College Student Car Insurance

If you take your car to college, and even if you don't, there is no doubt that you need to have car insurance if you want to drive at school or when you're at home. It can be pricey, but going without it can cost you even more if you're in an accident.

There's also no doubt that car insurance can be confusing, but with a little help from an independent insurance agent (and, let's face it, probably your parents), you can have the coverage you need without too much fuss, and more importantly, without busting your budget.

Here we'll outline what type of car insurance you need as a college student, and how you can get it for the best possible price.

What Coverage Do College Students Need?

Good car insurance coverage, even for students away from home, is a necessity. While you’ll want to buy the most affordable student car insurance available, you shouldn’t limit your coverage to your state’s bare minimums. Purchasing minimum coverage could leave you underinsured and at significant financial risk in the event of an accident. 

If you stay on your parents' car insurance policy, they can probably afford to pay for better coverage or higher coverage limits than you could afford on your own. Consider what could happen if you get into an accident with an uninsured or underinsured driver. 

According to the Insurance Industry Research Council, 33.4% of drivers in the United States are uninsured or underinsured. While this rate fluctuates from year to year and from state to state, this figure represents a 10% increase since 2017. 

Remember, you can be the most responsible driver ever to hit the road, but that still won’t protect you from the actions of those around you. Ultimately, your insurance must protect you even if you are not at fault, and uninsured and impaired drivers are a huge problem, particularly for college-aged individuals. 

Consider that according to the National Highway Transportation Safety Administration (NHTSA), the highest percentage of drunk drivers is the 21 to 24-year-old age group. While drunk driving is strictly off-limits for you, that clearly doesn't apply to a lot of people driving in and around your campus. Drunk driving greatly increases the likelihood of being involved in a car accident. 

Every state requires you to carry a specified minimum amount of liability coverage. 

• Bodily injury liability coverage: Protects you if you injure or kill someone else while driving your car. It covers an injured party's claims for damages, including medical expenses, lost wages, and pain and suffering. It also covers your legal defense fees if another party involved in the accident sues you. 
• Property damage liability coverage: Pays for any damage that you cause to the property of others (e.g., another driver’s car) and for your legal defense if you are sued. 

To make sure you're protected, at the very least, you must carry your state’s mandated minimum liability coverage. But is that enough? Not likely. If you want sufficient protection for all that can go wrong, your car insurance policy should include the following types of coverage with appropriate coverage limits:

• Collision coverage: Protection for physical damage to your vehicle when it hits or is hit by another vehicle or object, such as a tree.
• Comprehensive coverage: Pays for losses from almost all other types of damage to your vehicle other than that resulting from a collision, such as theft, fire, vandalism, weather, birds or animals, glass breakage, and so on. 
• Medical payments coverage (or personal injury protection): Helps pay for medical, dental, and funeral expenses for you or your passengers, regardless of who is at fault for an accident.
• Uninsured motorist coverage: Protects you if you are injured by a hit-and-run driver or by a driver who does not have auto liability coverage. It takes the place of liability insurance that the other driver should have, but does not. 
• Underinsured motorist coverage: Protects you if another motorist is at fault for a collision but does not have enough insurance to cover your losses. 

Your insurance agent can explain these and other types of coverage that may be mandated by your state. And be sure to discuss optional coverage (e.g., roadside assistance, rental reimbursement) that you might want to consider. 

Keep in mind that there can be insurance concerns if you borrow someone else’s car or lend your car to a friend or roommate. In most cases, your coverage will be sufficient, but depending on the circumstances, you may have gaps in coverage. Talk to your agent to be sure you understand the potential consequences. 

How Much Does College Student Car Insurance Cost?

Your car insurance rates depend on a variety of factors that are unique to your living and driving situation.

Besides your age, gender, and grades, the biggest factor that influences student car insurance rates is whether or not you take your car to school in the first place. That's because where you keep your car and how much you drive it are two of the primary ways insurance companies determine how likely you are to get into an accident. 

Here's how some of the factors, including location, come into play:

• Location: Where do you keep your car? Insurance rates are higher in big cities than in smaller towns and suburbs. If you go to school in a large urban area, your car insurance rates will be much higher than if your school is in a rural area. What's more, how much you drive makes a difference. If you commute to school or work every day, as opposed to using your car only occasionally, you'll pay more for your car insurance.
• Type of car: The type of car you drive has a significant impact on insurance rates for college students and everyone else. Consider the impact of a large vehicle versus a smaller one, and a newer vehicle versus an older one. Larger cars are considered safer and less susceptible to damage, making them cheaper to insure. And newer cars often include the latest safety features, which will also help to keep your rates down. 
• Credit history: Insurance companies will examine your credit history as a predictor of your likelihood of getting in an accident. If you have a poor credit rating, expect your car insurance to cost more.
• Safety features: Purchasing a car with built-in safety features is a great way to keep your car insurance rates down. Your rates will be reduced if your vehicle has features like side airbags, electronic stability control, passive restraints, or others. 
• Driving record: We’ve talked about a lot of things, but the fact remains that the single largest factor in determining your car insurance rates is your driving record. One speeding ticket might make car insurance literally unaffordable, especially for a student on a limited budget.

Staying on your parents’ auto insurance policy is also a good idea that will save you a ton of money. 

Why staying on your parents' policy is a good idea

Should you stay on your parents' car insurance policy or get your own? Sometimes you won't have a choice, but if you do, staying tied to your parents' policy is generally considered to be your best bet for affordable coverage. 

Why? Parents are generally considered lower-risk drivers, so staying on their policy just makes sense. Plus, you will be able to take advantage of more discounts. 

Most insurance companies will allow you to stay on your parents’ policy if you:

• Are under 25 years old  
• Attend a college or university within 100 miles of your home
• Attend a college or university more than 100 miles from home, but drive your vehicle only when you are home for school breaks

Remember, even if you don't take a car to school, you'll need to stay on your parents' policy so you can drive when you come home for weekend visits or long breaks. Talk to an independent insurance agent about any ways that your parents should amend their car insurance policy, whether you take your car to school or leave it at home. 

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What Discounts Are Available for College Student Car Insurance?

As a student, you may be eligible for several car insurance discounts.

• Resident student discount: Significant discounts are available if your school is far from home and you only drive when you are home for visits. 
• Early signing discount: Many insurance companies will give you a discount for early signing, or simply not waiting until the last minute (when your existing policy expires) to shop for and purchase a policy. 
• Multiple policy discount: Most insurance companies will provide a discount for drivers who purchase more than one policy. If you live off campus and have your car at school, you will likely be eligible for this discount if you purchase both auto and renters insurance from the same company. 

Some other discounts that college students might be eligible for include:

Ask an independent insurance agent about these discounts when you shop for your policy.

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How to Find the Best College Student Car Insurance

The best car insurance for you as a college student will provide protection not only for liability risks, but also for injuries, collisions, and other types of risks to you and your vehicle. And it will provide all of those things at a price that isn’t burdensome.

First, find a local independent insurance agent with whom you are comfortable. Your agent should be able to find quotes from numerous reputable insurance companies so that you can find the combination of coverage and price that best suits your needs and budget. The agent you choose can also make sure you get all of the discounts for which you are eligible. 

When comparing quotes, make sure that the coverage and limits are the same for each quote. It doesn’t pay to compare apples to oranges.