15 Cheapest Auto Insurance Companies for College Students in the USA

Auto insurance is a major expense for college students in the USA. Young drivers typically face higher premiums because they are considered higher risk. For students already dealing with tuition, housing, and books, expensive car insurance can put a strain on their budget.

The good news is that several insurance companies offer affordable car insurance options specifically tailored to college students. These companies provide discounts, flexible payment plans, and lower rates for students with good grades, safe driving records, or limited vehicle use.

In this guide, we’ll review the 15 cheapest auto insurance companies for college students in the USA. We’ll also explain how car insurance works for students, the types of coverage you need, and tips to lower your premiums.

Why Car Insurance Costs Are High for College Students in the USA

Before choosing a policy, it’s important to understand why premiums are more expensive for young drivers.

Main reasons include:

1. Inexperience: Students typically have fewer years behind the wheel, making them more prone to accidents.

2. Higher risk profile: Statistically, drivers under 25 are more likely to file claims.

3. Frequent use: Students often rely on their cars for commuting to classes, part-time jobs, and activities.

4. Lower credit scores: Many students have limited credit history, which can lead to higher premiums in some states.

What to Look for in Auto Insurance as a College Student in the USA

As a student, you need a policy that fits your budget while still providing enough protection.

Key factors to consider:

• Minimum liability coverage: Meets state requirements and protects you if you cause an accident.

• Comprehensive and collision coverage: Covers your car in case of theft, vandalism, or accidents, but may be optional for older cars.

• Discounts for students: Many insurers offer good student discounts for maintaining a GPA of 3.0 or higher.

• Usage-based programs: Pay-per-mile or safe driving apps can lower rates if you don’t drive often.

• Flexible payment options: Monthly plans without large upfront deposits can be helpful.

Summary Table: 15 Cheapest Auto Insurance Companies for College Students in the USA

Premiums are estimates based on a 20-year-old college student with a clean driving record and will vary by state, vehicle type, and coverage level.

Detailed Reviews: 15 Cheapest Auto Insurance Companies for College Students in the USA

1. GEICO

GEICO is one of the most affordable options for college students thanks to its numerous discounts.

• Why it’s great for students: Offers good student discounts, defensive driving course savings, and low-mileage programs.

• Average premium: $1,350–$1,800 annually.

• Extra benefits: Easy-to-use mobile app, 24/7 claims service, and pay-per-mile programs in select states.

2. State Farm

State Farm is ideal for students who want a combination of affordability and personalized support through local agents.

• Discounts: Good student discount, student-away-from-school discount for those living over 100 miles away, and Steer Clear app savings.

• Premiums: $1,400–$1,900 annually.

• Why choose State Farm: Large agent network makes it easier to get advice and support.

3. Progressive

Progressive is well-known for its usage-based Snapshot program, which rewards safe driving.

• Premium range: $1,450–$2,000 annually.

• Features: Bundling discounts, multi-car discounts, and accident forgiveness.

• Ideal for students: Those who drive safely and want to track habits with telematics can save the most.

4. Nationwide

Nationwide offers competitive rates with a focus on customizable coverage.

• Discounts: SmartRide and SmartMiles programs for low-mileage drivers, good student savings.

• Premium range: $1,500–$2,050 annually.

• Why it’s a good option: Students who don’t drive frequently can benefit from pay-per-mile programs.

5. Farmers Insurance

Farmers provides unique programs that benefit young drivers.

• Discounts: On-Your-Own discount for independent young drivers, accident forgiveness, and good student savings.

• Premiums: $1,500–$2,100 annually.

• Why students like it: Farmers is flexible with payment plans and has strong agent support.

6. Allstate

Allstate offers a range of discounts and driver education programs that lower student premiums.

• Features: TeenSMART program for driver education, good grades discounts, and Drivewise safe driving app.

• Average cost: $1,550–$2,150 annually.

• Best for: Students who want strong online tools and in-person agent support.

7. USAA (for military families)

If you are a college student from a military family, USAA provides some of the lowest premiums in the market.

• Premiums: $1,250–$1,700 annually.

• Discounts: Good student savings, military family benefits, and accident forgiveness.

• Why it stands out: Consistently rated the highest for customer service and claims satisfaction.

8. Erie Insurance

Erie is available in select states and is a top option for its accident forgiveness and youthful driver discounts.

• Premiums: $1,300–$1,850 annually.

• Best features: Rate lock option ensures premiums won’t increase unless you make policy changes.

• Ideal for: Students who want stable rates and excellent customer service.

9. Travelers Insurance

Travelers offers affordable rates and customizable coverage for young drivers.

• Discounts: IntelliDrive safe driving program, good student discount, and multi-policy savings.

• Premiums: $1,500–$2,050 annually.

• Why choose Travelers: Students who bundle policies with renters or home insurance can save significantly.

10. Liberty Mutual

Liberty Mutual has flexible options and discounts tailored for students.

• Premiums: $1,550–$2,100 annually.

• Discounts: GPA-based discounts, student-away-from-school savings, and accident forgiveness.

• Best for: Students who want flexible deductibles and strong online support.

11. Auto-Owners Insurance

Auto-Owners is a mutual insurer with strong discounts for students.

• Premiums: $1,350–$1,850 annually.

• Features: Good student savings, student-away discounts, and multi-car savings.

• Ideal for: Students living in states where Auto-Owners operates and want personalized service.

12. MetLife Auto & Home

MetLife offers competitive group discounts through employers, alumni associations, and universities.

• Premium range: $1,400–$1,950 annually.

• Features: Telematics savings and accident forgiveness.

• Best suited for: Students who can access group or employer discounts.

13. Esurance

Esurance is a digital-first insurer offering competitive online rates.

• Premiums: $1,500–$2,050 annually.

• Discounts: DriveSense telematics app, good driver savings, and multi-car discounts.

• Best for: Students comfortable managing their policy online without visiting agents.

14. The Hartford

The Hartford is best known for its partnership with AARP but also offers student-friendly policies.

• Premiums: $1,550–$2,150 annually.

• Features: New car replacement, strong customer service, and accident forgiveness.

• Best for: Students who are part of AARP-eligible households or want superior claims handling.

15. Mercury Insurance

Mercury is known for low rates and solid student discounts in states where it operates.

• Premiums: $1,500–$2,000 annually.

• Discounts: Good student savings, multi-policy discounts, and safe driver incentives.

• Why it’s a top pick: Students in California, Florida, and other Mercury states can find some of the lowest rates.

How to Save Money on Auto Insurance as a College Student in the USA

1. Maintain good grades: Most insurers offer 10–25% discounts for a GPA of 3.0 or higher.

2. Drive less: If you don’t use your car often, ask about low-mileage or pay-per-mile programs.

3. Stay on your parents’ policy: This is usually cheaper than getting your own policy.

4. Take a defensive driving course: Completing an approved class can reduce premiums.

5. Shop around annually: Rates vary widely; comparing quotes helps you find the best deal.

FAQs: Cheapest Auto Insurance Companies for College Students in the USA

1. Which auto insurance company is cheapest for college students?

GEICO, USAA (for military families), and State Farm often provide the lowest rates.

2. Can I stay on my parents’ insurance while in college?

Yes, as long as you live at home or attend school full-time, you can often remain on their policy.

3. Do good grades really lower car insurance premiums?

Yes, most companies offer good student discounts of 10–25% for maintaining a GPA of 3.0 or higher.

4. Should college students buy full coverage?

If you drive a newer car or have a loan, full coverage is recommended. For older cars, liability-only may be sufficient.

5. Can I get car insurance without a credit history?

Yes, but your rates may be higher. Look for insurers that do not heavily weigh credit scores.

6. What is a student-away discount?

If you attend college more than 100 miles from home and don’t take your car, some companies will lower your premium.

7. Are telematics programs worth it for students?

Yes, safe driving apps like Snapshot (Progressive) or IntelliDrive (Travelers) can reduce rates for cautious drivers.

8. Do college students need rental car coverage?

It’s optional but helpful if you often travel and need a backup car after an accident.

9. Can I pause my insurance while away at school?

No, but you can reduce coverage if your car is stored and not driven.

10. How much does car insurance cost for college students in the USA?

On average, full coverage costs $1,300–$2,100 annually, depending on the insurer, state, and driving record.

Conclusion

Finding affordable auto insurance as a college student in the USA can be challenging, but it is possible if you compare multiple companies and take advantage of discounts.

The 15 cheapest auto insurance companies—such as GEICO, State Farm, Progressive, and USAA offer student-specific discounts, usage-based programs, and flexible payment options.

To get the best rates:

• Maintain good grades.

• Stay on your parents’ policy if possible.

• Use telematics programs for safe drivers.

• Shop around annually for the best deal.

By choosing one of these trusted insurers and using the savings tips in this guide, you can protect yourself and your car without overspending during your college years.