There are a lot of expenses to budget for when going to college, including car insurance. Whether you plan on taking your car to campus or leaving it at home, it's important to plan ahead and not let your car insurance policy lapse as that can make getting coverage more costly in the long run.
Car insurance can be expensive for young adults, but there are several car insurance companies that offer savings for those who are in school. CNBC Select looked at the top insurers and ranked the best car insurance companies for students based on price, coverage, availability, customer satisfaction, and financial strength. (See our methodology for more information on how we choose the best car insurance for students.)
The best car insurance for students
Best overall
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Terms apply.
Read our Geico Auto Insurance review.
Pros
- Lowest average rates
- Inclusive coverage options, including high-risk drivers
- Available nationwide
Cons
- High premiums for high-risk drivers
- Fewer branches for in-person services
Who's this for? Geico is a strong choice for most students, standing out for its competitive rates and high financial strength ratings. CNBC Select also named Geico a top pick for a number of other types of drivers, including seniors, young adults and those looking to bundle home and auto insurance.
Standout benefits: Geico is available nationwide. The company's coverage boasts a number of features that can be helpful for college student drivers, including an app to make payments, access digital ID cards and report claims. Geico also offers a number of discounts, including those for new vehicles, clean driving records and for certain vehicle equipment, in addition to a student discount.
Average annual full coverage premium for an 18-year-old on their parents' policy: $2,523
Runner-up
State Farm Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State farm is one of the largest auto insurers based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Terms apply.
Read our State Farm Auto Insurance review.
Pros
- High customer satisfaction
- Largest car insurance company in the U.S.
- Accident forgiveness for good drivers
Cons
- High NAIC complaint index score
- Doesn’t offer gap insurance
Who's this for? State Farm's affordable coverage can be tailored to students' unique needs. It excels in customer satisfaction, earning high marks from J.D. Power's customer satisfaction survey. The company also stands out in terms of financial strength, earning an A++ rating from A.M. Best.
Standout benefits: State Farm offers several discounts, including a good student discount available to those aged 25 and under with a B average, or those who have made their school's dean's list. Those wanting to leave their car at home could qualify for the company's student away at school discount, which allows car use during school vacations or holiday periods.
Average annual full coverage premium for an 18-year-old on their parents' policy: $2,689
Best for students leaving their cars at home
Progressive Auto Insurance
Cost
The best way to estimate your costs is to request a quote.
App available
Yes
Policy highlights
Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget.
Terms apply.
Read our Progressive Auto Insurance review.
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Offers non-owner car insurance and SR-22 filings
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rates going up
Who's this for? Progressive could be a strong option for those wanting to leave their car at home. The company allows drivers to suspend collision car insurance coverage (which can help repair or replace a vehicle involved in a collision) and keep comprehensive coverage, which covers situations like theft or weather-related damage. It also offers a distant student discount for those attending a school more than 100 miles away and leaving their car at home.
Standout benefits: Progressive offers coverage in all 50 states. The company also offers flexible coverage options and offers a disappearing or vanishing deductible option for those who maintain a clean driving record.
Average annual full coverage premium for an 18-year-old on their parents' policy: $3,163
Best for pay-per-mile car insurance
Milewise® from Allstate
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Allstate's pay-per-mile program works through a device and a compatible app that can track driving miles, plus information like time of day, location, and speed. It's available in 21 states, and has a road trip cap at 250 miles per day (or 150 miles per day in Oregon, Illlinois, Indiana, Ohio and New Jersey).
Pros
- Road trip exclusion included
- Allstate is rated highly for customer satisfaction by J.D. Power
Cons
- Not available in all states
Who's this for? Allstate's traditional car insurance is an affordable option for college student drivers looking for coverage. And, those who don't drive much, like students living on campus or taking public transportation could benefit from the company's pay-per-mile car insurance. These plans charge a per-day rate and a per-mile rate. Depending on your driving, it could be cheaper than traditional car insurance. CNBC Select chose Milewise from Allstate as one of its top picks for pay-per-mile coverage.
Standout benefits: Allstate is an especially strong option for those looking for pay-per-mile coverage. Milewise from Allstate includes road trip exclusion and coverage is paid as you go through a mobile app.
Average annual full coverage premium for an 18-year-old on their parents' policy: $4,148
More on our top insurance companies for students
Geico
App available
Yes
Notable perks
Geico offers 16 discounts to help drivers save, including a student discount for those maintaining a B or better average. Optional add-on coverages include emergency roadside assistance and rental car reimbursement.
State Farm
App available
Yes
Notable perks
State Farm offers a total of 13 discounts, including one for young drivers and one designed specifically for students away at school. The company also sells a variety of other insurance products, allowing parents and students alike to bundle coverage and save.
Progressive
App available
Yes
Notable perks
Progressive offers three discounts that could be a fit for college students, including a teen driver discount for those who are age 18 or younger, a good student discount for those with a B or better grade average, and a distant student discount for those who attend a school over 100 miles from home and are leaving their car at home.
Milewise from Allstate
App available
Yes
Notable perks
Allstate Milewise can help you only pay for the car insurance you need, basing part of your premium on the number of miles you drive. While it's not available in all states, this pay-per-mile program excludes mileage from longer road trips and can help you better your driving habits with personalized recommendations.
FAQs
How much does student car insurance cost?
Student car insurance costs can vary based on where a student is living, their age and whether they qualify for a good student discount. It also largely depends on whether a student is on their own car insurance plan or on a parent's car insurance — those on a parent's plan tend to pay significantly less than those on their own plans.
What GPA qualifies students for an auto insurance discount?
Most car insurance companies we reviewed require a B or better average, or a 3.0 GPA, to qualify for a good student discount.
Can college students stay on their parents' car insurance?
College students can often stay on their parents' car insurance as long as the student and parent share a permanent address or if the car is kept there, and the car is titled in a parent's name.
Bottom line
Choosing a car insurance company that offers discounts or other accommodations for students can help make coverage more affordable for students. In addition to safe driving, many insurers incentivize having good grades. To get the best price on car insurance, get several quotes with the same coverage and compare them.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of car insurance products. To research the best car insurance companies for students, we compiled dozens of data points on several car insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best car insurance companies.
Our methodology
To determine the best car insurance companies for students, CNBC Select analyzed several car insurance companies offering competitive rates to students and compared them based on various factors.
We gathered premium data from Bankrate for an 18-year-old student on their own policy and on their parents' policy including any student discounts. The sample policy was based on a policy that included:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
We also considered customer satisfaction index ratings from J.D. Power and financial strength ratings from A.M. Best, which measure insurance companies' ability to pay on obligations.
Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company's policies.
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