Car insurance is often one of the biggest expenses for students, especially young drivers who are considered high-risk by insurance companies. The good news is that many car insurance providers offer special discounts and programs designed specifically for students. Understanding these discounts and how to qualify for them can save you hundreds of dollars every year.
In this guide, we’ll break down student car insurance discounts, how they work, eligibility requirements, and smart tips to get the cheapest car insurance as a student.
Why Is Car Insurance Expensive for Students?
Insurance companies calculate premiums based on risk. Students—especially those under 25—typically pay more because:
- Limited driving experience
- Higher accident rates among young drivers
- Statistically higher claim frequency
However, insurers also recognize responsible student behavior, which is why student-specific discounts exist.
Common Car Insurance Discounts for Students
1. Good Student Discount
One of the most popular discounts available.
How it works:
If you maintain good academic performance, insurers reward you with lower premiums.
Typical requirements:
- GPA of 3.0 or higher (or B average)
- Proof of grades (report card or transcript)
Potential savings: 5%–25%
Learn more from major insurers like:
- https://www.geico.com/auto-insurance/student-discounts/
- https://www.statefarm.com/insurance/auto/discounts/student
2. Distant Student Discount
Perfect for students who attend college away from home and don’t drive often.
Eligibility:
- Student lives 100+ miles away from home
- Only drives during holidays or breaks
- Car remains insured under parents’ policy
Savings: Up to 15%
3. Driver Training & Defensive Driving Discount
Completing an approved driving course can reduce your insurance cost.
Accepted courses include:
- High school driver education
- College driving safety programs
- State-approved defensive driving courses
Check your state-approved courses here:
https://www.iii.org/article/teen-driver-safety
4. Usage-Based or Telematics Discount
Insurance companies track driving behavior using an app or device.
What they monitor:
- Speed
- Braking habits
- Mileage
- Time of day driving
Safe drivers can save 10%–40%.
Popular programs:
- Progressive Snapshot
- Allstate Drivewise
- State Farm Drive Safe & Save
5. Low Mileage Discount
If you don’t drive much (common for students), you may qualify.
Usually applies if you drive:
- Less than 7,500 miles per year
6. Multi-Policy & Family Discounts
Students can save money by staying on their parents’ policy.
Benefits include:
- Multi-car discount
- Loyalty discounts
- Lower overall premium than separate policies
Best Car Insurance Companies for Students
Some insurers are known for student-friendly pricing and discounts:
- GEICO – Affordable rates, good student discount
- State Farm – Excellent for students on family policies
- Progressive – Strong telematics savings
- Allstate – Multiple safe-driving programs
Compare quotes before choosing:
https://www.nerdwallet.com/insurance/auto/car-insurance-for-students
How Students Can Lower Car Insurance Costs Even More
Choose the Right Car
- Avoid sports cars
- Choose vehicles with high safety ratings
- Older, reliable models are cheaper to insure
Check safety ratings at:
https://www.iihs.org/
Increase Your Deductible
Higher deductibles mean lower monthly premiums (but more out-of-pocket if you file a claim).
Maintain a Clean Driving Record
- Avoid speeding tickets
- No distracted driving
- One ticket can raise premiums significantly
Shop Around Every Year
Insurance rates change often. Comparing quotes annually can unlock better deals.
Should Students Get Their Own Policy or Stay on Parents’ Policy?
Staying on parents’ policy is usually cheaper if:
- You live at home
- You use the family car
- Parents have a clean driving history
Getting your own policy makes sense if:
- You live permanently off-campus
- You own your own car
- You’re financially independent
Final Thoughts
Car insurance doesn’t have to drain your student budget. With good student discounts, low mileage programs, telematics tracking, and family policies, students can significantly reduce their premiums.
The key is to:
- Ask insurers about every available discount
- Compare multiple quotes
- Drive safely and maintain good grades
A little effort can lead to big savings over time.