Auto Insurance Costs and Considerations for College Students in 2025

Bringing a car to college involves financial considerations including insurance costs, parking challenges, and convenience for commuting or weekend trips.

 Approximately half of U.S. college students bring vehicles to campus, which presents unique insurance and cost issues. Recent trends show a 31% increase in average full coverage auto insurance premiums from 2023 to 2025, with young drivers facing higher rates due to limited experience and higher risk profiles. \

Costs can be mitigated through safe driving practices, as violations like speeding tickets, at-fault accidents, and DUIs significantly increase premiums. Discounts for college students include good student discounts, multi-policy bundling, and the student-away-from-home discount, though the latter applies only if the student does not bring the family car to campus and attends school a certain distance from home. Many students remain on their parents’ insurance, which often yields lower premiums. Updating the car insurance policy to reflect the correct garaging address is crucial for compliance, especially with out-of-state vehicles.

Choosing older, commonly insured vehicle models like Subaru Outback, Honda CR-V, or Toyota Tacoma can also lower insurance costs due to lower repair expenses. Beyond insurance, overall financial burden from tuition, housing, and other college expenses should be evaluated before bringing a car. Student loans may cover transportation costs including insurance premiums, subject to lender policies.

Bringing a car also may enhance social and community engagement opportunities, as illustrated by specific college experiences. Bankrate’s data analysis relies on comprehensive ZIP code efforts from Quadrant Information Services and includes comparisons of full coverage rates for college drivers staying on parents’ policies versus independent policies.