Saving on car insurance as a student presents its challenges. On the one hand, you’re probably not driving very frequently, and even when you do, it’s likely that you’re usually driving somewhere within walking distance of your home or school. On the other hand, you’re also probably still using your car often enough to make it worth your while to keep it insured.
As a result, finding the cheapest auto insurance for college students can be tricky, especially if you aren’t willing to compromise on the quality of coverage offered or the types of drivers permitted to drive under your policy. Fortunately, we’ve done all the research for you. Read on for details about what makes someone a “student,” different kinds of car insurance policies available to students, and some helpful tips to help you save on coverage as a student.
Getting your driver’s license is one of the first big milestones in becoming an adult, and for many young people, it’s also the moment they start thinking about buying a car. Owning a car can be great for your independence and give you many opportunities, but it also comes with serious financial responsibilities.
In addition to the cost of buying your car (and perhaps financing that purchase), you will probably need to budget for auto insurance. Whether you are renting or leasing your new car, most lenders require you to take out comprehensive coverage that protects against liability, collision, and — in some cases — even theft.
Fortunately, there are various ways to keep these costs down while still ensuring that you have enough coverage in case something goes wrong. Here are some cheapest auto insurance for college students.
Cheapest Auto Insurance For College Students
1) Metromile Car Insurance
Metromile car insurance is pay-per-meter insurance that offers cheap auto insurance. The pay-per-meter insurance works better for people who do not travel a long distance or those who do not use the road often. This is because the tax is calculated by the mile traveled. There’s usually a fixed rate and cost per mile rate, which is calculated through the driving history.
This type of insurance allows drivers to pay tax based on how much they drive. As such, those who drive less can enjoy these cheap rates. This type of insurance is mostly beneficial to college students, as it is likely that they do not drive long distances frequently. Although the tax rates are based on driving mileage, factors such as your driving history, age, the car you are driving, where you live, and coverage rate are considered.
Metromile Tax Rate:
Metromile offer really good rates, especially for drivers who drive around 10,000 miles and less a year. Compared to standard auto insurance, the metro miles rate is 22% cheaper for drivers who drive up to 5,000 to 7,500 miles and 16% for drivers who drive from 7,600 to 10,000 miles.
The rate is calculated through the tracking of driving miles. Metromile uses what is called the Metromile Pulse to keep track of the miles driven. The Metromile Pulse is a small device placed in the primary location of tracking devices(car’s diagnostic port). While driving, this can track you or your location, but you can turn off the location by disabling the Pulse’s GPS function.
- Cheap rates
- Good for those who like the use of proficient modern technology.
- Good for those looking for an easy shopping experience
- Metromile’s customer service is unreliable, as they’ve received a high rating of bad customer service.
- This type of insurance is not good for drivers where metro mile is not available.
- Bad for drivers who drive a lot of miles, as rates will likely be more expensive than standard insurance rates.
Metromile is currently available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. So if Metromile is available in your state, you can try Metromile, especially if you are an infrequent driver.
Visit Metromile Webpage
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2) State Farm
State Farm is a great choice for insurance, as the company is well-established throughout the United States and offers great customer service. They offer deposit accounts, loans, investments, and other types of insurance such as motorcycles, boats, small businesses, and life and health insurance. For the purpose of this article, we will be considering their auto insurance.
State Farm insurance counts as one of the cheapest auto insurance for college students as they offer customers a lot of auto insurance discounts, especially student drivers. One of the auto insurance discounts they offer us is a good student and good driver discount. The good student discount is quite beneficial for college students who want to save money, as it offers up to 25% auto insurance savings for eligible college students annually. Student eligibility requirements vary, but the standard requirements require that the driver be a full-time student and have a minimum GOA of 3.0 out of 4 0. The discount lasts till the student turn 25years old, so even if the student graduates before they turn 25 years old, they can enjoy this privilege.
Another discount for students offered by State farm is the student-away-at-school discount. This discount is beneficial to college students who live on campus but have their cars at home, which they drive mostly when they are at home on vacation or break.
On a general note, State Farm Insurance offers all drivers under the age of 25 access to discounts for auto insurance. This program is called the State Farm’s steer, aimed at helping young drivers improve their driving skills through educational materials and significant experiences that occur during their trips. While on this trip, if no violation or accidents occur, the driver gains access to the auto insurance discount.
These different discounts can help students save up on auto insurance and also help promote good driving skills.
- Available in all states in America
- Covers travel expenses
- Doesn’t offer accident forgiveness
- Doesn’t offer gap insurance
Visit State Farm Insurance
3) Allstate Mobile
If you are looking for insurance that works with active mobile apps, Allstate mobile is a good choice! They offer a reliable network to reach agents and for personal service. They also offer discounts that will help you save money.
Allstate offers drivers two apps – the Allstate Mobile and Quick Trip, and these tools ensure personalized service and a reliable network to local agents. The Allstate Mobile app grant users access to their insurance plan information, help them manage claims, and assist in connecting the user to a nearby insurance agent. The app allows users to file claims right, thus saving the user time, which would have been used to seek an insurance agent and the stress that comes with managing the claim.
The Quick Trip its major function is trip optimization. The app allows drivers to enter many locations, as the app will find the best route for the day. This provision is quite beneficial for college students, as it will save time and stress, especially in tight schedules.
These mobile apps are especially useful for users who would like to avoid the stress that comes with auto insurance policies. Although this insurance is quite easy, stress-free, and beneficial for college students, it is a bit expensive. However, prioritizing the need between service quality and cost is advised.
Allstate Mobile operates in the United States, United Kingdom, Canada, and India.
- Easy access to customer service
- Easy claims filing
- Below-average policy renewal scores
- Higher-than-average rates
Geico offers the best cheap auto insurance for college students. Their rates are quite affordable, and their customer service is convenient and reliable. They offer cheap rates to drivers with no recent accidents or violations, and they have an easy-to-use app that manages policies online and assists with filing claims and making quotes. With a 24 hours customer service available and an app that allows for convenient service at cheap rates, Geico is easily an option looking for the best auto insurance.
Geico auto insurance covers injury and property liability, collision and comprehensive coverage, medical payment and personal injury protection, cab insurance for leased vehicles, and uninsured and underinsured liability coverage.
Geico also grants discounts to members of school-related groups such as alumni associations, fraternities, and sororities. If you are a college student involved in significant school social groups, you receive a good discount on your auto insurance and enjoy a convenient insurance program.
- Geico is good for users who want a convenient insurance program
- Geico offers cheap rates.
- This insurance is good for those who want multiple lines of insurance.
- Geico saves user’s stress and provides a direct connection to local insurance agents.
- It operates all over America.
- This insurance type might not be good for those who seek physical meetings with local insurance agents.
- Not good for drivers who have a history of car accidents within the last five years.
Visit Geico Insurance
5) Auto-Owners Insurance
Auto insurance has an impressive service time of over 100 years and, as such, is one of the oldest car insurance companies in the United States. They offer the average car insurance, which covers things like roadside assistance, towing coverage, rental car reimbursement, and diminished car value coverage. They also offer what is called the Personal Automobile Plus Package, which covers personal stolen items or damaged items in cases when the vehicle is stolen or damaged.
What’s more? Auto-Owners Insurance offers great discounts, especially to college students. They offer Good-student- discount and a student-away-at-school discount. The Good-Student discount saves up to 20% insurance money for eligible students. For the student-away-at-school discount, students who attend school more than 100 miles from home and who only drive their car at home while on vacation can save up to 20% insurance money.
This auto insurance typically does not have a mobile app or other tech options. Rather they offer a direct meeting with local insurance agents.
- Auto-owners offer users exclusive programs such as affordable plans like Personal Automobile Plus Package and Purchase Price Guarantee.
- Auto-Owners offer a lot of discounts, especially for students, and this help user saves money.
- Auto Owner has an impressive 49 years record of best top rating for financial strength and great customer service.
- Auto Owner is available in only 26 states, and not everyone is eligible to use the auto owner’s insurance.
- Users who prefer tech options might not like Auto Owner insurance, as they do not have an operating app.
- Quotes and insurance claims have to be gotten directly from local agents.
Visit Auto Owners Insurance
This insurance is especially beneficial to college students who served in the military or enrolled in ROTC (Reserve Officers Training Corps). Discount programs for children or spouses of military members with current/former USAA car insurance are also available.
In addition to their useful discount, they also offer great customer service. USAA student discount offers the standard car insurance for college students, and they offer additional coverage such as towing coverage and roadside assistance. One of USAA’s student discounts is the Good student discount, which can help students save up to 10% insurance money.
- USAA offers great discounts for students.
- There’s a provision for the mobile app.
- It operates in all of America.
- They do not have a local agent network
- They offer limited discounts.
Visit USAA Insurance
How to save money on car insurance as a college student
If you are a college student who drives on campus or at home, you can save money on car insurance if you consider the following suggestions:
- You can use the same auto insurance policy your parents use as students on parent’s policy and resorts to lower auto insurance fees.
- If you are an infrequent driver, considering the meter per rate insurance will be best for you, or you can use the away from home insurance discount.
- Most insurance companies offer a good student discount, so you can meet the requirements of a minimum 3.0 GPA or rank within the top 20% of your class to enjoy the discount.
- Another way to save money on auto insurance as a student is to compare insurance rates. You can compare the quotes and coverage of different insurance companies and choose the one that offers the best deal for you.
The average college student spends up to $50,000 on tuition fees and other school-related expenses. These expenses can be a tussle as other additional expenses like auto insurance also require money. However, going for cheap auto insurance with great service can relieve students’ financial stress.
This article has provided the 6 cheapest auto insurance for college students. This will help you choose the right auto insurance to help you save money.