The 6 Cheapest Auto Insurance Companies for College Students
Last Updated on December 7, 2025
College students have a lot of expenses—tuition, books, housing, fees, and everyday living costs. Paying for car insurance may feel like the final financial straw. Fortunately, students have access to many unique discounts and cost-saving opportunities that can significantly reduce premiums.
Insurance companies know students are often on tight budgets, and many offer incentives or discounts specifically for young drivers pursuing higher education. Below, we break down the best ways college students can save money on auto insurance and highlight insurers known for offering strong student-friendly pricing.
Key Takeaways
- College students have access to special discounts and usage-based savings opportunities.
- Good grades, defensive driving classes, and staying on a parent’s policy can dramatically lower rates.
- Choosing a safer, lower-cost vehicle helps reduce premiums.
- Comparing quotes is the fastest way to find the cheapest insurance option for students.
How Can College Students Save on Car Insurance?
Drive Safely
The easiest way to keep premiums low is to maintain a clean driving record. Avoid speeding, aggressive driving, distracted driving, and any violations. Safe driving keeps you out of trouble—and keeps your insurance rates down. Risky behavior, such as driving under the influence or driving without insurance, can dramatically increase premiums.
Get Good Grades
Many major insurers—including GEICO and Allstate—offer substantial good student discounts. Insurers believe high-performing students are more responsible behind the wheel, and the savings can be significant.
To qualify for most good student discounts, you must:
- Be enrolled full time in college, university, or high school
- Be 25 years old or younger
- Maintain a B average (3.0 GPA) or higher
- Provide verification (transcript, letter from school, or report card)
- Have a valid driver’s license
- Have a student visa if you are an international student
Insurers differ in how much they reward good grades. For example, State Farm offers up to a 25% discount, and many companies also offer savings for taking driver education or defensive driving courses.
Use Your Parents’ Insurance Plan
A U.S. News & World Report survey found that 52% of students leave their cars at home when going off to school. If that’s you, staying on your parents’ policy is often the cheapest option.
Why? Your parents may benefit from:
- Long insurance history
- Bundled multi-car discounts
- Lower risk classification
If you live more than 100 miles from home, ask about a “student away at school” or “resident student” discount. This can save families hundreds of dollars per year.
Choose Your Car Carefully
Your vehicle significantly impacts your insurance premium. Sports cars or high-performance vehicles cost far more to insure. If you’re on a budget, choose a safe, affordable vehicle with strong reliability and low repair costs. A modest sedan or compact car typically costs much less to insure than a high-end model.
Take a Driver’s Education or Defensive Driving Class
Many insurers offer discounts to students who complete approved defensive driving courses. These classes can improve your skills and lower your risk profile, which insurers reward.
Finding affordable auto insurance as a student is similar to seeking financial aid—take only the coverage you need, stack discounts, and use your parents’ help when possible.
Companies Offering Cheap Car Insurance for College Students
1) American Family
American Family offers up to 25% off for students in the 80th percentile academically or those maintaining a B average. They also offer a Teenage Safe Driver Discount for young drivers who log at least 3,000 miles per year safely.
Students ages 25 and under who volunteer at nonprofit organizations for 40+ hours annually may also qualify for a “young volunteer discount,” rewarding students who contribute to their communities.
2) State Farm
State Farm is one of the top insurers for college students. Students with strong grades can save up to 25%, and State Farm’s Steer Clear program helps newer drivers develop safe habits. Completing the program can save participating drivers up to 15% on premiums.
3) USAA
USAA is available to active-duty military, veterans, DOD employees, and their families. They offer discounts for safe driving, driver training programs, and good grades. Students attending school more than 100 miles from home without taking their car may qualify for significant premium reductions.
4) Amica Mutual
Though smaller, Amica Mutual consistently earns top customer satisfaction ratings and offers several student-friendly perks. Amica provides complimentary help for lost keys and roadside assistance. Parents appreciate the extra peace of mind when their college students are away from home.
5) Farmers
Farmers offers up to 24% off for good grades—one of the highest student discounts in the industry. They also provide a Distant Student Discount for those attending school far from home and driving less.
6) Allstate
Allstate offers a Resident Student Discount for students living more than 100 miles away from home, saving up to 35% on premiums. They also offer a Good Student Discount of up to 9%, which stacks with bundling and other available savings.
How These Companies Compare
| Insurance Company | Student Discounts Offered | Ideal For | Notable Perks |
|---|---|---|---|
| American Family | • Up to 25% Good Student Discount • Teen Safe Driver Program • Young Volunteer Discount | High-achieving students and volunteer students | Large grade-based discounts; strong mobile app monitoring option |
| State Farm | • Up to 25% Good Student Discount • Up to 15% with Steer Clear • Student Away at School Discount | Most students, especially younger drivers | Excellent training program; top-rated for affordability |
| USAA | • Good Student Discount • Safe Driving Discounts • 100+ Mile Student Away Discount | Military members, veterans, or dependents | Exceptional customer service and low rates; high claims satisfaction |
| Amica Mutual | • Good Student Discounts • Safe Driver Discounts | Students wanting top customer service and reliability | Free lock/key replacement; strong roadside assistance coverage |
| Farmers | • Up to 24% Good Student Discount • Distant Student Discount • Teen Driver Discount | Students far from home or those needing larger grade-based discounts | High maximum discounts for students; strong telematics option |
| Allstate | • Up to 35% Resident Student Discount • Up to 9% Good Student Discount • Smart Student Discount | Students living 100+ miles from home | Many stackable discounts; excellent digital tools and resources |
FAQs
Final Word on Getting Cheap Car Insurance for College Students
College students face higher insurance rates due to limited driving experience, but discounts and smart decisions can help lower costs significantly. Shopping around, keeping your grades up, staying on your parents’ policy, and selecting the right vehicle can all make a big difference.
While the insurers listed above offer appealing student discounts, switching won’t always guarantee lower prices—especially if you already receive loyalty or bundling discounts. The best approach is to compare quotes and let the numbers reveal which provider offers the cheapest rate in your situation.
If you want to see who offers affordable auto insurance for college students in your area, use our quote comparison tool at the top of the page.
