What Car Insurance Coverage Is Necessary For Students Away At College
Even for students away from home, good car insurance is a necessity. While youll want to buy the most affordable student car insurance available, you shouldnt limit your coverage to your states bare minimums.
This could leave you at risk if an accident occurs with one of the nearly 13% of uninsured motorist roaming the roads. In some states, that’s as high as 25%, according to the Insurance Research Council.
Remember, you can be the most responsible driver to ever hit the road, but that still wont protect you from the actions of those around you. According to 2014 statistics from the National Highway Transportation Safety Administration, 33% of drivers 21 to 24 years old were involved in fatal alcohol-related accidents.
This is the highest of any age group. Furthermore, consider the fact that 18% of all college-age drivers report driving under the influence at some point in time, while just over 37% of young adults between the ages of 18 and 25 were reported to be binge drinkers, according to the Substance Abuse and Mental Health Services Administration.
The bottom line: Just because you might be responsible doesn’t mean everyone else is. At the very least, you must carry your states mandated minimum liability coverage. But is that enough? Not likely.
To ensure you are protected, auto insurance for college students should include the following types of coverage with appropriate coverage limits:
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How Much Does Car Insurance Cost For International Students
Your cost will be about the same as any student, but a long history of safe driving, even as a first-time driver in Canada, can result in cheaper rates. Also know an expensive car, an undesirable location, or younger age will result in higher premiums. Finally, you can only drive with your international license for 60-90 days before you need a Canadian driverâs license or an International driverâs license. Make sure you have an insurance plan before you arrive in Canada.
What Insurance Company Is Best For College Students That Live Away From Home
There are several insurance companies that have student away from home discounts. Some of the best insurers, in this case, are USAA, Concord, and State Farm. The first two have low average rates and offer student-away discounts.
But not all students will be able to sign up for USAA or Concord. In that case, State Farm is a good option. In addition to having a student away discount, it also offers a good student discount of up to 25%. Ultimately, the best car insurance for you as a college student or for your college student children will depend on your location, your insurance needs and which company can bring the most value to you at the best cost.
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Best Car Insurance For College Students In 2022
- Best for Student Discounts: State Farm
- Best for Cheap Car Insurance: Progressive
- Best for Good Drivers: Root
GEICO is one of the best insurers for college students because of its many coverage and discount options, broad availability, and superior digital experience. Based on our quotes, GEICOs rates for young drivers were well below-average, and customers across the nation are highly satisfied with GEICOs auto insurance, according to J.D. Power surveys.
What Is A Good Car Insurance Rate For College Students
Car insurance for college students is typically expensive, since car insurance companies perceive younger drivers as higher risk, but everyones rates will vary based on their circumstances. However, there are ways you can make sure youre getting the cheapest car insurance possible. Keeping your college student on your policy can possibly save them hundreds of dollars. You may also want to see which student discounts apply to them. Most car insurance companies offer good student and distant student discounts which can reduce your premium by hundreds of dollars.
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Ways To Make Car Insurance For College Students More Affordable
You may be glad to know that car insurance rates drop once you have more experience behind the wheel. After the age of 20, you should see your car insurance rates start to decline, and by the time you reach 25, your premium should be much more affordable. But what about the few teenage years spent in college?
Here are a few recommendations for ways to make car insurance more affordable for younger drivers, too:
- Stay on your parent’s policy: As a driver listed as one of multiple on policy, your driving record will be added with others, so your parents’ safe driving habits could help you save money on your premium.
- Try pay-per-mile insurance: This option is best for college students who don’t drive much. With a company like Metromile, customers pay a monthly rate plus a few cents per mile driven. Metromile rates start at $29 per month. This company is one of the few providers that offer this type of car insurance.
- Ask about discounts: Finally, be sure to ask your current provider if there are any discounts you could qualify for that you haven’t capitalized on yet. If all else fails, don’t be afraid to switch auto insurance providers to find the cheapest car insurance for college students. This could help you better protect your personal finances and save money.
Car Insurance For Students Is Easier Than You Think
Locate the best and the most affordable car insurance for student online by taking advantage of specialist assistance online. Qualify for an array of discounts to secure adequate car coverage at a lower sustainable premium. Act to save time, energy and money during your effort to find insurance cover online that fits your specific needs and budget.
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Best Student Car Insurance For Discounts: State Farm
While State Farm offers a number of discounts, such as multi-vehicle discounts and discounts for bundling home and auto insurance, the company also offers a number of discounts that could help students lower their base rates, which are already cheap. Based on our analysis, State Farm is one of the best carriers for home and auto insurance bundles.
In fact, State Farm has a driving habits program called Steer Clear specifically made for young drivers. Students can enroll in the program and get a discount upon completion.
And thats just one of the companys many discounts. For instance, student drivers who get good grades could receive up to 25% off car insurance rates with the Good Student discount. Also, for drivers under the age of 21 who complete an approved driver education course, you could qualify for the Driver Training discount. And for college students who only drive while they are at home during school breaks, you could receive the Student Away at School discount.
Can College Students Stay On Their Parents’ Insurance
In some cases, college students can remain on a car insurance policy with their parents. This can save significant amounts of money, but families need to make sure their situations meet the eligibility requirements.
If a student is living at home and driving a car thats titled to a parent, then they can typically stay on their parents’ car insurance policy. This often applies to students who stay in a dorm during the school year or attend school out of state. However, if the name on the vehicles title is that of the student and their primary address is not the same as their parents primary residence, many car insurance companies will not allow students to remain on a family policy. Always check with the company you use before assuming anything about your policy and what is or is not allowed.
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Where Can I Buy Student Car Insurance
Student car insurance is widely available. The provinces of British Columbia, Manitoba and Saskatchewan all have government-run insurance systems, though optional coverage is still available from private insurance companies. In all other provinces, private insurers sell student car insurance policies. You can buy directly from some providers or through an insurance broker.
Is Car Insurance For Students Worth The Cost
Overall, that is going to depend on the student. Some students enjoy having the freedom to drive wherever they need to. Others live close enough to the campus to walk or take transportation.
It is worth the cost if your student commutes or drives their car frequently on campus. If they will be leaving their car at home, then there would be no point in paying for the insurance.
When trying to determine whether it is worth the additional expense, think about how often you plan to drive and whether or not you can take the bus or other means of transport. If you can and the college is already including transportation in your tuition cost, then you may want to lower your car insurance.
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Ology: Ranking Providers By Student Auto Insurance
Since cost is a major factor in auto insurance for young drivers, we ranked the top companies by average rates, using data for 17-year-old and 25-year-old drivers from Quadrant Solutions. The numbers for male and female drivers from both age groups were averaged to obtain a number representing both teen students and older students.
We used insurance company websites to get information about available discounts. For each company, we totaled the percentages for all discounts applicable to students for the total possible savings.
Finally, we used customer review data from Clearsurance to rank the companies for customer satisfaction.
Ready to save on auto insurance rates? Plug your ZIP code into our free online quote tool to compare rates and save today.
How To Buy A Health Insurance Policy
When youre ready to buy a health insurance policy, you have a few different options:
- Buy through the Health Insurance Marketplace which the Affordable Care Act created
- Buy your own policy through an agent or directly from an insurance company
- Buy into your college or university-provided health insurance
The last option, buying your school-issued insurance, may be your easiest route to coverage. In fact, it may be automatically included in your enrollment package and billed to your student account.
If thats the case, youve got this covered. If not, youll need to move on to another option.
Buying a health plan through the Health Insurance Marketplace has some advantages:
- Based on your income you could save big on premiums through tax credits
- Its easy to access coverage through the governments Web site
- You can keep your coverage if you drop out of school
- You wont be using student loans or other financial aid to pay for health insurance
But this is possible only during Open Enrollment . Open Enrollment usually takes place from November to mid-December. On the other hand, buying your own plan from an insurer could offer you lots of health plans and savings if you dont qualify for tax subsidies.
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Cheapest Car Insurance For 17
As young drivers begin to gain some experience, theyll find more affordable rates. The cheapest company for those who stay on their parent’s policy is GEICO it cost our sample family with a 17-year-old driver $2,823 per year. Allstate is a close second, and considering your rates may vary, it makes sense to start your search by getting quotes from these two companies.
State Farm remains the cheapest insurance company for students who need their own policy. A 17-year-old with an individual policy was quoted at $3,213 per year.
Cheapest Car Insurance Companies for 17-Year-Old High School Students
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You Might Qualify For A Different Auto Insurance Rate
Rates may change if your child is driving the car at school rather than leaving it back at home. For example, drivers in urban locations generally pay more for insurance than those in rural areas. If your child is going to school in an urban location, you might have to pay a higher premium if they take the car with them.
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The Best Way To Compare And Get Cheaper Car Insurance
Going to college is an exciting new chapter. For many young adults, college is usually the first time that theyve been away from home for a significant amount of time and responsible for living on their own. Its exciting for parents, too – college means independence for their teens, watching them learn how to take care of themselves, and sometimes, taking care of their own finances.
Insurify can show you side-by-side comparisons to make sure your young driver stays safe on the road and protects others, too. We can help you look up average monthly costs for an auto insurance policy to make sure youre getting the best rates on the best car insurance – all for free. Finding great rates and cheap car insurance is possible with Insurify!
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Geico: High Customer Satisfaction Ratings
Geico has affordable rates, competitive discounts, and high satisfaction and reliability ratings that make it one of our top choices for car insurance for college students.
Geicos reputation is largely positive. See a breakdown of Geicos ratings from industry experts below:
|Geico has sound business practices and a longstanding history of positive consumer interactions.|
|J.D. Power 2020 US Auto Insurance Shopping StudySM||867/900||Geico ranked first in J.D. Power’s customer satisfaction study for the shopping experience with large insurers, meaning customers are highly satisfied with Geico car insurance.|
When it comes to policies, Geico customers can choose liability limits and purchase additional coverage like roadside assistance and rental car reimbursement. Some of the discounts and additional insurance products that make this provider especially favorable for car insurance for college students include:
Plus Geico has some discounts that could help young drivers save money, like DriveEasy®, a usage-based safe driving discount that functions through an app. It monitors safe driving habits to qualify students for discounts.
Read our full Geico review to learn more about coverage.
Best For Military Students: Usaa
USAA serves the insurance and financial needs of the U.S. military and their families. This focus and their positive reputation for customer satisfaction make USAA our choice as the best car insurance for military students.
Focus on serving the U.S. military and their families
Discount if the vehicle is stored on a military base
Higher ratings for customer satisfaction
Fewer student-targeted discounts than competitors
Must have a USAA member number to get a quote
USAA has a long history as a provider of insurance and other financial services to active and retired members of the U.S. military and their families. The company is a great car insurance choice for children of military members or students who are on active duty or in the reserves.
The companys list of teen and college student discounts is not quite as extensive as some competitors lists. However, they do offer a discount for good students and for new drivers who have completed basic driver training. And, with their family discount, children of USAA members can save an additional 10%. USAA also offers flexible payment plans, making it a little easier for teens and college students on a budget to pay their premiums.
J.D. Power does not rank USAA on its surveys due to the companys membership requirement. However, the companys J.D. Power customer satisfaction rating would place it at the top of all major U.S. auto insurers.
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Best For Cheap Car Insurance: Progressive
Based on the profile we used to collect quotes for this review, Progressive offered the most affordable car insurance for college students. Its quote was hundredssometimes even thousandsof dollars cheaper than its competitors. And if youre in a minor accident, Progressives Small Accident Forgiveness benefit helps you keep your rates lowand this coverage is automatically included in your policy in most states.
Drop Your Kid Down To An Occasional Driver
If your child does remain on your policy, you may also see if its possible to change them from a primary driver to an occasional driver. Definitions of an occasional driver can differ depending who your insurance is with, but, in general, its someone who drives less than 25 percent of the cars annual mileage.
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Cheapest Car Insurance For 16
For 16-year-old high school students who are just starting to drive, we found that Allstate is the cheapest company for those who stay on their parents policy. Allstate charged our sample drivers $3,146 per year. GEICO was a close second.
If youre a 16-year-old student who has to buy their own policy, the cheapest company on average is State Farm. It quoted our sample driver at $3,612 per year thousands of dollars per year cheaper than the competition.
Cheapest Car Insurance Companies for 16-Year-Old High School Students
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