Car Insurance for Students: Saving 101

Car insurance for students living away from home or with family can be expensive. Auto insurance rates for younger drivers tend to be higher than average. Student car insurance discounts may be available to reduce the cost of car insurance for college students and high school students. Young drivers auto insurance is some of the most expensive, but auto insurance discounts for students in college and high school can help you save. Find out more below.

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Sara Routhier

Sr. Director of Content

Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

Sr. Director of Content

Justin Wright

Licensed Insurance Agent

Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...

Licensed Insurance Agent

UPDATED: Nov 27, 2023

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You’re studying for finals, and it is 2 A.M. You decide you need a break, and that you’re hungry. There’s nothing in the fridge, so you decide to go to a fast-food restaurant that’s open late. But then you find out the hard way why driving around late at night is considered dangerous: another driver hits your car on your way home.

How will such a situation affect your student car insurance rates?

Car insurance rates for young drivers are already among the highest, so how can you save money on auto insurance for students? Keep reading to learn more and search with our FREE tool to compare student auto insurance rates now.

How to Find Cheap Student Car Insurance

Students are actually one of the more expensive groups of drivers to insure. Combine lack of sleep, deadlines, and inexperience together and you get a whole heap of factors that make you a riskier driver than most. And because of these factors, according to the Insurance Information Institute, insurance companies oftentimes charge students a higher premium.

Best Car Insurance for College Students

Unfortunately, despite the higher prices you have to pay as a student, car insurance is mandatory. The car accident example from earlier could have been much worse. If you were at fault, not only would you have been liable for your own medical expenses and car repairs, but for the other driver’s damages as well. Car insurance helps insulate you from such a harsh financial situation, and in some cases, covers you completely.

There are ways to keep your costs down. For one, staying on your family’s car insurance plan helps. Their premiums will rise somewhat by adding you, but there are a lot of discounts that they are eligible for that you probably aren’t. Some of those include multiple policy discounts and homeowner’s discounts. It also helps to secure your car with alarms and anti-theft devices. Having these might qualify you for a discount.

Lowering Costs of Student Auto Insurance

For those of you that don’t have this luxury, fear not. There are other ways to lower your premium. Just follow these easy steps, and you can get a substantial rate reduction:

  • Step #1: Take Driving Classes

There are insurance companies that offer a discount to drivers who take car accident prevention courses. It’s been statistically proven that teens die from car crashes more than anything else. Take a little extra time to educate yourself on the hazards of driving, and in addition to becoming a safer driver, you may get a discount.

Driver Training and Car Insurance

Legend:
Student Driver Rates (Monthly)
Student Rate Without Driver Training

California
Florida
Illinois
New York
Texas

50
100
150
200
250
300
350
400
450

$181
$185

$380
$383

$86
$88

$436
$461

$314
$331

  • Step #2: Maintain a Decent Grade Point Average

Having a higher GPA generally means that you’re a responsible student. By extension, it usually means you’re a responsible person. So, car insurance companies are willing to give discounts to students who maintain a B average or better in their academics.

Auto Insurance with Good Grades

Legend:
Student Driver Rates (Monthly)
Good Student Discount

California
Florida
Illinois
New York
Texas

50
100
150
200
250
300
350
400
450

$203
$181

$424
$380

$102
$86

$454
$436

$347
$314

  • Step #3: Adjust the Deductible

If you raise your deductible on certain sections of your policy, like collision and comprehensive, you could save a lot. Though bear in mind that there’s a trade-off. If you raise your deductible, that means you are responsible for more out of pocket expenses, before your insurance kicks in to cushion the impact of your expenses.

  • Step #4: Consider Buying Used Versus New

If you plan to buy a car, it usually helps to buy an older model. These are cheaper to insure due to the fact that they have had time to depreciate. Cars begin depreciating from the moment you drive them off the lot. A less expensive car is less expensive to insure, and thus your premiums go down. Compare student car insurance rates in minutes!

Newer vs. Older Model Car Insurance Rates

Legend:
Student Driver with a Brand New Car
Student Driver with an Older Car

California
Florida
Illinois
New York
Texas

50
100
150
200
250
300
350
400
450

$179
$175

$392
$382

$97
$93

$457
$457

$350
$263

Comparison shop NOW to get the lowest rates for student drivers!

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