How College Students Can Save Money on Car Insurance

Car insurance can be expensive, especially to a college student. Here are some ways to save money on your car insurance while you're in school.

College is a time of life that’s full of important decisions. Some decisions are exciting, like choosing your major or picking out the perfect outfit to wear to a weekend party. Other decisions, like learning to budget and finding ways to reduce your expenses, aren’t always so fun. Nonetheless, learning how to use your money wisely is an important part of adulthood. One way to potentially shave a few bucks off your monthly budget during college is to find ways to keep your auto insurance rate as low as possible.

Keep reading for some tips on how college students can save money on car insurance premiums. If you’re a parent who is covering your student’s insurance bill to make life a little easier while they’re in college, the following advice may help you find ways to save as well.

Related: 6 Tips for Bringing Your Car to College

Work with your age

When it comes to auto insurance rates, being young doesn’t work in your favor. It’s a well-known fact that auto premiums typically cost the most during your early driving years. Thankfully, there are a number of ways to save money and even score discounts on your auto insurance rate that might help offset this “age penalty.” Check out the following five smart saving ideas you might want to try for yourself.

Make the dean’s list

Getting good grades at college doesn’t just buy you bragging rights with your family; those A’s and B’s you worked so hard to earn could help you to save money too. Student Loan Hero reports that you might be able to score an auto insurance premium discount of up to 25%, depending on your insurance provider, if you have a GPA of 3.0 or higher.

Leave your car at home

Although the freedom to hop in your car and drive wherever and whenever you like can certainly be enticing, you might fare better financially if you leave your car at home when you’re at college. If you do opt to go carless while at school, you won’t be alone. According to U.S. News & World Report, less than half the students at the 214 national universities surveyed brought their cars to campus.

If you choose this option and your college is more than 100 miles away from home, be sure to call your insurer to give them a heads up. You might qualify for a discount on your premium—sometimes as high as 20%.

Related: Does It Make Financial Sense to Start Driving in College?

Stay on your parents’ insurance plan

Staying on your parents’ insurance is a great way to potentially save money on your auto insurance while you’re in college. As long as your permanent address is still the same as your mom and dad’s, most insurers will allow it.

Of course, while being on your family’s insurance policy may save you money (even if you’re reimbursing your parents for the cost of coverage), be aware that your family is taking on some added risk. If you’re in an accident while on the family insurance policy, it could cause a rate increase for everyone, not just you.

Take a defensive driving class

Adding another class to your busy college schedule might not sound very enticing, but a defensive driving course might save you money on your auto insurance premium. Some insurance providers may offer discounts if you complete an approved course too. Just be sure to check with your insurance company before you sign up to get the details.

Shop for the best deal

Likely the best way to save money on auto insurance—whether you’re a college student or a new retiree—is to shop around for the best rate. Don’t be afraid to ask different issuers about available discounts as well. By comparing quotes from multiple insurance companies, you have a better chance of finding the best deal available for your situation.

Non-owner car insurance

As mentioned earlier, a lot of students don’t bring their vehicles to college. In fact, many don’t own a vehicle at all. But just because you don’t have a vehicle in your name doesn’t mean you’ll never be driving. That begs the question: Do you need car insurance if you don’t actually own a car? If you plan to borrow or rent a car, you might.

Non-owner car insurance is designed for licensed drivers who, as the name suggests, don’t actually own a vehicle. It’s a type of policy that can provide you a degree of coverage in case you ever cause an accident while driving. Essentially, it’s liability coverage that may pay for the damages you cause to others but not damages to the vehicle you’re driving or to you personally.

Non-owner coverage is often purchased by people who:

  • Borrow vehicles often
  • Regularly use car-sharing services (Zipcar, Enterprise CarShare, BMW ReachNow, etc.)
  • Rent vehicles frequently
  • Want to avoid a lapse in auto insurance coverage

Just like any other type of insurance, if you’re considering a non-owner policy, it’s smart to compare what’s available from different providers first.

Related: Pros and Cons of Owning a Car in College: On Campus vs. Off Campus

The bottom line

There’s no one-size-fits-all answer when it comes to picking the best (and the most affordable) car insurance while you’re in college. Insurance companies consider a variety of factors when pricing premiums, and the perfect policy for you might not be so perfect for the next college student.

Your best bet is to do your homework and take time to compare policies and pricing from different insurance providers. If you follow this advice, you should be able to find the auto insurance policy that offers you the coverage you need at an affordable price.

You can also save money in college with scholarships! Find some today with our Scholarship Search tool.

Like what you’re reading?

Join the CollegeXpress community! Create a free account and we’ll notify you about new articles, scholarship deadlines, and more.

Join Now

Tags:
adulting auto insurance car insurance cars on campus insurance saving money

About Michelle Lambright Black

Michelle Lambright Black

Michelle Lambright Black, founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert with over 15 years of experience in the credit industry. She’s an expert on credit reporting, credit scoring, identity theft, budgeting, and debt eradication. Michelle is also an experienced personal finance and travel writer. You can connect with her on Twitter @MichelleLBlack and Instagram @CreditWriter.

 

Join our community of
over 5 million students!

CollegeXpress has everything you need to simplify your college search, get connected to schools, and find your perfect fit.

Join CollegeXpress
Sadie Hartmann

Sadie Hartmann

High School Class of 2021

I'm a senior in high school, and CollegeXpress has helped me in so many ways this year in trying to navigate the process of deciding and committing to a university. The COVID-19 Student Resource Center has helped me many times with the most up-to-date and accurate information, along with financial aid and student life [advice]. During these uncertain times, CollegeXpress has been a great recourse to relieve the stress as a senior. Along with the COVID-19 Student Resource Center, I'm constantly using the extremely helpful tools off the site to aid me during this stressful process. Tools like the lists and rankings of universities have been the most beneficial. I've also used the site to receive expert advice on topics like financial aid. Finally, CollegeXpress has helped me easily apply for several scholarships. I'm thankful to be given the chance to win a scholarship to lessen the burden of my college debt.

Carlie Cadet

Carlie Cadet

High School Class of 2019

CollegeXpress has helped me learn about an abundance of scholarships available to me and my situation. I was able to do research for colleges in my best interest with your website. I've had multiple colleges email me and offer me multiple scholarships and things of that nature because of this website! Thank you so much for uploading scholarships I didn’t even know existed, even if my life took a huge turn and I wasn’t able to go to college straight out of high school. CollegeXpress helped me a lot in high school to be even more motivated to get into my dream college (which I did, by the way). I'm looking forward to using the materials CollegeXpress has kindly provided me for free to look for scholarships to help pay for college.

Damian Rangel

Damian Rangel

September 2021 Mini Scholarship Winner, High School Class of 2022

CollegeXpress has helped me tackle college expenses, which will allow me to put more of my time and effort into my studies without the need of worrying as much about finances.

Emilie Delgado

Emilie Delgado

$2,000 Community Service Scholarship Winner, 2013

CollegeXpress has tremendously helped me in my search for financial aid opportunities as I enter my college career. It is easy to navigate and quickly narrowed down scholarships that I could apply for. Being awarded the scholarship will greatly help me in my finances regarding books and tuition. Thank you for this opportunity. Without CollegeXpress, it would have been more difficult to apply. I would recommend this site to everyone!

Maria  Fernanda

Maria Fernanda

High School Class of 2023

CollegeXpress is always telling you with time to spare when to apply for certain scholarships, what they require, and if you’re eligible or not. They also provide helpful tips for both incoming college students and current college students, such as what to absolutely have in your dorm.

College Matches
X

Colleges You May Be Interested In

Bridgewater College

Bridgewater, VA

Belmont University

Nashville, TN