Best Car Insurance for College Students (2025)
State Farm, GEICO, and Allstate have below-average rates for young drivers — plus student and driver’s education discounts.
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Car insurance isn’t one-size-fits-all, so the first step to finding the ideal coverage as a college student is identifying your unique needs. It’s usually more affordable for young drivers to stay on their parents’ policies. But your transportation needs, where you’ll live at school, the school’s distance from home, and your parents’ driving records will factor into that choice.
Expect higher rates since you may only have a year or two of driving experience. But it’s possible to find auto insurance coverage that will work for you.
What to know about staying on your parents’ car insurance
Whether staying on your parents’ policy is the best choice depends on a few factors. Adding a young driver to the family policy will raise the premium — but whether you or your parents pay for your coverage — that increase will be cheaper than paying for a separate policy.
More than just the cost matters, too. For example, these are a few situations when you can be on your parents’ policy:
You’re a college student who only drives your parents’ car when you’re home during breaks, and your parents’ address is still your primary residence.
You live with your parents and drive a car they own or lease.
You co-own a car with your parents or live in a property they own or rent.
And these are times when you’ll probably have to buy separate coverage:
You don’t live with your parents or in a property they own. Most insurers make exceptions for temporary housing like dorms, so this is typically only if you move out and change your primary residence.
You own or lease your own car. But some insurers may let you stay on a family policy if you still live with your parents.
The rates in this table show you could save about $90 per month, on average, if your parents add you to their policy versus buying a full-coverage policy of your own.
Car insurance for college students out of state
The first thing to consider about car insurance if you’re heading to college out of state is whether you need a car to get around. If your school is in an urban area, you could get by just fine with shuttles, public transportation, a bicycle, and the occasional rideshare trip. It might even be expensive to park a car nearby.
If you’re leaving the car at home and only driving it during school breaks, you’ll stay on your parents’ insurance. And you might qualify for a student-away-at-school discount.1 If you’re taking a car with you to campus, confirm with your insurer whether you can stay on your parents’ policy or need your own, as it can vary by state.
Though states have different liability limits, your policy’s coverage will adjust to meet any state-required limits higher than those of your home state.2 But if you move off campus and officially change your primary residence, you’ll need to get your own car insurance policy in that state.
Car insurance for international students
Car insurance requirements for international students studying in the U.S. can vary significantly by state.3 Looking up the state’s department of motor vehicles and asking your school for resources could help you get answers fast.
In some states, your foreign driver’s license may be enough to secure auto insurance and drive a vehicle legally. In others, you’ll need to apply for an international driving permit (IDP) in your home country before you arrive in the U.S.
Some states also have time limits. In Texas, drivers with foreign licenses or IDPs can operate vehicles only for 90 days and must then apply for a Texas-issued license.4 In Indiana, international drivers need an IDP and can use it for up to one year.5
If you plan to remain in the U.S., obtaining a U.S. driver’s license may be the best choice. You’ll need certain documents, which vary by state, to get a driver’s license. Many auto insurance companies sell policies to international drivers, though you may see higher rates since you don’t have a U.S.-based driving history for insurers to review.
Best car insurance for college students
Finding an affordable policy is important, but it’s not the only thing to look for when you compare insurance companies. The best fit depends on your unique profile, and young adults and college students can have some specific needs.
These three auto insurance companies have below-average rates for college students, great discounts for young drivers, and coverage options that can give everyone peace of mind.
State Farm: Best for teens on their parents’ policy
GEICO: Best for tech-savvy teens
Allstate: Best for education incentives
Our editorial team analyzed more than 40 regional and national car insurance companies to figure out which offer the best rates and the most coverage options, flexibility, and savings opportunities to college students. We prioritized competitive rates, broad availability, student and driver’s education discounts, 24/7 roadside assistance, well-rated mobile apps, and bundling options, especially for renters and pet insurance, in our review.
Cost of car insurance for college students
Insurance companies set rates based on risk, and if you’re a brand-new driver, you’re more risky than an experienced driver. Crash rates are highest for 16-year-olds and teenagers in general but drop significantly once drivers hit their 20s, according to the Insurance Institute for Highway Safety.
Insurance rates reflect that risk, and teen drivers face the highest rates among age groups, according to Insurify data. If you maintain a good driving record, your rates will go down as you gain more driving experience.
5 ways for college students to get cheaper insurance
As less experienced drivers, college students may face higher premiums, but here are a few ways to get cheaper auto insurance:
Take driver training classes. Many insurers offer discounts for drivers who complete driver’s education and defensive driving courses. Depending on when you get your license, your state may not require you to take driver’s ed, but it’s still a good idea to learn safe driving techniques and save money on premiums.
Maintain good grades. Most insurance companies offer discounts to students who achieve good grades since data shows those students exhibit less risky driving behavior. An insurer may require a certain GPA or class ranking to qualify.
Drive a safe vehicle. Insuring a safer vehicle is cheaper than insuring a more specialized, luxury, or classic car.6 The IIHS rates vehicle safety and publishes a list every year that you can reference.
Compare car insurance. It pays to shop around. Comparing auto insurance quotes is one of the best ways to save on premium costs because it’ll help you find the best price for your ideal coverage.
Reduce your coverage. If you’re driving an older car and paying more for insurance than it would cost to replace the car, buying just liability-only insurance instead of full coverage will help you save on premiums.
Standard car insurance coverages
No matter where you go to college, you’ll need at least your home state’s minimum liability coverage to drive. (Only New Hampshire doesn’t require car insurance.) Here’s what liability insurance typically includes:
Bodily injury liability coverage: Bodily injury liability pays for injuries to someone else in an accident you cause.
Property damage liability coverage: This pays for damage you cause to someone else’s property in an accident.
Triple-I recommends buying the highest limits you can afford to ensure greater financial protection if someone sues you following an accident. Since crash rates are highest for teen drivers, Triple-I recommends buying more coverage for less experienced drivers.
Unlike liability coverage, a full-coverage car insurance policy pays to repair your vehicle following an accident or covered event. It typically includes:
Collision coverage: Collision insurance pays for damage to your car from a crash with another car or object, like a tree or telephone pole.
Comprehensive coverage: Comprehensive insurance reimburses you for damage from vehicle theft, vandalism, fire, falling objects, earthquakes, floods, riots, and more.
Optional add-on car insurance coverages
Insurers offer numerous add-ons to increase your protection. Some coverages that are optional in one state are required in another, including:
Personal injury protection (PIP): This pays for injuries to you and your passengers, including medical and funeral expenses, rehabilitative therapies, and lost wages.
Medical payments (MedPay): This also pays for injuries to you and your passengers but just covers medical and funeral expenses.
Uninsured/underinsured motorist coverage: This reimburses you if a driver without enough liability coverage causes injuries or damage to you or your vehicle.
These are some other optional coverages to consider:
College student car insurance FAQs
As you figure out the best solution and coverage for you during college, remember that comparing quotes will help you find your ideal policy. If you still have questions, here’s some more information that could help.
How much do college students pay for car insurance?
Teenagers on their own policies pay an average of $198 monthly for liability-only coverage and $350 monthly for full-coverage car insurance, Insurify data shows. Students who remain on their parents’ policy often pay less.
What are some car insurance discounts for college students?
College students can get discounts for earning good grades and completing driver’s education courses. Students attending college away from home and only driving on breaks could also qualify for a student-away-at-school discount.
What GPA qualifies students for an auto insurance discount?
The requirement varies by insurer. For example, State Farm requires a GPA of 3.0 or above, and GEICO requires at least a B average. Ask your insurance company about their discount and what documentation it needs from you.
Are there age limits for students to stay on their parents’ car insurance?
You can stay on your parents’ policy as long as their home is your permanent residence. Unlike health insurance, there’s no age limit restriction on car insurance.
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