Cheapest Car Insurance for Graduate Students (2025)
Car insurance can be expensive if you’re in grad school, but graduate students can get cheap rates and special discounts from GEICO, Nationwide, and USAA.
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Insurify projects a 22% increase in auto insurance rates by the end of 2024. Rising rates could mean higher insurance costs for many students already facing expensive insurance premiums. Graduate students often pay more than other students since they typically require additional coverage or also use their vehicle for work.
If you’re a graduate student who drives, it’s important to choose a car insurance policy that balances your needs and budget. Read on to learn more about how car insurance for graduate students works and how to find the right policy for you.
Cheapest car insurance companies for graduate students
The cheapest car insurance companies for graduate students vary based on your age, ZIP code, driving history, and many other factors.1 The table below illustrates a few of the most affordable car insurance companies for students in graduate school.
Best car insurance companies for graduate students
As a graduate student, the best auto insurance company depends on your needs and financial situation. These are a few top picks of the best insurers for people in grad school.
GEICO: Best for affordability
Nationwide: Best for pay-per-mile insurance
USAA: Best for military-affiliated members
We choose the best car insurance companies for graduate students by analyzing several factors, including:
Affordability: Affordable car insurance companies offer cheaper premiums than the national average.
Coverage options: Auto insurance companies with the best options provide endorsements for students, such as accident forgiveness, rideshare coverage, and pay-per-mile insurance.
Savings opportunities: The best auto insurers for graduate students offer many student discounts, usage-based insurance, and other money-saving benefits.
Company reputation: Quality companies have good customer ratings from third-party agencies and customer reviews.
Car insurance discounts for graduate students
Car insurance discounts can help you save money on your car insurance policy. These are some common discounts you’ll find as a graduate student:2
Choosing the right car insurance coverage as a graduate student
Car insurance is an essential financial tool, but choosing the right coverage can often be overwhelming. Here are a few concepts you’ll want to understand when shopping for an insurance policy.3
Deductible
You’ll have to pay a deductible before your coverage kicks in and pays for damages. The higher your deductible is, the lower your premium cost. Remember that your insurer may deny your claim if your repair costs are lower than your deductible.
Coverage type
You can choose between liability-only coverage, which every U.S. state except New Hampshire requires by law, or a full-coverage policy including liability, comprehensive, and collision coverage.
Full-coverage will cost you more, but it’ll cover all your bases if you get in an accident. If you lease your car, many lenders will require you to have full coverage.
Coverage limit
Coverage limit refers to the maximum amount your insurance company will pay to cover bodily and property damages if you’re at fault in an accident. You may have to pay out of pocket for damages if your coverage limits aren’t high enough.
When setting your coverage limits, consider an amount that’s high enough to protect your most valuable assets in case of a lawsuit.
Premium
A premium is the rate you pay your insurer in order to receive coverage. You can pay premiums monthly or in a six- or 12-month lump sum.
Endorsements, riders, and special coverages
You can add extra coverages outside your standard car insurance policy to upgrade your coverage. Some common endorsements include accident forgiveness, gap insurance, and rental car reimbursement.
What to consider when comparing car insurance companies
While policy affordability and customizability are vital when picking a quality insurer, you should also look at other factors, including:
Company history/reviews: Reputable companies provide reliable coverage, high levels of financial strength, excellent customer service, and a solid track record for paying claims. You can use third-party rating agencies or check out reviews from other customers to get a sense of a company’s overall customer experience.
Extra perks: Insurers may include additional perks beyond standard coverage at no extra charge. For example, some insurance companies offer built-in accident forgiveness and roadside assistance in your policy. Many insurance companies also provide a telematics program that rewards safe driving and lowers costs.
Digital experience: A user-friendly mobile app and web experience can increase customer satisfaction by making processes more efficient and convenient. Look for companies that offer online claims filing, bill pay, and policy management and have high ratings on the Google Play Store or the App Store.
How to save money on your car insurance
Car insurance can get expensive, especially if you’re a young adult or a new driver. Luckily, you can save money on your car insurance policy by taking advantage of these cost-saving strategies:
Shop around. One of the best ways to save money on the coverage you need is by comparing car insurance quotes. A quote-comparison tool like Insurify can generate quotes from multiple companies in minutes.
Increase your deductible. While increasing your deductible lowers your premiums, it does raise your out-of-pocket cost after a claim, so be sure you can afford your chosen deductible amount up front.
Raise your credit score. In most states, insurance companies use your insurance-based credit score to determine your rates. Improving your credit may result in cheaper premiums on your policy.
Use pay-as-you-go insurance. Look for an insurer that can offer usage-based or pay-per-mile insurance. While your rate will change from month to month, the savings can add up if you don’t drive much — especially for online grad students or students who also work remotely.
Stay on your parents’ policy. Avoid higher rates by staying on your parents’ policy instead of getting your own policy. Be sure to check the fine print on where you’re allowed to keep your car and other restrictions that may apply.
Keep your grades up. Many insurers offer good student discounts. You can save on insurance by keeping your grades above the required GPA.
Maintain a good driving record. Prevent your rates from increasing by avoiding traffic violations and car accidents.
Car insurance for grad students FAQs
Here’s some additional car insurance information that can help you find a policy that fits your needs as a grad student.
Can graduate students stay on their parents’ insurance policy?
Yes. Unlike health insurance, a child can stay on their parents’ car insurance policy indefinitely.
“As a young driver, you have the option to remain on your parents’ policy if you don’t hold the vehicle’s title or declare permanent residency outside of the home,” says Howard Goldberg, vice president of customer solutions at Plymouth Rock Assurance.
How do you know when it’s time for you to leave your parents’ policy?
You must get your own car insurance policy when you move out and change your primary address. If you have a poor driving record or need more coverage than is available on your parents’ policy, consider purchasing your own auto insurance.
How do you get a good student or student-away-at-school discount?
You can get student discounts by first looking at a company’s website or speaking to an insurance agent to see if that insurer offers it. You must meet the discount requirements to qualify, which may mean showing proof of enrollment or a transcript of your grades.
Will having a bachelor’s or master’s degree lower your car insurance?
It’s possible. Having a bachelor’s or master’s degree may reduce your insurance rates. Research conducted by Consumer Reports in 2021 found that drivers with higher educational attainment saw lower prices than drivers with lower educational backgrounds.
How old do you have to be before your car insurance rates drop?
In many cases, rates start to drop significantly at age 25. Keep in mind that other factors also influence the cost of your premiums, like your driving history and location.
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