Reducing auto insurance costs when parking your vehicle at college: tips and strategies.
Rewritten Article:
When Cameron Hurta took his truck to college, he knew it might create some headaches. Hurta studied at Texas A&M University, back when it was the largest university in the nation in terms of campus-attending students - parking was tough, and College Station's small-city infrastructure only compounded traffic issues. Hurta brought his car for the freedom to drive to nearby Houston and Austin, but he wasn't alone. Around half of the nearly 20 million students enrolled in college in 2018 did the same thing. But owning a car at college involves more than just a weekend getaway. Here's our guide to navigating the ins and outs of autos on campus.
Is Bringing a Car to College Worth It?
The answer varies by individual circumstances, with finances playing a significant role. Consider these factors:
- Gas: According to AAA, the national average gas price is $3.17 per gallon, but it can hit almost $5 per gallon in certain states.
- Maintenance costs: On average, drivers spend about $6,684 annually for hidden expenses, including auto insurance, gas, vehicle taxes, and car maintenance/repair, according to our research[4].
- Parking permits: Campus parking permits are available, but they can cost up to several hundred dollars per semester.
- Insurance: Insurance tends to be pricier for younger drivers, especially those who buy their policies when they're enrolled in school[1][2].
If you have an off-campus job, a car might prove handy. Or, if you live nearby and want weekends at home, keeping a car could be convenient. Weigh total costs versus benefits before making your decision.
Age 18
Additional Insight: When considering insurance, you might qualify for discounts, which can help lower premiums. Some reduced rates include good student (3.0 GPA or higher), safe driving course, telematics program, affiliation, distant student, and driver education[1][2][4].
$414
How Can College Students Save on Car Insurance?
$615
High insurance costs can strain a college student's budget. However, prices have increased in recent years. From 2023 to 2025, the average cost of full coverage jumped by 31 percent, or around $625 annually. Although rates might not grow as quickly in the future, they're still projected to increase until 2025[2][3].
Young drivers pay premiums higher than their 30s and 40s counterparts, mainly due to lack of experience and a higher claim risk. But you can lower costs. Beyond comparing quotes, consider these tactics:
Age 19
- Maintain a Clean Driving Record: Safe driving habits will keep your rates low. A single speeding ticket raises the average cost by $608 annually, while a collision increases your bill by around $1,200[2]. Avoid driving under the influence, and take advantage of campus shuttles, rideshares, or public transportation if available.
- Look for College Student Discounts: Many top insurance companies offer additional savings for students[1]. These include good student, safe driving course, telematics program, affiliation, and distant student discounts[2][4]. Each company has different criteria, so verify which discounts apply to you.
$364
If you can stay on your parents' policy, it may be more affordable. Just ensure your car's garaging ZIP code is updated to your new address on the policy. Check state DMV regulations for any special rules or requirements for off-state vehicles[2].
$498
Additional Insight: Our analysis revealed the Subaru Outback, Honda CR-V, and Toyota Tacoma are among the most cost-effective models to insure, especially older versions[1]. Finding inexpensive parts for these vehicles may help reduce repair costs, making insurance cheaper[1][4].
Consider On-Campus Cars and Other Tuition Expenses
Age 20
Insurance isn't the sole factor when deciding whether to bring a car to college. Compare campus essentials such as housing, meal plans, textbooks, and tuition against the cost of owning a vehicle. If these expenses already stretch your budget, it might not be economical to bring a car[2].
$340
If you took out a student loan, you may use it to cover insurance expenses. However, verify with your lender first[2].
$455
How Much Does Car Insurance Cost for Students?
College students can potentially reduce insurance costs by leveraging discounts and staying on their parents' policy. The table below compares average monthly full coverage premiums on parents' policies to students' own policies:
Age 21
| Age group | Avg. monthly full coverage premium on parents' policy | Avg. monthly full coverage premium on own policy || --- | --- | --- || Age 18 | $414 | $615 || Age 19 | $364 | $498 || Age 20 | $340 | $455 || Age 21 | $312 | $378 |
$312
Conclusion
$378
Whether you bring a car to college is largely a financial decision, but there's a social and emotional aspect, too[3]. Hurta's college experience wouldn't have been the same without his truck. He participated in local service events, and his vehicle became a social hub for the Texas A&M community[3].
Ultimately, whether you decide to bring a car to college or opt for public transportation, remember to prioritize your budget. Make informed decisions about essential college costs and leverage discounts to save on your insurance premium.
1.for individuals considering student loans, the decision to bring a car to college can significantly impact personal finance, with factors such as gas expenses, maintenance costs, parking permits, and insurance premiums playing crucial roles.
2.When it comes to insurance, college students might qualify for various discounts, including good student, safe driving course, telematics program, affiliation, and distant student discounts, which can help lower premiums.
3.Fashion-and-beauty, food-and-drink, home-and-garden, and lifestyle expenses should also be taken into account when deciding whether to bring a car to college, as these costs might already stretch a student's budget.
4.Owning a car at college can provide convenience for students who live nearby and want weekends at home or have off-campus jobs, but the total costs should be carefully weighed against the benefits.
5.Relationships, travel, and car models like the Subaru Outback, Honda CR-V, and Toyota Tacoma might also influence the decision to bring a car to college, as these factors can impact social and emotional aspects of the college experience.
