Heading off to college comes with a lot of new responsibilities, and if you have a car, insurance is one of the big ones. Unfortunately, car insurance premiums tend to be higher for college students due to their limited driving experience. The good news? There are plenty of ways to save money and make sure you’re properly covered.
Why Is Car Insurance More Expensive for Students?
Insurance companies consider young drivers higher risk, which leads to higher premiums. But don’t let that discourage you, many insurers offer discounts specifically designed to help students cut costs.
How College Students Can Save on Car Insurance
If you’re a full-time student under 25, you may qualify for several discounts. Here are some of the most common ways to lower your premium:
Good Student Discount
Keeping your grades up can actually save you money. Many insurers reward students who maintain strong academic performance.
Resident Student Discount
If you attend a college more than 100 miles from home and leave your car behind, your family may qualify for a discount since the car is used less often.
Multi-Policy (Bundling) Discount
If you’re renting an apartment, consider bundling renters insurance with your auto policy to unlock additional savings.
Anti-Theft Device Discount
Installing anti-theft devices not only protects your car but can also reduce your insurance costs.
Driver Education Programs
Completing programs like TeenSMART can show insurers you’re a safer driver, and that often means lower rates.
Should You Stay on Your Parents’ Policy?
This is one of the most common questions students (and parents) ask. The answer depends on a few key factors:
Where You Live
- Still using your parents’ address? You may be able to stay on their policy.
- Living on campus or renting? Check with your insurer as rules can vary.
Who Owns the Car
- Parent owns the car: You can usually stay on their policy.
- Joint ownership: Still likely eligible to stay.
- You own the car: You’ll probably need your own insurance policy.
When Should You Get Your Own Policy?
At some point, it may make more sense to have your own insurance. This is especially true if you:
- Own your car
- Are financially independent
- Are married or have children
- No longer live at home
Choosing the Right Coverage
Saving money is important, but so is having the right protection. Here are a few coverage types to consider:
Comprehensive Coverage
Covers non-collision damage like theft, vandalism, or weather. Great if your car is parked outside frequently.
Collision Coverage
Helps pay for repairs if you’re in an accident with another vehicle or object.
If your car is leased or financed, you’ll likely be required to carry both.
If your car is fully paid off, you might consider dropping one or both to save money, but be aware of the risks.
What If You Only Drive Occasionally?
If you only drive when you’re home from college:
- Stay on your parents’ policy for protection
- Consider removing certain coverages if the car sits unused for long periods
- Keep comprehensive coverage in case of theft or damage
Tips for Parents of College Students
Parents can usually keep their child on their policy as long as:
- The student is still part of the household
- The parent owns the vehicle
However, if your child moves out permanently or buys their own car, it may be time for them to get their own policy.
What About International Students?
International students can get car insurance in the U.S., but they’ll need a valid driver’s license. Depending on their home country, they may also need an International Driving Permit (IDP).
What to do Next?
There’s no one-size-fits-all solution when it comes to car insurance for college students. The right setup depends on where you live, how often you drive, and who owns the vehicle.
The best move? Review your options, ask your insurer about available discounts, and make sure you’re balancing affordability with the coverage you actually need. If you’re looking for a place to start, your first step is here at Best Auto Insurance. Fill out a quick form today and see what your insurance options are.