10 Best Auto Insurance Companies for College Students in 2024

The best auto insurance companies for college students are Erie Insurance, USAA, and State Farm because of their generous student discounts, low rates, and cheap usage-based auto insurance.

Erie Insurance offers the best insurance for college students because it personalizes policies for young drivers. Students will enjoy Erie’s flexible payment options and excellent customer service representatives.

Our Top 10 Picks: Best Auto Insurance Companies for College Students

Explore our picks for the most student-friendly car insurance on the market. Then, enter your ZIP code into our free comparison tool above to see how much you might pay for your coverage.

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#1 – Erie Insurance: Top Pick Overall

Pros

• Good Student Discounts: Among its many savings opportunities, Erie Insurance offers a good student discount of up to 20%. Explore discount opportunities in our Erie auto insurance review.
• Flexible Payment Options: Erie Insurance makes it easy to pay for your coverage with options like automatic withdrawals, flexible payment dates, and online options.
• Excellent Customer Service: Erie sets its college student auto insurance apart by offering some of the best customer service in the industry.

Cons

• Lacking Mobile App Features: Although Erie offers a mobile app, it doesn’t offer the same policy management tools as its larger competitors.
• Limited Availability: It offers some of the best affordable car insurance for college students, but Erie only sells coverage in 12 states.

#2 – USAA: Best for Military Students

Pros

• Superb Claims Handling: USAA offers some of the best insurance for college students through its excellent claims handling process.
• Student Discounts: Students who maintain a GPA of at least 3.0 can save up to 25% on their USAA policy.
• Flexible Policy Options: USAA offers plenty of ways to change your policy to fit your needs. Popular options include rideshare insurance and rental car reimbursement.

Cons

• Only Military Qualify: Only active or retired military members and their immediate families are eligible for USAA coverage. See if you qualify in our USAA auto insurance review.
• Limited Physical Branches: USAA doesn’t have as many physical locations as some other providers, which can make finding face-to-face help difficult.

#3 – State Farm: Best for Good Students

Pros

• Coverage for Students Abroad: If you’re looking for student car insurance plans that cover you while you’re abroad, State Farm has excellent options. See how State Farm can keep you covered in our State Farm auto insurance review.
• Ample Discounts: State Farm offers 13 discounts, including savings of up to 25% for good students.
• Large Network of Agents: State Farm has one of the largest networks of local insurance agents ready to help you find good car insurance for college students.

Cons

• Discount Availability Varies: State Farm’s discounts can help you find cheap auto insurance for college students, but you’ll need to check availability in your state.
• High Rates for Some: Although State Farm can offer cheap car insurance quotes for college students, drivers younger than 20 tend to see higher prices.

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#4 – Auto-Owners: Best for Coverage Options

Pros

• Customizable Policies: Auto-Owners offers plenty of ways to increase the coverage in your policy, including the Personal Automobile Plus package.
• Loyalty Discounts: Auto-Owners offers a variety of ways to save, including customer loyalty, teen driver, and student discounts.
• Strong Financial Stability: With a grade of A++ from A.M. Best, you won’t have to worry about your Auto-Owners claims going unpaid.

Cons

• Not Sold Everywhere: Auto-Owners sells insurance in just 26 states. See if you live in one of those states in our Auto-Owners auto insurance review.
• Limited Online Resources: You can find affordable car insurance quotes for students from Auto-Owners, but you won’t have many online options for managing your policy.

#5 – Nationwide: Best for Usage-Based Insurance Savings

Pros

• Vanishing Deductible: Sign up for Nationwide’s Vanishing Deductible program to have your deductible reduced for every year you go without filing a claim. Learn how much you can save by being a safe driver in our Nationwide auto insurance review.
• SmartRide: Get the most affordable car insurance for college students by signing up for SmartRide. Safe drivers can save up to 40% with Nationwide’s UBI program.
• Ample Cover Options: Nationwide offers a ton of coverage options beyond basic insurance. Customize your policy with add-ons like pet insurance, key replacement, and accident forgiveness.

Cons

• Rates Can Be High: Nationwide offers excellent car insurance for students in college, but it’s not always the cheapest. If you need cheap student car insurance, you’ll likely find better prices elsewhere.
• Mixed Reviews: Some Nationwide customers love their time with the company, but others are less impressed.

#6 – American Family: Best for Young Volunteers

Pros

• Young Driver Discounts: American Family offers 18 discounts to help drivers save, including the TeenSafeDriver, away at school, young volunteer, and good student discounts.
• Personalized Service: American Family offers personalized service through its extensive network of local agents.
• KnowYourDrive: This American Family UBI program offers a maximum savings of 30% for safe drivers.

Cons

• Customer Reviews Vary: Like many large companies, American Family’s customer service reviews can be hit and miss. Explore our American Family auto insurance review to see what customers have to say.
• Not Available Everywhere: American Family currently sells insurance in just 19 states.

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#7 – Allstate: Best Network of Local Agents

Pros

• UBI Programs: Allstate has two UBI programs – Drivewise and Milewise. Read our Allstate Drivewise review to learn more about the discount for safe driving. If you’re a low-mileage driver, check our Allstate Milewise review to see what you can save.
• Generous Discounts: Allstate offers 12 ways for drivers to save, including up to 20% off for good students under 25 years old.
• Large Network of Agents: With one of the largest networks of insurance agents, it’s easy to get help when you shop at Allstate.

Cons

• High Rates: No matter where you live, Allstate is rarely your cheapest option for coverage. See how much you might pay for your insurance in our Allstate auto insurance review.
• Poor Customer Ratings: Despite offering student-friendly car insurance, Allstate’s customer service ratings are not the highest.

#8 – Liberty Mutual: Best Roadside Assistance for College Students

Pros

• Policy Customization options: With Liberty Mutual’s add-on options, you can buy the exact coverage you want. Popular options include new car replacement and accident forgiveness.
• Roadside Assistance Plan: Liberty Mutual offers one of the best roadside assistance plans. Roadside assistance is an excellent addition to car insurance plans for college students.
• Student-Specific Discounts: Take advantage of Liberty Mutual’s discounts, which can help when you need very cheap student car insurance. College students might be eligible for the good student and away-from-home discounts.

Cons

• Claims Satisfaction Problems: Many customers report an unsatisfactory experience with Liberty Mutual’s claims process. See how Liberty Mutual handles claims in our Liberty Mutual auto insurance review.
• Average Rates: Liberty Mutual doesn’t have the cheapest student car insurance, but it’s also not the most expensive.

#9 – Farmers: Best Discount Options

Pros

• Personalized Service: Farmers focuses on providing service through agents rather than online. See if the Farmers experience is right for you in our Farmers auto insurance review.
• Discount Options: Farmers offers 23 discounts, including savings for car insurance for college students away from home and students who maintain good grades.
• Signal App: Download Farmers’ Signal app to save up to 30% on your insurance. The Signal app tracks your driving behaviors like hard braking, speeding, and what time you drive.

Cons

• Low Customer Loyalty: Farmers offers plenty of car insurance discounts for college students, but it struggles to keep customers.
• No New Florida Policies: Farmers is one of the many auto insurance companies pulling out of Florida.

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#10 – Progressive: Best for Competitive Rates

Pros

• Budgeting Tools: Progressive makes it easy to stick to a budget with the Name Your Price tool. Learn how Name Your Price works in our Progressive auto insurance review.
• Young Driver Discounts: Find the cheapest auto insurance for college students by taking advantage of Progressive’s youth discounts.
• Snapshot: Snapshot is a highly rated UBI program. Average car insurance for college students rates decrease by about $321 per year with Snapshot.

Cons

• Random Rate Increases: Many Progressive customers report that their rates increased unexpectedly, even if they didn’t file a claim, get into an accident, or receive a traffic violation.
• Snapshot can increase rates. Most UBI programs don’t increase your rates if your driving habits are less than ideal. However, Snapshot can increase your rates.

Auto Insurance Cost for College Students

While USAA offers the cheapest rates, only military members and their families can buy car insurance with the company. So, the company with the lowest rates that doesn’t require anything is Geico.

Geico is always a good bet for low rates no matter what demographics you look at, but it strives to help college and high school students find affordable coverage. Consider the following Geico student discounts:

• Good Student: The Geico good student discount is available if you maintain a B or better GPA.
• Good Driver: You can earn this discount by keeping a clean record for at least five years. That means if you started driving at 16, you might be eligible by the time you turn 21.
• Student Memberships: Geico offers discounts to various sorority, fraternity, and honor society members.

You might also qualify for an alum discount after you graduate if you go to an eligible school.

While you should always compare rates to find the best price, Geico is worth looking at regardless of what type of insurance coverage you need. Of course, you might find cheaper insurance elsewhere, but Geico is likely to have the cheapest car insurance for college students without requiring membership.

Best Auto Insurance Discounts for College Students

While Geico consistently offers low rates, you might find cheaper coverage elsewhere. An excellent place to start looking is the company that has the most student car insurance discounts — State Farm.

To get an idea of how many discounts you might be eligible for with State Farm, consider the following options:

• Drive Safe and Save: This monitoring app allows you to save up to 30% when you practice safe driving habits.
• Steer Clear: Drivers under 25 can complete educational modules, log practice driving hours with a licensed adult, and earn certification to save on their monthly rates.
• Good Driving: Keep your driving record clean of accidents, traffic incidents, and tickets for three years, and you’ll save on your insurance.
• Defensive Driving Course: Take an approved driving course to earn a defensive driving discount.
• Good Student: State Farm offers up to 25% off if you maintain a 3.0 GPA. You can keep a good student discount until 25, even if you graduate before then.
• Student Away-at-School: If you attend a school more than 100 miles from your home address, leave your car at home, and only drive it while visiting, you can earn this discount.

Combine these discounts with other options from State Farm, and you can save quite a bit on your insurance. However, not all discounts are available in every state, so make sure to speak with a representative or check on the State Farm website to see what you might qualify for.

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Auto Insurance for Low-Mileage Drivers

Whether getting to class or work, you might benefit from pay-as-you-go insurance if you spend more time walking than driving. The best company for infrequent drivers is Metromile. While it’s not as famous as State Farm or Geico, you can find serious savings with Metromile if you don’t spend much time behind the wheel.

With Metromile, you’ll get a base price for your insurance. That price is what you’ll pay each month, no matter what. You’ll also get a per-mile fee, meaning the less you drive, the less you’ll pay. According to Metromile, drivers who put fewer than the national average of 12,000 miles per year on their vehicles will save. However, Metromile is only available in eight states:

• Arizona
• California
• Illinois
• Washington
• Virginia
• Pennsylvania
• Oregon
• Pennsylvania

If you live in a state where Metromile does not operate, ask your current provider about a low-mileage discount.

Wondering what happens if you drive home for a holiday break? While it depends on the state, Metromile usually stops charging you after 250 miles in a single day. This allows you to drive home or go on vacation without having to worry about losing too much money.

Best Auto Insurance App for College Students

A company can offer the best insurance for students, but it won’t count for much if it’s hard to access. Young drivers rely on technology more than ever, and many insurance companies have developed robust apps in response. Perhaps the best car insurance app on the market is Allstate Mobile.

Allstate Mobile gives you access to your policy information, allows you to start and manage claims, and can help get you in contact with an insurance representative. However, the Allstate app does more than manage your policy. It has a wealth of other features students might find helpful:

• Drivewise: You can turn on Allstate Drivewise to monitor your driving habits and save up to 40% on your insurance.
• Roadside Assistance: If you’re stranded on the side of the road, you can get help by clicking a button. Allstate offers on-demand aid, meaning you don’t need roadside assistance on your policy to get help.
• Crash Detection: When the app detects a crash, you’ll get a notification to offer assistance. First, it asks if you need 911. Then, it offers to start a claim or take you to roadside assistance.
• Digital Footprint: This free Allstate tool lets you explore what types of information companies collect and see your digital identity.
• QuickFoto Claim: To shorten the process, use your phone’s camera to take pictures after an accident and upload them to your Allstate claims representative.

You can also pay your bill, set up auto-pay, and access your insurance cards through the app. Although Allstate might not be the cheapest car insurance for students, its mobile app can help students navigate their policies confidently.

How Age Affects Auto Insurance Rates

Car insurance companies use several factors to determine your rates. One of the biggest is age, with average car insurance rates by age seeing significant variation.

The chart below shows the difference in average full coverage auto insurance rates for 18- and 25-year-old drivers.

Teen Full Coverage Auto Insurance Monthly Rates by Provider, Age, & Gender

Check below for cheap car insurance for students, but remember that your actual rates will differ based on other factors.

Cheapest Car Insurance for 18-Year-Old College Students

Although turning 18 means you’re officially an adult in most states, car insurance companies are still wary. At best, 18-year-olds have two years of driving experience, which isn’t a lot of history to look at. For that reason, 18-year-olds need to spend a little more time finding the best auto insurance companies for teens.

Here are the average monthly rates for car insurance for 18-year-old college students.

Full Coverage Auto Insurance Monthly Rates for 18-Year-Old Drivers by Provider & Gender

You might notice in the table above that your rates will vary significantly based on whether you have an individual policy or if a parent or guardian adds you to theirs.

For example, Geico has the cheapest rates for an 18-year-old driver added to an existing policy, while State Farm offers lower rates for individual plans.

Cheapest Car Insurance for 19-Year-Old College Students

The last year of your teens will see slightly lower rates, but not by much. Whether a first- or second-year student, it can be hard to find cheap auto insurance for students as a 19-year-old, especially since many people at this age need individual coverage.

This highlights the importance of shopping around for insurance quotes — other factors like your location, credit score, and discount eligibility can make one company’s rates better for you. 

Although prices can be high, it’s important to follow auto insurance laws in your state. Driving without enough coverage can have serious consequences, including fines, higher insurance rates, license suspension, and even jail time.

Cheapest Car Insurance for 20-Year-Old College Students

Although you might have up to four years of driving experience at 20, car insurance companies still consider you an inexperienced driver. For that reason, 20-year-olds still see relatively high rates. However, it’s much easier to find cheap auto insurance for 20-year-olds than it is for teens.

Once again, Allstate, Geico, and State Farm have similar rates. Although insurance is expensive when you’re 20, keep your driving record clean — your rates will drop in a few short years.

Cheapest Car Insurance for 21-Year-Old College Students

Traditional college students might start their senior year as 21-year-olds. Turning 21 comes with a lot of responsibility, especially with safely managing legal access to alcohol. Finding cheap auto insurance after a DUI can be almost impossible, especially for young drivers.

You might think that turning 21 would increase your rates due to it being the age where people can start drinking, but your rates should continue to drop.

Twenty-one is the first age when some companies offer average student car insurance quotes for under $2,000 a year. That number will only keep dropping if you keep your driving record clean — the average 25-year-old driver pays about $1,400 for insurance per year.

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How to Save on Auto Insurance as a College Student

After seeing how much companies charge, it might feel impossible to find cheap car insurance for college students. While rates are certainly higher, there are ways you can lower your bill.

Comparing quotes is the first step in finding affordable coverage. Most companies make getting a quote easy — simply fill out a quote request form on their websites.

Consider the following tips to save money on your car insurance, but remember that the best way to keep your rates down is to keep your driving record clean.

Stay on a Parent or Guardian’s Policy

Many college students find themselves asking if a parent or guardian’s car insurance covers them. One of the best ways to lower rates for young drivers is to keep them on an existing family policy.

Most students can save up to half what they would pay by themselves as long as other drivers on the policy have clean records.

Adding a student to a pre-existing policy usually results in lower rates because other drivers on the plan have longer driving histories. This is especially true if the parent or guardian has been a customer of the company for a long time.

Adding a student to a policy only works when the student is considered a home resident. This counts for students still living at home and those who spend the school year on campus. However, you won’t be eligible to be added to a parent or guardian’s plan if you live alone.

Explore Low-Mileage Discounts

If you drive less than the average American, looking at cheap auto insurance for occasional drivers is a great way to save on car insurance. Low-mileage students have a few options to save.

First, look for student-away-from-home discounts. Although every company is different, you typically need to attend a school more than 100 miles away from your primary residence and leave your car at home.

Make sure to check eligibility requirements for a student away from home discount, as many companies only extend this discount to students under 25 years old.

You can also consider a low-mileage discount. Not every company offers one, but you can ask a representative to check. Usually, you need to drive fewer than 40 miles a day to qualify.

Usage-based insurance monitors your driving behaviors, including your miles driven, what time of day you drive, and habits like hard braking or speeding. You can earn lower rates with usage-based insurance if you’re a safe driver.

Keep Your Grades Up

Most companies offer a car insurance discount for good students who maintain a high GPA. While many providers want to encourage their customers to do well in school, there’s another reason behind this popular discount.

Insurance companies keep careful track of claims numbers, and the data shows that students who do well in school are less likely to file a claim. Whatever the reason for the discount is, it’s a helpful way of saving money. To be eligible, you must meet the following criteria:

• Be a full-time student
• Be under 25
• Maintain a 3.0 GPA, or rank in the top 20% of your class, or rank within the top 20% of certain test scores

Since most companies offer this discount, you’ll probably find it wherever you go. First, however, make sure to ask an insurance representative to double-check that you’re getting your discount.

Compare Auto Insurance Quotes

Whether you’re a 16-year-old with a brand-new license or an 80-year-old with decades of experience, shopping for quotes is a vital step in getting cheap car insurance.

Car insurance companies look at the following factors when determining your rates:

• Age: Age is a factor regarding auto insurance rates. Young drivers are more likely to get into accidents, and older drivers face age-related issues like decreased reaction time.
• Claims History: If you’ve filed multiple claims, you’ll have higher insurance rates.
• Credit Score: Drivers with lower credit scores are more likely to file claims or miss payments. If your score is low, you should consider the best auto insurance companies for drivers with bad credit.
• Driving History: Traffic tickets, accidents, DUIs, and other similar charges will raise rates. Auto insurance companies check your driving record to determine rates.
• Gender: Auto insurance rates are different for men and women drivers. Men tend to pay higher rates than females, as statistics show men get into more accidents.
• Vehicle Model and Make: When setting rates, insurance companies consider safety ratings, crash statistics, and the vehicle’s overall expense.

These factors combine to make unique insurance quotes for you, which is why not all college students pay the same amount for their insurance. To further complicate things, companies treat factors differently.

If you pick the first company you look at, you’ll likely pay much more for the same coverage you could find elsewhere. That’s why comparing quotes from at least three companies is integral, especially since young drivers pay much higher rates.

Find the Best Auto Insurance Companies for College Students Today

From the first day of classes to graduation, college students face many challenges. While those challenges are usually opportunities to grow, one challenge you can skip is finding affordable college student car insurance.

You can find affordable coverage by learning how to evaluate car insurance quotes, student discounts, and usage-based plans. Make sure to compare plans with as many companies as possible by entering your ZIP code into our free comparison tool below to ensure you find the cheapest rates.

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