Best Auto Insurance for College Graduates – The beginning of a career-oriented way of life represents a significant milestone for college grads. After finishing school, a new chapter of life begins for a graduate: looking for work, possibly relocating, and possibly incurring debt from student loans. Surely you couldn’t wait for that time to come, right?
Some of you may already have a car of your own. Getting car insurance may be the last thing on your mind after you graduate, but it’s essential for your financial stability. Insurance for your vehicle is not only the law, but also a smart financial move that can protect your investment and reduce costs in the event of a major accident.
Most states charge drivers under the age of 25 a higher rate for car insurance than drivers older than that age. Recent grads can save money on insurance by taking a few simple steps, the first of which is to shop around and compare quotes from different providers.
Recent grads come from all walks of life and all ages, but the vast majority are between the ages of 21 and 25. Let’s take a good hard look at the best auto insurance for college graduates and talk about the policy details that matter the most.
How Much is Car Insurance for College Graduates?
According to a study conducted by Bankrate in 2022, the average annual cost of full coverage auto insurance is $1,771, or about $148 per month. A recent graduate’s rates will likely be significantly higher than the national average for drivers aged 40 and up, so they should plan accordingly. College graduates have a higher accident rate than the general population because they are younger and have less driving experience.
According to the CDC, young adults aged 20 to 29 made up 25% of all distracted drivers involved in fatal collisions in 2018. The large population of college graduates between the ages of 20 and 23 may cause insurance companies to assess this age range as a higher risk, leading to higher premiums.
Ways for College Graduates to Save on Car Insurance
In addition to discounts, safe driving, an improved credit score, and shopping around, you as recent graduates, may find additional ways to save on the best auto insurance for college graduates through the following strategies:
Compare Vehicles
Insurance companies may charge more for coverage on some automobiles than on others because they pose a higher risk to their business. Before buying a car, it’s a good idea to research its safety features, ratings, and insurance costs with your provider, because there are some vehicle types that typically have lower insurance premiums than others.
Increased deductible
There are two deductibles associated with full coverage policies, one for comprehensive protection and one for collision protection. When you raise your deductible, you’re saying you’re prepared to pay more out of pocket if you ever file a claim for damages to your own vehicle, but you’ll also see an immediate reduction in your premium. If you end up filing a claim, it’s important to select a level of best auto insurance for college graduates coverage that won’t put you into debt.
Bundle insurance
After you graduate, you may want to consider combining auto insurance with homeowners insurance or renters insurance if you own or will soon be renting a home. If you shop around for a service provider, you could end up saving a lot of money by doing so.
Top 7 car insurance companies for college graduates
USAA
USAA, which serves only active-duty military personnel and their families, offers the best auto insurance for college graduates with the most affordable insurance rates in our comparison. According to JD Power, USAA has the best customer service and costs $45 less per month than the competition.
GEICO
One of the most well-known car insurance providers in the United States, GEICO, charges $137 more per year for a policy but does not require customers to become members.
Nationwide
Of the major insurance companies, Nationwide offers the best auto insurance for college graduates rates to young drivers (between the ages of 22 and 25). If you’re looking for an affordable policy option, Nationwide’s average monthly rate of $162 per month may be appealing.
21st Century
Another best auto insurance for college graduates, 21st Century, only provides auto insurance at this time and the cost for a young adult driver is around $185 per month.
Farmers
Farmers Insurance is not only a household name, but also one of the nation’s pioneering insurance providers. Farmers policies charge their young adult customers slightly more than the average in the industry.
AAA
The average cost of a AAA auto insurance policy for a young adult is over $200 per month. The annual premium for a AAA policy is $308 higher than the average premium for the comparison group.
Amica
J.D. Power has ranked Amica’s customer service as average, and the company charges young adult drivers about $210 monthly for insurance.
After finishing college, it’s crucial to regularly review your auto insurance options, and take a look for these 7 best auto insurance for college graduates. If you are a young driver, the insurance premium you pay will likely drop by hundreds of dollars per year.