
| Progressive | $2,476 | $2,339 | $136 |
| Farmers | $2,532 | $2,446 | $85 |
Many providers offer a "Student Away from Home" discount, which can significantly reduce premiums. It’s usually open to college students who attend school more than 100 miles away and don't drive frequently.
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.
Quickly Find Cheap Student Car Insurance For Your Age
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.
| Nationwide | $2,718 | $5,108 | $2,390 |
| GEICO | $2,936 | $5,463 | $2,527 |
| State Farm | $3,055 | $3,732 | $678 |
| Allstate | $3,292 | $6,583 | $3,291 |
| Travelers | $3,436 | $5,622 | $2,186 |
| Progressive | $3,454 | $7,481 | $4,027 |
| Farmers | $3,562 | $8,864 | $5,301 |
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.
| Nationwide | $2,685 | $4,662 | $1,978 |
| GEICO | $2,863 | $4,260 | $1,396 |
| State Farm | $3,030 | $3,312 | $281 |
| Allstate | $3,218 | $5,292 | $2,074 |
| Farmers | $3,311 | $6,664 | $3,353 |
| Travelers | $3,316 | $4,287 | $970 |
| Progressive | $3,572 | $7,262 | $3,691 |
Yes, if you have a learner's permit, you need car insurance as there's always a risk of accidents. Some insurance plans cover permit holders if a licensed driver is in the car, but it's best to check with your insurance company to be sure. Make sure you're covered before you start driving lessons to avoid any financial issues.
While it's important to consider age and driving experience, many other factors affect your car insurance rates. For example, your location, the value of your car and even your credit history can influence the cost. Insurers create a proprietary credit-based insurance score based on credit history in all but four states where credit data is prohibited as a rating factor. Since many teens do not have a credit history, this can lead to higher rates. Insurance companies use different pricing models, with some being more lenient towards young drivers.
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.
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.
Rates updated:
Jan 20, 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 |
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.
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.
Insurance companies often allow students to stay on a family policy if they still consider their parents' home their primary residence.
If you're not bringing a car to college, you can usually remain on your parents' policy without affecting their rates significantly.
If you’re going to school more than 100 miles away from home and don’t bring your car with you, 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.
If you're an occasional driver and your parents' insurance policy includes a permissive use clause, you can generally stay on their policy without needing your own. This clause allows you to drive their car occasionally, often limited to fewer than 12 instances per year.
Once you establish a new permanent residence, you'll generally need your own car insurance policy. As long as your permanent address is your family residence, you do not need your own policy. Even if you own a car registered in your name, if your family home is your permanent residence, you can be added to the family policy and even generate a multi-vehicle discount.
Location can impact insurance rates. If your school's area is considered high-risk, you may consider getting an individual policy if the cost of the family policy increases significantly. However, depending on your circumstances, it still may be cheaper to stay on the family policy than to get a standalone policy.
Some states or insurers have specific rules about when a young driver must get their own policy.
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.
Don't settle for the first quote you get. Use a car insurance estimate calculator to compare rates from different providers. This will give you a ballpark figure and help you find the most cost-effective option.
Many insurance companies offer discounts for students who maintain a certain GPA. Check with your provider to see if a "Good Student" discount is available and what the eligibility criteria are.
Completing a defensive driving course can make you a safer driver and qualify you for additional discounts. Make sure the course is accredited and recognized by your insurance provider. State Farm and Allstate offer their own programs for young drivers that you can complete for further discounts.
Many insurers offer usage-based telematics programs, which reward safe driving with lower rates.
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.
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.
The type of car you drive can significantly impact your insurance rates. Opt for a model that's known for its safety features and reliability to help lower your premiums.
Some insurance companies offer low-mileage discounts. If you're living on campus and don't use your car often, this could lower your premium.
Higher deductibles usually means lower monthly premiums. Just make sure you can afford to pay the deductible in case of an accident. Collision and comprehensive coverages are subject to separate deductibles while liability coverage has no deductible.
Life changes, and so should your policy. Make it a habit to review your coverage at least once a year to ensure it still meets your needs and budget.
"There is 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. They may just be using a marketing ploy to drive business because you must pay something upfront to get auto insurance. And if you are able to pay in full, it can save you money with many insurers." — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
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.
Student Discount | Description |
|---|---|
Good Student Discount | Maintain a high GPA and you could qualify for this discount. Check with your insurance provider for eligibility criteria. |
Defensive Driving Course Discount | Complete an accredited defensive driving course to become a safer driver and snag a discount. |
Student Away from Home Discount | If you're attending school more than 100 miles away from home and won't be driving often, you could 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 | If you live on campus and rarely use your car, some insurance providers offer discounts for low mileage. |
Safe Vehicle Discount | Driving a car with excellent safety ratings can also net 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 could qualify all of you for a multi-car discount. |
Alumni and Organization Discounts | Some insurance companies offer discounts if you're a member of certain student organizations or alumni associations. |
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.
Students tend to pay high premiums for policies because they have limited driving experience, and insurance companies consider young drivers riskier to insure because of their higher probability of accidents and moving violations.
You generally 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 their own policy.
Yes, you can usually stay on your family's policy when attending college out of state, especially if you still consider your family's home your primary residence.
Yes, maintaining good grades can qualify you for a "Good Student" discount with many insurance providers. Check with your insurer for specific GPA requirements.
Yes, provisional drivers do need car insurance. Coverage may extend from a family policy, but it's crucial to confirm this with your insurance provider.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
