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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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati.com. ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Jul 19, 2021

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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 InsuranceLegend: Student Driver Rates (Monthly) Student Rate Without Driver Training CaliforniaFloridaIllinoisNew YorkTexas 50100150200250300350400450$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 GradesLegend: Student Driver Rates (Monthly) Good Student Discount CaliforniaFloridaIllinoisNew YorkTexas 50100150200250300350400450$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 RatesLegend: Student Driver with a Brand New Car Student Driver with an Older Car CaliforniaFloridaIllinoisNew YorkTexas 50100150200250300350400450$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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