College is expensive. Between tuition, housing, textbooks, and lab fees, many students also need to budget for car insurance. Since young drivers typically pay the highest auto insurance premiums of any age group, this can be a significant financial burden.
Fortunately, several insurers offer cheap car insurance for college students, along with valuable student discounts for good grades, limited driving, volunteer work, and more.
Best Overall for Affordability: Geico
Who is this for?
Geico is the most affordable option overall, offering the lowest average premiums for young drivers who remain on their parents’ insurance policies.
Student discounts available:
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Good student discount of up to 15%
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Discount for leaving your car at home
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Driver education course discount
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Military and select student organization discounts
Average annual cost:
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18-year-old on parents’ policy: $3,996
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20-year-old with their own policy: $4,260
Best Good Student Discount: State Farm
Who is this for?
State Farm stands out for its generous good student discount, offering the highest potential savings among the insurers reviewed.
Student discounts available:
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Good student discount of up to 25%
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Steer Clear driver discount for drivers under 25 with a clean record
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Distant student discount
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Driver education discount for drivers under 21
Average annual cost:
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18-year-old on parents’ policy: $4,738
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20-year-old with their own policy: $5,143
Best for Students Who Leave Their Car at Home: Progressive
Who is this for?
Progressive is ideal for students who don’t bring their car to campus. The insurer allows drivers to pause collision coverage while keeping comprehensive coverage active.
Student discounts available:
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Distant student discount
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Good student discount of up to 10% in most states
Average annual cost:
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18-year-old on parents’ policy: $4,053
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20-year-old with their own policy: $4,329
Best for Students on Their Own Insurance: Auto-Owners Insurance
Who is this for?
Auto-Owners offers the lowest average rates for young drivers who carry their own auto insurance policies.
Student discounts available:
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Distant student discount
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Good student discount of up to 20%
Average annual cost:
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18-year-old on parents’ policy: $3,516
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20-year-old with their own policy: $3,755
Best Pay-Per-Mile Car Insurance: Milewise by Allstate
Who is this for?
Milewise by Allstate is a pay-per-mile insurance program that combines a low daily base rate with a per-mile charge, making it ideal for college students who drive infrequently.
Student discounts available:
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Up to 20% off for maintaining a B- average (2.7 GPA) or higher
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Discount for leaving your car at home
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Discount for completing the teenSMART driver education program
(Note: Some discounts may not apply to Milewise policies.)
Average rates: Not available
Best for High-Risk Student Drivers: American Family Insurance
Who is this for?
Available in 19 states, American Family Insurance offers competitive rates for students with speeding tickets, DUIs, or at-fault accidents.
Student discounts available:
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Good student discount
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Volunteer discount for completing 40 hours of community service per school year
Average annual cost:
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18-year-old on parents’ policy: $5,078
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21-year-old with their own policy: $6,189
Best for Military Families: USAA
Who is this for?
USAA provides affordable car insurance for active-duty service members, veterans, and their families, making it an excellent choice for military households and ROTC students.
Student discounts available:
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Good student discount of up to 10%
(Not available in Hawaii or North Carolina.)
Average annual cost:
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18-year-old on parents’ policy: $3,683
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20-year-old with their own policy: $4,456
How Much Is Car Insurance for College Students?
Car insurance rates for college students vary based on age, location, driving history, and eligibility for student discounts.
The biggest cost factor is whether a student is on their own policy or a parent’s policy. In 2025, the average cost to add an 18-year-old to a parent’s policy was:
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$2,548 for males
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$2,262 for females
College students with their own auto insurance policies paid more than $7,000 per year on average.
What Is a Good Student Discount?
A good student discount is an auto insurance discount for drivers under 25 who are full-time high school or college students and meet one of the following criteria:
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Maintain at least a B average or a 3.0 GPA
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Rank in the top 20% of their class
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Make the dean’s list or honor roll
Depending on the insurer and state, homeschooled students may also qualify. Discounts typically range from 5% to 25% and require proof such as transcripts or report cards.
Other Car Insurance Discounts for College Students
In addition to good student discounts, college drivers may qualify for other savings, including:
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Distant student discounts
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Safe driver discounts
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Driver education discounts
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Volunteer discounts
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Military and ROTC discounts
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Student organization and alumni discounts
Students may also qualify for standard auto insurance discounts, such as paying in full, going paperless, installing safety devices, or bundling auto and renters insurance.
