Finding the best car insurance for college students can be a daunting task due to the high rates for young drivers and special requirements. To simplify your quest, we’ve compiled a selection of insurance companies that offer quality coverage at competitive prices and great savings. You’ll also find the type of coverage you need most.
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Why Is the Best Car Insurance for College Students Expensive?
Typically, car insurance costs more for younger drivers than experienced drivers. Most college students are 17 to 25 years old. They classify as your drivers who are most likely to be involved in a car accident and file an insurance claim. As a result, they are considered a higher risk with more car insurance coverage costs.
Types of Car Insurance Coverage for College Students
Car insurance policies may include various coverage options and medical protection. Here are the most common coverages, such as:
1. Bodily Injury Liability Coverage
This coverage will help to cover the cost of an accident if you are at fault for causing injury to another driver or their passengers. It includes medical expenses and lost wages for the injured party.
2. Property Damage Liability Coverage
Property damage liability coverage protects any damage to the other driver’s vehicle in an accident you caused. Other properties, such as fences, walls, and more, are also included.
3. Medical Payments Coverage (MedPay)
Regardless of who is at fault for an accident, this insurance covers medical expenses but not lost wages. However, medical payment coverage is optional on several insurance companies, which is not available in all states.
4. Personal Injury Protection (PIP)
Just like its name, personal injury protection provides medical expenses coverage and your lost wages due to an accident, whether you are at fault or not. This coverage is nearly the same as MedPay.
5. Uninsured Motorist Coverage
This insurance policy covers accident-related costs for someone who does not have car insurance or with insufficient insurance. Or even worse, the motorist escapes before the investigation.
Best Car Insurance for College Students
Here are the 7 best car insurance for college students, offering an attractive combination of great rates and reliable quality coverage, as follows:
1. State Farm
For young drivers, State Farm offers competitive rates along with additional coverages such as ridesharing insurance, travel expense coverage, and rental reimbursement. State Farm placed #1 in overall customer satisfaction.
In short, State Farm is the largest insurance company with a fantastic range of policies. The company provides many chances for college students to save money on car insurance, including special discounts. That’s why this insurance company is perfect for college drivers to get car insurance.
The following costs you will have to pay for 18-year-old college students. The price gets cheaper for college students who are 21 or older. Check it out!
- Monthly Average Rates: $278 (18 age), $194 (21+)
- Annual Average Rates: $3,340 (18 age), $2,322 (21+)
2. USAA
The United Service Automobile Association (USAA) is an insurance company typically offering the lowest rates on car insurance. The insurance only applies to eligible members of the military and their families.
USAA offers a wide range of insurance products that make it easy for qualified college students to join the company. You can also find a number of discounts over there.
- Monthly Average Rates: $241 (18 age), $134 (21+)
- Annual Average Rates: $2,897 (18 age), $1,609 (21+)
3. Geico
You might be familiar with this company. Geico is one of the best insurance companies for its high coverage and affordability for college students. The company has a wide range of insurance options, including high coverage limits.
- Monthly Average Rates: $263 (18 age), $134 (21+)
- Annual Average Rates: $3,161 (18 age), $1,844 (21+)
4. Auto-Owners Insurance
Auto-Owners Insurance is another best car insurance for college students. It has a variety of optional coverages and rates that are suitable for young drivers. College students are eligible for 8% and 14% discounts on average for full payment of car insurance policies.
- Monthly Average Rates: $308 (18-21 age)
- Annual Average Rates: $3,700 (18-21 age)
5. Travelers
In fifth place is Travelers, which offers full coverage insurance at an affordable price for college students. Travelers also offer reduced rates for insuring hybrid or electric vehicles.
- Monthly Average Rates: $369 (18 age), $209 (21+)
- Annual Average Rates: $4,429 (18 age), $2,513 (21+)
6. Progressive
Progressive consistently sits high in low-cost auto insurance ratings. Various discounts are available that can be used for younger drivers, including college students. This insurance company specializes in serving high-risk drivers.
Anyway, you have the benefit of a nice student discount and a long-distance student discount. This can help lower insurance costs for younger. Here is the average pricing you need to know:
- Monthly Average Rates: $369 (18 age), $209 (21+)
- Annual Average Rates: $4,429 (18 age), $2,513 (21+)
7. Allstate
For new drivers looking for discounts, try to enroll in Allstate Insurance. This insurance company allows you to get insurance selection which costs per mill. Not all college students are accepted by this company.
Allstate provides the best service for filing insurance claims online, 24/7 by telephone, or through an application. Plus, you can expect to spend:
- Annual Average Rates: $1,268
Factors That Affect College Student Car Insurance Costs
The price of premiums in insurance is not only caused by your age, there are various factors that determine how much young people pay for coverage, as mentioned:
1. Type of Coverage
One type of insurance and another have different prices. The basic policy only covers the minimum requirements for the cheapest insurance car option.
2. Driving History
If you have a clean driving record, it means you usually get the lowest rate. You can also increase the price of insurance for every at-fault accident or traffic violation.
3. Location
Every state must have different insurance premiums. Insurance rates are also different for rural areas. It is cheaper than in urban areas.
4. Vehicle
Another factor that affects car insurance costs is the value of your vehicle. Check your car by make, model, condition, age, and mileage. These factors will be considered in your premium.
5. Credit Score
Credit scores can increase insurance rates although not all states allow insurance companies to use credit scores in calculating premiums.
Select One of the Best Car Insurance for College Students
So, which best car insurance for college students will you choose? Hopefully, this article can help you in your search. Investigate more about insurance products and prices in each insurance company. Good luck!