Because they lack experience, car insurance is more expensive for new drivers than for anyone else. Adding a high school or college student to your policy can spike your rates up 150% or more, according to the Insurance Information Institute.
A teen with on their own policy could pay double or even triple what their share would be on a family plan.
Thankfully, many major insurers have good-student discounts that reward academic success with lower rates. There are other discounts, too, including for leaving the car behind when heading off to college and being a member of an honor society or Greek organization.
Read the small print, though: There are often age limits and other eligibility requirements, and not all discounts are available in all states.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Geico auto coverage is available in all 50 states and Washington, D.C., with 16 discounts and add-ons like roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Progressive offers an array of riders, including rideshare insurance and a Deductible Savings Bank that deducts $50 each policy period you go without a claim. It also offers mechanical breakdown insurance, which covers unexpected major system failures.
Car insurance discounts for students
Good student discount
Most car insurance companies reward students who get good grades. To qualify, a driver must:
- Be between 16 and 25 years old
- Be a full-time high school or college student
- Maintain at least a B average or achieve a certain score on standardized tests
- Submit proof, such as a current report card, transcript or dean's list letter..
These insurers have the highest publicly reported good student discounts. How much of a reduction an individual student will get depends on the insurer, the state and other factors.
- State Farm: up to 25%
- Allstate: up to 22%.
- Auto-Owners: up to 20%
- Geico: up to 15%.
- Progressive: up to 10%
- USAA: up to 10%
Distant student discount
If your child is going away to school and can get around without a car, many insurance companies offer a distant student discount.
In most cases, they need to be enrolled full-time and living more than 100 miles from home. They'll still be able to use the car on school breaks and holidays, but will be considered an occasional driver
Travelers and Liberty Mutual both offer a discount for students who keep their cars at home.
Travelers Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts.
Liberty Mutual Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Liberty Mutual offers auto insurance policies that are available nationwide and customizable to fit your wants and needs. It also has several discounts to help drivers save, including a discount for bundling home and auto insurance, as well as discounts for students and military members.
Driver training discount
In addition to the good student discount, many insurers offer discounts for completing an approved driver education or defensive driving course.
Given that students and young drivers statistically have a higher accident risk, completing this course demonstrates a commitment to safe driving, prompting car insurance providers to offer discounts as a reward.
Depending on your driver's education program curriculum, you may already be eligible for this discount, but contacting your provider is likely the fastest way to determine your eligibility.
Affiliation discount
Many larger universities negotiate discounts with specific insurers, which can be available to students, staff and alumni.
The same goes for fraternities, sororities, honor societies, religious groups, young professionals and others.
Military discount
Students who are also in the military may earn additional military discounts from certain insurers. Savings opportunities may be available for policyholders who are deployed or who garage their vehicle on base..
POP studen loan refi
Telematics discount
Telematics programs use an app or in-car widget to track turning, braking and other driving habits.
Aimed at drivers under 25, State Farm's Steer Clear program offers lessons, videos, quizzes and even real-world road time for the chance to receive a certificate of completion and a discount of up to 15%.
State Farm Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State Farm is one of the largest auto insurers in the U.S. based on market share. It has an excellent reputation for customer satisfaction and offers discounts for safe driving and young drivers.
Terms apply.
Read our State Farm Auto Insurance review
Car insurance FAQs
Is it cheaper to be on your parents' car insurance?
Yes, it is cheaper for teen drivers to be on their parents' insurance. A full coverage policy for an 18-year-old male is, on average, over 60% more per month than their share of a family policy.
At what age can you get your own car insurance?
In most of the U.S., you have to be 18 or older to buy a car insurance policy. Laws vary, however, so it's worth checking with your state's Department of Insurance or DMV for details. In addition, emancipated minors may be able to purchase insurance, but they'll need to present proof of emancipation to an insurance agent .
How long can you stay on your parents' car insurance?
You can stay on your parents' insurance indefinitely, as long as you live with them or are a full-time college student.
What insurance company has the best student driver discount?
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