Updated November 21, 2022 –College is a significant time in any young person’s life. However, it can be a costly experience as well. With tuition, books, and rent to think about, do you need to add car insurance to that list? The answer depends on your situation.
Are you staying in an on-campus dorm? Do you have access to a vehicle if you need it? Is it more practical to drive instead of life on campus? In other words, if you need a car to go to college, then you need proper insurance.
State Farm Auto Insurance
State Farm Auto Insurance is probably the best choice for students looking for discounts. As of 2020, the company has a market share of 16.2%, making them the top private passenger car insurance provider in the country today.
You can take advantage of their insurance offers with several discount options such as:
1. Student Away to School Discount
2. Good Student Discount
3. Steer Clear Discount
You can enjoy up to 25% discounts if you qualify for the offers. That is another incentive for you to do well in your classes. Who knows you can get good grades and save money on insurance too?
The coverage is as you would expect with one of the larger insurance companies in the country. They offer the usual insurance coverages, plus you can add policies like roadside assistance, travel expense reimbursement, and rental car. You can also get rideshare insurance for Uber and Lyft drivers.
While State Farm Insurance is available in all 50 states, they have a unique “good neighbor” approach. What that means is they do not have a central headquarters where all applications go through. Instead, you have to work with a local agent. That can be a challenge for students who will end up miles away from home.
Overall, State Farm Auto Insurance has positive customer reviews. They are reliable and offer discounts for students.
Metromile Auto Insurance
If you end up in a college dorm, most of the things you need are around you. You do not have to drive much. You may only need to drive for the holidays or over the weekend. If that is your case, then Metromile could be the insurance provider for you.
The company offers premiums based specifically on your driving. They specialize in coverage for those who drive below 10,000 miles every year. While that may sound very niche, it is a great way to save money for college students who do not drive frequently.
Overall coverage of Metromile is standard compared to other companies. The twist is that their rates are based on how much you drive. They charge you a base rate on top of a fee per mile. A device in your car tracks your mileage.
While Metromile does not offer a specific discount, you end up paying for what you use, which is great for infrequent drivers.
Their service is only available in eight states—California, Arizona, Pennsylvania, Virginia, Oregon, Illinois, Washington, and New Jersey.
It is also important to note that their system can only work on cars with a diagnostic port. That means car models older than 1996 would not qualify.
Auto-Owners Insurance is one of the oldest providers in the country. They have been in the industry for over a hundred years now. That is their main advantage as they have a long-standing history of providing good customer service.
They offer standard coverage along with several perks such as:
- Diminished Car Value
- Emergency Roadside Assistance
- Towing Coverage
- Rental Car Reimbursement
Auto-Owners Insurance also offers coverage for personal items stolen from the car. That can be a great policy to add.
They also offer discounts specifically made with college students in mind. Their Good Student Discount provides up to 20% savings if you can keep a B average or better. If you attend a school located 100 miles or more away from home, you can also apply for the Student Away at School offer.
Auto-Owners Insurance is available in 26 states. And while they offer additional policies, they lack options for tech-savvy customers.
Car insurance is sometimes considered an unnecessary cost. But it is a requirement for a reason. They offer you benefits that you will be glad to have if you need them but pray that you never use them.
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