What’s the Best Auto Insurance for College Students? Top 10 Revealed

Two women sitting on vehicle

Finding the best auto insurance for college students can be difficult. Some companies will not even insure college students. Traditionally car insurance is more expensive for students of any kind. It is some of the most expensive parts of being college aged. Add this to tuition, books, supplies, living arraignments, and the other expenses of college and it is a wonder that anyone can afford it.
 
With rising costs, finding the best auto insurance for college students may become a priority particularly if the student is commuting or has an additional job. Fortunately, there are a few companies that offer affordable auto insurance for college students in a wide range of coverages. We have selected the 10 most comprehensive and affordable auto insurance companies that will insure college students.

​Auto Insurance for College Students FAQ

Navigating the world of car insurance requires you to have a working knowledge of how auto insurance works. This may be difficult if you are new to the purchase of car insurance. This FAQ should help you with the basics of car insurance coverage.

1. What Is Auto Insurance for College Students?

Auto insurance for college students is just that. It is protection against damage to your vehicle because of accidents or other acts. It is like car insurance for anyone else with additional discounts for being in college. The only difference is the age and the student status. Insurance companies consider this age group and status a great risk.

2. Why Are College Students Considered Risky?

College students are considered a risk for insurance companies because of their age and the fact that they are in college. Traditionally, insurance companies think of college students and young adults as less responsible than adults.

Although this belief is only true sometimes, there is a disproportionate amount of fatal auto accidents among ages 16 to 25 with ages 17 to 25 being college students. Younger people tailgate, drive faster, and text while driving more than other age groups.

3. Do Students Get Any Breaks on Auto Insurance?

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Although they are only a few, only the best auto insurance for college students have student discounts. Many companies do not bother, preferring to support students are still on their parents' insurance or severely limiting the amount of coverage available to college students at a reasonable price.

Companies that limit the coverage for college students did not make this list of the best auto insurance companies for college students.

4. Do Insurance Companies offer Different Coverages for College Students?

Yes, the best auto insurance for college students comes in different coverage options. There are hundreds of options but the two main options are basic and full coverages. Contact your local information for more information.

5. What Is Basic Auto Insurance Coverage?

Basic auto insurance coverage is the state minimum. It barely covers anything except for property damage and the driver's liability. It will pay for the person you hit, their car, or their property but it will not pay for your car or your property. Most states have a state minimum which they require all drivers to have.

It is not great coverage but it will keep you from getting a ticket and make the person you hit whole. It works differently if the accident is not your fault. If the accident is not your fault, the other person's insurance will pay to fix your car if they have basic coverage.

6. What Is Full Auto Insurance Coverage?

Full auto insurance coverage has comprehensive and collision coverage also known as comp and collision. The comprehensive portion of this coverage covers non-collision related damage to your vehicle. This includes theft, vandalism, inclement weather damage, and other types of damages. Collision covers your vehicle only if you are in a collision with another.

7. What about Uninsured Motorist Coverage?

Uninsured motorist coverage covers your car if you are in a collision with someone who does not have auto insurance. It covers you and your car so you can recover your damages despite the other driver not having insurance.

8. How Do You Determine Which Coverage You Need?

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There are a few things you can use to determine which type of coverage you need. Since the more coverage you have, the more expensive it is, you want to have insurance coverage that suits your needs. These things are:

  • The value of your car, the newer the car or the higher the car value the more you will pay if you are in an accident
  • Risk of an accident, the more you drive the more likely an accident is
  • Your savings, whether you can pay out-of-pocket if you have an accident
  • The area that you drive in, you are more likely to have an accident in a city than in a rural area

9. Do I Have to Have Car Insurance?

Car insurance is a good thing to have especially if you are a frequent driver but they do not require it a few of the states in the United States. It is important to note that most of the states that do not require car insurance by law require protection, often called a bond.

Wisconsin and New Hampshire have the fewest requirements with Virginia and Mississippi following along with minimal bond requirements.

10. What Factors into the Cost of Auto Insurance?

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Even the best auto insurance companies for college students have things they use to determine the cost of car insurance. Some of these factors are:

  • Driving record
  • Credit including credit history
  • Length of previous coverage
  • Criminal records
  • Discounts available

11. What Are Auto Insurance Discounts?

An auto insurance discount is a discount given based on a variety of factors. Some of these factors are:

  • Type of car
  • Safe driver
  • Good student
  • Multi-car
  • Low mile driving
  • Multi-policy
  • Loyalty
  • Paid in full
  • Auto draft
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​These are not the only discounts available just a few of the most common ones. The best auto insurance for college students offer discounts for being a student or a good student. Your grade point average (GPA) factors into how much of a discount you get.

12. Do Auto Insurance Companies Have Different Payment Options?

Yes, most auto insurance companies offer at least three different payment options. The first is a full payment. If you pay your policy in full every year to six months. The second is payments three months apart. You make your first payment when the policy starts and then pay again every three months. The third is monthly. On a monthly payment plan, you pay each month.

​How We Reviewed and Found the Best Auto Insurance for College Students

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We reviewed the best auto insurance companies for college students based on a variety of factors. These factors include the pros and cons of the company, the price of the average policy, discounts offered, payment plans, and ease of use.

The best auto insurance for college students or anyone else offers fast and easy claims. After an accident, the last thing you want to be doing is fighting with an insurance company.

​Overall Price Range

The overall price range for the best auto insurance for college students is between $700 and $$$ with an average of around $$$.

​What We Reviewed

  • Allstate
  • GEICO Insurance
  • Erie Insurance
  • American Family Insurance
  • Liberty Mutual
  • StateFarm
  • MetLife Insurance
  • Travelers Insurance
  • Nationwide Insurance
  • Progressive
  • Amica
  • Safeco

Allstate

Allstate

Image via Allstate website

Features That Make This Insurance Company Ideal for Students

Allstate offers some major discounts to unmarried students who are less than 25 years old. These discounts are available if you have good grades. The discounts are a 35% discount for good grades and a 5% discount for going to school over 100 miles away from home.

You can also qualify for the safe driver discount, continuous insurance discount, and several others depending on your circumstances.

Click here to get a quote.

Pros

  • Multiple discounts that are not school-based
  • Special student discounts
  • Large company
  • Quick claims process
  • Agents available all over the United States

Cons

  • A bit more expensive than other companies
  • Must be 100 miles away from home in order to qualify for one student discount
  • Must have good grades

GEICO Insurance

GEICO Insurance

Image via GEICO Insurance website

Features That Make This Insurance Company Ideal for Students

GEICO Insurance is one of the top five insurance companies in the United States. They are in all 50 states but the vast majority of their business is conducted online. GIECO is known for having low pricing.

They do not offer much of a student discount because of their less than average pricing. They offer a 15% discount for good grades. They also offer the standard safe driving and feature discounts that many of the larger insurance companies do.

Click here to get a quote.

Pros

  • Easy online access and phone access to speak with a licensed agent or file a claim
  • A single student discount
  • Large company
  • Quick claims processing particularly if you do it online
  • Stellar reputation
  • Agents available across the United States

Cons

  • Student discounts are small and grade based
  • Long wait times for phone service
  • Must be able to pass a credit check

Erie Insurance

Erie Insurance

Image via Erie Insurance website

Features That Make This Insurance Company Ideal for Students

Erie Insurance is very affordable for students, especially if they are living at home. Unfortunately, Erie Insurance is only available in a limited area. They even offer prizes for continuing safe driving practices. Their standard student discount is 20%.

Click here to get a quote.

Pros

  • Prizes for safe driving for students
  • Highly competitive rates
  • Excellent claims service
  • High rating

Cons

  • Only available in Indiana, Illinois, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, West Virginia, Wisconsin and Virginia.
  • Limited agent access
  • Smaller than the average company

American Family Insurance

Features That Make This Insurance Company Ideal for Students

American Family Insurance controls 2% of the insurance market. This makes it a very large company. They provide two different insurance discounts for students. These discounts are for good grades and their TeenSmart program. The good grade discount is a 25% discount and TeenSmart offers another 10%. American Family also offers lower premiums for older cars.

Click here to get a quote.

Pros

  • Lower rates for a variety of car makes and models particularly older cars
  • Discount for good grades
  • Large company
  • Allows logs to be deleted in their safe driver program to account for other drivers

Cons

  • Not as easy to get in touch with as other companies
  • May have a long wait time on the phone
  • Not as well known as other companies
  • Credit check must have good credit

Liberty Mutual

Liberty Mutual

Image via Liberty Mutual website

Features That Make This Insurance Company Ideal for Students

​Liberty Mutual offers three student discounts. A 16% discount for students under the age of 26 with a B average. A 20% student discount is for living away from home. Then they have a safe driver discount for good driving that is 15%.

Click here to get a quote.

Pros

  • One of the largest discounts for students and teens
  • Large company
  • A Large parent company that offers multiple types of insurance
  • Student discounts available until you are 26 rather than 24

Cons

  • Online account management is
  • More expensive than other more accessible insurance companies

StateFarm

StateFarm

Image via StateFarm website

Features That Make This Insurance Company Ideal for Students

​State Farm is one of the largest insurance companies in the United States. They also provide some of the best auto insurance for college students. They offer large student discounts including 25% for good grades and 15% for the safe driver program. They are nationally known and have an excellent reputation in the insurance industry.

Click here to get a quote.

Pros

  • Excellent reputation
  • Easy online and offline access
  • Have agents as well as online services

Cons

  • One of the most expensive companies
  • Can be difficult to get a policy due to credit and other restrictions

MetLife Insurance

MetLife Insurance

Image via MetLife Insurance website

Features That Make This Insurance Company Ideal for Students

MetLife is one of the oldest insurance companies in the United States. They are also one of the few international insurance companies. They have offices in over 60 different countries. They also offer three different discounts for students. They have a safe driver discount of 7%, the student away at school discount at 10%, and the good grade discount at 15%.

Click here to get a quote.

Pros

  • Proven record providing insurance for over 150 years
  • International company
  • Large company
  • Multiple discounts available

Cons

  • More expensive than other companies on this list
  • The claims process is sometimes confusing
  • Credit score based rates. The lower the score, the higher the rate

Travelers Insurance

Travelers Insurance

Image via Travelers Insurance website

Features That Make This Insurance Company Ideal for Students

Travelers insurance offers multiple discounts for students and nonstudents alike. They have an excellent safe driver program. The discounts are not exclusive so you get all the discounts you qualify for. This includes student discounts. They also have perks such as roadside assistance and options for rental cars.

Click here to get a quote.

Pros

  • Multiple stackable discounts
  • Discounts for good grades
  • Large, well-financed company
  • Offers several financing options
  • Discounts for paying on time or having auto pay

Cons

  • Must maintain a B or above
  • Poor credit is a problem
  • Credit score based rates. The lower the score, the higher the rate

Nationwide Insurance

Nationwide Insurance

Image via Nationwide Insurance website

Features That Make This Insurance Company Ideal for Students

Nationwide Insurances makes this best auto insurance for college students list despite its higher than average pricing. Nationwide is excellent for college students because they have many types of discounts. They also have a simple claims process that is easy for a very busy student to navigate.

Click here to get a quote.

Pros

  • Many discounts available - everything from good student discounts to discounts for prepaying
  • 24/7 support
  • A large company with a proven reputation
  • Discounts for good grades just for students

Cons

  • Must be a full-time student
  • Credit check required
  • Costs more than other companies but offers a lot of different discounts

Progressive

Progressive

Image via Progressive website

Features That Make This Insurance Company Ideal for Students

Progressive is a nationally recognized company that is popular, particularly among students. Although they check your driving record, they do not base pricing on your credit record like many other companies do. Progressive also has multiple stackable discounts and an excellent loyalty program. They offer discounts for good grades and safe driving.

Click here to get a quote.

Pros

  • Name what you can pay allows you to tailor your coverage to your budget
  • Many types of discounts including a good student discount
  • Lower than average pricing
  • Excellent customer service
  • Serves the entire nation
  • Has multiple perks including covering pets and roadside assistance

Cons

  • Must maintain a B average
  • Finding all the discounts you qualify for may be difficult

Amica

Amica

Image via Amica website

Features That Make This Insurance Company Ideal for Students

Amica is a smaller insurance company. Although they do not have state restrictions, they have limited availability in some areas. They are growing though. They offer multiple safe driving discounts and an easy to use mobile app. This makes filing a claim, paying a bill, or getting an answer fast and convenient for college students.

Click here to get a quote.

Pros

  • Recognizes the correlation between good driving and good study habits
  • Quality protection at a reasonable rate
  • Reliable company
  • Excellent customer service

Cons

  • More expensive than most
  • Smaller than some other companies
  • Some of their discount amounts vary
  • Some rates and availabilities are based on credit

Safeco

Safeco

Image via Safeco website

Features That Make This Insurance Company Ideal for Students

SafeCo is a subsidiary of Liberty Mutual insurance. They offer the same student discounts that Liberty Mutual. It is a smaller more personalized insurance company when compared to its parent company Liberty Mutual.

Click here to get a quote.

Pros

  • Has the backing of Liberty Mutual
  • More personalized service
  • Access to other types of policies
  • Some of the largest student discounts when you are a good student under the age of 26

Cons

  • May not offer the broad range of services that other companies do
  • May be difficult to file a claim during off hours

​The Verdict

No single insurance company is right for everyone. Some less expensive insurance companies have other flaws. The best auto insurance for college students depends on the individual student's needs. It is important to weigh the options carefully.

You should consider what kind of coverage you need, how often you drive, and where you drive as you look at different policies. Most companies offer free online or phone insurance quotes so you can compare different companies. The best auto insurance for college students is the one that fits your budget, lifestyle, and driving style.

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