Best Auto Insurance For College Students 2023

Best Auto insurance for college students: If you’re a college student who drives to school in a car it’s ideal although not mandatory in some states to have car insurance.

This is so because chances are that the recklessness of being a youth may cause accidents and damages over time and one way to combat the cost of repairs and maintenance is to have insurance coverage for your car.

On average, college students spend more than $35,000 for one year of tuition and fees, and adding the cost of insurance can weigh them down financially. Hence why most insurance companies offer them car coverage at discounts. By doing so, college students are able to find a cheap premium attached to the type of coverage they choose. 

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So in this guide, we’ve not only helped you know what insurance companies offer you discounts for your car coverage plan, we show you what factors to consider when choosing an insurance plan.

Also, you can find the list of auto insurance companies and what makes them exceptional out of the pool of other competitors.

We have also answered all the questions that will help you make a choice of a good plan for yourself as a college student.

Welcome Aboard Scholar!!!

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Do I Need Auto Insurance as a College Student?

Auto insurance is not mandatory or compulsory in most US states but it’s ideal for college students to help them pay off their financial obligations in cases of damages. 

Beyond serving as valuable financial protection, auto coverage can help college students save in cases of accidents, emergencies, and so on whether you or the driver is at fault. It also helps you cover the cost of damages on another person’s vehicle, medical bills, and property damage. 

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Therefore although auto insurance plans are not compulsory for students, it presents a way higher advantage than not having them. 

What Factors Should I Consider When Shopping For Auto Insurance Plans As A College Student?

There are a lot of companies that present food insurance offers for your cars. It can be daunting to find the plan, coverage, or insurance policy that will fit your budget as well as offer you the right coverage.

As you shop around for auto policies, there are factors that you must consider that will help you decipher the best plan that fits you.

Keep in mind that these factors are location-dependent, meaning that some factors in our list may favor certain locations.

Here are the factors to determine the best coverage for your auto needs;

#1. Type Of Coverage

While looking out for auto policies, it’s ideal you consider the type and extent of coverage the insurance company is offering you. Most insurance providers that offer collision and comprehensive coverages do not assume what that means. It’s ideal you review the coverage option as you shop. 

Confirm if the company is offering specialized coverage, do they allow customers to personalize their insurance plans? Do they allow add-on coverages such as roadside assistance or rideshare insurance?

These are factors you must consider before you settle for an insurance plan for your car as a student.

#2. Is My State Covered By This Insurance Policy?

Most insurance companies offer coverage only to some states. For instance, Metromile insurance company offers coverage in 8 states and Auto-Owners offers coverage in 26 states.

Some providers only offer coverage in certain states. So when you’re shopping for auto insurance as college student, you should know if the company that is insuring your car offers coverage in your state. 

Therefore while shopping for coverage ensure your insurer has working policies in the location where you live.

#3. How Much Is The Cost Premium 

When shopping for an insurance policy one of the factors you must consider is the cost of the policy. As a college student chances are that you’re on a tight budget therefore you must be looking out for affordable car insurance plans with adequate coverage.

Following the policy that drivers under age 25 may pay higher premiums than older drivers will require you to look out for policies that will offer students cheap insurance coverage.

#4. Availability Of Discounts

While considering the auto insurance plans available to college students, look out for discounts. One of the advantages of being a student is the ability to enjoy a variety of discounts because of that status quo.

Some insurers offer general discounts for bundling policies and safe driving, but students get special discounts. For instance, students with a certain GPA, those under 25, and those having no at-fault accidents stand a chance to get a discount from most insurance companies.

Discounts will help you cut costs and save as a college student.

#5. What Are People Saying About The Insurance Company?

Days are gone when people let themselves be victims of poor services because they do not know the strength of the yeh company before they launch a market with them.

Before shopping for an auto insurance plan, look at company ratings and reviews from previous clients. Doing so will give you insight into the company’s financial strength and its ability to provide the services they claim to offer.

By considering the AM Best rating you will decipher the financial ability and by checking on the J.D. Power rating you can know the level of customer satisfaction. 

What Does Car Insurance Cover?

The coverage extent of car insurance depends on the companies and type of coverage. Also, some coverages are optional in some states while others are mandatory. While there are some exceptions to the rule, most car insurance policies cover the following:

  • Property Liability And Collision Coverage: includes damage to your car and other vehicles involved in an accident with you.
  • Injury Liability And Personal Injury Protection: covers injuries to yourself or others involved in an accident with you.
  • Comprehensive Coverage: covers theft and other damages to your vehicle that happen when parked or not moving
  • Total Loss Coverage: covers the current value of your vehicle in the event of a total loss.

None of these coverage options cover repairs, vehicle maintenance, vehicle interiors, and after-market and nonstandard parts unless specified in the policy.

What Is The Average Cost Of Auto Insurance for College Students?

There is no specificity to how much car insurance is for college students. This is so because a lot of factors determine how much a college student gets to pay for car insurance. 

The driver’s age, driving history, vehicle specifics, credit score, type of coverage, and geographic location are factors many insurers consider before placing a cost of the coverage you choose.

Here is the average cost of auto insurance for college students according to age;

AgeSix-month premium
18$3,590
19$3,009
20$2,667
21$2,227
22$2,064
23$1,920
24$1,799
25$1,604
Average Cost Of Auto Insurance for College Students

ALSO READ: Is There Cheaper Car Insurance For Young Drivers? | Complete Guide

Top Best Car Insurance for College Students 

Here are the best auto insurance companies with the best coverage plans for college students;

#1. Allstate Insurance

  • Rating: Best Overall
  • AM Best Financial Rating: A+

One of the best car insurance for students is Allstate because of its discount, thorough coverage, and dominance as one of the largest auto insurance providers in the nation with a 10.4% market share.

Allstate is also a digital-friendly insurance company having a user-friendly mobile app that allows its users to get quotes and customize their insurance plans on their own.

The rideshare insurance offered by Allstate gives students who drive for Transportation Network Companies such as Uber leverage.

Being one of the best insurance companies for college students, the not-so-good news about Allstate is that its premiums are higher than what other competitors offer

#2. Geico 

  • Rating: Best Cheap Car Insurance
  • AM Best Financial Rating: A++

Geico offers one of the best auto insurance companies for college students. It’s best rated for its cheap insurance policies and the idea of cheap is welcome for college students.

Over the years, Geico has amassed high-level customer satisfaction ratings which makes them a trusted firm to insure your car. Car owners can acquire roadside assistance, mechanical breakdown coverage, and renters insurance coverage. 

Students insuring their car with Geico stand a chance of getting the 15% Good Student discount. In addition to that, they can also get safety features and bundle policies. 

#3. State Farm

  • Rating: Best Discounts For Students
  • AM Best Financial Rating: A++

State Farm is one of the best private passenger car insurance for students in college with a 16.2% market share. 

In addition to offering quality insurance coverage for your cars, State Farm offers discount options to students such as the Good Student and Student Away at School discounts which allow students to save 25% annually for car insurance as long as they are younger than 25.

Also, there is a rideshare insurance option available to students working with Transportation Network Companies such as Uber. State Farm stands as a good option for students due to its availability in 48 states of the USA and Washington, D.C.

However, the not-so-good news about State Farm is that clients are required to work through local agents which is mundane.

#4. Metromile 

  • Rating: Best For Infrequent Drivers
  • AM Best Financial Rating: A

Metromile is an insurance company based in California which provides coverage for drivers who travel less than 10,000 miles per year. 

College students will find the Metromile ideal because the cost of the premium is calculated based on your actual driving time and there’s an app to carry out your insurance activities easily. 

Also, students can also go for coverage like roadside assistance, towing coverage, rental car reimbursement, and a $0 deductible on glass repairs. 

The only reason why Metromile insurance may not be the ideal one for you is that it only offers coverage in 8 states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington of the USA. 

If you are also a cruise student who drives back and forth on a regular basis, you will need to pay a higher premium.

best car insurance for a student
best car insurance for a student

#5. Auto-Owners Insurance

  • Rating: Best Family Policy
  • AM Best Financial Rating: A+

If you’re looking for an auto insurance company with a track record of excellence in covering cars for college students inclusive then your best bet is Auto-Owners.

Auto-Owners has over 100 years of track record in serving 26 states. Auto-Owners is ideal for college students because of the availability of discounts and add-ons policies.

The Auto-Owners add-on policy: Personal Automobile Plus Package offers coverage for stolen personal items in your vehicle, identity theft, cell phones lost or damaged during a wreck, and more. 

The not-so-good news about Auto-Owners is that it is just available in 26 states and tech-savvy customers may not find it ideal because of the limited options.

#6. USAA

  • Rating: Best For Military Members
  • AM Best Financial Rating: A++

If you’re a military student or once served or your family member is in the military, the best car insurance company for you is USAA. 

USAA only offers coverage to children or spouses of military members, current or former. USAA offers one of the lowest premiums for coverage and has a track record of outstanding customer service. 

In addition to good customer service, USAA offers attractive discounts to college students. Its interactive website and mobile app make it easy for clients to access their plans. 

USAA also offers additional coverage which includes 24/7 roadside assistance, towing coverage, and rideshare insurance for Uber drivers.

The disadvantages of signing up with USAA are that their coverage is only limited to current and former military and their families and there is no local agent network.

How Do I Select The Best Car Insurance Company?

Now you know what factors to look out for when purchasing auto insurance, all you have to do is weigh all the different coverage options, availability, and premium costs, and select a policy that meets your needs. 

Once you have chosen the right policy, proceed to start the online registration process online or speak to a local agent to complete an application. 

After this, you can manage your account and make payments online or through your provider’s mobile app.

ALSO READ: Affordable Health Insurance for International Students in USA | A complete Guide

Frequently Asked Questions About Auto Insurance For College Students

Do College Students Get Discounts on Car Insurance?

Discount offers exist for college students across a variety of insurance companies. Some of the discounts offered by car insurance companies target college students so that insurance companies can increase their revenue.

A peculiar discount option that runs across boards is the good student discount. The good student provides a rate reduction for students who maintain a certain grade point average (GPA). 

Also, there exist discount options for students who attend college away from home and those who drive a family vehicle only occasionally.

So while looking out for insurance companies and comparing quotes, look out for the availability of discounts open to college students that you can leverage.

Can College Students Stay on Their Parents’ Insurance?

Absolutely, students can stay on their parent’s car insurance plans. This not only saves costs for them but also helps them save lots of money. However, for you to work in this you must meet the eligibility requirements.

Staying on your parent’s car insurance policy stands if you are a student living at home and driving a car that’s titled to a parent. 

Also, students who stay in a dorm during the school year or those that attend school out of state are also entitled to stay on their parent’s insurance policy. 

You will get busted if the name on the vehicle paper is yours and the primary address is different from their parent’s primary residence. 

How Do I Get Insurance Discounts As A College Student?

Most large insurance companies will offer discounts on premiums for full-time high school or college students who meet any of the following requirements:

  • Rank within the top 20% of their class
  • Student grades must meet or exceed a B or 3.0 GPA
  • Rank within the top 20% of certain standardized test scores from the past 12 months.

Who Has The Best Car Insurance For College Students?

If you’re looking for car insurance with affordable rates, then you should go for Geico at $388 per month. But if you’re considering a place for discounts, State Farm has the best discounts.

What Is The Cost Of Car Insurance For An 18-year-old College Student?

A typical 18-year-old student pays about $598 per month for car insurance if they have their own policy and bring their car with them to campus.  

Conclusion

Having car insurance is mandatory but it’s ideal for college students to get one. Although car insurance for college students can be expensive, leveraging on the discounts, and other options will help you save costs.

When choosing an insurance company to insure your car, consider the factors we have listed above, this will help you make a better choice of auto insurance. Ensure you compare the insurance rates before selecting a car insurance provider. 

We hope this piece is able to help you make the right choice. Follow us on our Facebook page and YouTube Channel for more information about academic-related content that will help you make informed decisions on your academic journey.

Good luck Scholar!!!!

References

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