College-age students are known for having little to no money. If they are currently working, most of their money goes toward rent, car payments, and food. That leaves very little money left over to pay for car insurance.
As a result, many college students drive with no car insurance, or they have a policy with inadequate coverage. Fortunately, there are some car insurance companies that offer discounts to college students if certain conditions are met.
For instance, some companies might require a college student to have good academic performance in order to receive a discount on their monthly premium. Other companies may offer a discount if the student drives under a certain number of miles each month.
Top 5 Companies
Below are five awesome car insurance companies for college-age students. Each company has its own unique offerings which help college students afford their car insurance.
If a student travels a great distance from their home to go to college, then Allstate will give them a discount on their insurance. The distance must be a minimum of 100 miles for the student to be eligible for the resident student discount. If the student is on their parents’ car insurance policy, then as much as 35% can be saved on their child’s insurance.
In addition, students with good academic performance can receive up to 9% off their monthly premium. This is called the “Good Student Discount.” Even though their good student discount is not as big as the one Farmers and State Farm offers, you can still combine this discount with the resident student discount too. This could give you even greater savings in the end.
Metromile is a unique car insurance company because the policyholder is only charged based on the number of miles they drive. The company claims that 65% of drivers pay too much for their car insurance because they’re subsidizing the 35% of drivers who drive excessively.
For the average person who drives to and from work every day, they don’t accumulate that much mileage. It is possible to save an extra $500 per year with a Metromile insurance policy. There is a $30 base rate, followed by 3.2 cents for each mile you drive. Imagine if 300 miles per month was all you drove. That means your premium for the month would be $39.60.
3) Liberty Mutual
Liberty Mutual gives college students a discount on their car insurance if their academic record is good, and they are under 25 years of age. The minimum GPA required is 3.0.
Students under 21 years of age can receive a driver training discount too. However, they must enroll in a preapproved driver training program and complete it first.
The distance between your residence and school is also factored into the insurance cost. This can entitle you to receive as much as 10% off your monthly insurance premium.
Students who have at least a 3.0 GPA can receive up to 10% off their monthly car insurance premiums. Besides the 3.0 GPA, students can only qualify if they’re under 25 years of age and enrolled full-time in an accredited college, university, or high school. After graduation, the discount may be extended for an entire 12 months.
5) State Farm
State Farm will give certain students up to 15% off their monthly premium if they complete the Steer Clear Safe Driver Program. Students can take this course online by using their mobile device or computer. The course targets younger drivers and teaches them the best ways to drive safely. It also emphasizes to never text and drive together.
A Good Student Discount is also offered by State Farm. Based on their grade point average, a student may be eligible for as much as 25% off their monthly car insurance premium. These savings can be combined with the savings of the Steer Clear Safe Driver Program. That means a student who excels in their studies may receive up to 40% off their premium.