Being a student these days isn’t cheap. According to the College Board, the average cost of college tuition at a four-year, in-state public university for 2024-25 was $11,610.
Another essential that can be pricey for young folks is car insurance. Young drivers ages 16 to 25 pay much more for car insurance than older drivers. Drivers who are 18 pay $5,249 per year for their own full coverage insurance policy, which is a great deal higher than the national average of $1,895 for a 40-year-old driver. Young drivers have less experience, which puts them at higher risk.
Selecting the best car insurance for college students hinges on several factors, including where the young driver lives, how often he or she is behind the wheel and who owns the car. These factors all come into play when determining student auto insurance coverage rates.
CarInsurance.com Insights
- An 18-year-old driver pays $5,249 a year for a full-coverage car insurance policy — $3,354 more than the national average of $1,895 for a 40-year-old driver.
- The average cost of full coverage car insurance in the U.S. for a 19-year-old purchasing their own policy is $4,126 a year.
- If you still live at home or attend school in-state, staying on your parents’ policy is cheaper than buying your own.
- Depending on the insurance company, college students can get a good student discount of about 12.5% on insurance if they keep their grades up.
Average car insurance rates for college students (ages 18-22)
The average cost of a full coverage auto insurance policy for an 18-year-old is $5,249 annually. At age 19, drivers pay $4,126 on their own full-coverage policy. At age 20, it’s $3,739; $3,094 at age 21 and $2,858 at age 22.
Note that Hawaii and Massachusetts don’t allow insurance companies to use age as a rating factor.
Car insurance for 18-year-old college students
According to a 2022 CarInsurance.com data analysis, the average auto insurance for an 18-year-old who is on his or her own policy is $5,249 for full coverage.
This rate is a staggering $3,354 higher than the national average of $1,895 for 40-year-old drivers in the U.S. That being said, the average rate for 18-year-olds is far lower than the cost for 16-year-olds, which is $7,149 per year and $596 per month.
Let’s take a closer look at car insurance rates for 18-year-olds:
- State minimum coverage: $1,480
- Liability limits of 50/100/50: $1,799
- Liability limits of 100/300/100, with comprehensive and collision coverage and a $500 deductible: $5,249
Car insurance for 19-year-old college students
The average cost of car insurance in the U.S. for a 19-year-old taking out their own policy is $4,126 on their own full-coverage policy. It’s less expensive than car insurance rates for 18-year-old drivers, but nearly $2,231 higher than the U.S. average of $1,895 for the 40-year-old set.
Breaking it down even further:
- State minimum liability coverage: $1,135
- Liability coverage with limits of 50/100/50: $1,387
- 100/300/100 liability with a $500 comprehensive and collision deductible: $4,126
Car insurance for 20-year-old college students
The average car insurance rate in the U.S. for a 20-year-old on their own full coverage policy is $3,739, which is $1,728 more than the national average ($2,012) for drivers who are 30.
- State minimum liability coverage: $1,005
- Liability coverage with limits of 50/100/50: $1,233
- 100/300/100 liability with a $500 comprehensive and collision deductible: $3,739
Car insurance for 21-year-old college students
See the costs below for 21-year-old drivers at various coverage levels on their own policies.
- State minimum liability coverage: $817
- Liability coverage with limits of 50/100/50: $1,009
- 100/300/100 liability with a $500 comprehensive and collision deductible: $3,094
Car insurance for 22-year-old college students
See the costs below for 22-year-old drivers at various coverage levels on their own policies.
- State minimum liability coverage: $752
- Liability coverage with limits of 50/100/50: $934
- 100/300/100 liability with a $500 comprehensive and collision deductible: $2,858
What factors affect car insurance rates for college students?
Insurance rates vary for college students depending on several different factors in addition to their age.
Gender
Young females in most states pay lower rates than their male counterparts, but this practice isn’t allowed in the following states: California, Michigan, Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania.
Driving history
You’ll need a clean driving history to get cheap car insurance as a college student. Rates go up after an accident and for violations like speeding, texting while driving and driving under the influence.
Vehicle type
Car insurance will cost college students more for certain types of vehicles, such as sports cars and luxury cars. Those vehicles tend to cost more to repair or replace. Smaller, safer, less expensive cars tend to cost less to insure.
Location (campus vs. home ZIP code)
Students who go away to school and leave their car at home may be able to save money on insurance. On the other hand, if you go to school in a different ZIP code and bring your car, you may see a premium increase, especially if that area is more densely populated.
Credit score
Most states allow insurers to use a driver’s credit history to inform their rate setting, but California, Hawaii, Michigan and Massachusetts prohibit this practice. Furthermore, the following states prohibit a lack of credit history as a factor for premiums: Alabama, Delaware, Florida, Illinois, New Mexico, Oklahoma, Texas, Vermont and Washington.
Drivers with better credit scores tend to pay less than drivers with a poor credit history.
How can college students find the cheapest car insurance?
Here are some ways to get affordable car insurance for college students:
Try to stay on mom and dad’s insurance policy
If you still live at home or are going to school in-state and a parent’s name is also on the title, it should be easy to remain on their car insurance policy instead of having the expense of getting your own.
Carry only the state minimum coverage
If your car is older and you own it outright, you can save by not carrying collision or comprehensive coverage – if you can afford to fix the car if it is damaged or replace it. If you have assets to protect, it is recommended that you carry higher liability limits.
Try usage-based or telematics auto insurance programs
As a conservative driver, you can save a few hundred dollars annually. However, if you are aggressive, drive during high-risk hours, or put a lot of miles on your car, you may not qualify for a discount.
Here’s what you should know about usage-based insurance and telematics
Comparison shop for car insurance as a college student
If you’re getting your own policy, the best way to save is to compare car insurance quotes from at least four companies for the same coverage levels, says Terrance Odean, a professor of finance at the University of California, Berkeley.
Choose a high deductible
Odean says you should choose a higher deductible on collision and comprehensive coverage if you can afford it. Consider a deductible as high as you can afford to pay out of pocket without causing financial distress.
“If you drive an old junker that you could afford to replace, you can save money by not getting collision and/or comprehensive coverage,” Odean says.
| Company | Age | Liability Only | Full Coverage | State Minimum |
|---|---|---|---|---|
| Allstate | 18 | $2,154 | $6,871 | $1,865 |
| Allstate | 19 | $1,598 | $5,170 | $1,359 |
| Allstate | 20 | $1,404 | $4,728 | $1,194 |
| Allstate | 21 | $1,169 | $3,896 | $979 |
| Allstate | 22 | $1,088 | $3,604 | $904 |
| Farmers | 18 | $3,314 | $7,903 | $2,462 |
| Farmers | 19 | $2,117 | $5,155 | $1,613 |
| Farmers | 20 | $1,882 | $4,715 | $1,398 |
| Farmers | 21 | $1,455 | $3,728 | $1,121 |
| Farmers | 22 | $1,355 | $3,418 | $1,026 |
| GEICO | 18 | $1,475 | $4,644 | $1,146 |
| GEICO | 19 | $1,165 | $3,759 | $899 |
| GEICO | 20 | $1,039 | $3,387 | $796 |
| GEICO | 21 | $825 | $2,764 | $628 |
| GEICO | 22 | $763 | $2,508 | $578 |
| Nationwide | 18 | $2,191 | $5,173 | $1,914 |
| Nationwide | 19 | $1,748 | $4,209 | $1,521 |
| Nationwide | 20 | $1,517 | $3,652 | $1,333 |
| Nationwide | 21 | $1,068 | $2,551 | $908 |
| Nationwide | 22 | $953 | $2,312 | $809 |
| Progressive | 18 | $2,352 | $7,037 | $1,902 |
| Progressive | 19 | $1,552 | $4,591 | $1,232 |
| Progressive | 20 | $1,373 | $4,171 | $1,090 |
| Progressive | 21 | $1,112 | $3,401 | $883 |
| Progressive | 22 | $1,029 | $3,109 | $818 |
| State Farm | 18 | $1,725 | $5,077 | $1,433 |
| State Farm | 19 | $1,446 | $4,353 | $1,193 |
| State Farm | 20 | $1,288 | $3,922 | $1,055 |
| State Farm | 21 | $1,097 | $3,367 | $892 |
| State Farm | 22 | $1,004 | $3,111 | $810 |
| Travelers | 18 | $1,603 | $4,296 | $1,332 |
| Travelers | 19 | $1,275 | $3,476 | $1,063 |
| Travelers | 20 | $1,127 | $3,108 | $938 |
| Travelers | 21 | $941 | $2,562 | $776 |
| Travelers | 22 | $875 | $2,375 | $721 |
Notes:
- Liability Only: Liability coverage limits of 50/100/50
- Full Coverage: Liability coverage limits of 100/300/100 with $500 comprehensive/collision deductibles
Best car insurance companies for college students
Our editors researched insurance companies that offer notable car insurance for young drivers, many of which include ways to save on coverage.
Here is a list of major carriers for teens:
- AAA: In addition to coverage and discounts, AAA members get 24-hour roadside assistance. AAADrive, AAA’s safety feature, allows parents to set certain driving parameters and restrictions to help keep students safe on the road. Another standout feature: AAA offers its young drivers online teen driving resources. Plus, a parent/teen agreement is available.
- Allstate: If you’re keeping the car at your parents’ house and their name is on the title, you can keep car insurance coverage under their policy.
- American Family: American Family also offers the option of keeping your car insurance policy under your parents’ coverage if you leave the car at home and attend school more than 100 miles away.
- Auto-Owners: Auto-Owners offers a handful of great discounts: up to 20% for good students, a teen driver monitoring program and a student-away discount.
- GEICO: GEICO offers affordable rates and a convenient app to make it easy for young drivers to manage their policies and file claims.
- Liberty Mutual: Twenty-four-hour roadside assistance is available for teen drivers, as is a good student discount.
- Progressive: Progressive’s Snapshot program can help determine whether you were distracted while on the road and can offer rewards for good driving habits.
- State Farm: State Farm’s Steer Clear program helps young folks on the road improve their driving skills and raise savings simultaneously.
What is the best car insurance for college students?
To pick the best car insurance for a college student, consider where they will live during the school year and whose name is on the vehicle’s title. If the student will live at school during the year, consider whether they will bring their car with them and travel home for breaks.
Use the following chart to decide whether a college-age driver should stay on their parents’ policy or sign up for their own insurance policy.
| Attends college | Holds title to car | Lives at home | Drives year-round | Drives during visits home | Suggested policy |
|---|---|---|---|---|---|
| Out of state | No | No | Yes | Yes | Parent Policy |
| Out of state | No | No | No | Rarely | Parent Policy |
| In town | Yes | Yes | Yes | Rarely | Student Policy |
| In town | No | Yes | Yes | N/A | Parent Policy |
| In state | Yes | No | Yes | Rarely | Student Policy |
| In state | No | No | Yes | Rarely | Parent Policy |
| 100+ miles from home | No | No | No | Yes | Parent Policy |
| 100+ miles from home | Yes | No | No | Yes | Student Policy |
How to buy car insurance for college students
Call your insurance agent or broker to ask about adding your college student to your policy and whether they qualify for discounts. To buy a student a new policy of their own, you can request a quote from several different insurance companies to find one that works for your situation and budget.
Get started with our insurance comparison tool to see which insurers provide the best coverage for college students at an affordable price.
How can college students get discounts on car insurance?
The discounts you can qualify for as a college driver depend on your insurance company. Also, not all discounts are available in all states, which is something you’ll want to keep in mind when shopping for car insurance.
Here are some common ways to save on driver’s insurance when you’re a college student:
Get good grades
The good student discount for keeping up your GPA averages 12.5%, depending on your auto insurer.
Live far from home
You might be eligible for a student-away discount if you live within 100 miles of your parents’ home and leave your car there. And you only use the car on weekends, holidays and vacations when you’re home.
A student-away discount averages about 16%. If this scenario applies, you can snag a discount on your own policy. Some insurers allow you to stay on your parents’ insurance, which is usually cheaper.
Ask about discounts for student organizations
Suppose you belong to a sorority or fraternity or are a member of an organization such as the American Medical Student Association or American Student Dental Association. In that case, you might be able to save some money.
See if you qualify for a multi-policy discount
If you’re away for college and are renting an apartment, some insurance companies offer savings if you bundle your renters and auto insurance with average savings of 6%.
Ask about discounts for safety features
If you install an anti-theft device in your car, this could bump down the cost of your car insurance 1.05%. Additional discounts include:
| Discount | Savings |
|---|---|
| Airbags | 1.43% |
| Anti-lock brakes | 4.20% |
| Back-up sensor | 4.37% |
| Daytime running lights | 2.35% |
| Driver alertness monitor | 2.59% |
| Lane departure warning | 0.88% |
| Rearview camera | 0.88% |
Learn more: Car insurance discounts for students
Can college students stay on a parent’s car insurance policy?
It depends. If you still live with your parents, go to school in-state or a parent’s name is on your vehicle’s title, you can. It’s typically recommended you do so because it’s far less expensive than buying your own insurance policy.
Another perk is that the policy’s coverage or scope will likely be higher than a bare-bones student policy. Plus, your parents will likely qualify for a multi-driver discount.
While auto insurance for college students can be significantly higher than for older, more experienced drivers, there are ways to keep your costs down. This entails seeing if you can stay on your folks’ insurance, figuring out what type of coverage best suits you and finding ways to save.
Frequently asked questions
Do college students need to change their car insurance when moving to another state?
Students may be able to keep their car insurance even when attending school in another state. If the vehicle is titled in a parent’s name and remains at home during the school year, the student may be able to stay on the parent’s policy. However, if the student’s vehicle is titled in their name and they reside year-round in another state, they may need to change their insurance.
What happens if a student drives a car that is not listed on their insurance policy?
Although occasionally borrowing a car is OK, every driver who lives at a residence should be listed on the car insurance policy. Insurers could refuse to cover a claim if they find that a student not listed on the policy regularly drives a listed vehicle.
Can part-time college students qualify for student discounts?
Part-time students may be eligible for some student discounts, especially if they can prove enrollment as an active student at an accredited school. However, many insurers, such as Progressive, require the student to enroll full-time to qualify for the discount.
What is a distant student discount, and who qualifies?
A distant student attends college more than 100 miles away from home but doesn’t bring their car to college. To qualify for a distant student discount, you must meet age requirements, usually 22 or younger. You may need to prove full-time enrollment at an accredited university.
Is it cheaper to temporarily remove a college student from a family policy?
You can save money by temporarily removing a college student from the family insurance policy. However, it’s vital to note a few things about this tactic. First, some insurers will not allow you to remove a driver still considered a resident at your address.
Second, if you remove your student from your policy, they should have their own coverage if they are going to drive. If they depend on someone else’s coverage while borrowing a vehicle, they could find themselves insufficiently insured and on the hook for serious expenses after an accident. Third, you must add your student to your policy whenever they’re home.
Resources & Methodology
Sources
- AAA Drivers. “Teen Drivers – AAA Student Membership.” Accessed June 2025.
- Centers for Disease Control and Prevention (CDC). “Keep Teen Drivers Safe.” Accessed June 2025.
- College Board. “Trends in College Pricing and Student Aid 2024.” Accessed June 2025.
- Insurance Information Institute. “How Can I Save Money on Auto Insurance?” Accessed June 2025.
- National Association of Insurance Commissioners (NAIC). “A Shopping Tool for Automotive Insurance.” Accessed June 2025.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get auto insurance rates for male and female drivers aged 18-22 who drive a Honda Accord LX with a clean driving record and a good insurance score. To evaluate the insurance rates, we have compared 53,409,632 insurance scores of 170 insurance companies across 34,588 ZIP codes. The insurance rates are for comparison purposes only; your exact rates may vary.
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