Best Car Insurance for College Students
State Farm, Progressive, Amica and Erie are the top car insurance companies for college students.
Car insurance is often more expensive for those in college or getting ready for college. This is mostly because of their age and lack of experience on the road. Companies weigh these and other factors differently, though, which can impact what you pay.
Best auto insurance companies for college students
State Farm, Progressive, Erie and Amica are the best car insurance companies for college students, based on our research. We evaluated these companies on cost, coverage, availability and customer satisfaction.
Cheapest among national companies: State Farm
Annual rate for full coverage: $4,128
Annual rate for liability coverage: $1,811
Among national insurance companies, State Farm has the cheapest full-coverage rate at $4,128 a year. State Farm is also a great choice if you’re looking for a reliable insurance company: It received an A.M. Best financial strength rating of A++, the highest rating a company can get.
State Farm offers a few discounts to help drive down costs, too. This includes a good student discount for teens with solid grades, which can save you up to 25%. The savings could last until you turn 25.
Some other discounts State Farm offers:
- Steer clear discount: If you’re under 25 years of age and have no at-fault accidents or moving violations within the past three years, you could save as much as 15%.
- Student away at school discount: If you’re a student under the age of 25 who’s moves away to school and only uses the car while at home, you may qualify for a discount
Another reason State Farm is a good choice for college students is its smooth claims process. State Farm scored an above-average rating in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study with an 882 out of 1,000 points.
Pros:
Cheap full-coverage costs
Dependable customer service
Cons:
Doesn’t offer many unique optional coverages
Best for discounts: Progressive
Annual rate for full coverage: $8,495
Annual rate for liability coverage: $3,193
Progressive offers discounts for students who have good grades, go to school away from home or are under 18 years of age.
- Good student discount: You can qualify for a discount if you’re a full-time student with a B average or better. In most states, the average discount is 10%.
- Distant student discount: If you’re 22 years old or younger and attend a college that is 100 miles or more from your home, you can qualify for a distant student discount. To qualify for this discount, you can’t have a car on campus.
- Teen driver discount: If you’re 18 years old or younger, you can qualify for a discount.
Although it offers numerous discounts for teens and young adults, Progressive has a high average rate of $8,495 a year for full-coverage car insurance. Progressive also scored a below-average rating of 861 out of 1,000 points in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study.
Pros:
Great for discounts among college students
Cons:
Average full-coverage rate is higher than national rate of $5,824
Below average customer satisfaction for claims
Best for a speeding ticket among national companies: Amica
Annual rate for full coverage: $9,052
Annual rate for liability coverage: $4,071
If you have a speeding ticket, your car insurance rates may go up by about 17%, on average. However, the average rate increase from Amica after a ticket is just 2%. Amica also earned the highest score in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, 903 out of 1,000 points.
If you’re looking for premium coverage, Amica offers some great optional coverages, which include:
- Glass repair or replacement
- A credit monitoring service
- A new car if your car is totaled in an accident (the car that’s totaled must be less than one year old and have fewer than 15,000 miles to qualify)
- A rental car after a covered car acciden
Pros:
Great for rates after a speeding ticket
Great for customer satisfaction for claims
Cons:
Premiums increase by $954 per year, on average, after an accident for a minimum policy
Average full-coverage rate is higher than national rate
Best after an accident among national companies: Erie
Annual rate for full coverage: $3,086
Annual rate for liability coverage: $1,264
If you’ve been in an accident, your car insurance rates may go up by an average of 29%. Erie, however, only raises rates by 18%, on average. Erie also received one of the highest scores in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, a 893 out of 1,000 points.
Erie charges affordable rates for full coverage at an average rate of $3,086 a year. It also offers some unique coverage options, such as its Rate Lock feature. And with Erie, your rates will only change if you add or remove a driver or car, or if you change the address where you have your car regularly.
Pros:
Cheap full-coverage costs
Unique coverages
Cons:
Is only available in 12 states and the District of Columbia
Full-coverage car insurance rates for 18-year-olds
The average cost of a full coverage policy for an 18-year old is $5,824 a year. Smaller and local insurance companies may offer cheaper rates.
Best full-coverage car insurance rates for 18-year-olds
| Company | Average annual premium |
|---|---|
| Island Insurance | $1,319 |
| Texas Farm Bureau | $1,719 |
| Concord | $1,931 |
| Country Financial | $2,226 |
| USAA | $2,847 |
| MMG | $2,945 |
| Pemco | $2,945 |
| Erie | $3,086 |
| Umialik | $3,569 |
| Mercury | $3,821 |
| Hanover | $3,970 |
| State Farm | $4,128 |
| Auto-Owners | $4,349 |
| Farm Bureau | $4,451 |
| Grinnell Mutual | $4,534 |
| Grange | $4,591 |
| Westfield | $4,619 |
| Shelter | $4,632 |
| Geico | $5,048 |
| Co-Op | $5,077 |
| Arbella | $5,247 |
| American Family | $5,413 |
| Safety | $5,568 |
| Travelers | $5,758 |
| Nodak | $5,896 |
| Average | $5,824 |
| Plymouth Rock | $6,648 |
| The Hartford | $7,228 |
| Allstate | $7,668 |
| Safeway | $7,623 |
| Nationwide | $7,743 |
| NJM | $8,040 |
| Progressive | $8,495 |
| Acuity | $8,901 |
| Amica | $9,052 |
| AAA | $9,111 |
| Farmers | $9,354 |
Rates are for an 18-year-old male with good credit and a clean driving record. Your rates may vary.
Minimum car insurance rates for 18-year-olds
If you’re looking for cheaper car insurance rates, you can buy minimum coverage. The average cost of a liability coverage policy for an 18-year old is $2,433 a year. With a liability-only policy, you’ll have less protection if you get into an accident.
Best minimum-coverage car insurance for 18-year-olds
| Company | Average annual premium |
|---|---|
| Island Insurance | $418 |
| Texas Farm Bureau | $770 |
| Pemco | $896 |
| Hanover | $997 |
| Concord | $1,005 |
| Grinnell Mutual | $1,014 |
| USAA | $1,030 |
| Nodak | $1,234 |
| Erie | $1,264 |
| Co-Op | $1,294 |
| Mercury | $1,301 |
| MMG | $1,357 |
| Westfield | $1,366 |
| Country Financial | $1,401 |
| Umialik | $1,453 |
| Farm Bureau | $1,574 |
| Auto-Owners | $1,700 |
| State Farm | $1,811 |
| Shelter | $1,883 |
| Geico | $2,044 |
| Grange | $2,088 |
| Safety | $2,152 |
| American Family | $2,364 |
| Arbella | $2,405 |
| Average | $2,433 |
| The Hartford | $2,433 |
| Travelers | $2,655 |
| Plymouth Rock | $2,742 |
| Progressive | $3,193 |
| Acuity | $3,280 |
| Allstate | $3,339 |
| Nationwide | $3,371 |
| Safeway | $3,742 |
| Amica | $4,071 |
| AAA | $4,075 |
| Farmers | $4,227 |
| NJM | $7,952 |
Rates are for an 18-year-old male with good credit and a clean driving record. Your rates may vary.
What factors affect insurance rates for college students?
Insurance rates for drivers under the age of 25 tend to be higher than it is for older drivers. This is mostly due to higher car accident rates among young adults, which leads to high insurance premiums. Your rates should go down after gaining a few more years of driving experience.
How to save money on car insurance as a college student
There are other ways you can save money on car insurance besides discounts. By following these suggestions, you may help lower your annual car insurance premium.
Drive an older car
Older cars tend to be cheaper to insure since the repair costs are usually cheaper than they are for a newer model. Older cars can also carry a lower insurance rate due to their lower value.
Stay on your parents’ insurance
Buying your own insurance policy often costs more than joining your parents’ policy. If your parents have good driving histories or have been with the same insurance company for years, you should pay an even lower rate. However, if your permanent address is different from that of your parents, you may have to buy a separate insurance policy.
Shop around
Shopping around for the best rate is one of the best ways to get cheaper car insurance. Car insurance companies can quote you very different rates, as well as offer different types of discounts.
Avoid making small claims
Your car insurance rates will likely go up after you file a claim for an accident. If the damage is minor and you’re meeting your state’s legal requirements, you can pay out of pocket to avoid your insurance rate going up.
Methodology
LendingTree uses insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Rates are based on an analysis of hundreds of thousands of car insurance quotes for a typical driver. Prices are shown for comparative purposes only. Your own rates may be different.
Unless noted otherwise, quotes are for a full-coverage policy for a 18-year-old man with good credit and a clean driving record who drives a 2015 Honda Civic EX.
Minimum-liability policies provide liability coverage with the state’s required minimum limits.
Full-coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured / underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Personal injury protection: Minimum limits if required in that state
- Collision: $500 deductible
- Comprehensive: $500 deductible