Did you know that car insurance is most expensive for drivers under the age of 25? What’s worse, this is the age group that is least likely to be able to afford shelling out a lot of money for car insurance. According to The College Investor, the average premium for a college student is $3,816 annual which is a whopping $318 a month. Paying this rate in addition to tuition, books, and room and board can put a major strain on you financially. Thus, when you search for car insurance as a college student or parent of a college student, you should shop around and compare your car insurance quotes from different companies to find your best quotes and discounts.
Car insurance companies consider college students and others their age to be high risk drivers. Young adult drivers receive more moving violations than older adults. Furthermore, these violations tend to be more egregious than those that older adults commit. Additionally, college aged drivers possess far less experience which increases the chances of accidents as well.
Average Car Insurance Cost For College Students
Here are some average annual premiums for a college student from major insurance companies:
- State Farm: $2,788
- Allstate: $2,532
- GEICO: $1,737
- Progressive: $1,718
- Liberty Mutual: $3,680
Thus, Progressive initially seems to offer the cheapest auto insurance rate for college students.
Now, here is a look at the average annual premium by age.
- 18-year-old: $5,460
- 19-year-old: $4,158
- 20-year-old: $3,786
- 21-year-old: $3,038
- 22-year-old: $2,016
The Best Car Insurance Companies For College Students
The College Investor nominates Allstate as the best car insurance for college students based on the rate that you can get with the company’s incentive program. Allstate allows college students and others to combine renters insurance with automobile insurance and bundling these two significantly lowers the rate. Moreover, Allstate offers a distant student discount of up to 35% off of the premium.
Another car insurance company that offers a significant discount is State Farm. College student who maintain a good GPA can get as much as 25% knocked off of their premium. In addition, State Farm has Steer Clear Safe Driver Program which you can take online to receive 15% off of your premium.
Farmers also offers a good student discount of approximately 24% per year for college students. Farmers offers a distant student discount as well.
American Family has a number of discounts for college aged individuals. One is the good student discount which can be as much as 25% off. Additionally, the insurance company offers a Teen Safe Driver discount and a Young Volunteer discount.
Another car insurance option to consider is Metromile. This is a new form of auto insurance which sets its rate by the number of miles that you drive. The company charges a base rate of $29. The company charges 3.2 cents per mile in addition to the base rate. Thus, a college student that drives 100 miles a month would pay 29$ + $3.20 for a total of $32.20. This may be the cheapest choice for college students who aren’t living at home and do not take their car with them.
>>MORE: Best Cars for College Students
Car Insurance Discounts That Your College Student May Qualify For
Many car insurance companies offer a number of discounts that college student may qualify for to lower their rates. One such discount is the good student discount which is offered by most major insurance companies. If the student maintains a B average in college, car insurance companies will lower the premium.
Additionally, a lot of car insurance companies offer a discount for students who go to college more than 100 miles away from home without taking the car with them. This is often called a distant student discount or a student away discount and it’s is available from a number of insurance companies.
When Should You Keep Your College Student Child on Your Policy?
It is often cheaper to have your college student child on your policy than to get him or he an individual policy. If your college student plan to bring his car to campus with him, you should probably keep him on your policy.
Even if your college student is not taking the car to campus, if he or she comes home regularly and drives, your child still needs insurance. Furthermore, many car insurance companies lower their rates over time as part of a customer loyalty discount. Thus, your child can save by having continuous car insurance even if he won’t be driving much. Moreover, it is more difficult to obtain insurance for college students and recent grads who do not have a history of having car insurance.
In fact, car insurance companies and financial experts advise that you keep your child on your insurance policy to make sure that he is covered if he drives at all. This is especially true since some car insurance covers your child’s medical bills and expenses if he is a passenger in a car that is involved in an accident.
When Should You Take Your College Student Child Off Your Policy?
Even though it is typically cheaper to keep your college aged child on your policy than to get him his own policy, this is not always the case. If your college student attends a college is a small college town removed from, car insurance may be cheaper in the zipcode where the college is located. Thus, you should check the rates for the area where the college is located against the to see if it would be cheaper to get your child his or her own policy. It is important to note that you can still use your address as your child’s primary address with most insurance companies if your child is a full-time student. Therefore, you should look into what would be cheaper for you.
Additionally, if your child is attending college away from home and will not have access to a car, you may want to consider taking him or her off the policy. See if your insurance company will allow you to temporarily exclude your college student. If so, you can add him back if he comes home and wants to drive. However, this is dependent on the insurance company and many will not allow you to do this.
Car insurance for college aged drivers can be expensive but there are a number of ways to save. Take advantage of the discounts that auto insurance companies offer such as good student and student away discounts. Furthermore, consider bundling car insurance with some other type of insurance that you student may need and taking advantage of multiple vehicle discounts. Finally, consider pay per mile car insurance such as that offer by Metromile if your college student drivers infrequently.