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Best car insurance discounts for students

Updated May 01, 2025
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Key takeaways

  • Based on available discounts and average premiums, American Family, Geico and Nationwide are some of the best car insurance companies for students.
  • By maintaining a 3.0 GPA or better, students can qualify for a good student discount and save as much as 25 percent on their total insurance costs.
  • On average, an 18-year-old student can potentially save over $2,390 annually by staying on their parents’ full-coverage car insurance policy as opposed to purchasing their own.
  • Students can save money on car insurance even after they graduate with affiliation discounts, which are exclusive discounts available to alumni, military members, fraternities, sororities and other organizations.

Car insurance discounts for students

Nearly all major car insurance companies offer some form of discount for students. The discount options may vary depending on whether the student has their own policy or is listed on someone else’s policy. Discount eligibility and amount may also vary greatly between providers.

Good student discount

Students who earn good grades might qualify for cheaper car insurance through a good student discount, generally reducing total costs by 10 to 25 percent. To qualify, drivers must typically be full-time students who earn a 3.0 GPA or higher. Most major insurance companies offer good student discounts to drivers on both standalone and family policies, but there's usually an age cap, with the discount expiring at age 23 or 25. Students may need to periodically send a report card or transcript to their insurance company to maintain eligibility.

When I was in high school and college, I got a student discount on my car insurance from Allstate (part of a family plan) because I had “good grades.” We got a 20 percent discount on my insurance as long as my GPA was B or above. My parents just had to submit my report card/transcript each year. Pending my grades stayed strong and I did not get in any auto accidents, we got the discount.
Bankrate logo Dylan DiNubile, Bankrate staffer

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.

Distant student discount

Students away at college without their vehicle may earn a distant student discount, sometimes called a “student away at school” discount, to reflect the fact that they don't have access to any insured vehicles most of the year. Many carriers have their own unique eligibility requirements, such as residing over 100 miles away from home or maintaining full-time enrollment status. Again, speaking to your provider will likely be the fastest route to learning whether you qualify.

Affiliation discounts for students

As students head out into the world and become members of organizations and workplaces, they may have more opportunities to save money on their car insurance premiums. An affiliation discount is usually negotiated by a college, business or organization on behalf of its members or employees. Affiliation discounts are typically exclusive and may include special insurance features and perks on top of the discount. Below are some of the more common types of affiliation discounts.

University and alumni

Many larger organizations, including universities, have their own discounts with select insurance carriers. These discounts may be extended only to staff, or they may be more widely available to alumni associations and enrolled students. Check with your university to see what partnerships and alumni discounts they may have with car insurance companies.

Sorority, fraternity and honors societies

Larger sororities, fraternities or societies sometimes have their own negotiated discounts. Geico advertises these types of discounts the most, but they may be available from other carriers as well.

Military

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. Even if a military discount is not offered, reduced coverage might be available for vehicles in storage while military members are away from home for extended periods.

Telematics discounts for students

Telematics programs are becoming increasingly popular with many insurers. These programs use an app or in-car device to monitor your driving habits in real time. You may earn discounts for demonstrating safe driving habits, but note that some carriers may penalize you for poor driving habits with increased premiums. One popular telematics program is State Farm's Steer Clear, which is designed specifically for drivers under the age of 25. It includes a training course that young drivers take to improve their driving skills, and driving hours can be recorded on the mobile app.

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

The cost of car insurance for college students

One of the most eye-opening stats about young drivers is that the fatal crash rate per miles driven for 16- to 19-year-olds is almost three times the rate for drivers ages 20 and over, according to the Insurance Institute for Highway Safety. That tripled risk costs insurance companies money — and makes it harder for young drivers to find cheap student car insurance. 

Fortunately, students can reduce this financial burden by exploring discounts and remaining on their parents' car insurance policy throughout their school years rather than getting a policy of their own. You should be eligible for inclusion on your parents’ policy if you live at home or are living at college while pursuing your degree.

Below, we’ve compiled average full coverage rate data from Quadrant Information Services for students listed on their parents' policy to compare against the cost of a student on their own policy. Note that your rates may vary based on your location, carrier and other personal rating factors.

Student age Avg. full coverage premium on parents’ policy Avg. full coverage premium on student’s own policy
Age 16* $5,768 N/A
Age 17* $5,355 N/A
Age 18 $5,169 $7,371
Age 19 $4,364 $5,967
Age 20 $4,102 $5,459
Age 21 $3,747 $4,543
*Teens under 18 can’t purchase their own car insurance policies in most circumstances.

How much can I save with student discounts?

The exact amount you can save on car insurance with student discounts will usually vary by provider. For example, State Farm advertises a good student discount of up to 25 percent, while Geico caps theirs at 15 percent and only applies it to certain coverage. In most cases, however, insurance carriers don't publicly advertise an exact discount amount, so it's worth asking an agent or getting quotes from a range of carriers with the good student discount applied.

Cheapest car insurance companies for students

As each company sets its own premiums using proprietary rating algorithms, each also offers its own suite of available discounts with different savings opportunities. Although some companies might have higher overall base rates, they could still be competitive if they provide more young driver discounts than other carriers.

The table below showcases some of the cheapest insurers for students listed on their parents’ policy. It’s important to note that the average rates shown below don't include student discounts, and discount availability may vary by state. For a complete list of student discounts from various insurers, you should get in touch with the company directly.

Company 16-year-old 18-year-old 21-year-old Advertised student discounts
American Family $4,651 $4,856 $3,225
  • Good student discount
  • Homeschooled good student discount
  • Away-at-school status
  • Young volunteer discount
  • Generational discount
  • Erie $4,858 $4,581 $3,737
  • Youthful driver discount
  • Youthful driver longevity discount
  • Driving training discount
  • College student discount
  • Geico $4,660 $4,164 $2,703
  • Driver’s education discount
  • Good student discount
  • Affiliation discount
  • Nationwide $3,897 $3,475 $2,441
  • Good student discount
  • State Farm $5,845 $5,355 $4,269
  • Steer Clear discount
  • Rates are for full coverage policies.

    Average cost of car insurance for a student by state

    Each state sets its own car insurance minimum requirements and has its own risk factors, so rates may vary considerably based on where you live. For instance, drivers in states that require no-fault insurance tend to pay higher premiums. Additionally, states that are at higher risk for weather-related disasters or have a higher population density (leading to heavier traffic and more accidents) may have higher-than-average rates.

    In the table below, you’ll find average full coverage premiums in each state for students of various age groups listed on their parents' policy with student discounts applied.

    16-year-old
    $4,592
    18-year-old
    $3,954
    20-year-old
    $3,033
    21-year-old
    $2,932
    16-year-old
    $4,959
    18-year-old
    $4,701
    20-year-old
    $3,940
    21-year-old
    $3,494
    16-year-old
    $6,070
    18-year-old
    $5,405
    20-year-old
    $4,320
    21-year-old
    $4,068
    16-year-old
    $4,742
    18-year-old
    $4,294
    20-year-old
    $3,556
    21-year-old
    $3,120
    16-year-old
    $7,037
    18-year-old
    $6,193
    20-year-old
    $4,449
    21-year-old
    $4,064
    16-year-old
    $6,562
    18-year-old
    $5,908
    20-year-old
    $5,157
    21-year-old
    $4,925
    16-year-old
    $5,756
    18-year-old
    $4,967
    20-year-old
    $3,950
    21-year-old
    $3,821
    16-year-old
    $5,924
    18-year-old
    $5,248
    20-year-old
    $4,270
    21-year-old
    $4,009
    16-year-old
    $8,112
    18-year-old
    $7,489
    20-year-old
    $5,907
    21-year-old
    $5,504
    16-year-old
    $6,234
    18-year-old
    $5,669
    20-year-old
    $4,392
    21-year-old
    $4,040
    16-year-old
    $1,740
    18-year-old
    $1,740
    20-year-old
    $1,740
    21-year-old
    $1,725
    16-year-old
    $3,111
    18-year-old
    $2,780
    20-year-old
    $2,246
    21-year-old
    $2,026
    16-year-old
    $5,307
    18-year-old
    $4,646
    20-year-old
    $3,801
    21-year-old
    $3,452
    16-year-old
    $3,710
    18-year-old
    $3,237
    20-year-old
    $2,728
    21-year-old
    $2,428
    16-year-old
    $3,527
    18-year-old
    $3,234
    20-year-old
    $2,705
    21-year-old
    $2,585
    16-year-old
    $5,121
    18-year-old
    $4,556
    20-year-old
    $3,717
    21-year-old
    $3,465
    16-year-old
    $5,822
    18-year-old
    $5,257
    20-year-old
    $4,417
    21-year-old
    $3,871
    16-year-old
    $8,788
    18-year-old
    $7,541
    20-year-old
    $5,860
    21-year-old
    $5,282
    16-year-old
    $3,617
    18-year-old
    $3,318
    20-year-old
    $2,709
    21-year-old
    $2,339
    16-year-old
    $6,333
    18-year-old
    $5,984
    20-year-old
    $4,743
    21-year-old
    $4,255
    16-year-old
    $4,475
    18-year-old
    $3,929
    20-year-old
    $3,054
    21-year-old
    $2,983
    16-year-old
    $6,749
    18-year-old
    $6,026
    20-year-old
    $5,614
    21-year-old
    $4,885
    16-year-old
    $5,431
    18-year-old
    $4,677
    20-year-old
    $3,789
    21-year-old
    $3,439
    16-year-old
    $4,407
    18-year-old
    $4,045
    20-year-old
    $3,172
    21-year-old
    $3,095
    16-year-old
    $5,730
    18-year-old
    $5,241
    20-year-old
    $4,086
    21-year-old
    $3,631
    16-year-old
    $4,982
    18-year-old
    $4,444
    20-year-old
    $3,803
    21-year-old
    $3,318
    16-year-old
    $4,746
    18-year-old
    $4,288
    20-year-old
    $3,516
    21-year-old
    $3,313
    16-year-old
    $7,425
    18-year-old
    $6,828
    20-year-old
    $5,568
    21-year-old
    $5,255
    16-year-old
    $3,789
    18-year-old
    $3,386
    20-year-old
    $2,623
    21-year-old
    $2,335
    16-year-old
    $6,276
    18-year-old
    $5,992
    20-year-old
    $5,035
    21-year-old
    $4,524
    16-year-old
    $4,284
    18-year-old
    $3,631
    20-year-old
    $2,970
    21-year-old
    $2,828
    16-year-old
    $7,555
    18-year-old
    $7,336
    20-year-old
    $5,913
    21-year-old
    $5,411
    16-year-old
    $4,542
    18-year-old
    $3,280
    20-year-old
    $2,487
    21-year-old
    $2,355
    16-year-old
    $3,671
    18-year-old
    $3,227
    20-year-old
    $2,650
    21-year-old
    $2,532
    16-year-old
    $4,146
    18-year-old
    $3,743
    20-year-old
    $2,965
    21-year-old
    $2,736
    16-year-old
    $5,490
    18-year-old
    $5,206
    20-year-old
    $4,093
    21-year-old
    $3,746
    16-year-old
    $4,953
    18-year-old
    $4,195
    20-year-old
    $3,389
    21-year-old
    $3,278
    16-year-old
    $5,499
    18-year-old
    $4,619
    20-year-old
    $3,872
    21-year-old
    $3,467
    16-year-old
    $6,853
    18-year-old
    $6,116
    20-year-old
    $4,718
    21-year-old
    $4,100
    16-year-old
    $4,345
    18-year-old
    $3,782
    20-year-old
    $2,975
    21-year-old
    $2,687
    16-year-old
    $3,919
    18-year-old
    $3,550
    20-year-old
    $3,128
    21-year-old
    $3,060
    16-year-old
    $4,925
    18-year-old
    $4,346
    20-year-old
    $3,285
    21-year-old
    $3,054
    16-year-old
    $5,361
    18-year-old
    $4,920
    20-year-old
    $3,948
    21-year-old
    $3,560
    16-year-old
    $5,303
    18-year-old
    $4,500
    20-year-old
    $3,535
    21-year-old
    $3,270
    16-year-old
    $3,677
    18-year-old
    $3,200
    20-year-old
    $2,605
    21-year-old
    $2,191
    16-year-old
    $5,261
    18-year-old
    $4,694
    20-year-old
    $3,624
    21-year-old
    $3,050
    16-year-old
    $4,376
    18-year-old
    $4,025
    20-year-old
    $2,961
    21-year-old
    $2,667
    16-year-old
    $4,563
    18-year-old
    $4,181
    20-year-old
    $3,253
    21-year-old
    $3,078
    16-year-old
    $3,922
    18-year-old
    $3,461
    20-year-old
    $2,798
    21-year-old
    $2,606
    16-year-old
    $3,683
    18-year-old
    $3,519
    20-year-old
    $2,592
    21-year-old
    $2,393
    16-year-old
    $5,923
    18-year-old
    $5,413
    20-year-old
    $4,315
    21-year-old
    $4,094
    16-year-old
    $1,740
    18-year-old
    $1,740
    20-year-old
    $1,740
    21-year-old
    $1,725
    16-year-old
    $3,111
    18-year-old
    $2,780
    20-year-old
    $2,246
    21-year-old
    $2,026
    16-year-old
    $5,307
    18-year-old
    $4,646
    20-year-old
    $3,801
    21-year-old
    $3,452
    16-year-old
    $3,710
    18-year-old
    $3,237
    20-year-old
    $2,728
    21-year-old
    $2,428
    16-year-old
    $3,527
    18-year-old
    $3,234
    20-year-old
    $2,705
    21-year-old
    $2,585
    16-year-old
    $5,121
    18-year-old
    $4,556
    20-year-old
    $3,717
    21-year-old
    $3,465
    16-year-old
    $5,822
    18-year-old
    $5,257
    20-year-old
    $4,417
    21-year-old
    $3,871
    16-year-old
    $8,788
    18-year-old
    $7,541
    20-year-old
    $5,860
    21-year-old
    $5,282
    16-year-old
    $3,617
    18-year-old
    $3,318
    20-year-old
    $2,709
    21-year-old
    $2,339
    16-year-old
    $6,333
    18-year-old
    $5,984
    20-year-old
    $4,743
    21-year-old
    $4,255
    16-year-old
    $4,475
    18-year-old
    $3,929
    20-year-old
    $3,054
    21-year-old
    $2,983
    16-year-old
    $6,749
    18-year-old
    $6,026
    20-year-old
    $5,614
    21-year-old
    $4,885
    16-year-old
    $5,431
    18-year-old
    $4,677
    20-year-old
    $3,789
    21-year-old
    $3,439
    16-year-old
    $4,407
    18-year-old
    $4,045
    20-year-old
    $3,172
    21-year-old
    $3,095
    16-year-old
    $5,730
    18-year-old
    $5,241
    20-year-old
    $4,086
    21-year-old
    $3,631
    16-year-old
    $4,982
    18-year-old
    $4,444
    20-year-old
    $3,803
    21-year-old
    $3,318
    16-year-old
    $4,746
    18-year-old
    $4,288
    20-year-old
    $3,516
    21-year-old
    $3,313
    16-year-old
    $7,425
    18-year-old
    $6,828
    20-year-old
    $5,568
    21-year-old
    $5,255
    16-year-old
    $3,789
    18-year-old
    $3,386
    20-year-old
    $2,623
    21-year-old
    $2,335
    16-year-old
    $6,276
    18-year-old
    $5,992
    20-year-old
    $5,035
    21-year-old
    $4,524
    16-year-old
    $4,284
    18-year-old
    $3,631
    20-year-old
    $2,970
    21-year-old
    $2,828
    16-year-old
    $7,555
    18-year-old
    $7,336
    20-year-old
    $5,913
    21-year-old
    $5,411
    16-year-old
    $4,542
    18-year-old
    $3,280
    20-year-old
    $2,487
    21-year-old
    $2,355
    16-year-old
    $3,671
    18-year-old
    $3,227
    20-year-old
    $2,650
    21-year-old
    $2,532
    16-year-old
    $4,146
    18-year-old
    $3,743
    20-year-old
    $2,965
    21-year-old
    $2,736
    16-year-old
    $5,490
    18-year-old
    $5,206
    20-year-old
    $4,093
    21-year-old
    $3,746
    16-year-old
    $4,953
    18-year-old
    $4,195
    20-year-old
    $3,389
    21-year-old
    $3,278
    16-year-old
    $5,499
    18-year-old
    $4,619
    20-year-old
    $3,872
    21-year-old
    $3,467
    16-year-old
    $6,853
    18-year-old
    $6,116
    20-year-old
    $4,718
    21-year-old
    $4,100
    16-year-old
    $4,345
    18-year-old
    $3,782
    20-year-old
    $2,975
    21-year-old
    $2,687
    16-year-old
    $3,919
    18-year-old
    $3,550
    20-year-old
    $3,128
    21-year-old
    $3,060
    16-year-old
    $4,925
    18-year-old
    $4,346
    20-year-old
    $3,285
    21-year-old
    $3,054
    16-year-old
    $5,361
    18-year-old
    $4,920
    20-year-old
    $3,948
    21-year-old
    $3,560
    16-year-old
    $5,303
    18-year-old
    $4,500
    20-year-old
    $3,535
    21-year-old
    $3,270
    16-year-old
    $3,677
    18-year-old
    $3,200
    20-year-old
    $2,605
    21-year-old
    $2,191
    16-year-old
    $5,261
    18-year-old
    $4,694
    20-year-old
    $3,624
    21-year-old
    $3,050
    16-year-old
    $4,376
    18-year-old
    $4,025
    20-year-old
    $2,961
    21-year-old
    $2,667
    16-year-old
    $4,563
    18-year-old
    $4,181
    20-year-old
    $3,253
    21-year-old
    $3,078
    16-year-old
    $3,922
    18-year-old
    $3,461
    20-year-old
    $2,798
    21-year-old
    $2,606
    16-year-old
    $3,683
    18-year-old
    $3,519
    20-year-old
    $2,592
    21-year-old
    $2,393
    16-year-old
    $5,923
    18-year-old
    $5,413
    20-year-old
    $4,315
    21-year-old
    $4,094
    Rates are for full coverage policies. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

    Other discounts for students 

    Students can also save money by utilizing more general discounts that are not as dependent on age or academics. Here are some of the most popular policy and vehicle discounts available:

    • Payment discounts: Just opting into autopay, paying your annual bill in full or enrolling in paperless billing could earn you discounted rates. These discounts are typically small, but when combined they can add up to useful savings. 
    • Bundling: Providers will typically offer you a discount on your total premium if you also purchase renters or homeowners insurance alongside your auto insurance policy.
    • Safe driver: Insurance companies tend to reward policyholders with a discount for avoiding car accidents and traffic tickets.
    • Safety ratings: Vehicles with higher safety ratings have a better chance of preventing injuries during a car accident, which is highly valued by insurance providers — so much so that they are generally willing to offer a discount.
    • Low-mileage discounts: If your driving frequency is low or limited to local routes, you might qualify for a discount based on your annual mileage. Alternatively, you could enroll in a pay-per-mile program designed for low-mileage drivers.

    Frequently asked questions

    Methodology

    Bankrate utilizes Quadrant Information Services to analyze May 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits with bundling and paperless billing discounts applied:

    User Icon
    40 year old
    Single male and female driver
    Logo for Brand name
    2023 Toyota Camry
    Primary vehicle
    Credit Good Icon
    Good credit score
    Auto Insurance Guide Icon
    Clean driving record
    Briefcase Icon
    Commutes 5 days

    Bodily injury liability

    $100,000 per person
    $300,000 per accident

    Property damage liability

    $50,000 per accident

    Personal injury protection

    $100,000 per accident

    Uninsured motorist bodily injury

    $100,000 per person
    $300,000 per accident

    Collision deductible

    $500

    Comprehensive deductible

    $500

    To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.

    If otherwise specified, the base profile has been modified with the following driver characteristics:

    Written by
    R.E. Hawley
    Senior writer, Insurance
    R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license.
    Edited by Editor, Insurance