Best Car Insurance for Students in 2024 (Top 10 Companies)

Best car insurance for students is offered by the top pick State Farm, followed by Progressive, and Allstate. Analyze credit score, mileage, coverage level, and driving record.

There are many factors that determine student car insurance rates. Many students would be surprised to learn that they won’t be charged as much for insurance as they thought.

Our Top 10 Best Companies: Best Car Insurance for Students

In fact, in a recent ranking of car insurance rates by occupation, students came in with the ninth-lowest rate among more than 60 occupations. A student refers to college students who either live at home and commute or who live on campus, not high school students.

High school students are classified as minors on their parents’ insurance policies. Once a student graduates from high school and enters college, an insurance company views him or her as an adult. Get the right car insurance at the best price — enter your ZIP code below to shop for coverage from the top insurers.

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#1 – State Farm: Top Overall Pick

Pros

• Good Student Discount: State Farm car insurance review offers good student discount for up to 25% discount for students with good grades.
• Bundling Policies: Offers significant discounts for bundling multiple insurance policies.
• High Low-Mileage discount: Provides a substantial discount for low-mileage usage.
• Wide Coverage Options: Offers various coverage options tailored for different business needs.

Cons

• Limited Multi-Policy Discount: The multi-policy discount is not as high compared to some competitors.
• Potential Premium Costs: Despite discounts, premiums might still be relatively higher for certain coverage levels.

#2 – Progressive: Best for Multi-Policy Discounts

Pros

• Multi-Policy Discounts: Progressive car insurance review offers substantial discounts for bundling various insurance policies.
• Generous Student Driver Discount: Up to 12% discount for student drivers.
• Innovative Coverage Options: Provides personalized coverage options to meet diverse needs.

Cons

• Limited Good Student Discount: The good student discount is lower compared to some competitors.
• Possible Complex Claims Process: Claims process might be cumbersome for some customers.

#3 – Allstate: Best for Personalized Coverage

Pros

• Personalized Coverage: Allstate car insurance review offers personalized coverage options to suit individual needs.
• Attractive Student Discounts: Up to 15% discount for student drivers.
• Strong Financial Stability: Known for its reliable financial strength and stability.

Cons

• Higher Premiums: Premiums may be relatively higher compared to competitors.
• Limited Discounts: Offers fewer discounts compared to some competitors.

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#4 – Liberty Mutual: Best for Customizable Coverage

Pros

• Customizable Coverage: Liberty Mutual car insurance review allows customers to tailor coverage to their specific needs.
• Good Student Discount: Up to 15% discount for students with good grades.
• Strong Customer Service: Known for its responsive and helpful customer service.

Cons

• Limited Student Driver Discount: The student driver discount is lower compared to some competitors.
• Complex Pricing Structure: Pricing structure may be confusing for some customers.

#5 – Nationwide: Best for Vanishing Deductible

Pros

• Vanishing Deductible: Offers the opportunity for deductibles to decrease over time with safe driving.
• Solid Good Student Discount: Up to 20% discount for students with good grades.
• Nationwide Network: Wide network of agents and offices for convenient service. To learn more, read our comprehension guide titled “Nationwide car insurance discounts“.

Cons

• Limited Student Driver Discount: The student driver discount is relatively lower compared to some competitors.
• Possible Limited Coverage Options: Some customers may find coverage options lacking for specific needs.

#6 – Farmers: Best for Safe-Driving Discounts

Pros

• Safe-Driving Discounts: Offers discounts for safe driving habits, promoting road safety.
• Good Student Discount: Up to 15% discount for students with good grades.
• Comprehensive Coverage Options: Farmers car insurance review provides a range of coverage options to meet various needs.

Cons

• Limited Student Driver Discount: The student driver discount is lower compared to some competitors.
• Potential Higher Premiums: Premiums may be relatively higher for certain coverage levels.

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#7 – American Family: Best for Bundle Discounts

Pros

• Bundle Discounts: American Family car insurance review offers significant discounts for bundling multiple insurance policies.
• Attractive Good Student Discount: Up to 20% discount for students with good grades.
• Strong Community Involvement: Known for its community-focused initiatives and support.

Cons

• Limited Coverage Options: Offers fewer coverage options compared to some competitors.
• Potentially Complex Claims Process: Claims process may be more involved for some customers.

#8 – Travelers: Best for Add-on Coverages

Pros

• Add-on Coverages: Travelers car insurance review offers various additional coverages to enhance protection.
• Good Student Discount: Up to 20% discount for students with good grades.
• Solid Financial Stability: Known for its strong financial standing and reliability.

Cons

• Limited Student Driver Discount: The student driver discount is lower compared to some competitors.
• Possibly Higher Premiums: Premiums may be relatively higher for certain coverage levels.

#9 – Erie: Best for Student Savings

Pros

• Generous Student Savings: Erie car insurance review offers up to 8% discount for student drivers.
• Solid Good Student Discount: Up to 15% discount for students with good grades.
• Strong Regional Presence: Known for its strong presence in specific regions, offering localized service.

Cons

• Limited Coverage Options: Offers fewer coverage options compared to some competitors.
• Potentially Limited Availability: Availability may be limited to certain regions, restricting accessibility.

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#10 – Esurance: Best for Online Convenience

Pros

• Online Convenience: Offers easy-to-use online platforms for policy management and claims.
• Good Student Discount: Up to 20% discount for students with good grades.  For more information read our  “how do you get an Esurance quote?”
• Competitive Rates: Known for offering competitive rates for various coverage options.

Cons

• Limited Personalized Service: Lacks the personal touch of traditional agents for some customers.
• Potential Technical Glitches: Online systems may experience occasional technical issues, affecting user experience.

Monthly Car Insurance Rates for Student Drivers by Coverage Type

This table provides a comprehensive overview of the average monthly car insurance rates for student drivers, considering both full coverage and minimum coverage options.

For full coverage, Erie car insurance review stands out as the most cost-effective option, offering a remarkably low monthly rate of $58, while Liberty Mutual presents the highest rate at $174. When considering minimum coverage, Erie maintains its affordability with a rate of $22 per month, while Liberty Mutual once again leads with the highest cost at $68.

Car Insurance for Students: Monthly Rates by Coverage Level & Provider

State Farm car insurance review consistently provides competitive rates for both full and minimum coverage, making it an appealing choice for student drivers seeking a balance between cost and comprehensive protection.

The data underscores the importance of careful consideration and comparison when selecting car insurance for student drivers, allowing individuals to make well-informed decisions based on their unique needs and budget constraints.

Student Discounts for Car Insurance

The insurance company takes into account two main factors regarding students’ driving habits. Firstly, students tend to drive less compared to other adults, particularly for leisure activities, which lowers the probability of being involved in accidents caused by reckless driving behaviors. To gain further insights, read our guide “10 States with the most reckless drivers”

Secondly, students are generally perceived to have a more serious mindset due to their pursuit of higher education. As a result, they are often given the benefit of the doubt regarding their responsibility on the road.

Whether it’s true or not, it is generally assumed that students will be a lot less risky in their behavior in all areas. A driver who is less risky behind the wheel is also one who is less likely to file an accident claim.

Another part of the equation is the fact that student economics generally dictate that these types of individuals don’t have a lot of disposable income. Usually, students drive old, beaten up jalopies which are obviously less expensive to insure.

The idea of student economics and car insurance rates is as much a benefit to students as it is to insurance carriers.

Between the high cost of tuition, textbooks, and everything else a student is paying for, having lower insurance premiums is obviously a big benefit.

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Case Studies in Car Insurance Discounts

Explore real-life examples showcasing how leading car insurance providers offer discounts tailored to individual needs and behaviors. From academic achievements to policy bundling, these case studies highlight the diverse ways drivers can save on premiums.

• Case Study #1 – State Farm’s Good-Student Discounts: Meet Sarah, a diligent student who secured a student driver discount of up to 10% and a remarkably good student discount of up to 25% with State Farm car insurance review. Through her commitment to academics and responsible driving, Sarah maximized the potential savings offered by State Farm’s focus on rewarding good students.

• Case Study #2 – Progressive’s Multi-Policy Discounts: John, a savvy insurance shopper, opted for Progressive and took advantage of their multi-policy discounts. By bundling his car insurance with another policy, John enjoyed savings of up to 12%, demonstrating how combining insurance needs can lead to financial benefits with Progressive.

• Case Study #3 – Allstate’s Personalized Coverage: Emily, with a keen interest in tailoring her insurance coverage, found Allstate to be the perfect fit. With a student driver discount of up to 15% and a good student discount of up to 20%, Emily appreciated Allstate’s commitment to providing personalized coverage that met her specific needs and preferences.

Discover how Sarah, John, and Emily benefited from State Farm, Progressive, and Allstate’s unique discount programs. From maximizing good student discounts to bundling policies for additional savings, these case studies illustrate the importance of choosing the right insurer to meet specific coverage needs while enjoying financial incentives.

Students at Home

Student car insurance rates can be made even less expensive if a student lives at home and commutes a very short distance to school. Furthermore, if he drives a parent’s car rather than owning his own, his insurance will be even less expensive.

One thing to remember is that states differ in how long a student can remain on his or her parent’s policy. Many have an age limit of 26. In other words, as long as a person remains a college student he can stay on his parents policy up until his 26th birthday.

After that, the person will be required to purchase his own car insurance, whether he remains a student or enters the workforce. Enjoy those lower rates while you can, because you may not have them forever. Compare car insurance rates online by entering your ZIP code into the free box now.

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