Car Insurance For College Students: Finding The Best Price
Car insurance for college students can get pretty expensive. Furthermore, finding car insurance that offers the best price can be difficult, given the high rates for student drivers and unique student needs.
But this doesn’t mean you can’t save on your car insurance. Most insurance companies often offer a ton of discounts. And what’s even better, in this article, we mention several tips on how to save more on your car insurance as a college student. We’ve also put together a list of the best car insurance companies for college students.
Factors that affect the cost of college student’s car insurance
Apart from your age, gender, and grades, another important factor that influences your car insurance is whether you live on or off-campus. Here’s a list of other factors you need to consider.
- Location: If your school is in a big city or an urban area, you could incur higher car insurance rates. If it’s in a rural area, you’ll likely pay lower rates. Congested areas tend to have more cars on the roads, narrow through streets, and obstacles like pedestrians. All this means that there’s technically a higher probability you’ll get into an accident. That’s why rates in New Jersey and New York have high car insurance compared to areas like Wisconsin and Maine.
- Car type: It can be fun to come to school with a fancy car, but in the long run, the student car insurance rates could be substantial. This is why many choose to start with an economy car as they are both cheaper to purchase upfront, easier to maintain, and the insurance costs are less.
Most economy cars come with lower premiums. Sports cars, on the other hand, come with high premiums since they have a large claim history and tend to have a higher value. Also, there's a higher chance they may get stolen or broken into.
- Credit history: Most car insurance companies will conduct a credit check to predict your likelihood of getting into an accident. If you have a good credit rating, you can save about $1,000 a year in premium costs. Poor credit history means a higher premium.
- Driving record: Most insurers consider young people as a high-risk category. Young people are full of potential but reckless most of the time. A simple speeding record can increase your insurance rate significantly. Therefore, ensure your driving record is as clean as possible.
- How much driving you do: Students who drive less tend to save on their premium.
How college students can save more on car insurance
1. Stay on your parents’ policy
Most insurance companies allow college students to stay on the policy owned by their parent(s), provided their addresses remain the same. Students who stay on their parents’ policy will benefit from the established driving and credit record, plus discounts for having multiple drivers on a single policy.
2. Don't take your vehicle to campus
Insurance companies usually offer discounts for students who live 100 miles away from school but don’t bring their vehicles to college. By not taking your car to college, you stand a chance of avoiding a lapse in coverage. Plus, you get to pay lower insurance rates.
The benefits of leaving your car behind include reduced risk of getting a ticket or into accidents, which can increase your premiums. In the long run, you will enjoy low insurance costs since you’ll have a clean driving record. A factor that most insurance companies often look at.
3. Look for student and affiliation discounts
If you can keep your grades up, you can qualify for a student discount from most of the popular insurance companies. Other insurance companies offer student discounts for having certain affiliations with student groups.
Other car insurance discounts you can take advantage of include:
- Multiple policy discount: Some insurers usually offer discounts to individuals who buy more than one policy, like an auto policy and renters’ insurance.
- Anti-theft device discount: When students go the extra mile to protect their vehicle from theft, like installing a car alarm or tracker, they may qualify for a reduced insurance rate.
- Driver training discount: Are you still under 21? Take a driver's education and a safe driving course to qualify for good student discounts.
Best Car Insurance for College Students
GEICO offers students cheap auto insurance. It’s famous for its low rates and numerous discounts. Although their quotes differ with the state you live in, it offers consistent college-aged drivers low auto insurance rates.
This company also provides discounts to members of college-centered groups, such as sororities, fraternities, and alumni associations. If you’re involved in most campus activities, there’s a good chance you can receive great discounted car insurance rates.
State Farm is among the best companies offering students the lowest premiums. Besides its standard car insurance, it provides students with optional emergency road service coverage in case of a breakdown. It also offers travel expenses coverage while the car gets repaired.
Anyone under the age of 25 and hasn’t had an at-fault accident can secure State Farm’s Steer discount of up 15%. Students with good grades can get discounts of up to 25%. And to even save more, consider enrolling in a defensive driving course or driver training.
Suppose you drive infrequently but still desire the convenience of owning a car while at school, MetroMile is your go-to insurance company. MetroMile features a quoting system that allows student drivers to input their current auto insurance premiums so they can compare and see if switching companies is worth it.
MetroMile monthly premiums feature a base cost and a per-mile fee, meaning the less your drive, the lower your insurance cost. According to the company, if you drive less than 12,000 miles per year, you will save more cash with their insurance policies.
The only downside to this company is that it has a limited reach. It’s only available in California, New Jersey, Arizona, Washington, Oregon, Illinois, and Pennsylvania.
Progressive provides college students with the most affordable car insurance. However, it’s not available in every state. The company’s student discount applies to a student who has attained and maintained an average grade of B or better.
It also offers discounts to parents and full-time college students who live far away. For instance, if your school is 100 miles or more from home and you don’t have a car, the company will provide you with a discount on insurance on the vehicle you have parked back at home.
And if you’re staying at home with your parents, you can save more money by placing your vehicle with other vehicles in the household.
Last, we have Allstate, which comes with an amazing incentive program that combines car insurance with renter’s insurance. By combining the two policies, you can save lots of money and still get more of what you require.
The company’s Drivewise program allows you to earn points for driving safely. This program utilizes your smartphone locations to measure your driving speed, promote safe driving practices, and prevent phone use. You can redeem the points and get a variety of things, including magazine subscriptions, travel perks, gift cards, and merchandise.
Allstate also offers a good student discount of 35% and a student away at school discount of 5%.
Final Thoughts on Car Insurance For College Students
Before we conclude, remember to purchase a vehicle the comes with up-to-date safety features. Cars with safety features like full-front airbags and restraint devices can help you secure additional safe driving discounts.
If in the market for a car insurance policy for your college student, visit our homepage to start receiving quotes from multiple carriers.