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There are many reasons why so many search for the best car insurance for students. If you’re a teen driver, you may not be able to get coverage on your own, and if you are, it may be out of your budget. If you’re a college student, you probably don’t have much money to spend on coverage for your car, but may need a safe option for getting back and forth to classes. Use out guide to learn more about finding the right policy and getting the best car insurance coverage.
Quick Look: The Best Car Insurance for Students
- Pay-Per-Mile Coverage From an Established Company: Allstate
- Best for Those Over 50: AARP
- Best for Drivers With Consistently Good Habits: Progressive
- Best for Roadside Assistance: AAA
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Compare Car Insurance for Students
All insurance carriers offer their customers discounts, some more than others.
Allstate is one of the largest insurance companies in the country, and it’s been around for 90 years. That means it’s secure and able to pay your car insurance claims. That doesn’t mean it’s stodgy, though. It has introduced innovations like Drivewise, which allows you to save on your insurance based on your driving habits, and Milewise, which is pay-per-mile insurance.
You can purchase insurance online or through an Allstate agent. Allstate offers several options for discounts that can bring down your policy costs significantly. It also offers several types of insurance so you can have all or most of your policies with 1 insurer.
Overall, Allstate is a good choice and worth comparing with other insurers to see if it’s right for you. It’s available in all 50 states and has an A+ rating from AM Best.
- Personalized service
- Pay-per-mile insurance from an established company
- Buying multiple types of insurance
- Extensive agent network
- Easy sign-up process
- Many customer service options
- Drivewise and Milewise aren’t available in all states
The AARP Auto Insurance Program from The Hartford is designed exclusively for AARP members who are at least 50 years old. Some of the unique features of the program can help you save money on your policy over time, especially if you have and maintain a clean driving record.
Other stand-out features include new car replacement (rather than the depreciated value), reimbursements for expenses incurred if you get injured in an accident and lifetime repairs guarantees.
The AARP Auto Insurance from The Hartford is rated #1 by J.D. Power and Associates for customer satisfaction in handling auto insurance claims.
- Safe drivers who are looking to save money
- AARP members at least 50 years old
- Offers unique coverages and benefits that can be added to a standard auto insurance policy
- Allows drivers to save for safe driving
- Rated #1 by J.D. Power for customer satisfaction in auto claims handling
- Only available for AARP members
- Must be at least 50 years old to qualify
Progressive auto insurance is among the first of the larger insurers to actively embrace usage-based insurance via electronic monitoring of driving habits. Often a refuge for younger drivers and drivers who have been refused insurance elsewhere, progressive markets and supports its insurance products through its website and a network of independent agents.
- Young and less-experienced drivers
- Drivers with consistently good driving habits
- Rates for good drivers
- RV drivers
- More welcoming to less-experienced drivers
- Great website and mobile app functionality
- Driving based discounts can be generous
- Relatively smaller agent network may leave some without a local agent
- Rates can increase at renewal based on driving data from Progressive’s Snapshot.
The American Automobile Association (AAA) is a federation of auto clubs, and it offers a wide range of insurance options, including car insurance. It is the most trusted and familiar name in auto-related services. The company has come a long way since its founding, but the mission remains the same.
Safe and efficient transportation is exactly what AAA commits to per the company’s core statement. AAA is probably best known for its roadside assistance, but the company offers a variety of insurance coverage and memberships as well. AAA strives to make your life easier with its insurance coverage for you and your family. Your safety and security is AAA’s priority.
- AAA Members
- Roadside Assistance
- Extra insurance perks
- Anyone looking for unique insurance carriers
- Serves all states
- Mobile app
- Emergency roadside assistance
- Have to be an AAA member
- Policies not available in every area
Ask for Discounts
Some individuals visit an insurance website, get a quote, and think that’s it. They’re unaware of the number of discounts insurers have that can assist with high premiums. You see some of them advertised, but you will never know the extent of what your insurance company offers until you ask. A few things you need to know: Money can be saved.
Many factors can be attributed to how much you will pay for auto insurance. Customer loyalty, your demographics, driving history, and safety equipment on your vehicle all play a part in how insurance companies will rate you. Meeting specific requirements can give you an advantage and sometimes dramatically reduce your monthly premium. Some of these discounts can include:
- Safe Driver: Remaining accident/violation free.
- Equipment devices: Anti-theft systems, -lock brakes and hybrid vehicles also fall under this category.
- Bundling: Pairing your auto insurance with your homeowners or renter’s insurance.
- Account status: Signing up for auto pay, paying your policy in full, and going to paperless statements.
Good students can receive discounts. Young drivers who also earn good grades can be eligible for a dramatic discount on their insurance. Studies have shown that a student who receives As and Bs is more likely to be a better driver than a student who receives Cs and Ds. This discount does vary by company, and in fact, may not even be offered by some. Those insurance companies who extend this discount have certain qualifications that must be met:
- The student must be younger than 25 years of age.
- Be enrolled full-time in high school or university.
- Maintain at least a B average (3.0 GPA semester or accumulative).
- Provide continued proof of good performance.
Terms of discounts. As life goes on, situations change. You may relocate to a different state, switch jobs, purchase a different car, or change to your family dynamic. Each of these can warrant a change in your insurance rates.
- Moving can affect your premium because insurance often changes, depending on zip code.
- Switching jobs and the distance you must drive can also increase or reduce your rates.
- A newer car or additional car will have an impact on your insurance cost.
- Getting married, divorced, and having children can all change how much you pay.
Just as these changes can affect your premium, having a poor performing semester could jeopardize your good student discount. Therefore, most insurance companies regularly verify that the student is maintaining the benchmark GPA to continue their discount status. This can come in the form of a report card or a certified letter from school administration.
If a child does not qualify now, or his/her grades drop, he/she can work on them. When they do reach the minimum requirements, you can revisit the issue with the insurance company.
Keep in mind that not all insurance companies offer the same discounts, or they offer differing decreases based on that discount class. These rates can also vary by state, age, and gender.
Car Insurance Rates by Gender
Studies have shown that teenage boys are more likely to be involved in an automobile accident than female teenage drivers. According to the Insurance Institute for Highway Safety, in 2016, 66% of motor vehicle crash deaths in the age group of 13-19 were caused by males. Only 34% were attributed to female drivers. This combined total accounted for 8% of traffic fatalities for that year.
Speeding, reckless driving and night driving are all significant causes for males. T-bone accidents rate among the top issues for females. Text messaging while driving is generally equal between the two genders (49% vs. 46%). No matter the type or cause of an accident, insurance rates will be dramatically affected.
Whether male or female, an accident will affect the insurance policy in different ways. Your insurance company could do one or more of the following:
- Increase the rate of the teen’s vehicle on the policy.
- Increase the rate on a parent’s vehicle on the policy.
- Cancel the teen’s portion of the policy.
- Cancel your entire policy.
Because of these risk factors, it is imperative that you find the best rates from the get-go. This involves shopping around because not all insurance companies charge the same rates for every driver.
States with the Cheapest Rates for Teens
Where you live in the country will determine your insurance premiums. Location is one of the most significant factors when it comes to rating an individual. Those in Connecticut, New Jersey, and Oregon pay the highest rates, up near $5,000 per annual policy.
The three states that have the cheapest rates in the U.S. are:
- Ohio: Erie Insurance Company offers teens an annual policy for $812.
- Iowa: Pekin Insurance Company offers teens an annual policy for $927.
- West Virginia: Pekin Insurance Company offers teens an annual policy for $1,076.
If a teen has any accidents or moving violations, then those rates will be considerably different. Other factors to consider are the type of vehicle they drive. If they make any aftermarket additions, like rims, sound systems, or lighting enhancements, this will trigger an increased premium to cover these additions.
Find the Best Car Insurance for Students
Having your teen behind the wheel does not have to break you completely. When you have to face the daunting task of adding your child to your insurance policy, talk with your insurance agent. Have them do a policy review with you considering your current situation and thoroughly go through all aspects of your circumstances. Ask if there are any new discounts available to you and your teen driver. You may be able to find cheap car insurance, after all.
What is the best car insurance for a permit driver?
This depends. In some states, such as Michigan, law dictates that a permit driver doesn’t need to be added as a named driver to their guardian’s policy. If the permit driver is an adult, it’s important that the car they’re driving is insured.
Are there student discounts on car insurance?
Many providers offer insurance discounts to student drivers, especially for good grades. Ask your provider if they have any deals for students.