Updated: January 26, 2026
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GEICO is the cheapest car insurance company for full coverage family policies at $203 monthly. It consistently provides the lowest rates for all college-age groups.
State Farm is the cheapest car insurance company providing individual quotes for college students, with policies starting at $61 monthly.
Family policies deliver the cheapest car insurance for college students. Students who stay on their parents' coverage save an average of $288 annually, though savings vary from $4 monthly to $43 monthly by insurer.
College students get the cheapest car insurance rates at age 21 when insurance policy premiums drop 30% to 40% between freshman and senior year and individual rates become cheaper than family rates.
GEICO, Travelers, State Farm and Allstate offer the most affordable car insurance for college students based on MoneyGeek's analysis of rates and available discounts.
GEICO offers the most affordable family policies at $42 per month. State Farm's individual policies start at $49 a month. Students who remain on their parents' policy save an average of $288 per year compared to purchasing their own coverage.
| GEICO | $42 | $47 | 15% |
| Travelers | $41 | $49 | 15% |
| State Farm | $48 | $49 | 2% |
| Allstate | $49 | $57 | 0% |
Family policies are the cheapest way to insure college students, with GEICO being the cheapest company for most ages and coverage levels. Minimum coverage rates start at just $46 monthly, while adding comprehensive and collision coverage increases premiums to $170 monthly.
State Farm offers the cheapest car insurance rates for college students across all coverage levels, who need their own coverage. Basic minimum liability starts at $61 monthly for 18-year-olds with State Farm, while GEICO's premiums are $70 monthly for the same coverage. The price gap widens when adding comprehensive and collision coverage. State Farm's rates start at $218 monthly, while Nationwide's comparable coverage costs $353 monthly, a 62% premium increase. Use our comparison table below to find the cheapest student car insurance based on age and preferred coverage level.
Full coverage with higher liability limits is the same story. State Farm charges college students the least at $247 monthly average. Nationwide is $361 monthly for 18-year-olds. Buy your own policy? State Farm's prices stay low whether you pick basic liability or upgrade to comprehensive.
Your insurance needs depend on your living situation and driving habits while in school. If you attend college far from home, you may qualify for distance-based discounts that reduce your premiums by 10% to 30%.
Students attending institutions more than 100 miles from home might be eligible for savings if they don't have regular access to a car. Assess whether it makes more financial sense to remain on your family's policy or secure your own coverage based on your circumstances.
Rate differences between insurers exceed $500 for identical coverage. College students switching from family to individual policies see the largest variations—State Farm charges $61 monthly for 18-year-olds, while some competitors charge $100+ for the same state minimum coverage.
Use MoneyGeek's car insurance quote tool to compare rates from leading providers. If you are attending school out-of-state, verify that your coverage extends across state lines before making the switch.
Your insurance needs depend on your living situation and driving habits while in school. If you attend college far from home, you may qualify for distance-based discounts that reduce your premiums by 10% to 30%.
Students attending institutions more than 100 miles from home might be eligible for savings if they don't have regular access to a car. Assess whether it makes more financial sense to remain on your family's policy or secure your own coverage based on your circumstances.
Not all insurance providers are equal, especially when serving college students. Companies vary in their claims processes, customer service quality and treatment of young drivers.
Read our insurance company reviews that compare insurers based on satisfaction ratings, claim response times, affordability and other factors during busy college years.
Good grades save you money on insurance. Most insurers offer good student discounts of 10% to 25% if you maintain a B average or 3.0 GPA. State Farm, Allstate and USAA all provide these discounts for full-time students under 25.
College students pay higher premiums than older drivers but can tap into discounts built around student life.
For the full rundown, see our guide to auto insurance discounts.
Student Discounts | Discount Eligibility |
|---|---|
Good student discount | Maintain a B average or 3.0 GPA (or rank in the top 20% of your class) Provide proof through transcript or report card |
Distant student/Student away discount | Live more than 100 miles from home without regular access to the family car Saves 10% to 30% on premiums |
Academic achievement program discounts | Some insurers reward Dean's List or President's List status Special recognition programs exist for challenging majors Additional savings available for maintaining high GPA throughout college |
If you're a college student staying on a family policy, GEICO delivers consistently low rates. For individual coverage, State Farm typically costs less.
Car insurance is expensive for college students because drivers under 25 have less experience and higher accident rates, which results in higher premiums. But college students can find more affordable coverage by maintaining clean driving records and qualifying for student discounts.
Most college students should remain on their parents' policy if possible because family plans often provide better rates and coverage. You can stay on your family's policy if your permanent address remains your parents' home, your car is titled in your parents' name or jointly with them, and you still depend on them financially.
Most insurance policies allow college students' roommates to use their car through permissive use coverage. But if a roommate frequently uses the vehicle, you'll need to add them to your policy. Check with your insurer for specific rules because coverage limits may be lower for drivers not listed on your policy.
Out-of-state college students can keep their family coverage if their permanent residence remains at their parents' home.
College students don't need to change their car insurance during short breaks.
To add a college student driver to a family policy, contact your insurer with the student's license information, enrollment proof and personal details.
To find the best and cheapest policy for a college student, start by determining how much coverage the student needs. The average annual rates provided are for affordable full coverage policies. While minimum coverage may cost less, it provides much less financial protection.
Students pay the highest car insurance rates. Insurers see young, inexperienced drivers as high-risk. Stay on a parent's policy or buy your own? We analyzed both to show you which costs less and which insurers charge students the least.
We compared quotes for student drivers buying individual policies versus staying on family coverage. Results show which option costs less by age: high school or college.
We analyzed 19,516 quotes from six insurers across 100 U.S. ZIP codes (data from state insurance departments and Quadrant Information Services). National averages plus regional price differences students actually see.
Student driver profile: Toyota Camry LE, clean record, 12,000 miles yearly. We adjusted age for high school students (16 to 18) and college students (18 to 22) to track how rates drop as young drivers gain experience.
Coverage: 100/300/100 liability limits, $1,000 deductible for comprehensive and collision. Translation: $100,000 bodily injury per person, $300,000 per accident, $100,000 property damage per accident.
Deductibles are what you pay before insurance covers the rest.
Comprehensive: covers theft, vandalism, fire and falling objects.
Collision: covers crashes you cause with objects or other vehicles.
Each has its own deductible, but liability-only has no deductible.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
