Car Insurance For College Students

Families looking for cheap car insurance for college students may not be shocked to learn that student drivers are considered the costliest and riskiest group to insure. Our study shows that the average cost of student car insurance for an 18 year old male buying the state minimum coverage on an independent plan is about $5,400 per year, or $450 per month.

Although differences in car insurance rates are based on many factors, there are several ways to find affordable car insurance for students. Below, we will discuss the factors and discounts affecting car insurance for college students, teenagers, and parents; after all, understanding how insurance companies calculate premiums is the first step to getting the best car insurance for students.

Car Insurance Quotes For Students

The average cost of car insurance for students is extremely high. Fortunately, as students get older and gain more experience, rates get cheaper. This is demonstrated by the fact that car insurance for college students is cheaper than for teenagers. Furthermore, car insurance quotes become even cheaper after the age of 25.

Please keep in mind that your specific car insurance costs may be different depending on your driving history, policy coverage, the car you drive, and the discounts you are eligible for.

State
Average Driver's Premium
Student Driver's Premium
Alabama
$858
$4,692
Alaska
$1,248
$3,144
Arizona
$1,215
$4,468
Arkansas
$1,107
$6,792
California
$1,830
$6,177
Colorado
$1,512
$4,792
Connecticut
$1,842
$7,964
Delaware
$1,863
$8,716
Florida
$1,576
$4,278
Georgia
$1,662
$4,732
Hawaii
$864
$900
Idaho
$852
$3,309
Illinois
$1,320
$6,279
Indiana
$1,068
$3,330
Iowa
$795
$4,248
Kansas
$1,016
$4,680
Kentucky
$1,560
$9,807
Louisiana
$2,104
$11,176
Maine
$584
$3,188
Maryland
$1,440
$9,252
Massachusetts
$1,252
$4,076
Michigan
$2,766
$11,271
Minnesota
$975
$3,366
Mississippi
$1,284
$3,978
Missouri
$1,124
$3,784
Montana
$1,256
$4,656
Nebraska
$1,113
$3,927
Nevada
$1,848
$7,208
New Hampshire
$1,320
$4,335
New Jersey
$2,416
$9,048
New Mexico
$1,508
$5,504
New York
$1,812
$6,216
North Carolina
$822
$1,953
North Dakota
$1,396
$5,244
Ohio
$824
$3,352
Oklahoma
$1,908
$7,464
Oregon
$1,396
$5,024
Pennsylvania
$1,819
$10,208
Rhode Island
$2,051
$8,000
South Carolina
$768
$2,752
South Dakota
$1,002
$4,320
Tennessee
$1,244
$4,092
Texas
$1,230
$4,068
Utah
$1,041
$4,827
Vermont
$993
$3,432
Virginia
$1,074
$3,471
Washington
$1,328
$6,000
West Virginia
$1,420
$6,088
Wisconsin
$1,545
$7,227
Wyoming
$940
$3,738

Factors That Affect The Cost of Auto Insurance

Auto insurance companies invest a great deal of time in perfecting how they calculate risk, using statistics to estimate the probability of a car accident and the potential pay out for repairs, expenses, and medical bills. So what factors affect a college student’s car insurance rates?

When a student is added to a car insurance policy, their rates are based on the latest statistics on teenage car accidents, claims, payouts and costs. The gender of the student is also an important consideration, such that young male drivers tend to be riskier and more prone to speeding and reckless driving than young female drivers. Because of this, in the state of California, rates for 19 year old males average 14% higher than rates for 19 year old females.

Another factor in the risk calculations is the type of car, make and model the student will be driving. For example, insurance prices on a Honda or Toyota are generally lower than policies for high-performance sports cars such as Mustangs and Camaros. Even more, a luxury sports car such as a BMW or Mercedes is going to be doubly more expensive to insure than an older, cheaper car. To keep your premiums low, families should only provide their teenage kids or college students with older used vehicles.

Nevertheless, be sure these used cars have strong safety ratings and the appropriate safety equipment, such as airbags, anti-lock brakes, traction control, an alarm system, etc.

How To Get The Cheapest Student Car Insurance

Finding cheaper car insurance depends on who and what is being insured. Compare car insurance rates with two college students who are the same sex and age and you will receive very different quotes. Teenagers are scrutinized very closely by insurers.

When a 16 year old obeys the law, has no accidents or claims and maintains a clean driving history, their car insurance rates will become cheaper as they get older. The decrease might not be dramatic, but if the same age teen does have violations, traffic tickets, accidents or claims, their auto insurance quotes will increase.

Typically, car insurance becomes a lot cheaper when a driver turns 25. Until then, here are some tips to get the cheapest car insurance rates for college students.

Should A College Student Buy His Own Policy?

In some states, a teen cannot have a policy in his or her name until they are 18 years old. Even though adding a student driver can increase your premiums, it is still best to keep the student under the parents’ policy.

If another vehicle is being added to the policy at the same time as the student, the multi-car discount should lower your rates. Just remember to always insure your student under the cheapest vehicle. Generally, it is best to insure a teen under a parents’ policy.

Car Insurance Discounts for Students

Each auto insurer offers a different set of car insurance discounts for college students, so it is best that you ask a representative about discounts your teenager may qualify for. However, some of the most basic discounts for college students include:

Good Student Discount

Auto insurance companies will usually offer discounts for full-time students with good grades. Specific requirements and the amount of the discount may differ from company to company, but you should expect at least 15% off at least.

For example, State Farm will lower your premium by 25% off for qualifying students; Allstate provides a 20% discount; and GEICO can reduce your rate by up to 15%. Your insurer may require that you send a copy of your student’s report card for verification.

Young Driver Education Programs

If your insurer also has an education program for young drivers, your college student may be eligible for an additional discount. For instance, Allstate provides a 10% discount when your teen graduates their teenSMART education program.

Don’t Buy Your College Student A New Car

Many parents want to buy their college student a new car as a high school graduation present, but there are reasons to consider the cost of car insurance before doing so. New cars that are leased or financed by a lender or bank will require full coverage – a more expensive type of car insurance coverage compared to liability-only policies. A basic car insurance comparison for college student drivers will show a huge difference in the cost of premiums.

Ultimately, a new car might be better as a college graduation present when he/she needs a reliable vehicle to commute to work. In the meantime, you will have saved thousands on your insurance premiums.

What Types of Vehicles Are Best For College Students?

Even though it is better to have an inexpensive car for insurance purposes, a teen driver also needs a safe vehicle. One of the factors to consider is which vehicles have high safety ratings and do well in crash tests. These ratings usually indicate a strong build as well as a number of safety features that come standard. Crash test results are published on a yearly basis, as are the vehicles that cost the least to insure. Finding one that fits into both categories is ideal.

Are Other Drivers Covered When A Teen Loans A Car To Friends?

Rather than give a comment as to how this varies from state to state, the best way to determine the answer is to ask your auto insurance company. Most insurance companies cover other drivers if the vehicle owner gives permission for that driver to use the car.

If you’re comparing car insurance rates for students, this question should be asked because it could affect your premium. Most young drivers have situations where someone else needs to drive their car on a limited-time basis. It is best to ask the auto insurance company before an auto accident requires you to submit a claim and seek damages and repairs.