Being a college student often means juggling tuition, rent, books—and car insurance. If you’re a student trying to save money in 2025, you’ll be glad to know there are several companies that offer affordable car insurance specifically designed for college students. In this guide, we’ll break down the best options available, how to qualify for discounts, and tips to save more on your premium.
Why Is Car Insurance More Expensive for Students?
Car insurance companies use risk profiles to set rates. Unfortunately, college students—especially those under 25—are considered high-risk drivers. This leads to higher premiums, often 2–3x more than those of older drivers.
Common reasons:
- Less driving experience
- Higher accident statistics among young drivers
- Limited or no credit history
- Living in high-traffic college towns
But that doesn’t mean you’re stuck with expensive insurance. Many providers offer student-friendly discounts and packages that can make coverage more affordable.
What to Look for in Student Car Insurance
When shopping for insurance, students should consider:
- Good Student Discounts
- Low Mileage Options (many students don’t drive daily)
- Usage-Based Insurance (tracking driving habits via app)
- Accident Forgiveness
- Flexible Billing and online account management
Also, make sure to compare minimum coverage vs. full coverage. You may not need full coverage if you drive an older car or don’t commute often.
7 Best Cheap Car Insurance Companies for College Students in 2025
Here are the top providers offering the best balance of cost, coverage, and discounts for students:
1. GEICO
Best for: Overall affordability and student discounts
GEICO remains a top choice for students due to its competitive rates and multiple discount options.
Key Benefits:
- Good Student Discount (B average or better)
- Up to 25% off for completing a driver’s ed course
- Mobile app with digital ID cards and roadside help
📍 Tip: If you live far from campus without your car, you may qualify for a “student away at school” discount.
2. State Farm
Best for: Safe driving and academic excellence
State Farm’s Steer Clear® and Good Student programs are ideal for responsible student drivers.
Key Benefits:
- 15–25% off for students with a GPA of 3.0 or higher
- Steer Clear® driving course = extra discounts
- Excellent local agent network for in-person support
3. Progressive
Best for: Customizable coverage on a budget
Progressive lets you tailor your policy, making it ideal for students who want low-cost options.
Key Benefits:
- Snapshot® program (usage-based discount)
- Name Your Price® tool
- Offers minimum liability policies at low rates
📌 Related: 7 Best Car Insurance Companies for New Drivers in the US (2025 Guide)
4. Nationwide
Best for: Safe-driving students and bundling
Nationwide offers low rates when students bundle auto + renters insurance (perfect for dorms or off-campus housing).
Key Benefits:
- SmartRide® usage-based app with up to 40% discount
- Good student and multi-policy discounts
- Roadside assistance add-on
5. USAA
Best for: Military-affiliated students
If you or your parents are in the military, USAA provides unbeatable rates and service.
Key Benefits:
- Lower-than-average premiums for students
- Top-tier customer service and claims satisfaction
- Student-friendly perks like accident forgiveness
6. Liberty Mutual
Best for: Tech-savvy students
Liberty Mutual’s easy-to-use app and discounts for students make it an attractive choice.
Key Benefits:
- 10–20% discount for good grades
- RightTrack® safe-driving program
- Rewards for referring friends
7. Metromile (Pay-Per-Mile Insurance)
Best for: Students who drive less
If you barely use your car on campus, Metromile charges you based on how much you actually drive.
Key Benefits:
- Base rate + per-mile rate (as low as $29/month base)
- Perfect for remote students or campus walkers
- Full app-based claims process
Student-Specific Discounts You Should Ask For
Don’t forget to ask about these discounts when getting a quote:
| Discount | Average Savings |
|---|---|
| Good Student | 10%–25% |
| Distant Student | 10%–15% |
| Safe Driving | 5%–30% |
| Defensive Driving Course | Up to 10% |
| Bundled Policies | 10%–20% |
You don’t need to switch providers to save money — ask your current insurer if they offer any of these!
Pro Tips for College Students Buying Insurance
- Stay on Your Parents’ Policy (If Possible):
It’s usually cheaper and easier to remain covered under a parent’s plan if you live at home or still list it as your primary address. - Maintain Good Grades:
Most insurers define “good student” as a B average (3.0 GPA) or better. - Consider a Modest Car:
Older cars are cheaper to insure, and you may not need comprehensive coverage. - Use Telematics Apps:
Safe driving = real savings. Most apps offer feedback and discounts. - Compare Quotes Annually:
As your driving history improves and you age, your rates can drop.
📍 Internal Resources You Might Like:
- 5 Cheapest States for Car Insurance in 2025 and Why Rates Are Low
- 10 Factors That Affect Your Car Insurance Rates in 2025
- How to Lower Your Car Insurance in 7 Steps (2025 Guide)
Final Thoughts
Getting affordable car insurance as a college student in 2025 might seem tricky, but it’s totally possible. By shopping smart, maintaining good habits, and using every available discount, you can bring your premiums down significantly — even if you’re under 25.
Make sure to compare multiple quotes, ask about student perks, and don’t just go for the cheapest plan—go for one that balances price and protection.
