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Cheapest Car Insurance for Recent Graduates (2023)
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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.
Quick Facts
The average college graduate pays $163 per month, or $1,955 annually, for car insurance.
Discounts such as bundling discounts and telematics programs can help college graduates save on car insurance costs.
Insurance comparison sites, like Insurify, are a quick and easy way to compare quotes from multiple providers in the same place to find a cheaper rate.
Table of contents
- Cheapest Car Insurance Quotes for College Grads
- Average Car Insurance Rates by Age and Gender
- How much does car insurance cost for recent college graduates?
- Car Insurance Discounts for Recent College Graduates
- Tips for Cheaper Car Insurance
- The Best Way to Compare and Get Cheaper Car Insurance
- Frequently Asked Questions
Cheapest Car Insurance Quotes for College Grads
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:
| Insurance Company | Cheapest Monthly Quote |
|---|---|
| Kemper | $104 |
| Amigo USA | $131 |
| Safeco | $178 |
| National General | $180 |
| Travelers | $182 |
| Elephant | $184 |
| Clearcover | $185 |
| Nationwide | $201 |
| Commonwealth Casualty | $227 |
| The General | $307 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
See More: Best Car Insurance Companies
Average Car Insurance Rates by Age and Gender
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.
How much does car insurance cost for recent college graduates?
How much is car insurance for recent college graduates?
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.
See More: Cheap Car Insurance
Car Insurance Discounts for Recent College Graduates
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.
Student Discounts for College Grads
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.
Newer Car Discount
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.
Bundling Discounts
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.
Multi-Driver Discounts
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.
Credit Score Savings
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.
Telematics Programs
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% |
| Family Discount | 25% |
| Multiple Policy Discount | 25% |
| Organization Discount | 15% |
| Professional Organization Discount | 15% |
Tips for Cheaper Car Insurance
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.
Shop Around for Car Insurance
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.
See More: Best and Worst Sites to Compare Car Insurance
Remain on Your Parents’ Policy
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.
Drive an Older, Safer Car
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.
Select a High-Deductible Plan
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.
Keep a Clean Driving Record
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.
Maintain a Good Credit Score
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.
Take Advantage of Discounts
Cash in on all the car insurance discounts you might be eligible for. Some might include:
The Best Way to Compare and Get Cheaper Car Insurance
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.
See More: Car Insurance Quotes
Frequently Asked Questions
Do college graduates get cheaper car insurance?
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.
Can I qualify for a student discount on auto insurance after I graduate?
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.
Can I stay on my parents’ policy if I move out of state?
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.
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Methodology
Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
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