Car Insurance for College Age Students: Cost and Tips to Lower Rates

College students have a difficult time as it is paying for their tuition and living expenses. It is only right that they get a discount on something like car insurance just for being a student. Fortunately, many car insurance companies offer special discounts to college students who are getting good grades in school. This usually goes by the name of “good student discount” and it is applicable to any good student who is less than 25 years of age and maintains a minimum of a B average in all their classes.

Average Cost of Car Insurance for College Age Students

However, there are a variety of factors that determine how much a college student’s car insurance is going to be. Even if they meet the requirements for a good student discount, they still have a lot of other factors that ride against them. For example, most college students are between the ages of 18 and 23 years old. Insurance companies charge higher rates for this age group because statistics show that they’re more likely to get into a car accident.

Below are the average biannual car insurance rates for drivers between 18 and 23 years old who choose the lowest liability coverage possible.

  • Age 18 – $1,630
  • Age 19 – $1,080
  • Age 20 – $950
  • Age 21 – $760
  • Age 22 – $690
  • Age 23 – $640

Most college students will choose the minimum liability amounts that are required by their state. This allows them to get the cheapest rate on their car insurance policy. Each state sets different requirements for what the minimum liability amount is supposed to be, but injury liability is typically $100,000 for covering one injured individual and $300,000 to cover everyone who was injured from the accident.

The minimum coverage for property damage is usually $100,000 and the collision and comprehensive coverage will usually have a $500 deductible. The reason this deductible is not higher is that this is the amount the driver must pay before the insurance pays anything. Since college students are usually poor, they’ll want to have a deductible that will be affordable to them in case they need to use this coverage. The good news is that you’re not required to even have this coverage because it only affects paying for the repairs of your own vehicle.

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Ways to Lower Car Insurance Rates for College Students

There obviously isn’t much that a college student can do about their age. But there are other ways in which they can possibly lower their car insurance rates. Below are 3 tips to help you lower your rates if you’re a college student.

  1. No Collision and Comprehensive Coverage – As a college student, you’re probably driving an older used car that is worth less than $5,000. If your annual insurance rate is about the same as your car’s worth, there is no sense in having college and/or comprehensive insurance coverage on it. So, just drop this coverage from your policy because it will give you a lower premium rate.
  2. Research Zip Codes – Insurance companies analyze the number of insurance claims made in various zip codes for things like theft and accidents. If you are garaging your vehicle within a zip code that has a lot of thefts and accidents, then your insurance rate will go up. Therefore, let’s say the zip code of your college campus is a higher risk than your parents’ zip code. It would be more beneficial to use your parent’s zip code on your insurance policy because that will give you a lower rate.
  3. Low Mileage Discounts – If you’re only using your vehicle to drive to college and around town, then your insurance company may give you a low mileage discount for not using your vehicle for long trips too much.

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