Budgeting can be a tall task for students between books, tuition and housing. Along with those expenses, car insurance is one of the heftiest bills for many young drivers. Since age and driving experience are some of the rating factors used to calculate a premium, higher rates for younger drivers make sense. However, that doesn’t mean that these rates are always easy to pay. Knowing this, most car insurance companies have discounts geared primarily towards students. Bankrate has compiled a list of these discounts to help students fit car insurance into their already stretched budget.

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Average annual rates for full coverage car insurance

The cost of a car insurance policy for young drivers and college students is generally higher compared to other age demographics, especially without discounts. As shown in the table below, 18-year-old drivers on their own policy tend to pay the most in car insurance premiums. However, with time and more driving experience, the average cost of car insurance for full coverage should trend down, especially if a clean driving record is maintained.

Average annual full coverage premiums with no discounts applied and driver listed on own policy

18-year-old 19-year-old 20-year-old 21-year-old 22-year-old
Male $5,694 $4,440 $4,060 $3,188 $2,931
Female $4,946 $3,819 $3,504 $2,822 $2,627
Total $5,320 $4,130 $3,782 $3,005 $2,799

Educational discounts for students

Nearly all major car insurance companies offer some form of discount for students. The discount options may vary depending on if the student has their own policy or is listed on someone else’s policy; however, student discounts can help reduce insurance expenses for inexperienced drivers.

Good student insurance discount

Auto insurers typically offer cheaper car insurance for students with good grades by applying a good student discount to the policy. This discount can apply to students within a certain age limit who have their own insurance policy or are listed as a driver on someone else’s policy. To qualify for a good student discount, those eligible typically need to provide a current copy of their school transcripts, showing a grade point average of at least 3.0 or a B or better letter grade. Eligible drivers usually have to be less than 25 years old and a full-time student. However, discount requirements can vary by the auto insurer, so it’s best to check with your carrier to understand the eligibility criteria.

Drivers earning a good student discount may need to periodically provide proof of their grades to their insurance company to retain the discount, but the small effort might be worth it.

In addition to the good student discount, many insurers offer a driver’s training discount. If you took a driver’s training course while getting your license, you might want to let your insurance company know for a possible savings opportunity.

Based on our assessment of rates obtained from Quadrant Information Services, students can earn significant savings by having good grades and by taking a driver’s training course. Additionally, students will usually pay less for insurance if they are listed as a driver on their parents’ policy, rather than taking out a policy of their own.

Average annual full coverage premiums with good student discount, driver’s training discount and driver listed on parent’s policy

18-year-old 19-year-old 20-year-old 21-year-old
Male $3,506 $3,069 $2,284 $2,543
Female $3,198 $2,789 $2,631 $2,309
Total $3,352 $2,929 $2,758 $2,426

Average annual minimum coverage premiums with good student discount, driver’s training discount and driver listed on parent’s policy

18-year-old 19-year-old 20-year-old 21-year-old
Male $1,139 $968 $897 $781
Female $1,065 $905 $844 $738
Total $1,102 $936 $871 $760

Average annual full coverage premiums with good student discount, driver’s training discount and driver listed on parent’s policy by state

State 18-year-old 19-year-old 20-year-old 21-year-old
Alabama $3,322 $2,973 $2,726 $2,468
Alaska $3,166 $2,962 $2,786 $2,401
Arizona $3,514 $3,263 $2,807 $2,570
Arkansas $3,317 $2,963 $2,852 $2,443
California $4,569 $3,606 $3,394 $3,072
Colorado $4,026 $3,638 $3,397 $3,081
Connecticut $2,707 $2,401 $2,294 $2,054
Delaware $3,497 $3,212 $2,983 $2,586
Florida $5,226 $4,507 $4,311 $3,651
Georgia $3,790 $3,573 $3,173 $2,783
Hawaii $1,277 $1,277 $1,277 $1,256
Idaho $1,877 $1,707 $1,617 $1,415
Illinois $2,937 $2,795 $2,471 $2,190
Indiana $2,271 $1,996 $1,914 $1,693
Iowa $2,090 $1,925 $1,836 $1,654
Kansas $3,125 $2,845 $2,690 $2,443
Kentucky $3,684 $3,192 $3,014 $2,591
Louisiana $5,278 $4,645 $4,342 $3,906
Maine $1,708 $1,528 $1,469 $1,212
Maryland $3,831 $3,365 $3,215 $2,779
Massachusetts $2,704 $2,176 $2,016 $1,889
Michigan $4,675 $4,222 $4,062 $3,522
Minnesota $2,874 $2,656 $2,418 $2,190
Mississippi $2,884 $2,604 $2,510 $2,211
Missouri $3,511 $3,156 $2,956 $2,599
Montana $3,144 $2,827 $2,769 $2,275
Nebraska $2,507 $2,298 $2,221 $1,990
Nevada $4,727 $4,264 $3,951 $3,519
New Hampshire $2,177 $1,951 $1,870 $1,560
New Jersey $3,429 $3,079 $2,897 $2,570
New Mexico $2,553 $2,291 $2,157 $1,990
New York $5,581 $4,666 $4,438 $3,835
North Carolina $2,222 $1,608 $1,585 $1,523
North Dakota $2,003 $1,797 $1,733 $1,645
Ohio $2,216 $1,969 $1,882 $1,669
Oklahoma $3,398 $3,059 $2,859 $2,629
Oregon $2,455 $2,347 $2,077 $1,913
Pennsylvania $3,927 $3,518 $3,352 $2,809
Rhode Island $3,479 $2,970 $2,845 $2,464
South Carolina $2,609 $2,322 $2,184 $1,915
South Dakota $2,403 $2,220 $2,154 $2,087
Tennessee $2,708 $2,418 $2,255 $2,023
Texas $3,598 $3,331 $3,156 $2,609
Utah $2,975 $2,640 $2,483 $2,171
Vermont $2,153 $1,960 $1,900 $1,507
Virginia $2,609 $2,337 $2,204 $1,856
Washington $2,675 $2,241 $2,135 $1,897
Washington, D.C. $3,463 $3,188 $2,958 $2,761
West Virginia $2,771 $2,412 $2,279 $2,047
Wisconsin $2,285 $1,996 $1,896 $1,745
Wyoming $2,722 $2,363 $2,189 $2,025

Average annual full coverage premium by carrier with good student discount, driver’s training discount and driver listed on parent’s policy

18-year-old 19-year-old 20 -year-old 21-year-old
State Farm $2,470 $2,282 $2,161 $2,015
American Family $3,017 $2,509 $2,455 $2,067
Geico $2,409 $2,112 $1,961 $1,613
Progressive $2,991 $2,727 $2,458 $2,515
Allstate $3,889 $3,711 $3,608 $2,892
Auto-Owners $2,355 $2,188 $2,073 $1,953
USAA $2,050 $1,724 $1,614 $1,592
Farmers $2,585 $2,384 $2,252 $2,233
Nationwide $2,123 $1,999 $1,932 $1,677
Travelers $2,724 $2,322 $2,220 $2,008
Amica $3,124 $2,777 $2,632 $2,296
Erie $2,525 $2,416 $2,362 $2,302

Distant student discount

Car insurance for college students further from home could also come with a discount, depending on where the student is living and if they have access to a vehicle. Students away at college without their vehicle may earn a distant student discount, considering that their risk of an accident is likely much lower without regular access to a car. Sometimes also known as a “student away at school” discount, the discount comes with slightly different eligibility criteria with different insurers. However, many carriers will not offer the distant student discount unless the student is insured on someone else’s policy, at least 100 miles away at school and without regular access to a vehicle.

Affiliation discounts for students

While students away at school, good students and drivers training discounts are the most common types of student discounts, there may be other ways current (and former) students might be able to save money on 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 include potential savings with insurance discounts as well as special insurance features and perks.

University and alumni

Many larger organizations, including universities, have their own discount with select insurance carriers. Some insurance companies may even offer affiliate discounts to alumni associations, faculty and enrolled students. Check with your university to see what partnerships and student discounts they may have with car insurance companies.

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 of these types of potential discounts, the carrier may depend on your area.


Students who are also in the military may earn additional discounts. Some auto insurers recognize military members by offering a military discount on their car insurance. Even if the military discount is not offered, reduced coverage and additional savings might be available for vehicles in storage while military members are away from home for extended periods.

Policy and vehicle discounts

Along with discounts tailored for students, young drivers may save money by taking advantage of discounts geared towards a broader population. Some of the most popular policy and vehicle discounts available are:

  • Bundling: Having both car and renters or homeowners insurance with the same insurer typically offers a potential multi-policy discount off of both policies.
  • Safe driver: Avoid accidents and moving violations to qualify as a low-risk, claims-free driver.
  • Safety equipment: Newer vehicles with air bags, anti-lock brakes, driver’s assistance and crash prevention systems are usually cheaper to insure.
  • Anti-theft device: Some companies will give you a discount on your comprehensive coverage if your vehicle is equipped with an anti-theft or vehicle tracking device.
  • Telematics: This type of car insurance discount is based on tracking driving habits through a telematics device or app. Vehicles garaged for extended periods of time, drivers who do not commute regularly or safe drivers might consider exploring this option.

Frequently asked questions


Bankrate utilizes Quadrant Information Services to analyze 2022 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 are based on a 40-year-old 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 coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.

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

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