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kali9/Getty Images September 27, 2022 Lena Muhtadi Borrelli has several years of experience in writing for insurance domains such as allconnect, Healthline and Reviews.com. She previously worked for Morgan Stanley. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Bankrate logo

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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo

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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo

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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Owning a car can be expensive for college student drivers, with costs for maintenance, gas and auto insurance, plus a possible car loan. Budgeting is often necessary to ensure money lasts from semester to semester. Understanding why students pay more for car insurance than other age groups can help you prepare for the costs. Bankrate also provides ways college students can save money on insurance, as well as gas and maintenance costs. Insurance Auto Bankrate Insights The highest risk of car accidents is attributed to drivers between ages 16 and 19, according to the CDC. Students can carpool with other students and take advantage of savings programs for maintenance costs as ways to save on car ownership. Car safety features and pay-as-you-go auto insurance are other potential ways to save on college student car insurance.

Why do students pay more

College students are often quoted higher than older drivers, mainly due to the added risk. According to the CDC, teens between the ages of 16 and 19 are at the . In addition to general inexperience on the road, alcohol is a significant concern for teen drivers. According to the National Highway Transportation Safety Administration (NHTSA), more than a third of all involved drivers between 21 and 24 years of age. The Substance Abuse and Mental Health Services Administration (SAMHSA) also reports that are considered binge drinkers, with the same age group showing 37% used illicit drugs in the past year, both of which impair driving. Additionally, younger drivers lack the experience of older, more experienced drivers. Insurance companies know that college students are more likely to have an incident on the road and file a car insurance claim, so they account for that added risk in their rates.

Ways to save on driving

Driving is expensive, especially so for college students on tight budgets. Keeping transportation costs low can help students afford to keep their cars and insurance on the vehicle. Here are some ways to save on gas, maintenance and the cost of car insurance.

How to save on gas

Choose a car with good gas mileage. College students commute a lot between home and school, so a car with excellent gas mileage can easily save hundreds of dollars each year. Cars like the Hyundai Ioniq, Toyota Prius, Honda Civic and Mitsubishi Mirage are all vehicles known for — and there are plenty more out there. Keep cash on hand. Paying with cash can keep gas costs down. Cash payments eliminate fees and surcharges commonly attached to credit card transactions. Many gas stations encourage cash sales and even charge a lower price for gas that is paid for with cash. Utilize public transportation. Public transportation can almost entirely eliminate transportation expenses. Buses, trains or subways are a fraction of the cost of driving and are usually accessible at most colleges or universities. Invest in a bicycle. A bicycle can be an even better substitute for public transportation, especially for students in urban areas. Using a personal bicycle is free after purchase, and there are also typically lots of options for low-cost bike sharing or rentals in more populated areas. Carpool with your classmates or colleagues. If you must drive, consider setting up a carpool or car-sharing arrangement with classmates or colleagues who live along your route. They will probably appreciate the opportunity to save money and it gives you the added benefit of some company during the commute.

How to save on maintenance

Find car deals for new graduates. Many car manufacturers offer special purchase deals for current college students or recent graduates to . There may also be short-term leasing specials available for students for those not ready to purchase a new car. Ask about student savings programs for oil changes. Another potential place to save is regular oil changes. College students can burn through many miles and require more frequent oil changes, but many of the larger chains, such as Jiffy Lube, offer students discounts. Utilize free tire and air fill-up services. To save extra money on diagnostic and professional services, check your tire pressure yourself. Most gas stations offer free or cheap stations to check tire pressure and add air if necessary. Research DIY repairs. There are several basic car repairs that can be done at home. Learning how to do essential maintenance can save money on parts and high labor costs. It will also save time to repair the car on your own schedule. These basic repairs are easy to learn and can save hundreds of dollars: Change the battery. Change the oil. Change your spark plugs. Replace tail lights or headlights. Swap out windshield wipers.

Insurance discounts

It’s commonly known that most car insurance , but some discounts can save college students and more money than others.

Student discounts

Many car insurance companies offer discounts designed specifically for college students, such as: Good student discount: Earning good grades in school demonstrates to insurers that you are responsible, making it more likely that you are a responsible driver and often earning you a discount. Driver’s education discount: Another way to save money on car insurance is to complete a driver’s education course. For example, drivers with a could save by completing a defensive driving course to refresh their memory on the rules of the road. Distant college student discount: You could save money by leaving your car at home when you are away at school. Most car insurance carriers will discount your total insurance premium, prorating your premium to reflect the months you are away at school and not using your vehicle. Safe driver discount: Students can often save by demonstrating their safe driving practices through insurance programs designed for young drivers. For instance, there are savings programs like , for drivers under age 21, and , for young drivers up to age 25. After completing the program, drivers could get a discount on their car insurance.

Affiliation discounts for students

Many insurance companies also offer discounts for students who participate in certain organizations or associations, such as: Sororities, fraternities or honor societies: offers car insurance discounts for fraternities, sororities and even honor societies, along with an extensive list of other organizations. University and alumni discounts: Like Geico, Liberty Mutual is another company that offers discounts for many universities and alumni policyholders. Students at the University of Maryland, University of Pennsylvania, Drexel University and more may save extra money on their car insurance. Military discounts: If a parent is a , you might save extra money on your car insurance through military discounts. As a military-only provider, USAA is one for your car insurance, but a few other companies offer military discounts, too, such as Geico, The General and Liberty Mutual.

Other ways to save

In addition to affiliation discounts, there are other ways college students can help lower car insurance premiums using these additional savings programs: Lower your mileage. When you spend less time on the road, there’s a much lower risk of incident, so many carriers will offer lower car insurance premiums to drivers who rack up fewer miles. Drive a used car. Newer cars are typically more expensive, so damages usually cost more to repair. A used car is generally cheaper to fix and may qualify you for lower car insurance premiums than a new car. Driving a vehicle with extra safety features is another way to potentially earn lower premiums, so explore models with safety features like anti-lock brakes, electronic stability control, forward-collision warnings and automatic emergency braking. Explore pay-as-you-go insurance. Instead of paying full-price for car insurance, you might be able to sign up for , which monitors your driving habits and charges your car insurance accordingly. It’s a popular option with several car insurance companies: offers its Milewise program, Nationwide has its SmartMiles program, and Progressive offers its . Car additions. Some additions and upgrades may make your car safer and save extra money on car insurance premiums. Dash cams: could help reduce car insurance rates by reducing the likelihood of crime involving your vehicle and also protecting you against false liability claims that could cost your insurer money. Navigation systems: A GPS navigation system can help keep you feel more prepared when driving, helping you drive slower and more safely. Anti-theft device: A car alarm or other anti-theft device may earn you extra discounts by lowering the risk of theft or vandalism.

How much can you save

Using Quadrant Information Services data, Bankrate regularly analyzes car insurance trends for younger drivers and college students. The national for full coverage is $1,771 per year. However, for an male driver on their parent’s policy, the average annual cost is $3,506. For a female the same age, the average cost is $3,198 annually. While the rate seems high, it can be even higher for 18 year olds who take out their own auto policy. The average annual cost for an 18-year-old driver on their own policy is $5,694 for a male and $4,946 for a female. Fortunately, by the time a , they can typically expect a lower rate due to having a longer history of driving experience. On average, 25-year-old male and female drivers pay $2,247 and $2,106, respectively, per year. No matter where you live and what you drive, you should always to see which company is the best for you. Every company offers different savings programs and coverage options that can have an enormous impact on what you spend. When in doubt, speak with a licensed insurance expert to find out what will work best for you. Car insurance for college students is a necessary expense, but it does not have to be exorbitant. Car insurance companies know that life is expensive for college students and offer some great discounts. A thrifty college student can use their savvy to keep their other car expenses down, too — and maybe splurge on a meal other than ramen noodles once in a while. SHARE: Lena Muhtadi Borrelli has several years of experience in writing for insurance domains such as allconnect, Healthline and Reviews.com. She previously worked for Morgan Stanley. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work.

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