Which companies offer the best student discounts on car insurance?
If you cover a student-aged driver on your auto insurance policy — or are one yourself — it can be tough to find affordable quotes. Given their lack of driving experience, drivers aged 16 to 25 pay over 115% more per year than the average driver: $1,667 per six-month policy, versus the U.S. average of $774. Although this rate hike varies from state to state, most car insurance companies offer discounts for students with good grades — GPAs of 3.0 or above. Coupled with a good driver discount, a good student discount can lead to savings of $186 per year on car insurance.
The table below highlights the average monthly and annual costs of insuring a teen driver. The companies shown in the table also offer student discounts, which may help reduce rates to make their car insurance more affordable. Read on to learn more about each company's discounts for students.
| Company | Avg. Monthly Premium | Avg. Annual Premium |
|---|---|---|
| USAA | $327 | $3,922 |
| GEICO | $339 | $4,067 |
| Nationwide | $404 | $4,853 |
| State Farm | $431 | $5,173 |
| Farmers | $569 | $6,825 |
| Allstate | $602 | $7,226 |
| Progressive | $610 | $7,316 |
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Auto insurance discounts for students
The top providers for car insurance offer at least one discount for students. The availability of these discounts may vary by state.
GEICO offers three ways to earn a student discount on auto insurance. A good student discount, a good driver discount, and an affinity membership discount. In order to earn GEICO's good student discount, you must maintain a “B” average or better. To qualify for good driver savings, need to maintain a clean driving record for five or more years. To receive affinity membership insurance perks through GEICO, you'll need to be a member of a fraternity, sorority, honor society, and alumni or university organization.
Nationwide offers a good student discount. Qualifying students must be 16-24 years old full-time high school or college students with a "B" average or better. You will need to provide proof in the form of a recent report card or a form signed by a school administrator. Nationwide also offers a safe driver discount for drivers who have not had at-faults and moving violations within the past five years.
The primary student car insurance discount Allstate advertises is a good student discount, which this company refers to as a smart student discount. Eligible drivers must be under the age of 24, unmarried, and meet one of three requirements:
- Maintain a "B" average or a GPA of 2.7 or above. Homeschooled drivers must show proof of performing at or above the 20th percentile in the PSAT, SAT, or ACT.
- Successfully complete Allstate's driver education program, teenSMART®.
- Attend school or university more than 100 miles away from where the insured vehicle is garaged.
State Farm offers a unique way for young drivers to save. State Farm's Steer Clear program allows young drivers to earn a safe driving certificate via a mobile app. To qualify and receive a discount, drivers must meet these requirements:
- Be under 25 years old with a valid driver's license
- No at-fault accidents or moving violations within the past three years
- Completion of a five-course lesson plan
- Five hours of driving practice (up to 10 trips)
- Completion of mentor log
- Receive program certification in the app to send to an agent
State Farm claims a savings of up to 15% by enrolling in Steer Clear.
State Farm also offers some standard student discounts for students away at school, good drivers, driver training, and good students. To earn State Farm's good student discount — of up to 25% — a driver must keep their GPA above 3.0.
Liberty Mutual advertises two ways for students to save on auto insurance: a good student discount for students with a "B" average or better, and a student away from home savings package. The latter is reserved for students who reside more than 100 miles away from the residence and vehicle listed on the policy.
Progressive's good student discount requires that full-time students maintain a "B" or better-level GPA. The company also offers a distant student discount for students (age 22 or younger) who live more than 100 miles from home and don't have a vehicle while at school. Progressive also offers a teen driver discount for parents adding a driver (18-years-old or younger) to their policy.
Note: Student discounts from Progressive are not available in California.
If you qualify for USAA car insurance coverage, you could earn a good student discount. USAA's eligibility requirements for this discount include:
- Must be 16-25 years old with a driver's license.
- Full-time student at a high school, college, university or vocational-technical school.
- Rank in the top 20% of the class, maintain a "B" average or higher or be included in the honor roll or dean's list.
To earn Farmers’ good student discount, a driver must be under age 25, enrolled in school full-time and maintain an average grade of "B" or better. Earning a spot on the dean’s list or honor roll also qualifies a student for Farmers' discount.
Find affordable car insurance for students today!
Cheapest car insurance for other young drivers
Failing to qualify for a good student discount doesn't necessarily mean you can't find cheap car insurance. Shop around, weighing as many options as possible: a number of rating factors are used to determine your insurance premium, and different companies will price policies differently based on these factors.
As you saw on the table above, the rates for teens differ greatly between companies. But the following table breaks down the average rates specific to each age, 16 through 19, to add another factor to your auto insurance budgeting. View our full methodology here.
| Age | Avg. Monthly Premium | Avg. Annual Premium |
|---|---|---|
| 16 | $558 | $6,701 |
| 17 | $470 | $5,634 |
| 18 | $422 | $5,064 |
| 19 | $330 | $3,963 |
Rates for student drivers in their 20s
Student drivers might be 16, but they also might be in their mid-twenties, so keep in mind that a good student discount can help you out even after high school. Some companies, such as Progressive, end the good student discount after the age of 22. However several top insurers, like USAA and State Farm, offer the discount through age 25. Refer to the details for each company to see what the age threshold is when it comes to a good student discount. The following table provides average rates for both male and female drivers in their twenties, without a discount applied.
| Gender | Avg. Monthly Premium | Avg. Annual Premium |
|---|---|---|
| Male | $198 | $2,373 |
| Female | $183 | $2,195 |
Summary
The best way to save money on car insurance for young drivers is to shop around. Many companies offer a variety of discounts, including some aimed at students, so be sure to ask questions and consider your options as you look for cheap rates. Enter your zip code below to start comparing rates from over 100 companies and save money on your student driver's auto coverage.
Compare car insurance quotes today to find a rate that meets your budget.
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