A Guide to Car Insurance for College Students Out of State

As a college student, you will generally need to maintain car insurance when you move out of state for school since it is almost universally required by law. However, you can often stay on your parents’ auto insurance policy as long as their home is still your primary residence and there may be discounts available to you that can make the policy more affordable.

Continue reading to learn more about car insurance for college students out of state including what types of coverage you should consider and when you may need to shop around for a new policy.

On This Page

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  Is Car Insurance Required for College Students Who Live Out of State?

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  What To Consider When Buying Car Insurance for College Students

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  What Should Out-of-State College Students Do if They’re on Their Parents’ Policy?

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  Are There Car Insurance Discounts for College Students Out of State?

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  How To Get Car Insurance for College Students Out of State

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  FAQs

Is Car Insurance Required for College Students Who Live Out of State?

Car insurance is required by law for drivers in every state besides New Hampshire.^[1] The primary exception to this is if you don’t have your own vehicle, in which case you may be able to occasionally drive someone else’s car without your own car insurance coverage since their policy should cover you as long as you have their permission and don’t drive their car regularly.

What To Consider When Buying Car Insurance for College Students

Some universities do not allow freshmen to keep cars on campus, so if you are not already covered by a car insurance policy, you may not need to purchase one going into your first year depending on where you go to school. That said, if you are currently covered, you should not cancel your policy because a lapse in coverage can lead to higher rates when you try to reactivate your policy later on.

Coverage To Consider for College Students Out of State

See the below table for an overview of the major types of car insurance that are either required or recommended for young people who plan on traveling out of state to go to college.

What Should Out-of-State College Students Do if They’re on Their Parents’ Policy?

You can usually remain on your parents’ car insurance policy when you go out of state for college as long as you continue to list their address as your primary residence. However, not every state and insurance company allows this, so it’s important to contact a representative from your insurer to let them know about your move and determine whether you are allowed to stay on your parents’ policy.^[2]

Keep in mind that many car insurance companies offer discounts for policies that cover multiple vehicles. For this reason, it is often more cost-effective to stay on your parents’ policy than to buy a separate policy that will exclusively cover your vehicle.

When Should Parents Remove a College Student From Their Car Insurance Policy?

A college student generally cannot remain on their parents’ car insurance policy after they permanently move to a new address.^[3] For example, if a student gets a job in their college town and remains there throughout the summer while only visiting home a few times during the year, they will likely need to transition onto their own car insurance policy.

You should note that, if you do need to switch to a new policy, you will have to follow the car insurance requirements of the state you move to, which may involve higher coverage limits or more coverage types depending on where you previously lived and where you live now.

Are There Car Insurance Discounts for College Students Out of State?

There are multiple car insurance discounts that college students can take advantage of to make coverage more affordable when they move out of state. In particular, the following discounts are specifically designed for active students:^[4]

• Good student: Many insurers offer a good student discount to students who maintain a high grade point average (GPA), typically 3.0 or better. Some carriers may set specific restrictions for who is eligible. For example, Allstate only offers a good student discount to students who aren’t married and are age 25 or younger.
• Resident student: Meanwhile, your parents may be able to get a discount on their policy if you live on campus and don’t have your car with you since there is a smaller chance that they will need to file a claim related to your vehicle. A resident student discount may only be available if you go to school at least 100 miles away from where your parents live.

College students may also benefit from other general discount opportunities. For example, signing up for a telematics program may lead to lower rates if you consistently practice safe driving behaviors. Similarly, you could sign up for a pay-per-mile car insurance program to take advantage of the fact that you will naturally drive less if you are on campus without your car.

Do Universities or Colleges Offer Car Insurance Discounts?

While colleges generally don’t provide direct support when it comes to paying your car insurance bill, you may qualify for an organization discount on your auto insurance policy based on your enrollment at a university. For example, GEICO offers discounts to select college students and members of student organizations like sororities and fraternities. Even after graduating, you may qualify for an alumni association membership discount depending on where you get your degree.^[5]

How To Get Car Insurance for College Students Out of State

You’ll want to shop around and compare quotes from at least three to five car insurance companies before you move out of state for college. Be prepared to provide insurers with lots of information like your age, your driving record, the make and model of your car and more. Of course, contacting auto insurance companies one by one can be a serious time sink.

If you want to make the insurance shopping experience simpler, consider shopping through SmartFinancial. After we collect details about your coverage needs and budget, we’ll connect you with agents who can help you compare quotes from the best car insurance companies and find the policy you’re looking for. You can click here if you’d like no-cost auto insurance quotes today.