Best car insurance discounts for students

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Students have plenty of expenses to worry about during their college years and for several years after. The average student loan debt is $30,000 — and that is for a public university education. Another major expense could be car insurance. The cost of vehicle coverage for drivers under 25 is the highest of all age ranges. Finding car insurance discounts for students may give your budget some relief.

Average cost of car insurance without discounts

As mentioned, the cost of car insurance for college students and young drivers in general is high. The good news is, premiums lower each year. Take a look at the average cost of full car insurance without applying a car insurance student discount.

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Total $1,975 $1,528 $1,324 $930 $781
Male $2,197 $1,729 $1,506 $1,092 $919
Female $1,753 $1,327 $1,142 $768 $644

Educational discounts for students

Nearly all car insurance companies offer some form of student discount insurance. If you are shopping for coverage, the following car insurance for students discounts could help you reduce your monthly expense.

Good student insurance discount

Carriers typically offer cheaper car insurance for students with good grades. To qualify for a car insurance good student discount, you would need to provide a copy of your transcripts showing you have a grade point average of at least 3.0 or a B. The small effort of rounding up your grades is worth it — if you compare the following premiums to the table above, you will find that car coverage is roughly $300 less per year when you qualify for a good student discount.

Average annual minimum coverage premium with good student discount

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Total $551 $395 $331 $222 $180
Male $592 $430 $359 $245 $198
Female $511 $361 $303 $199 $161

Average annual full coverage premiums with good student discount

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Total $1,630 $1,247 $1,077 $735 $613
Male $1,798 $1,400 $1,214 $856 $714
Female $1,462 $1,094 $940 $614 $511

Average annual full coverage premiums with good student discount by state

State 18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Alabama $1,742 $1,368 $1,091 $816 $692
Alaska $1,337 $1,154 $997 $637 $522
Arizona $1,748 $1,497 $1,087 $865 $741
Arkansas $1,711 $1,357 $1,222 $782 $657
California $2,524 $1,502 $1,352 $938 $763
Colorado $1,920 $1,534 $1,315 $1,026 $854
Connecticut $1,942 $1,360 $1,221 $839 $709
Delaware $1,540 $1,319 $1,086 $726 $591
Florida $2,940 $2,148 $1,941 $1,289 $998
Georgia $2,074 $1,726 $1,374 $935 $827
Hawaii $35 $35 $35 $13 $13
Idaho $937 $751 $659 $430 $358
Illinois $1,383 $1,229 $939 $678 $576
Indiana $1,224 $967 $855 $616 $499
Iowa $995 $785 $697 $497 $419
Kansas $1,285 $1,050 $914 $675 $535
Kentucky $2,180 $1,647 $1,472 $909 $746
Louisiana $2,632 $2,001 $1,705 $1,259 $1,031
Maine $909 $752 $696 $397 $353
Maryland $1,876 $1,453 $1,326 $925 $777
Massachusetts $1,471 $915 $750 $633 $203
Michigan $2,301 $1,865 $1,568 $1,079 $947
Minnesota $1,181 $972 $799 $573 $469
Mississippi $1,415 $1,130 $1,019 $695 $585
Missouri $1,411 $1,128 $972 $685 $581
Montana $1,527 $1,206 $1,112 $651 $566
Nebraska $1,060 $846 $765 $563 $485
Nevada $2,390 $2,006 $1,657 $1,204 $1,058
New Hampshire $1,189 $936 $847 $528 $442
New Jersey $1,505 $1,280 $1,141 $874 $733
New Mexico $1,182 $913 $777 $580 $492
New York $2,293 $1,513 $1,339 $791 $620
North Carolina $835 $212 $191 $145 $131
North Dakota $903 $679 $607 $492 $411
Ohio $1,095 $852 $759 $533 $474
Oklahoma $1,669 $1,300 $1,110 $855 $698
Oregon $1,093 $950 $733 $584 $462
Pennsylvania $1,675 $1,354 $1,218 $768 $658
Rhode Island $1,948 $1,433 $1,271 $890 $728
South Carolina $1,361 $1,030 $890 $577 $505
South Dakota $929 $741 $669 $599 $533
Tennessee $1,405 $1,134 $975 $771 $633
Texas $1,998 $1,694 $1,507 $864 $763
Utah $1,491 $1,157 $994 $694 $577
Vermont $1,657 $1,453 $1,384 $847 $736
Virginia $1,313 $1,044 $924 $603 $488
Washington $1,257 $888 $794 $596 $455
Washington DC $1,567 $1,244 $1,008 $777 $623
West Virginia $1,462 $1,085 $935 $656 $523
Wisconsin $906 $702 $591 $431 $345
Wyoming $1,271 $938 $757 $596 $464

Average annual full coverage premium by carrier with good student discount

18-year-old 19-year-old 20 -year-old 21-year-old 22-year-old
State Farm $1,187 $966 $840 $661 $531
American Family $1,762 $953 $870 $521 $450
MetLife $3,109 $1,762 $1,641 $1,204 $787
Geico $1,269 $940 $824 $385 $323
Progressive $1,514 $1,227 $966 $971 $777
Allstate $1,810 $1,556 $1,403 $691 $603
Auto-Owners $1,149 $936 $790 $659 $579
USAA $1,037 $688 $564 $532 $457
Farmers $1,786 $1,291 $1,073 $958 $814
Nationwide $789 $614 $570 $313 $285
Travelers $1,264 $803 $698 $490 $411
Amica $1,800 $1,435 $1,257 $964 $534
Erie $1,136 $1,002 $969 $926 $719

Distant college student discount

A distant college student discount is sometimes also known as a “student away at school” discount. If you leave your car back home and only use it when you return home on weekends or other times, you may save on car insurance due to the lack of use.

Average annual minimum coverage premium with distant student discount

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Total $646 $471 $397 $280 $226
Male $706 $514 $438 $315 $254
Female $585 $426 $354 $246 $198

Average annual full-coverage premium with distant student discount

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Total $1,911 $1,483 $1,284 $909 $761
Male $2,137 $1,671 $1,469 $1,076 $900
Female $1,682 $1,286 $1,093 $744 $621

Average annual full-coverage premium by state with distant student discount

State 18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Alaska $1,642 $1,455 $1,207 $894 $695
Alabama $2,142 $1,695 $1,398 $1,104 $891
Arkansas $2,146 $1,722 $1,546 $1,050 $892
Arizona $1,985 $1,794 $1,225 $1,042 $842
California $2,933 $1,757 $1,589 $1,134 $950
Colorado $2,239 $1,803 $1,506 $1,219 $1,017
Connecticut $2,262 $1,610 $1,454 $957 $824
Washington DC $1,939 $1,568 $1,170 $842 $833
Delaware $1,922 $1,644 $1,384 $852 $717
Florida $3,680 $2,745 $2,506 $1,830 $1,451
Georgia $2,439 $2,041 $1,610 $1,134 $982
Hawaii $35 $35 $35 $13 $9
Iowa $1,158 $929 $839 $626 $531
Idaho $1,133 $944 $839 $582 $474
Illinois $1,576 $1,423 $1,065 $809 $669
Indiana $1,336 $1,102 $955 $688 $567
Kansas $1,578 $1,339 $1,179 $874 $727
Kentucky $2,579 $2,067 $1,821 $1,148 $961
Louisiana $3,158 $2,390 $2,156 $1,609 $1,397
Massachusetts $1,615 $1,021 $887 $678 $225
Maryland $2,367 $1,876 $1,654 $1,102 $991
Maine $1,137 $946 $848 $506 $468
Michigan $2,672 $2,142 $1,756 $1,305 $1,071
Minnesota $1,556 $1,319 $1,067 $754 $632
Missouri $1,601 $1,362 $1,152 $866 $771
Mississippi $1,685 $1,401 $1,285 $866 $756
Montana $1,877 $1,482 $1,364 $838 $757
North Carolina $826 $150 $132 $94 $88
North Dakota $1,056 $848 $729 $622 $512
Nebraska $1,221 $1,011 $888 $673 $613
New Hampshire $1,429 $1,172 $1,045 $646 $537
New Jersey $1,783 $1,559 $1,314 $1,058 $886
New Mexico $1,467 $1,185 $1,008 $761 $626
Nevada $2,635 $2,145 $1,811 $1,335 $1,164
New York $2,555 $1,792 $1,618 $1,049 $883
Ohio $1,255 $1,009 $886 $634 $563
Oklahoma $1,878 $1,528 $1,385 $1,092 $890
Oregon $1,497 $1,287 $973 $812 $644
Pennsylvania $1,855 $1,500 $1,341 $855 $734
Rhode Island $2,343 $1,723 $1,405 $1,131 $925
South Carolina $1,651 $1,252 $1,094 $696 $640
South Dakota $1,089 $947 $846 $740 $666
Tennessee $1,635 $1,307 $1,139 $885 $764
Texas $2,232 $1,902 $1,669 $981 $868
Utah $1,792 $1,399 $1,212 $851 $699
Virginia $1,630 $1,291 $1,184 $799 $663
Vermont $1,936 $1,683 $1,581 $1,045 $917
Washington $1,473 $1,012 $913 $645 $500
Wisconsin $1,169 $951 $797 $593 $489
West Virginia $1,740 $1,322 $1,125 $834 $675
Wyoming $1,820 $1,375 $1,147 $902 $722

Average annual full coverage premium by carrier with distant student discount

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Farmers $2,068 $1,463 $1,200 $1,127 $920
State Farm $1,626 $1,322 $1,148 $912 $729
Geico $1,501 $1,149 $1,030 $508 $433
Allstate $2,179 $1,895 $1,725 $941 $820
USAA $1,189 $792 $658 $610 $519
Nationwide $1,058 $774 $673 $383 $341
MetLife $4,031 $2,441 $2,260 $1,835 $1,307
Progressive $1,692 $1,372 $1,096 $1,107 $896
Erie $961 $805 $810 $757 $564
Amica $2,079 $1,767 $1,555 $1,130 $702
Auto-Owners $1,508 $1,261 $1,077 $934 $833
American Family $1,146 $682 $617 $409 $332

Good student and distant student combined discount

If you have a good GPA and you only use your vehicle when you are back home, you could qualify for both discounts to maximize your savings. Carriers generally let you stack discounts to get the lowest car insurance rates.

Average annual minimum coverage premium with good and distant student discounts

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Total $538 $386 $322 $217 $174
Male $578 $421 $351 $240 $193
Female $497 $352 $294 $193 $156

Average annual full-coverage premium with good and distant student discounts

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Total $1,593 $1,219 $1,051 $717 $596
Male $1,760 $1,373 $1,188 $839 $698
Female $1,427 $1,066 $914 $595 $493

Driver education discounts

While student away at school and good student are the two most common types of discounts, there are other ways current (and former) students can save money on car insurance premiums.

Affiliation discounts for students

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 include savings as well as special insurance features and perks.

Military

If you are military personnel, ROTC, National Guard or work for the Department of Defense, you could earn an additional discount.

University and alumni

As mentioned, many larger organizations have their own discount with select insurance carriers. For example, Geico offers affiliate discounts to dozens of alumni associations as well as faculty and students at a long list of universities. Some other examples of insurance companies offering discounts to university members and alumni are:

Check with your university to see if it makes you eligible for discounts.

Sorority, fraternity and honors societies

Larger sororities, fraternities or societies sometimes have their own negotiated discounts. While Liberty Mutual, Geico and Travelers insurance seem to offer the most discounts, the carrier may depend on your area.

Policy and vehicle discounts

Once you have exhausted all student-related discounts, you can find further savings by looking at general discounts. Some of the most popular policy and vehicle discounts available are:

  • Bundling: Buy car insurance and a renters or homeowners insurance policy with the same insurer.
  • Safe driver: Avoid accidents and moving violations to qualify as a low-risk driver.
  • Safety equipment: Newer vehicles with airbags, drivers assistance and crash prevention systems will be cheaper to insure when you use this discount.
  • Usage-based: If you garage your vehicle for periods of time or do not commute regularly, you may qualify for a discount based on low-mileage.

FAQ

What grade do I need to qualify for a good student discount?

Most car insurance companies will require at least a B or 3.0 GPA for a car insurance good student discount. You may be asked for a copy of your school transcripts or grades to qualify.

Why is car insurance so expensive for students?

Car insurance is typically more expensive for drivers aged 16 to 25 because of their lack of driving experience. However, many insurance companies believe that students who are doing well in school are more responsible in general and less likely to take dangerous risks that could lead to a costly car accident. That is why you can save significantly if you take advantage of the good student discount.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a student male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $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

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Rates were calculated for a non-married student with the indicated discounts on parents’ plan with 40-year-old drivers with good credit.

These are sample rates and should only be used for comparative purposes.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.