Car Insurance for College Students

As a student, review your auto insurance policy before you head off to college. Whether you’re driving daily, commuting, or just keeping a car for occasional use, your insurance coverage should match your situation.

Many students stay on their parents’ policy, which is often the cheapest and makes it easier to share cars during breaks. But if you’re attending school out of state or in a different zip code, your insurer may require a separate car insurance policy. It could be cheaper depending on the local risk factors near the university.

Things like your driving habits, location, and grades can all affect your auto insurance rates. Good grades can get you discounts while living off campus and frequent driving can increase your car insurance premiums.

Planning ahead will ensure you’re covered and save you money and stress as you start your college journey.

How Much is Auto Insurance for College Students?

Car insurance for college students is more expensive than for older, more experienced drivers. This is because insurers consider teen drivers high risk because of their inexperience and more likely to be reckless behind the wheel, like texting and speeding. Statistically, 18-19 year olds are at the peak of their accident risk, a phase that won’t come around again like that later in life.

The average cost for car insurance rates for college students ranges from $2,000 to over $7,000 a year. The exact cost depends on several personal factors, like driving history, vehicle type, location, and coverage level. To get the best car insurance rate, it’s best to talk to an independent agent who can shop policies across multiple insurance carriers and find the best one for you.

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How to Save Money on College Student Auto Insurance

Auto insurance can be a big expense for college students and their families but there are several practical ways to save without sacrificing insurance coverage. Whether the student drives frequently or only during school breaks, understanding available discounts, alternative types of insurance and smart coverage choices can add up to big savings.

1. Take Advantage of Student Discounts

Insurers offer special student car insurance discounts for families with college students on their policies:

1. Good Student Discount: Many insurers offer discounts (starting at 5%) for full time students under 23 who maintain a Grade point average of B or higher.
2. Distant Student Discount: If a student attends college over 100 miles away from home and doesn’t take a car, they may qualify for a distant student discount based on lower risk.
3. Usage-Based Insurance Discounts: Programs that monitor driving behavior (via mobile apps or plug-in devices) reward safe driving habits and infrequent vehicle use, up to 15% in some cases.
4. Safe Driver Discount: Students who have a clean driving record with no accidents or tickets will qualify for safe driver discounts over time.

2. Consider Usage-Based or Pay-Per-Mile Insurance

Choosing car insurance for college students who don’t drive many miles per day—whether it’s a walkable campus, public transportation or no car at school—usage-based insurance or pay-per-mile car insurance may be more cost effective. These programs track mileage, driving time, and braking behavior. They’re good for low mileage drivers but could increase rates for riskier drivers.

3. Drive Less and Choose the Right Vehicle

Driving less reduces risk, and many insurance companies offer a rate reduction for lower mileage. Insuring a used car—especially one with good safety features—can be cheaper than a new car. Look for vehicles with safe driving features like electronic stability control, anti-lock brakes, and automatic emergency braking.

4. Review Coverage Based on Use and Value

If a student leaves a vehicle at home unused for an extended period, consider moving the vehicle to storage only coverage which typically includes only comprehensive coverage against theft, weather or vandalism. This can save money but check state regulations on keeping registration without liability coverage.

If the student’s car is older and paid off in full, dropping collision coverage may also save money. Just remember that if the car is damaged, you’ll have to pay out of pocket.

5. Shop Around for the Lowest Rates

Since insurance companies rate college student drivers differently, it’s a good idea to shop around for new policies annually. Car insurance rates can change based on age, ZIP code, driving history, and changes in vehicle use. Working with an independent insurance agent can make the process easier and help you find the best coverage options and the lowest prices.

6. Avoid These Common Mistakes

1. Don’t Let Insurance Coverage Lapse: Even if a student won’t be driving for a while, a lapse in coverage can mean higher rates later.
2. Don’t Drive Uninsured: Temporary lapses for short trips home can mean serious legal and financial consequences. Always maintain proper car insurance coverage.
3. Avoid “Temporary Insurance” Scams: Legitimate insurers don’t offer short term policies. If insurance coverage is only needed for a brief period, purchase a 6 month policy and cancel if necessary—you’ll usually get a refund for the unused portion.

7. Ask Your Insurer How to Save on your Premiums

Every situation is unique so it’s important to talk to your insurer. Let them know of changes in residence, driving habits and vehicle use. If your student only drives during school breaks, some insurance providers may allow you to remove them from your insurance policy temporarily and add them back later—though this isn’t always allowed.

By taking advantage of discounts, choosing the right insurance coverage, and staying in touch with their insurer, families can manage auto insurance costs during their college years.

Can College Students Stay on their Parents Auto Insurance Policy While Away at College?

Many college students can stay on their parents' auto insurance policy while in school, but their eligibility requirements depend on residency status. The main thing is whether the student has moved out permanently or still has their parents address as their primary residence.

Temporary vs. Permanent Residence

If a student attends college away from home but still has their parents' address as their permanent residence—whether commuting, living in a dorm or staying in campus housing temporarily—they usually can stay on the family policy. Most insurers accept this arrangement but be sure to check with your provider to confirm. However, if the student sets up a new permanent address at a distant college and keeps their vehicle there, they need to get a separate policy under that address.

Cost Savings and Convenience

Staying on a parent’s insurance policy is often much cheaper, potentially saving 60-70% of the premium. Sharing a policy also has practical benefits: both parties are covered when driving each other’s vehicles, and managing one policy is easier. Plus, the student is insured when they come home for holidays or breaks and avoids a lapse in coverage that could raise their rates in the future.

When to Switch to an Independent Policy

If a student fully moves out and no longer considers their parents' home their permanent residence, they are no longer eligible to stay on the family auto insurance policy. In that case, the student needs to get their own policy. Parents can then remove the student from their policy, and their rates will go down.

Being clear on residency status and communicating with the insurance company is key to staying covered and compliant throughout the college years.

How Does Car Insurance Work for Out-of-State College Students?

For college students attending school in another state, staying on a parent’s car insurance policy is often possible—but it depends on several factors. Most states and insurers allow students to stay on the family policy if their primary residence is still listed as their parents' address. So, even if you’re living out of state for school, you may not need your own separate insurance policy as long as certain conditions are met.

Eligibility Criteria

To see if you can stay on your parents' policy as a college student, insurers will look at the following factors listed below.

1. Vehicle ownership: If the vehicle you’re taking to college is owned and registered by your parents, you’re more likely to be able to stay on their policy.
2. Location: The ZIP code where the vehicle will be parked during the school term is a big deal, as it affects risk and premium calculations.
3. Living arrangements: Whether you live on-campus or off-campus can impact the insurance requirements. Some insurers may have different rules based on housing status.

When Do Students Need Their Own Auto Policy?

If you own the vehicle and are living independently off-campus with a new permanent address, or if the insurance company deems the out-of-state arrangement outside of policy allowances, you’ll need your own policy. In those cases, you’ll need to buy insurance coverage specific to the state you now live in.

Before you decide, check with your insurer to see what the rules are for your situation, including state laws, vehicle details and residential status.

How Does Car Insurance Work for International Students?

Car insurance requirements for international students vary if you are studying in the US or abroad. Knowing the differences and requirements is key to being covered for the semester.

International Students in the US

Students from other countries attending college in the US can get car insurance from many domestic carriers but eligibility is mainly based on having a valid driver’s license. Depending on your country of origin, your existing drivers license may be accepted or you may need to get an International Driving Permit (IDP) before you can get coverage. Insurance companies use this documentation to check your driving history and give you an accurate quote.

US Students at College Abroad

For students studying outside the US, standard US auto insurance policies do not provide international coverage. Some US car insurance policies may provide limited coverage in Canada. But if you plan to drive in another country, you must get a local car insurance policy that meets that country’s requirements.

Whether you’re studying abroad or coming to the US for college, you must follow local insurance requirements to drive legally and be financially protected.

What if a Student Only Drives When They’re Back Home?

If a student only drives at home, such as on weekends, holidays or school breaks, it’s generally recommended to keep them listed on their family’s auto insurance policy. Even if the student doesn’t drive regularly, keeping them on the family insurance policy ensures coverage in case of an accident. If they are at-fault, the liability from the accident would fall on the vehicle owner if the driver doesn’t have coverage.

Keeping Insurance Coverage While Away at School

Insurance companies often require students who are away from school but occasionally come home to drive to be listed on their parents policy. This ensures continuous insurance coverage for the college student and the car owner.

Adjusting Coverage for Cars Not in Use

Suppose the student’s car is parked at home and unused for 30 days. In that case, parents may consider temporarily adjusting the coverage. Some ways to save money by reducing coverage are listed below.

1. Reducing liability or collision coverage will lower the insurance premium while the vehicle is not in use.
2. Keeping comprehensive coverage is a good idea as it covers non-driving risks such as theft, vandalism, or weather damage.

Ultimately, keeping the right car insurance coverage—even for occasional use—provides peace of mind and compliance with the insurer’s requirements while potentially saving you money when the vehicle is not in use.

How Do I Add a College Student to My Car Insurance Policy?

Adding a college student to your auto insurance policy is a few simple steps and considerations when they are moving out for school. Be sure to notify your insurer ahead of time so coverage is continuous and accurate based on the student’s situation.

Steps to Add a Student Driver to Your Policy

To add or keep a college student on your policy, you’ll need to complete the following steps below.

1. Update policy info, such as the student’s residency and the college’s zip code.
2. Confirm the student’s primary address is still your household, which is often a requirement for continued coverage.
3. Determine if the student owns their vehicle, how often they drive and if they are financially dependent as these factors affect the policy.

Most insurance companies allow policy changes to be made online, including adding or removing drivers, vehicles, or coverages.

Student Discounts to Consider

When updating your car insurance policy be sure to look for student discounts on insurance. Eligibility often depends on the student being full time, good grades or residing at school with no regular vehicle use. Since discount availability and qualifications vary by carrier it’s best to talk to your insurer to see what savings and coverages apply to your situation.

Get Affordable College Student Car Insurance Online!

College student car insurance can be tricky to navigate but you can still find affordable car insurance. Living arrangements, driving habits, and academic status all impact coverage and cost. Students and parents can make informed decisions that fit both their needs and budget. Whether you’re commuting from home, going out of state, or leaving your car behind, you need the right coverage. Get a free car insurance quote today from Insurance Navy and start saving now.

Frequently Asked Questions

How can college students lower their car insurance rates?

Good grades, a safe and cheap car, a clean driving record, and shopping for student discounts can lower car insurance rates substantially. Also, taking safe driver education programs, defensive driving courses, and usage-based insurance can help students get lower rates.

Is it cheaper for a college student to stay on their parents policy or get their own?

Most of the time, it’s cheaper to stay on a parent’s car insurance policy because the household’s combined risk pool gets lower rates and broader multi-vehicle discounts. However, students should periodically check quotes as independent policies can be competitive depending on personal driving history and location.

What good student discount requirements do insurers have?

Most companies require a 3.0 (B average) or higher GPA, being on the dean’s list, or standardized test scores in the top 20-25%. Students need to provide proof (report card or transcript) and renew the good student discount annually by maintaining eligibility.

Can I pause or reduce coverage when I leave my car at home while I’m away at school?

Yes—many insurers offer “student away” or storage options that keep comprehensive coverage active but suspend the more expensive collision and liability parts. This can significantly lower car insurance premiums during the school term while still protecting the vehicle from theft or damage.

Does joining a fraternity, sorority, or alumni association lower auto insurance rates?

Some insurance carriers offer small discounts for members of certain organizations so check if your group is on their list. Also, membership in honor societies or professional student organizations may also qualify students for special discounts.

How long can I stay on my parents policy after college graduation?

As long as you live at the same permanent address, most insurers allow you to stay on your parents car insurance policy. Once you move out permanently, you’ll need your own policy. Some insurers offer transitional or alumni discounts to recent graduates, giving more affordable rates when switching to independent coverage.