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Cheapest Car Insurance for Recent Graduates (May 2022)
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Graduating from college is an achievement worth celebrating. College graduation is the true beginning of adult life—and that includes handling your auto insurance needs. Whether your parents still cover you or you have your own policy, graduating college is an ideal transitional time to reevaluate your auto coverage needs.
Before you spend endless hours researching insurance coverage options, check out Insurify. You can easily compare car insurance rates from multiple companies in a matter of minutes and select the best option that meets your budget. Cheap car insurance is just a few clicks away.
If college taught you anything, it was the importance of looking for the best deals, so it makes sense that you’re on the hunt for the cheapest car insurance. The average college graduate pays $1,955 per year for auto insurance. Here are the best and cheapest car insurance quotes we could find for recent grads. Yes, it’s possible to be paying this little:
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Many things can affect the insurance rates a driver pays. For instance, gender and age are two factors that have a significant impact on cost. Even though college students pay less for monthly car insurance premiums than high schoolers of the same age, analysis of car insurance rates by age shows all young drivers pay more on average, regardless of schooling.
Except for states that prohibit the practice (California, Massachusetts, and North Carolina, to name a few), male college students will pay more on average than their female classmates of the same age for car insurance premiums. Insurance companies generally see male drivers as high-risk and more likely to file claims.
The average cost of car insurance for a recent graduate is $163 per month, or $1,955 per year. However, car insurance companies may provide discounts based on the type of car you drive, safety features, or your driving record.
The price of an average auto policy for college students is determined by a number of factors, but recent college grads pay an average of $284 per month. This cost differs if a recent grad is paying for their own policy or on their parent’s car insurance policy. In most cases, it’s cheaper to be added to a pre-existing policy.
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Aside from purchasing the correct type of insurance coverage, you’ll also want to explore the many discounts available before making a decision. The initial quote you receive from an insurance provider often doesn’t take into account specific lifestyle factors that could help you save.
Popular companies like Liberty Mutual, Progressive, and State Farm all provide significant savings on your policy rates while you’re in school. However, each company has qualifying factors you must meet to take advantage of those savings. Graduate students can save too.
Money can be tight after college graduation, especially if you have to start paying off your student loans. However, many car insurance providers will offer lower rates to those who drive newer vehicles. Not only are these cars equipped with more robust safety features, but they tend to be more reliable as well, often making your rates pretty reasonable.
Since you’re already thinking about auto insurance, now might be a good time to consider your other insurance needs, too. You’ll likely find an insurance provider that offers bundling discounts. Consider bundling auto and renters insurance needs to see if you’re eligible for extra savings.
Speaking of roommates, you might consider adding roommates you trust to your policy to enroll in a multi-driver discount. Keep in mind that their driving history will affect your rate, so it’s best to speak with an insurance agent to see whether this will save you money.
Your credit score is used as a factor in determining your auto insurance rates. Insurers also may offer a good credit discount. Staying on top of your student loan payments and credit cards can help you save on your auto insurance policy. Each insurance provider will offer a different array of savings options, so carefully consider which one best meets your needs.
Often, the companies that integrate telematics into policy features are also the best for college grads. A small device inside your vehicle tracks your driving habits, and your safe behavior on the road could bring you big savings.
|Discount Category||Potential Discount|
|Good Credit Discount||84%|
|Good Driver Discount||40%|
|Multiple Policy Discount||25%|
|Professional Organization Discount||15%|
Life as a new college grad is busy, but it doesn’t take much time to save on car insurance. The number one thing to do isn’t to cut back on your coverage, and saving on car insurance might not even mean having to move or buy a new car.
Regardless of age, shopping around for car insurance can often be one of the most effective ways to save money. Each auto insurance company offers different discounts and weighs certain factors differently, making it more important to compare insurance before selecting a provider. Free online quote-comparison tools like Insurify can make it easy.
In most cases, it’s much cheaper for parents to add their student driver—whether in high school or college—to their pre-existing auto insurance policy than having them get their own car insurance.
While it might be tempting to roll up to your college dorm in a flashy sports car, it’s cheaper to go for practicality. Students who drive older cars will be happy to pay less on repairs, and cars with enhanced safety features usually mean lower car insurance premiums.
Lower costs before getting yourself into a tricky situation. With a high-deductible plan, you pay a lower premium each month, but more when an accident does happen.
Regardless of age or whether you’re a student, keeping a clean driving record always has benefits. Staying free of collisions and claims means paying less on a monthly car insurance premium.
Drivers in college are typically still young and may have poor credit. Parents can help their children by showing them the importance of paying their student loans and credit card bills on time, as well as leading by example and teaching them financial literacy. Drivers with good credit benefit from the lowest car insurance rates.
Cash in on all the car insurance discounts you might be eligible for. Some might include:
Graduating from college is a huge accomplishment. You likely have your sights set on a number of major life changes, but don’t forget about your car insurance. Take some time to enjoy your freedom from studying and find the job of your dreams, but make sure you visit Insurify, too.
You can compare auto insurance quotes from a range of car insurance providers with a few simple clicks, and you’ll save money before you know it.
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Not usually. College graduates typically pay higher premiums because of their age group. In the U.S., drivers under 25 are considered a higher risk. Being a good driver without accidents or tickets can help you qualify for lower rates. Recent college graduates can find the cheapest quotes in their area by comparing car insurance rates on Insurify.
Sometimes. Some insurers require you to enroll full-time in school to qualify for a student discount. Other companies offer it as long as you’re under 25. If you aren’t eligible for the student discount, ask about good driver or good credit discounts to lower your insurance costs.
No. College grads can typically stay on their parents’ auto insurance policy if they live at home. If you move out of state, you’ll need to get your own policy. The easiest way to find your own auto insurance is to compare multiple companies at once with Insurify—and don’t forget to ask about discounts.
The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.