Auto & Driving
Car Insurance for College Students
Good student discount data direct-fetched from CarInsurance.com; distant-student discount cross-confirmed via Insurance.com and CNBC Select.
Two separate discounts exist for college students, one for grades and one for leaving the car at home, and most families only know about one of them.
Data sourced from CarInsurance.com, Insurance.com
The good student discount: worth about 12.5%, on average
Most insurers offer a good student discount averaging about 12.5%, according to CarInsurance.com, with the actual range running from 6% to 25% depending on the specific insurer. The typical requirement is at least a B average, a 3 GPA, while enrolled full-time.
It is generally available for students between 16 and 25, though some insurers, State Farm among them, extend eligibility to 29 specifically for graduate students.
The discount most families never ask about: distant student
A separate discount exists specifically for a college student who attends school at least 100 miles from home without keeping a car there, commonly called a "distant student" or "away at school" discount, worth about 14% on average.
It requires the student to remain on a parent's existing auto policy, and it exists because a car that stays home with a parent genuinely carries less risk than one the student drives daily at school.
The two discounts are not mutually exclusive. Several insurers, including Allstate, Auto-Owners, Farmers, and Amica, allow a student who both maintains a B average and qualifies as a distant student to receive both discounts at once, which is exactly the kind of stacking worth specifically asking about rather than assuming only whichever discount got mentioned first applies.
To see how a college student's age and driving record affect the underlying premium before either discount is applied, the auto insurance cost by age and driving record calculator runs that baseline directly.
Staying on a parent's policy is still the bigger lever
Both discounts described here assume the student remains on a parent's existing policy rather than buying a standalone one, and that underlying choice matters more than either individual discount.
Staying on an established family policy is almost always cheaper than a standalone policy for a college student, the same underwriting logic that benefits any new or young driver, regardless of whether the car goes to school with them or stays at home.
Frequently asked questions
How much does a good student discount actually save?
About 12.5% on average, according to CarInsurance.com, though the range runs from 6% to 25% depending on the insurer. Most insurers require at least a B average, a 3 GPA, and the discount is typically available to full-time students between ages 16 and 25, with some insurers extending it to age 29 for graduate students.
What if my student is away at school without a car?
That specific situation commonly qualifies for a separate "distant student" or "away at school" discount, worth about 14% on average, distinct from and stackable with the good student discount.
It generally requires the student to attend school at least 100 miles from home without a vehicle there, while remaining listed on a parent's existing policy.
Can both discounts apply to the same student at the same time?
Yes, at several insurers, including Allstate, Auto-Owners, Farmers, and Amica among others, a student who both maintains a B average and attends school far from home without a car can qualify for both discounts simultaneously, worth specifically asking about both rather than assuming only one applies.
Should a college student stay on a parent's policy or get their own?
Staying on a parent's policy is almost always cheaper, for the same reason it helps any new or young driver: the insurer extends an established account's history rather than underwriting an entirely new relationship.
This holds whether the student keeps a car at school or leaves it at home, the distant-student discount specifically applies to the latter case.