Best College Student Auto Insurance in 2024

Between Allstate’s flexible student discount and its pay-per-mile option, it’s a good choice for students who need to take their vehicle to school. Because attending school away from home is just one way to earn its student discount, you won’t miss out on a specific away-from-home discount. And its pay-per-mile option can save occasional drivers who still need their car at school a lot of money.

Smart Student Discount

Many companies offer student discounts, but Allstate stands out for offering several paths to earning the discount.

If you are under 25 and unmarried, you can qualify for Allstate’s Smart Student Discount if you meet any one of these three conditions:

• You have a GPA of at least 2.7 as a full-time student (most companies require a 3.0 GPA)
• You complete Allstate’s TeenSMART safe driving course (available in all states except Hawaii, Louisiana, Massachusetts, Minnesota, New Jersey, New Mexico, North Carolina, and Vermont)
• You attend school more than 100 miles away from where your parents house the car. (Note: Your car’s title must be in the name of your parent or guardian.)

Because of its flexible nature, the Smart Student Discount can provide significant savings for many types of students. If you are a part-time student, you can still save by completing a safe driving program. If you live close to home, you can still save by getting good grades.

Such diverse options make Allstate’s student discount more compelling than other insurance providers’ offerings. Older or married students are disqualified from receiving this deal, though older, married people receive lower rates than teens in general.¹

Pay-Per-Mile Insurance Coverage

Some students do not use their car on a regular basis. Perhaps you drive home a few times a semester, but you don’t need to drive to class every single day. In that case, Allstate’s pay-per-mile insurance, Milewise, may be the most affordable student option.

With Milewise, you pay a daily base rate as well as a per-mile rate instead of a preset monthly or annual premium. For instance, if your daily rate is $1.50 and you pay $.06 per mile, here’s what you might pay for insurance per month:

Allstate caps its mileage charge at 250 miles per day, so you won’t pay extra for driving a longer distance in a single day. And if you’re still on your family policy, Allstate lets you choose which vehicles are classified as pay per mile, so your parents can keep their regular policy.

For certain low-mileage students, this option can save up to 72 percent annually. Be sure to calculate how many miles you drive during your daily life as a student, on average, before you choose this plan.

Milewise is available in the following states: Arizona, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin, and Washington D.C.

Accident Forgiveness Add-on

Part of the reason the cost of auto insurance is so high for young drivers is that they are more likely to get into an accident. According to the National Safety Council, drivers age 16 to 19 account for nearly 10 percent of drivers in crashes, despite making up only 3.6 percent of total licensed drivers. Similarly, drivers age 20 to 24 account for 13.5 percent of drivers in crashes, while representing only 7.5 percent of total licensed drivers.²

After an at-fault accident, auto insurance costs typically rise by 40 to 50 percent. When you purchase accident forgiveness, your rates won’t increase after an accident, even if it was your fault.

Allstate lets you purchase this coverage right off the bat, and protection kicks in the day you sign up. Many companies require drivers to have an accident-free record for three to five years before they can purchase accident forgiveness, which may not be possible for college students, many of whom have had their license for only a few years.

Accidents happen to even the safest of drivers, which is why we generally recommend college students and their families purchase this coverage.

State Farm is the nation’s largest insurance provider and has particularly good rates for students in their early college years. We like it for its easy claims process, high-quality mobile app, and multiple discounts for safe drivers.

Steer Clear Safe Driver Program

State Farm offers a program called Steer Clear to help young adults sharpen their driving skills and save on their premiums. To qualify for Steer Clear, you must meet these requirements:

• Be under the age of 25.
• Have a valid driver’s license.
• Have zero at-fault accidents or moving violations on your record in the past three years.
• Complete five modules in an app within six months of starting the program.
• Complete five hours of driving in at least 10 trips.³

Once you complete the program, State Farm automatically sends your certification to your insurance agent, who will then apply a discount to your coverage. This program helps younger students improve their driving and save up to 15 percent on car insurance.

Good Student Discount

State Farm offers a solid discount for high-achieving students, but it is slightly less flexible than Allstate’s version. This discount is available if you are a full-time student under age 25 and meet one of the following conditions:

• You are in the top 20 percent of your class.
• You have an average grade of B or higher.
• You have a GPA of 3.0 or higher.
• You made the dean’s list or honor roll the preceding semester.

Not only is this option a bit more restrictive than Allstate’s, but the grade requirements are slightly higher. Still, it represents a solid route to savings for young students who get good grades in their full-time programs.

Student Away at School Discount

If your parents list you on their State Farm car insurance policy and you don’t need to use a car while at school, you may qualify for State Farm’s Student Away at School discount. In order to participate in your program, you must meet these criteria:

• You live at school, more than 100 miles away from home.
• You drive your car only while visiting home during breaks.
• You keep your car at home while at school.
• You are under age 25.

It’s a great option for students who live on walkable campuses and want to avoid the hassle of bringing a car to school.

With the exception of USAA (which requires a military affiliation), GEICO has the lowest rates for college students on our list. It’s a budget-friendly choice for students buying a policy separate from their family.

Low Rates for Students on Their Own Policy

Students will pay more for their own policy than they would on a family policy. GEICO is known for its affordability, and its rates for college students are no exception. College students on their own policy will pay an average of $3,799 annually, which is less than the national average of $4,668.

A downside of GEICO is that the company does not underwrite its own home or renters policies, and its bundling discount is not as high as those of some other companies; however, this may be less of a concern to college students who live on campus and don’t need renters insurance.

Good Choice for Students with Old Cars

GEICO is a good choice for those planning to purchase full coverage and minimum coverage alike, though college students who drive an older car will see the biggest savings, as they can sometimes drop collision and comprehensive coverage.

Many students drive used vehicles, which are not only cheaper to insure, but may not be worth insuring with comprehensive and collision. If your car’s value is minimal and you have a high deductible, you may be better off saving the money you would spend on collision and comprehensive premiums. For example, let’s say your car is worth $3,000 and your deductible is $1,000. On average, collision and comprehensive add about $1,000 to $1,500 to your annual premium. If you pay $3,000 for these coverages over two years, then get into an accident and pay a $1,000 deductible, you’ll have shelled out $4,000 in total, which is more than the value of your car.

If your vehicle is more than 10 years old, has over 100,000 miles, or is worth less than a few thousand dollars, and you have a deductible of $1,000 or more, it’s worth considering the value of comprehensive and collision coverages.

It’s important to note that if you financed your vehicle, your lender may require you to hold collision and comprehensive coverages. And keep in mind that if you drop these coverages and get into an accident or your car is stolen, you’ll have to pay out of pocket.

Affiliation and Good Student Discounts

GEICO offers discounts to members of over 500 organizations, including fraternities and sororities. If you’re a member of Greek life, you can check GEICO’s website to see whether you’re eligible for a discount.

GEICO’s extensive discount list also includes a 15 percent Good Student Discount for drivers who meet the following criteria:

• Under age 25
• Full-time student
• B average (3.0 GPA) or higher

GEICO does not state marital requirements for the Good Student Discount, though some customers report that female drivers must be unmarried, while male drivers can be married or unmarried to qualify.

USAA has the lowest rates for college students, and with high customer and claims satisfaction scores, the company doesn’t compromise on quality of service. The company sells insurance exclusively to military members and their families.

Eligibility

USAA is available only to individuals affiliated with the U.S. military and their families. This includes:

• Active duty, National Guard, and reserve members
• Veterans
• Contracted cadets and midshipmen attending a U.S. Service Academy, affiliated academy preparatory school, or advanced ROTC program
• Officer and warrant officer candidates

If you, your parent, or step-parent falls into any of these categories, you are eligible for USAA membership. If you are not in the military, your parent or step-parent must sign up for USAA before you can become a member.

The following family members are eligible:

• Spouses
• Former spouses and widows who have not remarried
• Children and step-children

For example, if your parent is divorced from a military step-parent and isn’t remarried, they likely qualify for USAA membership.

The following groups are not eligible for USAA membership:

• Siblings of military members
• Family members of dishonorably discharged military members

Good Student Discount

USAA’s Good Student Discount has similar requirements to those of other providers. To qualify, applicants must meet these conditions:

• You’re between the ages of 16 and 25.
• You’re enrolled full time at a college or university.
• You’re a high-achieving student with one of the following qualifications:
  • Top 20 percent of your class
  • B average or higher
  • GPA of 3.0 or higher
  • Honor roll or dean’s list

Note that this discount does not renew automatically. You will have to reapply each year to prove you are eligible. The discount is not available in Hawaii or North Carolina.

Family Discount for Your First Insurance Policy

If your family has had a USAA insurance policy for at least three years, you can get a legacy discount of up to 10 percent on your first individual auto insurance policy. To qualify, you must be under age 25 and have had a cleaning driving record for at least three years.

USAA’s family discount is a great value for students moving away from home who are off their family’s policy for the first time.

Insurance companies already consider young drivers risky to insure, and if you also have a DUI or another major violation, standard insurance companies may turn you down. Direct Auto specializes in high-risk auto insurance and is a good choice for college students who have trouble finding coverage elsewhere.

Good Student Discount

Direct Auto’s Good Student Discount provides up to 10 percent off your car insurance if you meet all of the following conditions:

• You are unmarried.
• You are a full-time student.
• You are an honor student, are on the dean’s list, have a B average or higher (3.0 GPA), or are in the top 20 percent of your class.
• You live in a state where Direct Auto offers the Good Student Discount: Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, or Washington.⁴

While it may be slightly less flexible than other companies’ student savings offerings, Direct Auto’s Good Student Discount is unique in that it is available for nontraditional adult students. If you are headed back to school for a career change or a master’s program, you may qualify for savings even if you are over the age of 25.

Flexible Payment Options

Direct Auto offers some of the most customizable payment options in the industry, which is helpful for college students strapped for cash or those with nontraditional income streams. The company lets you choose the day of each month on which you’d like to make your payment, helping you align it with payday.

Another way to reduce monthly costs is to elect to pay more upfront as a down payment, which could be a good option if you have the cash from a graduation gift or a paid summer internship.

Additionally, Direct Auto provides some of the most flexible ways to pay your premium. You can auto-pay online with a credit or debit card, pay by e-check, or even pay with cash at a local Direct Auto or partner location — options that can benefit students, who often have cash-based income.

Multi-Car Discount

If you plan to stay on your parents’ insurance while at school, Direct Auto’s multi-car discount can help you save up to 25 percent on your premium. The typical multi-car discount is 10 to 25 percent, placing Direct Auto’s at the top of the range. Just make sure that each vehicle on the plan is registered in the same household and to the same policyholder. And parents, learn how to add your teen to your policy.