Cheapest Car Insurance for Recent Graduates (2023)

Amy Beardsley
Written byAmy Beardsley
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Amy BeardsleyInsurance Writer
  • 3+ years writing about auto, home, and life insurance

  • 7+ years in personal finance and technology

Amy specializes in insurance and technology writing and has a talent for transforming complex topics into easy-to-understand stories.

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Jackie Cohen
Edited byJackie Cohen
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Jackie CohenEditorial Manager

Jackie Cohen is an editorial manager at Insurify specializing in property & casualty insurance educational content. She has years of experience analyzing insurance trends and helping consumers better understand their insurance coverage to make informed decisions about their finances.

Jackie's work has been cited in USA Today, The Balance, and The Washington Times.

Updated June 15, 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.

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 insurers in the same place to find a cheaper rate.

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:

Insurance CompanyCheapest Monthly Quote
Amigo USA$131
National General$180
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.
Best Car Insurance Companies

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.

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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.

Cheap Car Insurance

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 companies 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 insurer 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 insurer 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 CategoryPotential Discount
Good Credit Discount84%
Good Driver Discount40%
Family Discount25%
Multiple Policy Discount25%
Organization Discount15%
Professional Organization Discount15%

How to get 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.

Best and Worst Sites to Compare Car Insurance

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

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.

Car insurance for recent graduates FAQs

  • 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 you qualify for a student discount on auto insurance after you 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 you stay on your parents’ policy if you 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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Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Amy Beardsley
Amy BeardsleyInsurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

Jackie Cohen
Edited byJackie CohenEditorial Manager
Photo of an Insurify author
Jackie CohenEditorial Manager

Jackie Cohen is an editorial manager at Insurify specializing in property & casualty insurance educational content. She has years of experience analyzing insurance trends and helping consumers better understand their insurance coverage to make informed decisions about their finances.

Jackie's work has been cited in USA Today, The Balance, and The Washington Times.

Compare Car Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
Shopper Approved
ProgressiveLiberty MutualTravelers