As an international student coming to study in the United States, securing car insurance can be a confusing and expensive chore. Factors like your age, lack of U.S. driving history, and foreign license status mean you’ll pay higher premiums than American students.
But having proper auto insurance is mandatory in most states and essential for financial protection. This guide explains everything international students need to know about getting licensed to drive and finding the best car insurance rates from top providers.
Challenges International Students Face with Car Insurance
International students trying to get car insurance face considerable hurdles including
- Age – Most foreign students are under 25, considered high risk by insurers
- No U.S. driving record – Companies can’t access your history from abroad
- License status – Having a foreign license instead of a U.S. license
- No credit history – Prevents credit-based discounts in some states
- Inexperience – Less time driving in the U.S. raises perceived risk
These factors lead to international students paying the highest car insurance rates of any group. But you can still find affordable coverage by choosing the right insurer and maximizing discounts.
Best Car Insurance Companies for International Students
Choosing an insurance company experienced at covering foreign students is critical to getting a decent rate. Here are the top recommended insurers:
- State Farm – Usage-based Drive Safe & Save program, distant student discount, rates from $144 per month
- Geico – Mechanical breakdown coverage, rental reimbursement, rates from $159 monthly
- Allstate – Milewise program to save, new car replacement, rates from $186 monthly
- Progressive – Snapshot program measures driving, Name Your Price tool, rates from $167 monthly
- The General – Distant student discount, affordable non-owner policies, rates from $176 monthly
These leading insurers offer the combination of affordable premiums, applicable discounts, robust coverage options, and strong customer service that international students need.
Obtaining a Driver’s License as an International Student
Before you can get insured. international students first need to obtain driving privileges through either
- A U.S. driver’s license by providing ID and passing road tests
- An International Driving Permit along with your home country license
- Using your foreign license for up to one year
Check your state’s DMV website for license application steps. Driving without a valid license makes you ineligible for insurance.
Ways International Students Can Save on Car Insurance
Finding discounts and comparing quotes from multiple insurers is key to getting the cheapest rates. Consider these top ways to save:
- Compare quotes from at least 3 insurance companies
- Ask about good student, distant student, and driver training discounts
- Consider “non-owner” policies if you won’t have a car
- Raise your deductible for lower monthly premiums
- Enroll in usage-based programs like Progressive’s Snapshot
- Improve your credit history for better rates where allowed
- Take defensive driver courses for an insurance discount
Putting in the effort to research discounts and get rate estimates from several providers is necessary for international students to find affordable coverage.
Examples of Top Insurance Providers for International Students
To give you a sense of which insurers best serve international students, here is an overview of two top options:
State Farm
With 18,000 agents and 90 years of experience, State Farm excels at individualized service and reasonable rates. Benefits include:
- Student away at school discount up to 25%
- Usage-based Drive Safe & Save program
- Expert agents to help you find the right policy
- Accident forgiveness on your first at-fault accident
- New car replacement coverage
State Farm offers competitive pricing for students, with rates averaging just $205 per month for full coverage.
Geico
Known for amusing ads and low premiums, Geico provides international students with advantages like:
- Good student discount up to 15% off
- Multi-car discount for covering multiple vehicles
- Rental reimbursement and mechanical breakdown coverage
- Mobile app and online account management
- Rates from just $159 monthly for minimum coverage
Geico is an excellent choice for tech-focused students wanting a fast online quote process and competitive pricing.
Key Takeaways for International Students
Finding cheap, quality car insurance as an international student involves:
- Comparing quotes from national insurers experienced with foreign students
- Researching and asking about all available discounts
- Obtaining a valid U.S. license before applying for insurance
- Considering non-owner insurance if you won’t have a car
- Quoting with at least three companies to find the best rate
While it may take some extra effort, partnering with a leading insurer, maximizing discounts, and smart shopping will enable international students to secure affordable coverage. Don’t let the challenges of getting U.S. car insurance prevent you from enjoying the privileges of driving while you study abroad.
Mile Auto, Safeco, and Kemper offer some of the cheapest car insurance for international students.
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- 8 years of writing for big publications, such as MarketWatch and Business Insider
- Master’s in Education
Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.
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Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.
Updated August 22, 2024
How to save money on car insurance
You can usually save extra money with discounts, high deductibles, and good credit. Here are some ways to save money on car insurance as an international student:
- Consider a higher deductible. It’s the amount you have to pay out of pocket if you make a claim. Comprehensive and collision coverages have deductibles. Liability doesn’t. Tax breaks can be worth a few hundred dollars to a few thousand dollars. In general, a higher deductible equals a lower premium. So, if you want to save money on car insurance, you can choose a higher deductible if you can.
- Establish or maintain good credit. Most states let car insurance companies look at your credit history to figure out how much to charge you. People with good to excellent credit pay lower rates. You might not have a credit score in the U.S. if you are an international student. S. , but you should think about it if you want to borrow money or get credit
- Practice safe driving habits. You might not have a drive record in the U.S. yet. S. you’ll start making one as soon as you start driving here If you have a clean driving record, most car insurance companies will offer lower rates.
- Seek discounts. A lot of car insurance companies offer discounts that can help you pay less for your policy. If you get certain grades as a student, you might be able to get a good student discount. When you get quotes, it’s always a good idea to ask about possible discounts.
- Save by bundling. When you buy more than one type of insurance from the same company, you may get a discount. This is called “bundling.” Like, if you want to rent an apartment on or off campus, you might need renters insurance. If you get your car and renters insurance from the same company, you might save money.
10 Cheapest Car Insurance Companies in 2024
FAQ
Can an international student get car insurance?
Is car insurance more expensive for international students?
What is the best car insurance for students?
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Best Car Insurance for College Students
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Coverage Rating
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Overall Rating
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#1 State Farm
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9.4
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9.2
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#2 USAA
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9.7
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9.3
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#3 Geico
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9.1
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9.3
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#4 Progressive
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9.7
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9.4
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Does car insurance cover international drivers?
Most car insurance companies cover international drivers, including students studying abroad. But some companies might have more experience working with international students and could be a better fit. Several long-standing insurance companies, including Progressive, State Farm, and Dairyland, work with international drivers.
Which car insurance companies are best for college-aged drivers?
We’ve also reviewed the best car insurance companies in the country to make the shopping process easier. Key Takeaways: State Farm, Geico and Erie tend to offer more affordable rates for college-aged drivers than many other insurers. Like other young drivers, international students pay higher-than-average car insurance rates.
Which car insurance companies are best for international students?
Key Takeaways: State Farm, Geico and Erie tend to offer more affordable rates for college-aged drivers than many other insurers. Like other young drivers, international students pay higher-than-average car insurance rates. International students can take advantage of discount opportunities to bring down their car insurance costs.
Which car insurance is best for students?
Mile Auto provides the lowest rate for students, with average monthly rates of $145 for liability and $220 for full coverage. Liability coverage meets the legal requirements for car insurance and pays for damages to other vehicles and bodily injury to people.