Finding the best car insurance for a student requires research and comparisons. You’re already spending a fortune on tuition, housing, clothing, and food, so an additional cost in the form of car insurance would feel like a burden.
One way to reduce your auto insurance cost is to find discounts. Luckily, most insurance companies offer some form of student discount, and you only have to apply for them. To help you with your quest for auto insurance student discounts, here are some insurance companies that provide them.
In January 2022, Investopedia named Allstate car insurance the best overall auto insurance for college students. The fourth-largest car insurance company provides students with discounts specially tailored for them.
The company offers a smart student discount of up to 25% if you can maintain a grade of B or better. You can also avail of this discount by completing the teenSMART educational program. Another way to qualify is to attend school at least 100 miles away from where you keep your vehicle.
Another method of cutting your auto insurance costs as a student is through Allstate’s Milewise program. If you join the program, you won’t have a fixed insurance payment. Instead, the company will compute it based on your monthly mileage. This program is a better value for low-mileage drivers like students than regular car insurance.
Meanwhile, ValuePenguin named State Farm the best auto insurance firm for student discounts. The company has several discount options that you may want to look at to
State Farm has a similar good student discount program as Allstate, offering up to 25% discount annually if you qualify. There may be differences in criteria per state, but the basic requirements are that you’re a full-time student with a grade point average of 3.0 or better.
The company also has a Steer Clear program offering additional discounts for people under 25 without at-fault accidents or moving violations in the past three years. The program aims to improve the participants’ driving skills through training modules. If you join, you will be required to self-log important events when you drive. You’ll get a discount if you complete five hours of driving in at least ten trips without any incident.
The last State Farm program you could check out is the student away discount. The company created this discount for students who only drive when not at school. If you live on school campuses where you don’t need a car to go around, you might want to consider applying to this program. The main requirement is to live at least 100 miles away from your school.
Last January, thebalance.com picked GEICO as the best overall car insurance for college students for 2022. Aside from its coverage offerings, the company is known for its active use of the digital platform. The firm’s mobile app makes it easier for students to access information on their services, including discounts.
GEICO uses similar criteria for its good student discount. However, it provides a lower discount rate of 15%. Another program it offers is the driver’s education discount. Young drivers who finish a driver’s education course will earn a discount on some coverages.
The insurance company also provides special discounts to members of certain alumni associations and student organizations.
Meanwhile, thebalance.com named Progressive the best car insurance in terms of pricing. Insurance firms consider students as inexperienced drivers who carry a higher risk for accidents. As a result, companies give them a higher insurance rate.
As a result, your family’s policy will increase in price once you add a teen driver to it. Progressive offers a teen driver discount for drivers 18 years old and below to offset this effect.
Progressive also has its version of the good student discount. Full-time students under 23 may receive a special discount on their car insurance. You need to have a B average or better or a GPA of 3.0 or better.
Discount rates may vary per state, but the average discount is 10%. To apply for the discount, you need to submit proof of your grades for each term.
Progressive's distant student discount is another discount offering that varies based on your state. Like State Farm’s student away discount, full-time students 22 years old or younger may apply to the distant student discount as long as they live at least 100 miles from their school. To qualify, you shouldn’t have your vehicle with you at school.
The Bottom Line
Insurance companies view students as high-risk drivers because of their youth and inexperience. However, there are many ways to show these firms that you’re a responsible driver and that safety is your priority. Demonstrating these qualities will not only help better shape your identity as a driver, but you’ll also get discounts on your car insurance along the way.