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 U.S. college students 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. 

So when is it essential to purchase car insurance for a college student, and when can you opt out?

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, it’s imperative that they carry some form of auto insurance coverage. Most states require at least a minimum level of liability coverage against bodily injuries and property damage in order to be a legal driver.  You may also be required to buy full coverage if there is still a lien on the vehicle from an auto loan. 

Even if your state doesn’t require liability coverage, it can provide student drivers and vehicle owners (usually their parents) with peace of mind and financial protection. You also have the option to purchase extended coverages like comprehensive and/or collision insurance, which will protect your investment even if the vehicle is broken into, stolen from campus or wrecked in an at-fault accident. 

Now, you might be wondering, Do I still need to pay for car insurance if my college student isn’t taking a car to school? In many cases, the answer is probably yes.

You should think about maintaining coverage for your college student if they:

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

How much is car insurance for college students?

The average car insurance cost for college students can be 50%-100% higher than those of older, more experienced drivers.

This is largely because young drivers are less experienced and therefore considered higher risk. 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 quotes real Jerry customers between the age of 18 and 24 have gotten recently:

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

College students can remain on their parents’ auto insurance policies in most cases, whether they live at home or on campus. There is no age limit for auto insurance coverage, either, so just because the student graduates or reaches a certain age, they don’t necessarily have to move to their own policy. 

In general, it’s actually more cost-effective to keep a college driver on their parents’ coverage than it is to purchase another individual policy. However, there are some situations where your college student may need to be removed from your policy and even added to a separate policy of their own. 

Reasons to keep your college student on your auto policy

There are a few good reasons for keeping your college-age driver on your existing policy, even while they’re away at school.

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 by adequate coverage.

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 this. 

Convenience. If your college student stays on the family auto policy, it’s less hassle when they are home for the holidays or summer break and want to drive your vehicle. This peace of mind can be worthwhile even if they don’t have a vehicle of their own while away at school, and may be required by some insurers.

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

Of course, college students don’t always need to stay on their parents’ policies and, in some cases, might not be allowed to. Here are some reasons it might make sense to remove a college student from the policy when they move away to school.

They’ll have little to no access. 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. (And in some cases, a non-owner policy may make more sense).

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 coverage 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. If either the parents or the college student lack a clean driving record — such as having a history of accidents, moving violations, DUIs, SR-22 requirement, etc. — it could make more sense to purchase two separate policies. Be sure to shop around and even speak with an agent to see what your options and pricing would be.

How to find the cheapest car insurance for college students

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

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.  

Final thoughts on college student auto insurance

College-age drivers are considered high-risk and their premiums often reflect this. Even if your child moves away to college, it’s important to maintain adequate car insurance coverage for the times they are driving or have access to your vehicles.

Finding cheap auto insurance for students isn’t easy, but there is a balance to be found between premiums and the level of coverage your student needs. Shopping around, finding available student discounts, adjusting deductibles, and, in some cases, putting your student on their own policy can help you find the most cost-effective — but still financially protective — option for the whole family.