(Updated on October 28, 2019)
Students generally share one thing in common. They don’t have a lot of money to spend on a car or on a good auto insurance policy for that car. To make matters worse, insurance companies are generally prejudice against younger drivers who are 25 years of age or less. They charge them higher premium rates than drivers who are over 25 years old and under 65.
Statistics show that drivers who are 25 years old and under are more likely to get into an auto accident. For this reason, car insurance companies raise the premium rates of younger drivers.
This is not good for them because they generally don’t make enough money to begin with. They’re too busy going to college and working for minimum wage just to pay their other bills. So, high car insurance premiums make life that much harder for them.
Fortunately, there are some car insurance companies which offer special discounts to students in the United States. Since most students are under 25, these discounts are hugely beneficial to their budgets.
Top 5 Car Insurance Companies for College Students
Below are 5 of the best car insurance companies for students attending college in the United States.
Allstate is a car insurance company that most people have heard of before. Students who hold Allstate insurance policies may be entitled to a “resident student discount” if their current address is over 100 miles away from the school they’re attending.
Some policyholders receive as much as a 35% discount on their monthly premiums. In addition, a “Good Student Discount” is also offered by Allstate. This allows students to save up to 9% off their monthly premiums if their academic record is exemplary.
Between this and the resident student discount, there is a lot of potential for savings here.
2) State Farm
State Farm is another highly reputable auto insurance company in the United States. They have a few discount offerings available to policyholders who are students.
The Steer Clear Safe Driver Program of the company can give students up to 15% off their monthly premium. This is a driver safety course in which drivers take online. They must successfully complete the course before the discount will be given.
Another discount available is the Good Student Discount. College students with an excellent GPA may receive as much as 25% off their monthly premiums.
3) Liberty Mutual
Students who are between 18 and 25 years of age may be entitled to discounts on their Liberty Mutual policy. The basic requirement for this discount is that you must have a GPA of 3.0 or greater.
Students under 21 years of age may receive an extra “Driver Training Discount” if they successfully graduate from an approved driver training course. There is even a discount available of up to 10% for students who live far away from their college campus. The distance will determine the examine discount percentage.
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4) Farmers Insurance
Farmers Insurance offers very generous discounts to students who have a good GPA in college. The average student will receive up to a 24% discount per year on their car insurance.
There is even a Distant Student Discount which provides premium discounts for the parents of students who have to travel far from home to go to college.
Any student and Nationwide policyholder between the ages of 16 and 24 are entitled to a Good Student Discount if they maintain at least a B average in their academic classes.
The student must provide the insurance company with proof of this grade point average. This can be a college report card or a signed document by an administrator of the school.