New Graduate Car Insurance Discount
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UPDATED: Feb 22, 2021
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- Younger people, including new graduates, are usually charged higher rates because of higher perceived risk.
- Your rates can lower based on the level of education you have.
- Consider bundling renters and car insurance to maximize savings.
If you’re a recent college graduate, then you’re probably worried about paying off your student loans and finding a job that pays you well. The last thing you want is an expensive car insurance premium weighing you down.
How much does car insurance cost? Unfortunately, for most people under 25, car insurance premiums are usually more expensive than average because of higher perceived risk. This can be a headache for a new graduate trying to save as much money as they can.
However, if you play your cards right, you could qualify for a new graduate car insurance discount that can help ease the cost of your monthly car insurance premium.
Keep reading to find out how you can save on car insurance for new graduates, but before you do, enter your ZIP code into our free comparison tool above to find an affordable car insurance quote for college graduates in your area.
Why do new graduates pay higher rates?
Unfortunately, recent college graduates usually pay higher rates because of the age group that they fall into.
Car insurance rates are all determined based on the risk that you present to your provider. Since younger people, especially teenagers, have less driving experience, they are seen as riskier to insure since they are more likely to get into car accidents and thus file claims.
But age is only one of many factors that are used to determine your car insurance rate. Fortunately, your level of education can actually help you pay less on your car insurance as more educated people are seen as less likely to engage in risky behaviors.
How can I save on car insurance as a new graduate?
While many companies offer discounts while you are enrolled in school, things change after you graduate.
For example, many college students may benefit from the good student discount that companies like Liberty Mutual, State Farm, and Progressive offer.
Usually you have to be currently enrolled to receive a good student discount, but some companies continue to offer these discounts up until age 25, so always check with your insurance provider to see if you qualify.
Another great way to save is to drive a car that is cheaper to insure. Which cars are cheapest to insure? Newer vehicles are generally cheaper to insure as they are less likely to break down and come with advanced safety features. Your choice of vehicle can significantly impact your rate.
If you’re still looking for cheap college graduates quotes, consider adding your (hopefully responsible) roommate to your policy for a multi-driver discount. You can also try bundling your renters’ insurance with your car insurance for more savings.
Paying off your student loans on time can also improve your credit rating, which in turn can lead to lower rates.
Finally, you can always continue to stay on your parents’ car insurance plan (if they let you). But keep in mind that if you’re living away from home, the area you live in will affect your rate. Depending on your ZIP code, you could significantly raise or lower their rate.
Whatever you do, don’t try and skip purchasing car insurance altogether. A minimum amount of car insurance coverage is legally required in each state, and if you get caught driving without insurance you could face hefty fines, have your license revoked, or even go to jail.
Now that you know how you can save with a new graduate car insurance discount, enter your ZIP code into our free comparison tool below to find affordable quotes for college graduates in your area.
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