Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

Full Bio →

Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Oct 5, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • While young adults often are charged a higher rate for auto coverage, a distant student discount could help you to lower your premium
  • Parents can bundle their student’s coverage under their own policy to save additional money on car insurance
  • Setting up coverage with a reputable provider should be a priority when shopping for new insurance rates

When you have one or more children going away to college, you understandably may feel the financial stress associated with paying college tuition, supporting your child from a distance, and more.

The stress that you may be feeling can be compounded by the often high insurance rates that young adults are charged. Some students may qualify for financial savings on their premium through a distant student discount.

Learning more about this discount and other potential ways to save money on car insurance can help you to afford the coverage you need.

The easiest way to save money on car insurance is to compare rates and find the company that offers you the lowest premiums. Enter your ZIP code into our free comparison tool above to get started.

Table of Contents

Why Younger Drivers May Have Higher Car Insurance Rates

Younger drivers often have limited financial means, and many are even still financially dependent on parents. It can seem harsh that this group of drivers would receive higher rates from insurance drivers, but there are reasons for this.

Auto insurance companies assess the risk associated with insuring each driver, and younger drivers are statistically more likely to be in car accidents.

In addition to age, insurance companies also review numerous other factors to calculate a rate quote. A few of the other factors that may affect insurance rates for drivers include:

As you can see, several of these factors may work against a younger driver to drive rates upward. For example, younger drivers may have a limited driving history or an inadequate credit history.

You may be able to adjust some of these factors going forward to potentially qualify for better rates now or at your next renewal.

In addition, taking advantage of as many car insurance discounts as possible may be necessary if you want to set up the most affordable premium possible.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Putting the Distant Student Discount to Work

When a student travels far from home to attend college, the student may qualify for a distant student discount. The qualifications for this auto insurance discount vary by provider, so you may discover that you qualify for it only with some providers.

For example, some providers require the student to attend classes at least 100 miles from home, and others only offer this discount for full-time students. Many providers also have a maximum age limit to qualify for this discount, but the age limit varies.

This discount may directly reduce your premium payments for car insurance. Some discounts reduce the premium by a fixed amount, and others are based on a percentage of the total premium amount for the student.

As you compare the options available, look for a provider who offers the most significant level of savings through discounts.

Other Car Insurance Discounts Your Student May Qualify For

A distant student discount is only one type of discount that young adults may qualify for. Regardless of whether or not the distant student discount is used, some other discounts to look for when you are comparing rates include:

  • A good student discount
  • An infrequent or low mileage discount
  • A discount for taking a defensive driving course
  • A no-claims discount

Additional Tips to Save Money on Young Adult Car Insurance

When you are focused on saving as much money as possible on young adult insurance, you should expand your efforts beyond auto insurance discounts. There are several other strategies that drivers can use to reduce their premium amount substantially:

  • Increase your deductible
  • Reduce coverage limits
  • Pay your premium up-front and in full
  • Set up automated payments
  • Request paperless billing
  • Insure the student on the parent’s policy
  • Insure multiple vehicles on one policy

How to Find Affordable Car Insurance

The standard rates offered by insurance companies are considerably different from one provider to another.

More than that, the requirements to qualify for various discounts can vary, and this makes it even more challenging to find the most affordable coverage possible for a young adult.

Because the difference in premium amounts can vary by hundreds of dollars or more in some cases, it makes sense to thoroughly search for the best deal available for your student or young adult car insurance coverage.

The Importance of Selecting Your Provider Carefully

One of the first things you should do if you are preparing to contact top providers for a quote is to learn more about the reputation and financial strength of the providers.

While there are numerous auto insurance companies that offer insurance for young adults, you can save time by selecting the top three or four providers to reach out to.

Requesting online quotes is also faster in most cases, and you can request quotes online at any time of day or night that works best for your busy schedule.

How Your Vehicle Affects Insurance Rates

The vehicle that a young adult is insured to drive can play a major role in insurance costs as well. If you are in a position to shop around for a new car, focusing on finding a safe vehicle that is affordable to insure may result in substantial savings.

Some of the top vehicle factors that can affect insurance rates include:

  • The type and power of the engine
  • Safety features in the car
  • If the car has a security system
  • The replacement value of the vehicle
  • The average repair cost

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Putting the Distant Student Discount to Work for You

The distant student discount is not available for all college students or through all insurance companies.

If you want to take advantage of this opportunity to save money on your premium, use the Internet to search for providers who offer this and other discounts that your student may qualify for.

You can also request a few car insurance quotes online from these companies to identify the most affordable coverage option available. Enter your ZIP code below to compare quotes right now for free!