December 8, 2025
Car Insurance Discounts
Student Away at School Discount: How Can It Help You Save on Car Insurance?
While you can save on car insurance by staying on a parent’s policy, is that still possible if you have to live in a different city or state to attend high school or college? Yes, it is, and to help students stay insured at a cheaper rate, there’s a special car insurance discount called the Student Away at School Discount.
What is a Student Away at School Discount, and How Does it Work?
Student away at school discount is an exclusive discount offer to help students stay insured on their parents’ car insurance policy at a cheaper rate while attending school or college that’s at least 100 miles away from home.
By the time you finish your academics, your car insurance premiums can increase due to a policy lapse, and if it’s your first time getting auto insurance, you may need to pay a substantially high amount as a young driver.
However, with the student away at school discount, your parents can keep your car insurance policy active while saving from this discount, even while you’re away, and here’s how it works.
Pro Tip: A reliable auto insurance provider will guide you to secure the best car insurance coverage at affordable rates. Apart from the student away discount, there are other car insurance discounts that you should explore.
Who Owns the Car?
Your parents must be the owners of the car to qualify for the Student Away at School Discount. If the vehicle is registered solely in your name, you’ll need your own auto insurance policy, and the discount won’t apply. However, you can jointly own the car with your parents to remain eligible.
Who Pays for the Auto Insurance Policy?
Either of your parents must be the primary policyholder, meaning they’re responsible for paying the insurance premiums. You become eligible for the Student Away at School Discount when you’re listed as a driver under your parents’ auto insurance policy.
Where Should the Car Be Located?
Ideally, the car should be located in your parents’ garage or parking space. This is because one of the main requirements for the Student Away at School Discount is that you attend school at least 100 miles away. You should only have access to the car when you visit home on weekends, holidays, or during semester breaks.
Impact on Your Parents’ Car Insurance Premium
If you’re included in your parents’ car insurance policy with the student away at school discount applied, your parent (the primary policyholder) will receive a discount on your portion of the car insurance premium.
For example, let’s say the total premium is $1,000, with $700 attributed to your parents and $300 to you. If your discount is 20%, your parents would save $60 ($300 × 20%). This means they’d only pay $940 in total ($1,000 − $60).
How to Apply for a Student Away at School Discount?
Here’s a step-by-step guide that your parents will need to follow to apply for the Student Away at School Discount for you on their car insurance policy.
- Contact Your Insurer: Your parents will have to contact the insurer and inform them that you will be attending school at least 100 miles away and confirm your eligibility for this discount.
- Provide School Information: They will have to provide details of your school information, which includes the name of the school, its address, and your enrollment status. Some insurers may also request proof of enrollment or a class schedule.
- Confirm Vehicle Location: It's essential to confirm that the car will remain at home while you’re located in a distant area far away from home for academic purposes. Remember, it is part of the key requirement to confirm that you won’t have access to your family car unless you’re visiting home during holidays or school breaks.
- Ensure that You’re Listed as a Driver: Your parents will have to ensure that you’re listed as a driver in their car insurance policy, as this is part of the key requirements to apply for this discount.
- Submit Required Documents: Provide any additional documents the insurer requests, such as proof of enrollment or distance verification, so the discount can be applied.
- Review the Updated Premium: Check the updated premium after the discount is applied to confirm the savings and ensure the discount was correctly applied.
Benefits of Having the Student Away at School Discount
It can be difficult to finance your car insurance without a discount, as it’s generally very expensive for young drivers, particularly between the ages of 16 and 19. If you look into the cost of car insurance by age, on average, students in this age group may pay over $5,000 per year for coverage, though rates usually start to decline once they turn 20.
However, with a student away at school discount, your parents can save 10% to 30% on your coverage of their car insurance policy. This can make it easier to invest and ensure you’re insured, typically, new drivers, or someone with no car insurance history, may face higher rates as they’re considered a higher risk by insurers.
So, with the student away at school discount, your parents can help you stay insured until you’re ready to get your own car insurance policy. Plus, it helps you maintain coverage and provides financial protection at a lower cost if you get into an accident during an occasional drive while visiting your home. Overall, it’s a great way for families to keep students insured and avoid policy gaps that could lead to higher rates later on.
What Are the Eligibility Requirements for the Student Away at School Discount?
It’s important to keep in mind that the student away at school discount is an exclusive discount policy. It has specific eligibility requirements as follows.
- Age: The student must be between 16 and 25 years old to qualify for this discount. However, some insurers may cap the maximum eligible age at 23.
- Student Status: It’s a core requirement that the student needs to be a full-time student enrolled in a high school or college.
- Distance: The student’s school must be at least 100 miles away from home, particularly from where the car is kept.
- Policyholder: The parent or guardian must be the primary policyholder and list the student as a driver on their auto insurance policy.
Conditions That Could Cancel Your Student Away Discount
There are certain conditions that may cancel your student-away-at-school discount. So, to utilize the benefits of this discount, it’s essential to avoid situations that can get it cancelled, or revoked.
- Not covering the minimum distance: The insured car needs to be at least 100 miles away from the student’s school. If the distance is below 100 miles, then the discount may be cancelled.
- Student is no longer enrolled, or away from home: There are two main conditions to be eligible for this discount; it only applies to a full-time student, and the student needs to be located at least 100 miles away from home. So, if the student is no longer enrolled, or stays at home again, this discount will be cancelled.
- Exceeding Age Limits: If the student’s age exceeds 23 or 25, the car insurance discount will get cancelled, as it is limited to the age of 16 to 25, while some insurers have an age cap of up to 23.
The Bottom Line: Save on Car Insurance with Student Away at School Discount
The Student Away at School Discount is one of the best ways for young students to save on car insurance. It helps parents maintain coverage at a lower cost while also reducing future premiums for students.
While staying insured with this discount, if you can prove to be responsible by driving safely to avoid accidents and insurance claims, you may be able to secure a lower premium when you pursue getting your own auto insurance policy.
If you’re looking for a reliable and affordable auto insurance provider that offers the best rate for students, you can contact us to get a free quote and explore our wide range of car insurance coverage.
Frequently Asked Questions (FAQs)
What is the Student Away at School Discount?
The Student Away at School Discount is a car insurance discount that allows students to stay on their parents’ policy at a lower rate while attending school at least 100 miles away from home.
Who is eligible for this discount?
Eligible students are typically full-time high school or college students aged 16–25 (some insurers cap eligibility at 23). The student must live at least 100 miles from home and be listed as a driver on their parents’ auto insurance policy.
Does the student need to own the car to get this discount?
No, the discount applies when the car is owned by the parents or jointly owned with the student. If the student owns the car individually, they must purchase their own insurance, and the discount will not apply.
How much can I save with the Student Away at School Discount?
Savings typically range from 10% to 30% on the portion of the auto insurance premium covering the student driver. Actual savings vary by insurer and policy.
Can the Student Away at School discount get canceled?
Yes, the discount may be canceled if the student no longer meets eligibility requirements, such as no longer being enrolled full-time, returning home, exceeding the age limit, or if the school is less than 100 miles from home.
Does the discount cover accidents if the student drives another car?
No, the discount applies only to the car(s) listed on your parents’ policy. Accidents involving other vehicles are not covered under this discount.
Can the discount help reduce future premiums for the student?
Yes, by maintaining continuous coverage and demonstrating responsible driving while away at school, students may qualify for lower premiums when they get their own car insurance policy in the future.
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