Best Car Insurance for College Students [2025]: Who Makes the Grade?

Brand-new teen drivers are the most expensive drivers to insure, but college students aren’t too far behind. And while rates typically go down as students get older, you still want as affordable a policy as possible, whether you’re shopping for yourself or your child. Though you don’t want to sacrifice reliable coverage in the name of saving a few dollars, of course.

We’ve rounded up the best car insurance for college students with Allstate getting our top recommendation due to its good student discount and teenSMART program.

How we evaluate products

To evaluate car insurance companies, we considered several factors.

• Good student discounts and the eligibility criteria
• Discounts for students who attend college away from home and don’t take their cars
• Other discount programs that target young drivers
• J.D. Power Auto Claims Satisfaction scores (J.D. Power is an independent rating company that collects data on customer service satisfaction.)
• Better Business Bureau (BBB) ratings (The BBB is a non-profit organization that rates companies based on factors like customer complaints, transparency, and the company’s responsiveness.)
• AM Best ratings (AM Best is an independent credit rating company that measures the financial stability of insurance companies. AM Best calculates its ratings based on creditworthiness and ability to pay customer claims and other debts in a timely fashion.)

Companies on this list may be current FinanceBuzz partners. We did not evaluate all companies in the category.

Best car insurance for college students

• Allstate
• Nationwide
• GEICO
• State Farm
• Progressive

Company	Best for	Good student discount	Distant student discount
Allstate	Best overall	Yes	Yes
Nationwide	Claims satisfaction	Yes	No
GEICO	Financial strength	Yes	No
State Farm	Good student discount	Yes	Yes
Progressive	Flexible pricing	Yes	Yes

Allstate

Allstate is in our top spot because it has everything we’re looking for when it comes to insuring college students. Perhaps most importantly, it has the most flexible requirements for getting a good student discount — a B- average. So, if you have a bumpy first semester of college (like this writer did) or experience other challenges along the way, there’s some wiggle room with Allstate.

Its teenSMART safe driving program is available through the age of 20, and getting better at driving never hurts. Allstate’s Drivewise app could also lower your costs, but only if you’re confident that you (or your student if you’re shopping on their behalf) will maintain safe driving habits. That’s because high-risk driving could actually increase your insurance costs.

Learn more in our Allstate review

Nationwide

Nationwide had the highest J.D. Power claims satisfaction score of any company on this list. J.D. Power is an independent company that collects information on user experience. Claims satisfaction matters, as that’s the entire reason we have insurance in the first place. That and it’s legally required.

Nationwide also has its SmartRide safe driving app. This is similar to Allstate’s Drivewise app — it sets insurance rates based on usage and driver safety. So only enroll in this program if you’re confident that you (or the person you’re insuring) has safe driving habits.

Nationwide does have a significant downside, though. Many insurers offer a discount if you have a student on your policy who attends school 100 miles or more away from home and doesn’t take their vehicle with them. After all, they won’t be driving as much that way. Nationwide, however, doesn’t offer that discount.

Learn more in our Nationwide review

GEICO

A company is only as good as its ability to pay claims, and financial strength is an indicator of that ability. GEICO not only has the highest financial strength rating on this list, it has the highest rating offered by AM Best. And it’s the third-largest insurance company in the country (after State Farm and Progressive).

GEICO also has a reputation for low premiums, and it claims that people who switch to GEICO save an average of $900 per year, but there is no guarantee that your premium will be the lowest available. If you’re looking for cheap student car insurance (and given the cost of college these days, you likely are), you should get quotes from multiple insurance companies before buying a policy.

Learn more in our Geico review

State Farm

State Farm made the cut due to its potentially high good student discount of up to 25% and its availability through age 25. Like other insurance companies on this list, State Farm also offers a safe driving program for younger drivers — Steer Clear. Program availability varies, so you’ll need to check with your State Farm agent to find out if you (or your college student if you’re shopping for someone else) are eligible.

State Farm’s emphasis on working directly with its agents is also a reason to consider the company. There’s a lot to be said for talking to a real person if you’re having an issue rather than calling an automated number.

Learn more in our State Farm review

Progressive

Progressive has long offered unique tools for finding insurance coverage. It allows you to compare car insurance rates, and it also has a Name Your Price tool. With this tool, you say how much you want to pay, and Progressive will put together coverage options in that price range. This could be a good way to save on car insurance.

Keep in mind that if you use the Name Your Price tool, you may end up with minimal coverage. That may be fine for students driving older vehicles, but those with newer ones may want to go with more robust coverage, including comprehensive and collision insurance.

Learn more in our Progressive review

What determines car insurance rates for college students

The most significant determinants for car insurance rates for college students are age and their driving record. It’s no secret that young drivers have the highest rates, though those rates will drop as the driver ages, assuming they have a clean driving record.

Accidents and moving violations will also have a negative impact on rates. This holds true for everyone, but it’s even more important for young drivers since they already have the highest rates.

How to get a lower car insurance rate

• Compare, compare, compare. While it might seem tedious to find the lowest rate, you need to compare rates. You can use an online tool, contact companies individually, or work with an independent agent to find the lowest rate. Be sure you’re comparing the same coverage options across companies so you’re making an apples-to-apples comparison.
• Don’t go it alone. Bundling policies typically results in lower rates. College students should stay on their parent’s policy for as long as possible. And families should consider bundling multiple types of coverage (like home and auto) with the same company for the lowest costs.
• Go to school. Companies will often offer discounts for taking defensive driving or teen driving courses.

FAQs

Products that didn’t make our list

• USAA: Although USAA is a highly regarded company with a reputation for excellent customer service, it didn’t make our list since it’s only available to military members and their families. You can learn more in our USAA review.
• Erie Insurance: While Erie also has a reputation for excellent service, it only serves 12 states and Washington, D.C. You can learn more in our Erie Insurance review.

Bottom line

College students should get car insurance from reputable companies that offer student discounts. The companies on this list are a good start, but if you’d like to explore further, our list of the best car insurance companies offers more options. And if you’re new to shopping for car insurance, here are our tips for those buying car insurance for the first time.