College Student Car Insurance Explained
A new school year is upon us. And it’s time for parents and students to discuss affordable car insurance for college students.
Whether you need to know about the cost of car insurance for college students, the discounts available for some, or the best types of car insurance for college students, the experienced team at Einsurance.com is here to help.
Education is expensive. And auto insurance topics can be confusing, we know. That’s why we provide these resources for consumers.
Keep reading for unbiased, honest information from real insurance agents on:
Right away, let’s answer your most important question.
Can I Keep My College Student on My Car Insurance Policy?
Sometimes, yes. If your child keeps your address as their primary residence, and drives a car insured as yours, they can stay on your policy.
Ultimately, if your college student is living at home and heading to the local community college, you don’t need to change much with your car insurance.
We still suggest that you:
Review your policy to make sure you have the coverages you need (like theft or full coverage)Have a frank discussion with your child about safe driving and safe behavior on campus
But if your student is heading out of town — especially out of state, or to a major city — your insurer will likely require them to get a separate policy.
Don’t Mislead Your Insurer About Student Addresses
As insurance agents, we get several calls every year from parents who don’t know this, or who try to dodge the system. They often ask, “How does the insurance company know where my student lives or drives?”
When your child arrives at college, they’ll fill out paperwork for parking privileges. Insurers, the DMV, law enforcement and other organizations have access to those records.
Insurers also use more advanced technology. In 2024, they’re using satellite data, vehicle maintenance records, on-street photography and toll booth records to verify our driving habits.
New vehicles may also have the ability to record and send this information to legally qualified parties, like the DMV or insurance databases.
Ultimately, if your vehicle is parked at a college campus 1,000 miles away every day, your insurer will find out sooner or later. And if the vehicle is fully owned by, or leased by, the student, they may need their own policy.
College Student Car Insurance Basics
First, know the average college student in the US pays $2,500 to $5,000 for a full coverage policy. That equals about $210 to $425 per month that needs to be set aside in their budget.
Some college students will pay much more for a full coverage policy.
You can expect very high insurance costs if they:
Have a poor driving history which includes DUIs or other serious chargesDrive a very expensive vehicleOnly recently got their licenseHave poor credit (in certain states)Have a history of claims or accidentsDrive an electric vehicle (EV)Are male (yes, insurers do charge more to insure young males)
How Can I Save Money on College Student Car Insurance?
Right away, we see one way to save money on car insurance. Consider sending your student to school with an older, inexpensive car, and buying only liability coverage. This will likely cut your college student’s car insurance costs in half.
Consider a Cheaper Vehicle & Policy for Your College Student
It might feel expensive and risky to spend several thousand dollars cash for an older car that won’t be fully insured. However, if your college student is spending $5,000 per year on insurance alone, that’s $20,000 spent while getting a bachelor’s degree.
If your student plans on achieving a doctorate, they could spend $40,000 on auto insurance in eight years! An $8,000 used car will pay for itself several times in insurance savings. And it might be less likely to be stolen, when compared to a newer, expensive, popular vehicle.
If this purchase feels “pie-in-the-sky” right now, perhaps it’s best to send your college student to school without a car at all.
Don’t Forget About E-bikes, Scooters and Other Transportation Options
At Einsurance.com, we aim to match consumers with the right insurance for their needs, including college students and teens. But in the spirit of unbiased, full-disclosure, we must remind you that many students arrive at school without a vehicle, and that’s fine, too.
Part of their education is to learn how to live away from home; and understanding public transportation systems can be a valuable lesson. Our point is this, you don’t need to stress out about car insurance for college students.
Now, you may be thinking, “That’s great. But my child is studying abroad this year. What can you tell me about car insurance for international students?” Let’s find out.
Car Insurance for International Students
If your student is coming to the US for school, they will likely pay slightly more for auto insurance than students born here. According to our research, Geico, State Farm and Erie may offer the best rates for international students.
Also, your international student will need to apply for a new driver license. This is important, they won’t be able to buy car insurance without it.
If your child is heading overseas to study, they probably won’t bring a vehicle from home. The shipping expenses and risks make it difficult. Furthermore, your insurance policy will have little to no value outside the US.
Shopping for Car Insurance for College Students in Other Countries
Once your student arrives at school, they may wish to lease a vehicle or buy one, and they should shop around extensively for insurance.
Pro tip: Language barriers are inconvenient, and insurance is complicated in any language. Encourage your child to speak with translators or school advocates to help them get the best rates on car insurance overseas.
Studying overseas is an adventure and will bring many cultural lessons. One of them may be that autos are not needed for all lifestyles. In much of Europe and parts of Asia, many people choose to avoid vehicle ownership, because of the high costs and overall hassle. Your international college student may not even need to buy car insurance if they choose to live like a local.
Returning our gaze back home, let’s explore more about car insurance for college students living away from home.
Car Insurance for College Students Away from Home
We’ve already explained that your child may need to find their own car insurance policy if living away from home. You’re probably wondering, “Why?”
Know that insurance companies pay very close attention to claims made, thefts and college student behavior. Many parents are surprised when college student car insurance prices skyrocket because a student chooses to live and study in a city like New York or Los Angeles. Location everything, but there are still ways you can control your auto insurance costs.
In addition to buying an inexpensive car, or foregoing the vehicle entirely, your college student can:
Pay a higher deductible (just remember, if there is a lienholder involved, they may require you to keep a certain deductible)Remove “bells and whistles” on a policy, like rental car coveragePay off the vehicle entirely and buy a liability-only policy (though this comes with significant risk)Take a defensive driving courseAnd look into discounts for college students
This leads nicely into our next section. Let’s explore some potential discounts on car insurance for college students.
Car Insurance Discounts for College Students
Car insurance companies know that college is a fun time for many students, and some may struggle to balance the social adventures with their responsibilities as students.
Put another way, it’s difficult to maintain excellent grades while partying hard or acting irresponsibly. And insurers always want their customers to behave responsibly.
That’s why many insurers offer good student discounts.
When shopping for car insurance for your college student, be sure to ask about these discounts, they can be significant! Usually, there is some reporting involved. Your student will need to send their grades to the insurer several times a year, and they must maintain a baseline GPA of 3.0 or higher.
Still, the savings are definitely worth the hassle. Trust us!
Next, let’s discuss how to shop for car insurance for college students.
How to Shop for College Student Car Insurance
If you’re a parent who already has car insurance, start by calling your current provider. They may offer you special discounts for your college student to gain their new business, and you might save more by bundling several policies together.
For example, some insurers offer dorm room insurance, renters insurance for off-campus housing and the like. They may offer some savings for buying these products together.
But don’t buy the first policy they quote! Be sure to shop around. Sometimes it makes good financial sense to use multiple insurance providers.
There are car insurance providers specifically marketing towards college students. These insurers will likely offer very attractive rates, because they hope to keep these customers for decades, as they become successful individuals with homes, families and more vehicles — all things that will need more insurance over the years.
Be sure to try our handy online quoting tool. Just enter your information and we’ll have auto insurers competing for your business right away.
Things You’ll Need to Get Car Insurance Quotes for College Students
Whether you’re shopping for car insurance for an international student, a student staying home, or one moving to the next big city, you’ll need certain documents/information on hand.
These include:
The student’s full legal nameTheir new address (dorm building and room number, and school address)A copy of their driver’s licenseTitle of the vehicle (if owned outright, or applied in some states)The vehicle identification number (VIN)A recent report card if applying for a good student discountCopies of defensive driving course certification if you have themLienholder information (that’s the bank to which you make a car payment)Any other policies that might be relevant for bundling (dorm insurance, life insurance etc.)
If you already have car insurance for a college student, but you’re hoping to save money by shopping around, it helps to have the current policy on hand. This way, you can be sure you’re comparing “apples to apples” when it comes to:
DeductiblesLimits of liabilityEndorsements/riders
This leads to our next point, on how often one should shop for car insurance.
“How Often Should I Shop Around for Car Insurance?”
Whether you’re looking for auto insurance for yourself or for a loved one, you should shop around every few years. This could save you a ton of money over your lifetime, and it’s a valuable habit to teach your college student.
Know that insurers all tend to slowly increase your rates over time. This is true even if you’ve never made a claim, been involved in an accident, or gotten a traffic ticket. Insurers are in the business of making money, and even very safe drivers will experience rate increases.
Meanwhile, other insurance companies may be looking for customers just like you! And some insurers specialize in difficult risks, like drivers with a poor history or several DUIs. There is an insurer out there looking for your business, and we can help you find them.
We can also help you better understand the insurance products you buy every month. From life insurance to renters insurance, we cover it all.
EINSURANCE is a one stop shop for insurance quotes comparison. Our writers, researchers, and industry experts all work together to inform consumers about online insurance marketplace. Whether you’re buying your first car insurance policy or finding health insurance for your families, EINSURANCE always provides latest relevant information to your choices.
