Overview
College is all about freedom. We are talking about late-night pizza runs, weekend road trips, and maybe your first car that’s truly yours. But with great independence comes great responsibility (and a little paperwork). One big grown-up task in particular: getting the right car insurance.
Auto insurance can sound boring or complicated, but it’s basically your financial safety net if things go sideways on the road. The good news? Tons of insurers offer special deals and discounts just for students if you know where to look.
Let’s break down how to find the best policy, score some savings, and dodge the common mistakes that can cost you big.
Criteria for Choosing the Best Insurance
Picking car insurance in college can feel like choosing a major; there are a lot of options, and you’re not always sure what’s right for you. But once you know what actually matters, finding a policy that fits your life (and your wallet) gets way easier. Here’s what to look for when you’re shopping around:
1. Price (Hello, College Budget)
Cost is probably the first thing on your mind, which is understandable. Car insurance can be pricey for students since younger drivers are considered higher risk, but that doesn’t mean you’re doomed to sky-high rates.
Compare quotes from several insurers before committing. Even if two companies look similar, one might offer better student discounts, lower deductibles, or flexible payment options. And don’t be shy about calling to ask: “What discounts am I eligible for?” Sometimes, just asking saves you more than you’d expect.
Pro tip: Using comparison tools like Insurify can help you check multiple quotes at once without filling out a million forms.
2. Choosing Coverage That Actually Fits Your Life
Not every student needs full coverage, but not everyone should go bare minimum either. Think about your lifestyle and how often you drive:
Commuter students: If you’re driving to campus every day or taking road trips, consider full coverage (liability + collision + comprehensive). It protects your car from accidents, theft, and even rogue shopping carts in the parking lot.
Campus residents: If your car mostly sits parked and you only use it occasionally, liability-only coverage might be enough.
Out-of-state students: Make sure your insurer allows address changes or offers coverage across states because not all do.
3. Tech and App Experience
If you manage your life through your phone, your insurance should fit right in. Many insurers now offer apps that let you:
Pay bills automatically
Access digital ID cards
File and track claims
Check your coverage details
Even earn rewards for safe driving
Companies like GEICO, State Farm, and Progressive have highly rated apps that make insurance management super simple. If you hate calling customer service, this is a major win.
The Rundown
Best for rideshare drivers: State Farm
Best for safe drivers: Progressive
Best for military families and veterans: USAA
Best for students: Auto-Owners
Best for drivers seeking the best customer service: Amica
Best for homeowners looking to bundle: American Family Insurance
- Best for: Rideshare drivers
- Average cost/month: $226
- Average cost/year: $2,707
- Availability: Every state except Massachusetts and Rhode Island
State Farm
Details:
State Farm insurance is sold through the company’s network of independent agents to ensure friendly, local, personalized service. In business since 1922, today the company provides more than 96 million insurance policies and other financial service products.
Why we like it
State Farm allows drivers to personalize their policies for extra savings. They offer multiple discounts for safe drivers and students. Unlike some other insurance companies, State Farm offers rideshare coverage as an add-on to your auto insurance policy for an average of 15% to 20% more in premium costs.
Pros & Cons
Pros
Friendly local service through independent agents
Easy-to-use mobile app
Flexible bundles
Many discounts available
Cons
No 24/7 customer service
Not sold in Massachusetts and Rhode Island
Accident forgiveness can’t be purchased
- Best for: Safe Drivers
- Average cost/month: $182
- Average cost/year: $2,187
- Availability: All 50 states
Progressive
Details:
Many people recognize the Progressive name from the company’s ad campaign featuring “Flo,” the friendly insurance salesperson. Progressive launched in 1937 and boasts several “firsts” in the insurance industry, including the introduction of 24/7 claims service in 1990.
Why we like it
With discounts for installing the Snapshot plug-in telematics device or using the app, Progressive rewards drivers based on good driving habits. Drivers with no tickets or accidents in three years can save as much as 34% on their premiums. The company says drivers have saved more than $1.2 billion with Progressive.
Pros & Cons
Pros
24/7 claims
Safe driver discounts
Instant online quotes
Accident forgiveness
Cons
Premiums may be higher if you have accidents or tickets
Average premiums slightly higher than some competitors
- Best for: Best for military families and veterans
- Average cost/month: $172
- Average cost/year: $2,068
- Availability: Only to qualifying military members, veterans and their families
USAA
Details:
USAA is a financial services company serving members of the U.S. Armed Forces, veterans, and their immediate families. The company provides affordable auto insurance with discounts for safe driving, multiple vehicles on the same policy, and even keeping your car in a garage on a military base.
Why we like it
USAA offers many discounts and features tailored toward active military members and their family, such as lower rates for storing your car while you are deployed or for garaging it on a military base. As a full-service financial company, USAA also offers banking and investment services, so you can manage most of your financial needs with one company. Plus, its rates are substantially lower than many other carriers.
Pros & Cons
Pros
Telematics discounts for safe drivers or low-mileage drivers
Lower than average premiums
Online quote in minutes
Cons
Only available to military members, veterans, and their families
No in-person agents
- Best for: Students
- Average cost/month: $181
- Average cost/year: $2,173
- Availability: 26 states
Auto-Owners Insurance
Details:
When you purchase a policy through Auto-Owners Insurance, you work directly with an independent agent for more personalized service. Auto-Owners was founded in 1916 in Lansing, Michigan and today, provides auto, home, life and many other types of insurance in 26 states.
Why we like it
Students can get discounts for maintaining a B or better average, leaving their cars at home while they are away at college, or signing up for Teen Driver Monitoring. There are also many other discounts available, including savings for consistently paying your bill on time.
Pros & Cons
Pros
Many ways to save
Offers many different types of insurance bundles
Independent agents provide personalized service
Cons
Only available in 26 states
No online quotes available
- Best for: Drivers seeking the best customer service
- Average cost/month: $321
- Average cost/year: $3,857
- Availability: All states, except Hawaii
Amica Auto Insurance
Details:
Amica is a mutual insurance company, which means policyholders own a stake in the company. It also happens to be the oldest mutual car insurance company, in business since 1907. The company has an A+ rating from AM Best and an average of 4.4 stars on TrustPilot.
Why we like it
Amica has a solid reputation for reliable customer service and fast and easy claims processing, as exemplified by positive reviews. The company offers many ways to lower your premiums and offers dividends on some policies, which essentially puts cash in your pocket.
Pros & Cons
Pros
Long history of financial stability
Online quote in 8 minutes
Dividend policies pay up to 20% of your premium
Highly rated customer service
Cons
More expensive than average
May cost more if you don’t pay upfront
Dividends not available in every state
- Best for: Homeowners looking to bundle coverage
- Average cost/month: $215
- Average cost/year: $2,571
- Availability: Available in 19 states
American Family Insurance
Details:
Founded in 1927, American Family Insurance (AmFam) is a mutual insurance company, which means its customers are its shareholders. The company provides many types of vehicle and home insurance, as well as life insurance, pet insurance, and business insurance.
Why we like it
American Family Insurance blends low premiums with stellar customer service. Multi-line discounts help drivers save even more, while the company’s telematics program rewards safe driving habits. Reviewers on the App store gave the insurance app 4.7 stars, while TrustPilot reviewers gave the company an average of 4.5 stars.
Pros & Cons
Pros
Excellent customer reviews
Save 25% when you bundle home and car insurance
Discounts for safe driving
Cons
Only available in 19 states
Special Discounts and Savings Opportunities for College Students
You know those random “student perks” you get for showing your college ID? Auto insurance has those as well, and they can seriously cut your costs. Here are a few to look for:
Good Student Discount
Your GPA can actually pay off (finally!). If you keep your grades above a B average, many companies will knock 10–25% off your premium.Distant Student Discount: Going to school out of state and leaving your car at home? Some insurers lower your rate since you’re not driving as much.
Safe Driving Programs: Install a telematics app that tracks your driving habits. If you avoid speeding and harsh braking, you could score a discount.
Multi-Policy or Family Bundles: Still on your parents’ policy? Awesome, it’s usually cheaper. If you’ve got your own apartment or renters insurance, bundling those policies can also save you some dough.
Low-Mileage Discounts: If your car spends more time parked than in motion, tell your insurer. Driving less means lower risk, and that often means lower rates.
Common Mistakes to Avoid
Even the smartest students slip up when it comes to car insurance. Avoid these rookie mistakes:
Picking the Cheapest Policy Just Because It’s Cheap: A rock-bottom rate might mean terrible coverage. Always check what’s actually included, or you might regret it later.
Forgetting to Update Your Info: Moved dorms? Studying in a new state? Your insurer needs to know, or your coverage could get messy if you file a claim.
Setting a Sky-High Deductible You Can’t Afford: Sure, higher deductibles lower your premium, but if you can’t cover that amount in an emergency, it’s not worth the risk.
Skipping Helpful Add-Ons: Roadside assistance, rental reimbursement, and uninsured motorist coverage might sound extra, but they’re lifesavers when something unexpected happens.
Don’t Stop Shopping Around: Insurance rates change all the time. Do a yearly “price check” to make sure you’re not overpaying… You might be surprised how much you can save.
FAQ's
What is car insurance?
Car insurance is a contract between you and an insurer that protects you against financial loss in the event of an accident, theft, or damage involving your vehicle.
Why do I need car insurance?
It’s legally required in most places and protects you financially from costs related to accidents, injuries, and vehicle damage.
What does car insurance cover?
Coverage varies, but generally includes:
Liability (injuries/damages to others)
Collision (damage to your car from a crash)
Comprehensive (non-collision damage like theft, fire, hail)
Uninsured/Underinsured Motorist
Medical payments or PIP (personal injury protection)
by your friends at The Daily Navigator
