College is expensive: Besides tuition, housing, books and lab fees, many college students have to figure out how to pay for car insurance. Considering young drivers pay the highest premiums of any demographic, we're not talking about a small chunk of change.
Fortunately, there are insurance companies with more affordable rates for students — plus discounts for keeping your grades up, leaving your car at home, volunteering and more.
CNBC Select has picked the top car insurance companies for college students, based on price, coverage options, availability and other criteria. (See our methodology for more information on how we made our picks.)
The best student car insurance
- Best for affordability: Geico
- Best for customer satisfaction: State Farm
- Best for students leaving their cars at home: Progressive
- Best for students on their own insurance: Auto-Owners
- Best for pay-per-mile coverage: Milewise from Allstate
- Best for high-risk drivers: American Family Insurance
- Best for military families: USAA
Best for affordability: Geico
Who's this for? Thanks to a multitude of student discounts, Geico has the lowest average rate of the companies we reviewed for young drivers on their parents' insurance.
Student discounts: Geico's good student discount is worth up to 15% and you can also get a rate reduction by leaving your car at home, completing a driver education course or being in the military or select student organizations.
Average annual cost for 18-year-old on parents' policy: $3,996
Average annual cost for 20-year-old driver on their own insurance: $4,260
- 16 discounts are available to lower premiums
- Easily purchase and manage policy online
- Policy add-ons can include roadside assistance and mechanical breakdown insurance
- No gap insurance
- Few branches for in-person services
- Ranks below average for customer service and claims on J.D. Power surveys
Best for good student discount: State Farm
Who's this for? While many insurers will lower your rates if you keep your grades up, State Farm's good student discount is worth up to 25% off, the highest of any provider we reviewed.
Student discounts: In addition to State Farm's good student discount, drivers under 25 with no at-fault accidents in the past three years may be eligible for the Steer Clear driver discount program. There is also a distant student discount and a rate cut for drivers under 21 who complete a driver education course.
Average annual cost for 18-year-old on parents' policy: $4,738
Average annual cost for 20-year-old on their own insurance: $5,143
State Farm Auto Insurance
Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
Discounts
More than a dozen discounts, including for safe driving, bundling and good students. Drive Safe & Save program offers up to 30% off for lower mileage and safe driving habits.
Availability
State Farm liability car insurance is available nationwide except for Massachusetts and Rhode Island.
Terms apply.
Read our State Farm auto insurance review.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires 9 years accident-free
- Have to work with an agent to buy a policy..
Best for students leaving their cars at home
Who's this for? Progressive allows student drivers to pause collision coverage if they leave their car at home. You'll still keep comprehensive coverage, which covers theft and weather-related damage.
Student discounts: Progressive offers a distant student discount and a good student discount worth up to 10% off in most states.
Average annual cost for 18-year-old on parents' policy: $4,053
Average annual cost for 20-year-old driver on their own policy: $4,329
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Best for students on their own insurance: Auto-Owners
Who's this for? Auto-Owners Insurance had the lowest average rates of any provider we reviewed for young drivers on their own policy.
Student discounts: Auto-Owners offers a distant student discount, as well as up to 20% off for being a good student.
Average annual cost for 18-year-old on parents' policy: $3,516
Average annual cost for 20-year-old on their own policy: $3,755
- Accident forgiveness is an add-on
- High customer satisfaction scores from J.D. Power
- Covers modified cars and vehicles converted for the disabled
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed with an agent
Best for pay-per-mile insurance: Milewise from Allstate
Who's this for? Milewise from Allstate, the company's pay-per-mile car insurance, combines a nominal flat daily rate with a per-mile fee, which can save on premiums for people who don't drive much, like students on campus.
Student discounts: Allstate offers up to 20% off for maintaining a B- average (2.7 GPA) or better, as well as rate reductions for students who leave their car at home and drivers under 25 who complete the teenSMART driver education program. (Note: These discounts may not be available for Milewise.)
Average rates for Milewise not available
Milewise® from Allstate
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Allstate's pay-per-mile program is available in 18 states and works through a mobile app and in-car device that tracks mileage. Premiums are paid for after each trip with an account funded from a credit card on file. Milewise users are only charged for the first 250 miles per day (150 miles in Illinois, Indiana, New Jersey Ohio and Oregon).
Pros
- Only the first 250 miles a day are tracked
- Allstate is rated highly for customer satisfaction by J.D. Power
Cons
- Not available in all states
- Per-mile rate may fluctuate based on driving behavior
Best for high-risk drivers: American Family Insurance
Who's this for? Although only available in 19 states, American Family Insurance has some of the lowest rates for drivers with speeding tickets, DUIs or at-fault accidents on their record.
Student discounts: In addition to a good student discount, American Family has a discount for students who complete 40 hours of volunteer work in a school year.
Average annual cost for 18-year-old on parents' policy: $5,078
Average annual cost for 21-year-old with their own policy: $6,189
- Low NAIC complaint index
- Offers gap coverage
- More than 15 total discounts available
- Ability to bundle home and auto insurance for a discount up to 23%
- Only available in 19 states
- Low customer review BBB rating
- Slightly higher prices than some car insurance competitors
Best for military families: USAA
Who's this for? USAA offers affordable coverage to active service members, veterans and their relatives, making it a smart choice for military families and ROTC members.
Student discounts: USAA's good student discount is worth up to 10% off, although it's not available in Hawaii or North Carolina.
Average annual cost for 18-year-old on parents' policy: $3,683
Average annual cost for 20-year-old with their own policy: $4,456
- Cheapest insurer for liability policies
- Stellar customer satisfaction scores
- Available in all 50 states
- Limited to military families and veterans
- No physical branches
- Customer service not available 24/7
- Safe-driver discount not available in every state
How much is car insurance for college students?
Student car insurance rates vary based on age, location, driving record and other criteria, including whether you qualify for a good student discount.
The biggest factor, however, is whether you are on your own insurance or your parents' plan: The average cost of adding an 18-year-old college student to a parent's policy in 2025 was $2,548 for a male and $2,262 for a female, according to data from Quadrant Information Services and Bankrate.
College students with their own policies paid an average of over $7,000 a year.
What is a good student discount?
Many insurance companies offer a discount to drivers under 25 who are full-time students in high school or college and meet one of the following academic requirements:
- At least a B average, or 3.0 grade point average
- Rank in the top 20% of the class
- Make dean's list, honor roll or comparable standing
Depending on the state and insurer, homeschooled students may also qualify.
You must have proof of your academic performance, like a transcript or report card, and the discount can range from 5% to 25%, depending on the insurer, your state and other factors.
Other car insurance discounts for college students
Depending on your insurer and the state you live in, there are other ways for student drivers to save on premiums.
Distant student discount: Insurers may lower your rates if your college is more than 100 miles away from home and you leave your car behind.
Safe driver discount: Young drivers who go three to five years without an at-fault accident or moving violation may qualify for a discount.
Driver education discount: Some insurers will lower the rates for young drivers who complete an approved defensive driving course.
Volunteer discount: Clocking a specific number of hours performing community service can earn you a discount with some providers.
Military discount: Some insurance companies lower premiums for ROTC members.
Student organization discount: Discounts may be available to members of approved college groups, Greek organizations, honor societies and alumni associations.
And students are eligible for most discounts available to other drivers, including ones for paying in full and upfront, going paperless or installing anti-theft and safety devices. If you live off campus, you may qualify for a bundling discount if you get renters insurance and car insurance from the same provider.
Student car insurance FAQs
Why is car insurance so expensive for college students?
Drivers under the age of 25 pay the highest premiums of any demographic because they have fewer years behind the wheel. Leaving your car at home or maintaining good grades can help lower your rates, however.
How long can a college student stay on their parents' car insurance?
You can usually remain on your parents' car insurance as long as you live at the same address and, in some cases, even if you have a car on campus. If you're going to a college out of state, however, you may be required to have your own insurance. Check with your insurance company for details.
What's the best car insurance for college students?
No one insurance company is the best for every driver or college student. Getting quotes from several insurers and comparing them will help you find the best policy for your unique situation. Our research indicates, however, that Geico, State Farm Personal Auto Insurance SPL LP">State Farm, Progressive, Auto-Owners, Milewise from Allstate, American Family and USAA have some of the best rates for young drivers.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of car insurance products. To research the best car insurance companies for students, we compiled dozens of data points on several car insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best car insurance companies for student drivers, CNBC Select gathered sample premiums for an 18-year-old on their parents' policy with a good student discount and for a 21-year-old getting insurance for themselves.
The sample policy included:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
In addition to sample premiums, we considered available discounts for young drivers, as well as coverage options, the ease of the claims process, state availability, customer satisfaction ratings from J.D. Power and complaint index scores from the National Association of Insurance Commissioners.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
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