Car insurance is one of the last things a student on a budget wants to have to worry about. Between the costs of tuition, housing, and food, it can feel like you never have enough money to do everything you want. Plus, to make matters worse, students are typically charged higher rates because they tend to be younger and have less experience driving.
But while some car insurance companies have higher insurance rates for young drivers, others have found creative ways to help students save on their insurance.
Check out the top five college car insurance policies trying to make it affordable for college students to drive.
Allstate offers a variety of discounts that make college car insurance more affordable:
- Good Student Discount – Allstate's good student discount will let you save as much as 9% for good grades
- Drivewise – If you're willing to let Allstate install a monitor, you can earn discounts on your premiums by demonstrating responsible driving habits
- Long-distance savings – Students who only use their car to travel between school and home, and attend a college that is more than 100 miles away, may be eligible to save up to 35% on the premiums.
State Farm may have some of the highest insurance rates, but they also offer the steepest discounts for college car insurance, including:
- Good grades – State Farm offers as much as a 25% discount for good grades, and their discount continues until age 25
- Accident-free savings – If you remain accident-free, you'll get a discount on your premiums
- Safe driving course – College students that take a safe driving course before they turn 21 years old pay lower premiums
- Long-distance savings – State Farm offers a discount for students attending college away from home who don't regularly drive
GEICO is one of the lowest-cost insurance companies for people of any age, especially college students. When you start with low premiums, you don't have to worry too much about discounts, but GEICO still offers a few:
- Good student discount – Earn financial rewards if you are a full-time student with a "B" or higher average
- Good driver discount – If you remain accident-free for five years and earn a discount, discounts of up to 26% are available
- Frat and sorority discounts – If you are a member of specific fraternities, sororities, or honor societies, you may get a GEICO discount.
Progressive is known for its low rates and the "Name Your Own Price Tool," which makes it an obvious choice for broke college students. While Progressive recommends college students remain on their parents' policies, they do offer the following discounts:
- Good student discount – Students under age 23 with a "B" average or better qualify for a discount
- Distance discount – If your child goes to school more than 100 miles away and is 22 years or younger, you may earn a discount
- Usage-based insurance discounts – Prove that you are a safe driver with Snapshot and earn lower premiums
Liberty Mutual offers competitive rates and several discounts for college car insurance that make it more affordable for parents or students. The discounts include:
- Good grade discount – Students under the age of 25 with at least a 3.0 GPA may earn a discount
- Driver Training Discount – Drivers under the age of 21 that take a Driver Training course may receive a discount
- Specific school discounts – Liberty Mutual has discount programs with specific schools, employers, and alumni associations
Shop around for the best college car insurance rates. Don't just assume you have the best policy – check out what discounts other companies offer, at least once a year. It's typically best if a college student remains on a parent or guardian's policy as they offer the most affordable rates, but either way, check for the discounts to see how you can save the most money.