What type of insurance should I get as a college student?

As a college student, you primarily need to secure health insurance and coverage for your personal belongings (renters or homeowners insurance). If you drive, car insurance is also legally required.

The exact policies you need depend heavily on whether you live on or off campus, choose to stay on your parents' existing policies, or leave your car at home.

1. Health Insurance (Required by most schools)

Most universities mandate that you have health insurance to enroll. You have four primary ways to get it:

• Your Parents' Plan: If you are under age 26, you can legally stay on your parent’s insurance. Crucial Caveat: If you are moving out-of-state, check if the network covers doctors and hospitals near your campus. An HMO plan might leave you with zero local in-network coverage.
• Student Health Insurance Plans (SHIP): Offered directly through your college, these plans cost an average of $1,500 to $4,000 per year. They are specifically tailored for student demographics, give excellent access to on-campus clinics, and can often be rolled directly into your tuition bill.
• The ACA Marketplace: You can shop for coverage on HealthCare.gov during the open enrollment period (Nov 1 – Jan 15). Depending on your income and tax dependency status, you may qualify for heavy premium subsidies.
• Medicaid: If you are an independent student with little to no income, you may qualify for free or near-free state Medicaid coverage. However, Medicaid rarely crosses state lines, so you must live in the state providing the plan.

2. Property Protection (Renters vs. Homeowners)

Dorms and student apartments are high-risk environments for theft, fire, and accidental water damage.

• If living in a Dorm: Your parents' homeowners insurance might automatically extend to cover your belongings. Call their agent to verify if the policy covers "possessions outside the physical property" and note the deductible amount.
• If living Off-Campus: You almost always need an independent renters insurance policy, and many landlords mandate it. These plans are highly affordable (often $10–$20 a month) and protect your items while providing personal liability coverage in case someone gets hurt in your apartment.
• Specialty Electronics Insurance: If you own a high-end laptop, tablet, or smartphone, a standard renters policy might have a deductible that is higher than the cost of replacing the item. Specialized student property insurers like Gallagher Student Insurance offer dedicated tech coverage with deductibles as low as $25.

College students can choose from parents' insurance plans, school-sponsored student health insurance plans (SHIP), ACA Marketplace plans, or Medicaid.

Main Types of Health Insurance

• Parent's Plan: Students under the age of 26 can stay on or join a parent's employer or individual health plan. Check if local doctors and hospitals near campus are in-network.
• Student Health Insurance Plan (SHIP): Many colleges offer their own group health plans. Schools often auto-enroll students in SHIPs unless the student provides a waiver proving other valid coverage. These plans connect closely with campus health centers.
• ACA Marketplace Plans: Students can buy individual plans through HealthCare.gov. Most low- or zero-income students qualify for financial subsidies to lower monthly costs.
• Medicaid: State-run Medicaid programs offer free or low-cost coverage for qualifying low-income individuals. Eligibility rules and enrollment depend entirely on the state where the student lives during the school year.

Health insurance for a college student typically costs between $1,500 and $4,000 per year for a school-sponsored plan, though options range from $0 to over $5,000 depending on the choice of coverage.

Cost Breakdown by Option

• Parent's Insurance ($0 extra): Under the Affordable Care Act, young adults can stay on a parent's health plan until age 26. This is often the cheapest choice if the plan's network covers doctors near the college campus.
• School-Sponsored Plan ($1,500 – $4,000+ per year): Many universities require a Student Health Insurance Plan (SHIP) if you cannot prove other local coverage. According to Forbes Advisor, annual median costs hover around $2,700, with specific universities charging varying amounts (for example, Rutgers averages $2,741 while NYU is $4,346).
• ACA Marketplace Plan ($0 – $2,400+ per year): Individual plans via HealthCare.gov vary based on income. Independent students with low or no income may qualify for heavy subsidies or free coverage through Medicaid.
• Private / Alternative Plans ($800 – $2,400 per year): Waiving out of a university plan to use a private, ACA-compliant alternative can sometimes save money, but you must ensure it satisfies your school's waiver requirements.

The best car insurance for college students depends on whether you stay on a family policy or get your own, with top overall recommendations being GEICO for affordability, State Farm for high good-student discounts, and USAA for military families.

Top Providers for College Students

• GEICO: Best for budget-conscious drivers and young drivers on a parent's policy, offering robust good-student and organization discounts.
• State Farm: Best for high academic savings, offering a good student discount worth up to 25% off.
• Progressive: Best for students leaving a car at home, allowing you to pause collision coverage while keeping comprehensive protection.
• Auto-Owners: Best for students who need their own standalone policy rather than staying on family coverage.
• USAA: Best overall rates and customer service for students with a military background or immediate family in the armed forces.

Best Ways to Save Money

• Stay on Parents' Policy: Keeping a student driver on a family multi-car policy is almost always cheaper than buying a separate individual policy.
• Good Student Discount: Maintaining a "B" average or a 3.0 GPA usually unlocks a 10% to 25% discount across major insurers.
• Distant Student Discount: If your college is over 100 miles away from home and you leave the family car behind, you qualify for lower rates.
• Usage-Based Apps: Programs like Progressive Snapshot or GEICO DriveEasy track driving habits and lower rates for infrequent or safe drivers.

No, a $300 monthly health insurance premium is generally considered a good or below-average price for an individual plan.

How $300 Compares to Average Costs

• Marketplace (ACA) Plans: The average full, unsubsidized cost for an individual Marketplace plan is over $700 a month, and average benchmark silver plans cost around $625 a month before tax credits. Many people pay under $200 only after government subsidies.
• Employer-Sponsored Plans: While many employers heavily subsidize coverage—bringing employee costs down to $50 to $150 a month or even $0—the total raw cost of employer-sponsored coverage often exceeds $700 to $1,000+ a month per person.

What Else to Consider

A $300 monthly premium is only part of the equation. To decide if the plan is truly a good deal, look at:

• The Deductible: A $300 premium paired with a low deductible (under $2,000) is a great deal. However, if your deductible is extremely high (such as $7,900), you are paying a fair amount each month while still shouldering most routine costs yourself.
• Out-of-Pocket Maximum: Check the maximum amount you would pay in a year for covered medical emergencies.
• Your Income: If you have a lower income, $300 a month can feel very expensive and strain your budget, even if it is technically below the national average cost.