The Guide to Car Insurance for College Students

Auto insurance coverage is an important (and mandatory, in most cases) product that offers financial protection for drivers and car owners. This coverage can be costly for teens and college-age drivers, though, prompting many parents and young adults to reevaluate their coverage at certain milestones, like when leaving for school.

About half of college students in the United States bring a car with them to school, according to data from U.S. News & World Report, which translates to millions of vehicles on university campuses nationwide. But many other students rely on alternative transportation, as some colleges even forbid undergraduates from bringing their cars to campus. 

Here’s everything you need to know about car insurance for college students, including how much it costs, what type of insurance to buy and how to decide if you need to maintain a policy in the first place.

Do I need car insurance for my college student? 

If your college student will be driving to and from school or around campus, they’ll need car insurance. Most states require drivers to carry a minimum level of liability coverage against bodily injuries and property damage.  You may also be required to buy full coverage if the car is leased or financed. 

You may also purchase full coverage, which includes comprehensive and collision insurances. Full coverage protects your investment even if the vehicle is broken into, stolen from campus or wrecked in an at-fault accident.

Even if your college student isn’t taking the car to school, it’s wise to keep them insured.

Consider maintaining coverage for your college student if they:

• Will drive a family vehicle when they visit over school breaks.
• Leave a car behind that could be damaged or stolen.
• Own a financed car with a lien and a lender that requires full coverage.
• Don’t want their rates to rise in the future due to a lapse in coverage.

How much is car insurance for college students?

College students can pay 50% to 100% more than older, more experienced drivers.

This is because young drivers are less experienced and therefore considered riskier to insure. Teen drivers account for the majority of serious accidents and traffic fatalities among all categories of drivers, so it stands to reason that they’ll pay for more coverage. 

In addition to age, your college student’s premiums will also be impacted by factors like their:

• Gender.
• Location.
• Driving history.
• Vehicle make and model.
• Average mileage.

Here are car insurance quotes that real Jerry customers between the age of 18 and 24 have recently received:

Can college students stay on their parents’ car insurance policies?

Typically, college students can remain on their parents’ auto insurance policies, whether they live at home or on campus. There is no age limit for auto insurance coverage either, so the student won’t have to move to their own policy once they graduate or reach a certain age. 

It’s often more cost-effective for a college student to remain on their parents’ coverage than it is to purchase another individual policy. However, there are some situations when it may make sense for the student to move to their own policy. 

Reasons to keep your college student on your auto policy

Ownership. If your child’s vehicle is titled in your name, keeping them on your insurance policy provides you with added protection from potential liability. Even if your child goes to school out of state, you can usually keep them on your policy if their car is titled in your name or jointly titled.

Simplicity. Keeping a college student on their parents’ auto insurance policy makes it easier to manage coverage for everybody. You only need to keep track of one policy and premium payment, and parents always know that their child is covered.

Budget. On average, it costs less to keep a college driver on their parents’ policy than it does to purchase two individual policies. However, factors like coverage limits, location and driver history may affect costs.

Availability of other services. Aside from liability and full coverage protection, auto insurance can include other benefits and services to protect your child. For example, many carriers offer roadside assistance that can dispatch help if your student is stranded or their car breaks down, especially if they are hours from home. 

When to remove your college student from your auto policy

They’ll have little or no access to a vehicle. Students who go to college without a vehicle and don’t have access to a car when they visit home may not need to maintain coverage.

Your student owns their car. If a college student owns their own vehicle (meaning it’s titled in their name) and they move away to school, they may be required to buy their own insurance, depending on the carrier.

Their permanent address changes. Most college students keep their parents’ home as their permanent address while they’re in school. Students who get their own place and change their permanent address may be forced to buy separate coverage. 

They have a poor driving history. Driving history is a major factor that insurers use to calculate car insurance rates, and a blemished history — on either the student’s or parents’ end — can lead to a high rate. If either party has a clean record and the other has a spotty history, it may make sense to maintain separate policies.

How to find the cheapest car insurance for college students

Whether you keep your college student on the family policy or buy them their own coverage, finding cheap car insurance for students can be a task. Here are some tips to lower your child’s premium. 

Snag all available car insurance student discounts

Many insurers offer discounts for college-age drivers and specifically for students. These might include discounts for good grades or for bundling auto insurance with a renter’s policy for their campus apartment.

Other car insurance discounts for college students include:

• Student affiliation discount: Students and alumni of some colleges and organizations (like fraternities, sororities and honors groups) receive discounts for their affiliation if they have a policy under their own name.
• Driver education: Taking a driver training course as a teen may help you qualify for car insurance discounts.
• Good driver discount: Practice safe driving habits to avoid accidents or tickets, and your clean driving record could score savings on your car insurance premium.

Let your carrier know about driver location changes

Some insurance companies offer a car insurance discount for students away at college. This is available if your college student leaves their car behind and moves a certain distance from home — usually 100 miles or more. 

Only pay for what you use

Usage-based auto insurance can be more affordable for college students who don’t leave campus much or only drive their car when they’re home from school. These policies often charge based on annual mileage, though they may also take driving habits into consideration.

Adjust policy options

Choosing a higher deductible may result in lower overall premiums, no matter who is on the policy. Just be sure you can afford that out-of-pocket expense if an accident does occur before choosing a high deductible option.

Shop around

Comparing different insurance coverage options from various companies can be a smart way to manage costs. This will help you find the best student discounts on car insurance and lock in the lowest possible rates for coverage.