The 6 Cheapest Auto Insurance Companies for College Students

Last Updated on October 7, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 4, 2026 How we fact-check

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 go through the student discounts six big insurers publish.

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.

Table Of Contents

How Can College Students Save on Car Insurance?
Companies Offering Cheap Car Insurance for College Students
How These Companies Compare
FAQs
Final Word on Getting Cheap Car Insurance for College Students
Sources

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

Almost every large insurer offers a good student discount, but most of them won’t tell you what it’s worth until you get a quote. GEICO and Allstate both offer one and publish no figure for it. State Farm is the exception: it advertises “save up to 25% if your teen driver gets good grades.” So ask for the number rather than assuming it’s large.

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) — the rules are the same if you are an international student
Have a valid driver’s license
Be unmarried, which Allstate lists as a condition

The grade threshold varies more than you’d expect. State Farm wants “full-time students under 25 with scholastic records showing upper 20% ranking, B+ average, or 3.0+ GPA” and pays up to 25%. Farmers asks for a 3.0 GPA or honor roll, under 25. Amica takes full-time high school or college students aged 15 to 25 with a B average. Several companies also discount driver education or defensive driving courses: State Farm’s applies when every driver on the car under 21 finishes an approved course.

Use Your Parents’ Insurance Plan

Plenty of students leave the car at home when going off to school. If that’s you, staying on your parents’ policy is often the cheapest option, and it can unlock a second discount on top.

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. The 100-mile rule is common but the age cutoffs are not: American Family wants a student “under 25, more than 100 miles away at college and their car is parked at home,” Farmers’ Distant Student discount stops at 23, and Allstate’s applies “if your college is at least 100 miles away from home.” None of the three publishes an amount, so ask what it’s worth on your policy.

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 has a good student discount, though it publishes no figure for it: “good grades pay off. In some cases, your student’s top-notch track record could help you save on your insurance premiums.” Where it does publish numbers is on mileage and driving behavior, which suits a student who leaves the car parked most of the week. MilesMyWay offers “up to 25%” if you drive under 8,000 miles a year, and DriveMyWay offers “between 10-35%” based on how you actually drive.

There is also a young volunteer discount, which is unusual and worth asking about: “if you’re under 25 and complete 40 hours of volunteer work per year for a non-profit, you could save money on your auto policy.” American Family also has an Away at School discount for a student under 25 whose car stays at home, and a Generational discount if a parent is already a customer.

2) State Farm

State Farm publishes the clearest student numbers of the six. Its good student discount is “up to 25%” for full-time students under 25 with a 3.0 GPA, a B+ average or a top-20% class ranking. Its Steer Clear program, officially the Steer Clear Safe Driver Discount, is open to drivers under 25 with a valid license and “no at-fault accidents or moving violations during the past three years.” Finishing it means five training modules plus five hours of driving across at least ten trips, and you send the certificate to your agent to get the discount. State Farm does not publish the Steer Clear percentage; it says discount amounts “may vary by state,” so ask your agent.

3) USAA

USAA is open to active-duty military, National Guard and Reserve members, veterans and eligible family members. USAA’s own annual report sets the discharge rule: “to join USAA, separated military personnel must have received a discharge type of Honorable or General Under Honorable Conditions.” It offers discounts for safe driving, driver training and good grades, and it has a program for students who leave the car at home. USAA does not publish the amounts, and its site is hard to read without an account, so run its eligibility check and ask for the figures directly.

4) Amica Mutual

Amica Mutual is much smaller than the others and scores well with its own customers: it ranked highest in New England in J.D. Power’s 2026 U.S. Auto Insurance Study, and it says 94% of its customers stay year over year. Its good student discount covers “full-time high school or college students, ages 15-25, with a ‘B’ average or higher,” and there is a separate Away at School discount for a full-time student with no vehicle at school. Its StreetSmart app pays “up to 20% off your policy premiums” for safe driving, and there is a Legacy discount for drivers under 30 whose parents held an Amica auto policy for five years or more. Roadside assistance is a coverage you add rather than something included, and Amica publishes nothing about lost keys, so confirm both before you count on them.

5) Farmers

Farmers publishes the rules for its student discounts but not the amounts. Its Good Student discount needs a 3.0 GPA or honor roll and a driver under 25. Its Distant Student Discount applies to a student under 23 whose school is 100 or more miles away, which is a tighter age limit than most. There is also a Shared Family Car discount for a driver 20 or younger when the household has more drivers than cars, which fits a lot of families with a student at home. The one savings figure Farmers does publish is bundling: “you can save 10% or more by bundling home and auto policies.”

6) Allstate

Allstate has a resident student discount for a student whose college “is at least 100 miles away from home,” on the logic that you “won’t be driving the family car as frequently.” It also has a good student discount, which it describes as being for “unmarried, full-time students up to age 25,” and it credits driver education programs such as TeenSMART. Allstate publishes no percentage for any of these. One more worth asking about if you rent off campus: Allstate says a student with their own auto policy “may qualify for a discount for bundling their car insurance and renters insurance policies.”

How These Companies Compare

Insurance Company	Student Discounts Offered	Ideal For	Notable Perks
American Family	• Good Student Discount (amount not published) • Away at School Discount • Young Volunteer Discount (40 hours a year)	High-achieving students and volunteer students	Publishes mileage and telematics figures: MilesMyWay up to 25% under 8,000 miles a year; DriveMyWay 10-35%
State Farm	• Up to 25% Good Student Discount • Steer Clear Safe Driver Discount (amount not published) • Student Away at School Discount	Most students, especially younger drivers	The only one of the six to publish a good student figure; ranked highest in the Northwest in J.D. Power’s 2026 study
USAA	• Good Student Discount • Safe Driving Discounts • 100+ Mile Student Away Discount	Military members, veterans, or dependents	Membership is the gate: separated service members need an Honorable or General Under Honorable Conditions discharge. Amounts not published
Amica Mutual	• Good Student Discount (full-time, ages 15-25, B average) • Away at School Discount • StreetSmart app, up to 20%	Students wanting top customer service and reliability	Ranked highest in New England in J.D. Power’s 2026 study; Legacy discount for drivers under 30 whose parents held an Amica policy 5+ years
Farmers	• Good Student Discount, 3.0+ GPA or honor roll, under 25 (amount not published) • Distant Student Discount, under 23, school 100+ miles away • Shared Family Car Discount	Students far from home, especially under 23	Tightest distance-discount age limit of the six (23). Publishes no student percentage; bundling is 10% or more
Allstate	• Resident Student Discount, college 100+ miles away • Good Student Discount, unmarried full-time students up to 25 • Credit for driver education such as TeenSMART. Amounts not published	Students living 100+ miles from home	Says a student with their own policy may get a discount for bundling car and renters insurance

FAQs

Can college students get cheaper car insurance?

Yes. College students can qualify for multiple discounts, including good student discounts, driver education savings, low-mileage pricing, and parent policy discounts. Comparing quotes is the fastest way to find the cheapest rate.

How much can good grades save me on car insurance?

Most insurers won’t publish the number. State Farm is the one that does, at “up to 25%” for a full-time student under 25 with a 3.0 GPA, a B+ average or a top-20% class ranking. Farmers, Amica, American Family, Allstate and GEICO all offer a good student discount and none of them publishes an amount, so get it quoted rather than assumed.

Should I stay on my parents’ car insurance policy while in college?

Yes, if possible. Staying on your parents’ policy is usually cheaper because they likely benefit from multi-car, loyalty, and bundling discounts. Some insurers also offer a ‘student away at school’ discount if you live over 100 miles from home.

What kind of car is cheapest for college students to insure?

Safe, modest vehicles with good crash ratings—like compact sedans—are the cheapest to insure. Sports cars and luxury vehicles cost much more due to higher repair costs and greater risk.

Can defensive driving classes lower my insurance rate as a student?

Yes. Many insurers offer discounts to students who complete approved defensive driving or driver education programs. These classes also help reduce accident risk and improve driving skills.

Do college students pay more for car insurance?

Generally yes, because younger, inexperienced drivers are statistically riskier. However, discounts for good grades, safe driving, and distance-from-home can significantly reduce premiums.

What is the best way for college students to find cheap car insurance?

Compare quotes from multiple insurers, maintain good grades, drive safely, choose an inexpensive vehicle, take a driver education course, and consider staying on a parent’s policy if eligible.

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.

My advice is to make one list of every discount you qualify for — grades, distance from home, driver education, low mileage, volunteering — and read it out to each company you call. Most of these are not applied automatically, and only one insurer on this page will even tell you what they are worth before you quote.

Sources

Checked October 4, 2026

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