College and Car Insurance: Save as a Student

Heading to college is an exciting adventure, but it can also be quite pricey. From tuition and textbooks to those late-night pizza cravings and personal expenses, the costs can pile up quickly.

If you're fortunate enough to have a car on campus, you'll need to budget for additional expenses like fuel, maintenance, and auto insurance. Here are some tips to help you cut down on your car insurance costs.

Lowering Your Car Insurance Premium

Whether you have your own car insurance policy or are included in a parent’s plan, there are strategies to reduce your premium. While getting an affordable rate is important, it's equally vital to ensure you have adequate coverage for your situation.

Key Questions to Consider:

Whose name is on the car title?
Will you be living at home during college?
If living on campus, how far is it from home?
How frequently do you drive?

Answering these questions can help you determine the precise coverage you need and uncover the discounts you may qualify for.

Don’t Overlook Student Discounts

Many insurance providers offer discounts for students. Typically, you need to be a full-time student and unmarried to qualify. Most insurers also have age restrictions for student discounts.

Allstate provides a student discount for those under 25.
Progressive offers a Good Student discount for individuals under 23.

Be sure to confirm specific requirements with your insurer.

Tips for Saving on Your Car Insurance

Whether you're paying the insurance bill yourself or a parent is covering it, saving money is always a good idea. Discuss your college situation with an agent, including your class schedule, activities, living arrangements, and transportation needs.

Keep Those Grades Up

Besides being a full-time student, maintaining good grades can earn you a car insurance discount. Often, having a B average or higher makes you eligible. If you made the Dean’s List, Honor Roll, or are in the top 20% of your class, let your insurer know so they can apply the best discounts.

Savings for Renters

Living off-campus in your apartment is an exciting experience. If you have renters insurance to protect your belongings, you might qualify for a multi-policy discount by combining it with your auto insurance.

Greek Life and Honor Societies

Membership in a sorority or fraternity, like Kappa Sigma, Sigma Alpha Epsilon, or Delta Gamma, might help you save on auto insurance through affiliation discounts. This discount may also apply if you’re part of your school’s honor society.

Organization Discounts

Some insurers offer discounts based on the college or university you attend. These discounts can also extend to members of your school's dental or medical student association. Additionally, a discount might be available based on your bank affiliation.

Considerations for Moving Away to College

If you own a car and are relocating to a new town for college, you may choose not to take your vehicle with you. Leaving it at home and attending a college 100 miles or more away could mean you're driving less and reducing mileage on the insured vehicle. Inform your agent about this situation.

Low-Mileage Drivers

If you bring your car to college but it mostly stays parked on campus, a low-mileage discount could lead to savings on car insurance. You might also consider a usage-based program like Progressive’s Snapshot or Safeco’s RightTrack. However, these programs track when and how you drive, so if late-night food runs are frequent, this might not be the best option for you.

Top Car Insurance Discounts for Students

Every auto insurance provider has unique discounts. Here are some of the best student discounts from top insurers:

Allstate

Allstate offers a student discount for those under 25 and unmarried. To qualify, you need a B- or higher average or a GPA of 2.7 or more. If you attend a school at least 100 miles away from your insured car, you may receive a discount.

Progressive

Progressive provides two main discounts for college students. To qualify, you must be a full-time student under 23. The good student discount requires a B average or better. Additionally, a discount is available if you attend a school over 100 miles from home. You cannot be the primary named insured or the spouse of the primary to qualify.

USAA

USAA offers a discount for full-time students with a GPA of 3.0 or higher. You may also qualify if you made the Dean’s List or Honor Roll or are in the top 20% of your class.

Safeco

Safeco provides discounts for students attending college more than 100 miles away. Maintaining a GPA of 3.0 or higher can result in further savings. If you’re on a Safeco policy with a parent and decide to purchase your own Safeco auto insurance policy, you can earn a discount.

State Farm

State Farm offers discounts for students under 25, including one for those moving away for school without taking their car. Your vehicle is only used during school vacations and holidays. A discount of up to 25% is available for students with good grades.

Travelers

Travelers offers a 7% discount for students attending a college at least 100 miles away without taking their car. Maintaining at least a B average qualifies you for an 8% discount.