Posted by Choosing the best auto insurance for students can sometimes become a bit demanding as well as stressful due to certain limitations, such as cost, location, and many more, that you may be faced with as a vehicle owner.
As a student who drives or even owns a car, it’s very important for you to invest in auto insurance. Not just because it protects you and your vehicle in case of an accident, but also because it provides you with financial protection if you’re ever caught up in a situation where you’re at fault for damages.
So, in this article, we have pulled our resources together to provide you with the best auto insurance companies out there for you as a student. You just have to stick around while we walk you through this comprehensive guide.
Before we dive right into the list, let’s get to know the importance of auto insurance for students.
Importance of Auto Insurance for Students
The following are reasons why auto insurance is important for students:
- Auto insurance for students can protect you financially if you’re in an accident.
- This insurance covers the cost of repairs or replacement in a situation in which your vehicle is damaged.
- Auto insurance provides you with peace of mind and gives you the freedom to drive without worrying about the financial consequences of an accident. However, that doesn’t mean that you have to drive recklessly.
- In case your vehicle is damaged or involved in an accident, it can easily get you back on the road quickly.
Factors that Affect the Cost of Auto Insurance
The following are the factors that influence the cost of auto insurance:
1. Age of the Driver
Starting with age, as a student, your age plays a big factor in determining the cost or premium rate of auto insurance.
Generally, young people are considered to take more part in high-risk activities. The same thing applies to auto insurance. As a young driver below the age of 21, you are more likely to pay a higher premium compared to those above that age.
However, the good news is that the older and more experienced you get, the lower your insurance costs.
2. Location
One of the most important factors that you need to consider as a student seeking to purchase auto insurance is location.
Where you live can have a big impact on the cost of your insurance. This is because insurance companies factor in things like crime rates, weather conditions, the number of claims in a certain area, etc. so they can determine the premium rate you will have to pay.
Let’s say, for instance, that if you live in a city with a high crime rate, your premium rate will likely be more expensive than if you live in a small town with a low crime rate.
In the same way, if you live in an area that’s prone to natural disasters, your insurance will likely be more expensive than if you live in a safer area.
3. Driving Record
As a driver, your driving record is very important in determining your premium rates. Insurance companies usually consider your history of traffic violations, accidents, claims, etc. so that they can determine how risky or safe you are as a driver.
One traffic violation or accident can significantly increase your insurance costs, so it’s worth it to be extra careful on the road.
4. Credit Score
Your credit score as a driver is very relevant when it comes to auto insurance, as it shows that you are creditworthy. A good credit score can mean lower premium rates on your insurance, and vice versa.
5. Make and Model of Your Vehicle
Insurance companies consider some types of vehicles more risky to insure than others. For example, sports and flashy cars often have higher insurance rates than everyday vehicles.
This is because they’re more likely to be involved in accidents and are also more expensive.
Now that we have looked into the factors that play a major role in the cost of auto insurance, let’s now dive right into the best auto insurance for students.
But before that, let’s take a look at some of the criteria we used in grading these companies.
Criteria for Selection of Students’ Best Auto Insurance
The following are the criteria we’ve carefully considered in selecting the best auto insurance for students:
- Student discounts
- Coverage
- Deductible
- Customer service
- Financial stability of the insurance company
- Availability of online tools and resources.
10 Best Auto Insurance for Students
Below is a list of the best vehicle insurance for students:
- GEICO
- State Farm
- Progressive
- Allstate
- USAA
- Travelers
- Nationwide
- Farmers
- Erie Insurance
- Amica Mutuals.
Overview of Students’ Best Vehicle Insurance
1. GEICO
- Year Founded: 1936
- Average Monthly Rates: $154
- Coverage Rating: 9.3
Pros
- GEICO has one of the most affordable premium rates compared to other auto insurance options for students
- Its customer service does an excellent job at claims handling and customer loyalty
- There are numerous discounts available for you as a student, and this increases your savings as a student.
Cons
- Rates for drivers with a DUI are higher than most other insurers in our rating.
Description
GEICO is known for its affordable premium rates for students, especially young drivers. It offers various discounts to students who purchase its policy, and this makes their plans budget-friendly.
When you talk of user-friendly websites and mobile apps, GEICO will surely make the list, and their customer service is excellent in what they do.
2. State Farm
- Year Founded: 1922
- Average Monthly Rates: $194
- Coverage Rating: 8.9
Pros
Cons
- Higher annual rates, on average, for drivers with poor credit
- You can only purchase their policy through local agents.
Description
Being one of the largest insurance providers in the US, it offers a wide range of products and services. In addition to auto insurance, there are other activities, such as banking and investment, that it provides.
3. Progressive
- Year Founded: 1937
- Average Monthly Rates: $239
- Coverage Rating: 8.8
Pros
- Progressive has good customer service that provides 24/7 live support
- Various discounts are available
- Their claims filing process is It is easy and straight to the point via online or mobile app
- This insurance is financially buoyant.
Cons
- Progressive is not available in all states
- Coverage may be expensive for some drivers.
Description
One of Progressive’s specialties is providing reasonable rates to most motorists. Progressive serves high-risk drivers, especially college students, in the best possible way.
The company offers discounts to both good and distant students, along with a relatively rare discount specifically intended for teen drivers.
4. Allstate
- Year Founded: 1931
- Average Monthly Rates: $156
- Coverage Rating: 8.2
Pros
Cons
Description
Allstate has one of the most affordable premium rates for students, especially young drivers. It also provides various discounts to students who purchase its policy, and this makes their plans budget-friendly.
This insurance company has very good customer service and provides top-notch services.
5. USAA
- Year Founded: 1922
- Average Monthly Rates: $134
- Coverage Rating: 9.3
Pros
-
This insurance provides high satisfaction for their customers
-
It has various discount options for its customers, especially good college students
-
They have various policies in every state in the United States.
Cons
- This insurance is limited to active military, veterans, and their families only.
Description
When it comes to low premium rates, USAA will certainly be on the list. This is because it typically offers some of the lowest rates on car insurance, with college students often receiving deals.
However, the downside to this firm is that it is only available to military members, veterans, and their families.
USAA also has a few specialized products and policies for military members and military families that are useful.
6. Travelers
- Year Founded: 1864
- Average Monthly Rates: $209
- Coverage Rating: 9.3
Pros
- Travelers is a well-established company with a good reputation.
- Aside from auto, they have a variety of other coverage options, such as home insurance, business insurance, etc.
- The insurance company has a wide network of agents and brokers that can help you find the right policy.
Cons
- Travelers don’t offer many discounts compared to other companies
- Some of their customers have reported issues with processing their claims
Description
Travelers is another major auto insurance provider that offers reasonable rates for college students. Also, Travelers offers savings for completing a defensive driving course and for insuring hybrid or electric vehicles.
The company’s optional accident forgiveness program can also keep your premiums from soaring after an accident.
7. Nationwide
- Year Founded: 1884
- Average Monthly Rates: $167
- Coverage Rating: 8.8
Pros
- Nationwide is one of the largest and most stable companies, with a good reputation
- It offers a wide range of products, such as auto, home, and business insurance
- Nationwide offers a variety of discounts to its customers, especially students
- This insurance company has a good customer service reputation
- Nationwide has reliable customer service.
Cons
-
Average overall rates are slightly higher than Travelers’ rates
- Lower customer recommendation scores than other insurers in our survey
Description
This insurance company has been in existence for years now. Their services include but are not limited to, auto insurance, home insurance, life insurance, business insurance, etc.
When it comes to stability, this company is one of the most stable, with a great reputation, and they have a wide network of agents and brokers.
8. Farmers
- Year Founded: 1925
- Average Monthly Rates: $250
- Coverage Rating: 9.0
Pros
- Their customer service is rated highly for both insurance and shopping
- There are very few complaints from their customers
- a lot of discounts are available for their customers
- According to poll results, a lot of their customers are satisfied with the processing of their claims.
Cons
- Their average monthly premiums are higher than those of other insurers
Description
This is a large insurance company that offers many insurance services, including auto insurance.
Farmers Insurance also has some unique offerings, such as a vanishing deductible program. This offering is beneficial, especially to students.
9. Erie Insurance
- Year Founded: 1925
- Average Monthly Rates: $284
- Coverage Rating: 9.4
Pros
Cons
Description
Erie Insurance is based in Pennsylvania. One of their main aims is to provide quality customer care, and they’re known for their competitive rates and a variety of coverage options.
They offer other insurance services aside from auto, and they have a network of independent agents who sell their products.
10. Amica Mutuals
- Year Founded: 1907
- Average Monthly Rates: $170
- Coverage Rating: 8.2
Pros
- They provide high customer satisfaction, resulting in low consumer complaints
- This insurance provides a good number of discounts.
Cons
- Their plans are not available in all states.
Now that we have discussed the best auto insurance for students, let’s quickly check out some of these questions and their respective answers.
Description
This is the oldest auto insurance company in the USA, and it also offers some other insurance services.
Amica Mutuals also has some unique offerings, such as a vanishing deductible program. This offering is beneficial, especially to students.
FAQS on Best Auto Insurance For Students
Do grades affect the cost of auto insurance for students?
Yes, some insurance companies only offer discounts to students who maintain a certain GPA. The GPA requirement varies depending on the insurance company.
Can a student get a discount for being a good driver?
Yes, many insurance companies offer a good driver discount to students who have a clean driving record.
Is it cheaper to insure a car for a student who lives on campus or off campus?
Well, in most cases, it's cheaper to insure a car for a student who lives on campus. This is because students who live on campus are typically seen as lower-risk by insurance companies.
How can a student reduce the cost of auto insurance?
There are actually several ways a student can reduce the cost of auto insurance, such as taking a defensive driving course, getting good grades, having a clean driving record, driving a car with safety features, bundling auto insurance with other policies, choosing a higher deductible, etc.
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Conclusion
It’s important to note that the best auto insurance for students is the one that meets your individual needs and budget.
So, by considering factors like financial strength, customer service, and student discounts, you can find a policy that’s right for you.
You should also take the time to compare quotes from multiple comparison sites to get the best deal.