Best Car Insurance for College Graduates in 2024 (Top 10 Companies)
State Farm, USAA, and Progressive are top companies for the best car insurance for college graduates. This review examines their rates, coverage options, and educational discounts of up to 30%, aiding graduates in informed decision-making for vehicle protection.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences in ...
Commercial Lines Coverage Specialist
UPDATED: Nov 1, 2024
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Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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17,760 reviewsCompany Facts
Full Coverage for College Graduates
A.M. Best Rating
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Pros & Cons
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6,435 reviewsCompany Facts
Full Coverage for College Graduates
A.M. Best Rating
Complaint Level
Pros & Cons
6,435 reviews
13,128 reviewsCompany Facts
Full Coverage for College Graduates
A.M. Best Rating
Complaint Level
Pros & Cons
13,128 reviews
In this article, we will look at some of the coverages required to be compliant with the law as well as some of the other supplemental coverage areas you may want to consider. (Read more: How do the police check for car insurance?)
Our Top 10 Company Picks: Best Car Insurance for College Graduates
| Company | Rank | Educational Discount | Safe Driver Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | 30% | Good-Student Discounts | State Farm |
 | #2 | 15% | 25% | Customer Service | USAA |
 | #3 | 8% | 30% | Loyalty Rewards | Progressive |
 | #4 | 10% | 30% | Online Convenience | Allstate |
 | #5 | 8% | 25% | 24/7 Support | Liberty Mutual |
 | #6 | 10% | 20% | Comprehensive Coverage | Farmers |
 | #7 | 12% | 25% | Vanishing Deductible | Nationwide |
 | #8 | 10% | 20% | Multi-Policy Discounts | Travelers |
 | #9 | 8% | 25% | Alumni Discount | American Family |
 | #10 | 10% | 30% | Budgeting Tools | Esurance |
Remember that just because they are offered does not mean you have to take them. but it gives you a starting place while shopping for insurance so that you can find the coverage that best suits your needs.
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- State Farm, USAA, and Progressive are top contenders
- Good student incentives and alumni discounts
- Liability, collision, and comprehensive cater to diverse needs
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#1 – State Farm: Top Overall Pick
Pros
- Competitive Rates: State Farm offers affordable rates, standing out with $111 for full coverage and $42 for minimum coverage.
- Educational Discount: Up to 10% educational discount, catering specifically to college graduates.
- Safe Driver Benefits: Enjoy up to 30% safe driver discount, emphasizing good student incentives.
Cons
- Limited Educational Discount: While offering a discount, State Farm’s 10% educational discount may be lower compared to some competitors.
- Varied Customer Experiences: as outlined in our State Farm car insurance review ratings may vary, requiring careful consideration of individual preferences.
#2 – USAA: Best for Customer Service
Pros
- Exceptional Affordability: USAA leads in affordability, offering unmatched rates at $85 for full coverage and $32 for minimum coverage.
- Military Benefits: Exclusive benefits for military members, aligning with the unique needs of this demographic.
- Strong Customer Service: USAA stands out for its exceptional customer service, a significant factor for customer satisfaction.
Cons
- Membership Limitations: USAA is exclusive to military members and their families, limiting accessibility.
- Potential Eligibility Criteria: While offering great rates, eligibility requirements may restrict access for some individuals. Learn more in our USAA car insurance review.
#3 – Progressive: Best for Loyalty Rewards
Pros
- Balanced Coverage and Affordability: Progressive provides a balanced combination of coverage and affordability with $146 for full coverage and $54 for minimum coverage.
- Loyalty Rewards: Up to 30% loyalty rewards, offering incentives for long-term customers.
- Wide Coverage Options: Progressive offers comprehensive coverage, ensuring a broad range of protection.
Cons
- Limited Educational Discount: With an 8% educational discount, Progressive’s offerings may be less competitive for college graduates.
- Potential for Higher Rates: Some customers may find rates slightly higher than other providers based on specific circumstances. Learn more about their rates in our Progressive car insurance review.
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#4 – Allstate: Best for Online Convenience
Pros
- Online Convenience: Allstate car insurance offers convenient online services for policy management and claims.
- Varied Discounts: Up to 30% safe driver discount and 10% educational discount contribute to cost savings.
- Comprehensive Coverage: Known for providing a wide range of coverage options.
Cons
- Higher Rates: Some customers may find Allstate’s rates relatively higher compared to other providers.
- Mixed Customer Reviews: Customer experiences vary, with some expressing dissatisfaction.
#5 – Liberty Mutual: Best for 24/7 Support
Pros
- 24/7 Support: As mentioned in our Liberty Mutual car insurance review they offer round-the-clock customer support for assistance.
- Up to 25% Discount: Liberty Mutual provides an 8% educational discount and up to 25% safe driver discount.
- Comprehensive Coverage: Offers various coverage options for a personalized insurance plan.
Cons
- Limited Educational Discount: The 8% educational discount may be lower compared to competitors.
- Mixed Customer Service Reviews: Customer reviews vary, with some citing concerns about service.
#6 – Farmers: Best for Comprehensive Coverage
Pros
- Comprehensive Coverage: As outlined in our Farmers car insurance review, the company offer diverse coverage options for tailored protection.
- Up to 20% Safe Driver Discount: Safe drivers can benefit from substantial discounts.
- A.M. Best Rating: Farmers holds an A rating, signifying financial stability.
Cons
- Varied Customer Experiences: Customer reviews indicate mixed satisfaction levels.
- Average Rates: While competitive, some customers may find slightly more affordable options elsewhere.
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#7 – Nationwide: Best for Vanishing Deductibles
Pros
- Vanishing Deductible: Nationwide offers vanishing deductible options for safe drivers.
- Up to 25% Safe Driver Discount: Substantial discounts for safe driving records. (Read more: Nationwide Car Insurance Discounts)
- Comprehensive Coverage: Provides a wide range of coverage options.
Cons
- Varied Customer Service Reviews: Customer experiences vary, requiring careful consideration.
- Average Rates: While competitive, some customers may find more affordable options.
#8 – Travelers: Best for Multi-Policy Discounts
Pros
- Multi-Policy Discounts: Offers additional savings for customers bundling multiple policies.
- Up to 20% Safe Driver Discount: Provides substantial discounts for safe driving records.
- Educational Discount: Offers up to 10% educational discount for college graduates.
Cons
- Mixed Customer Reviews: Customer experiences vary, indicating the importance of individual preferences. Learn more about their reviews in our Travelers car insurance review.
- Limited Educational Discount: Some competitors may offer higher educational discounts.
#9 – American Family: Best for Alumni Discount
Pros
- Alumni Discount: American Family offers an alumni discount for college graduates.
- Up to 25% Safe Driver Discount: Substantial discounts for safe driving records.
- Comprehensive Coverage: Provides various coverage options for personalized plans.
Cons
- Varied Customer Experiences: Customer reviews vary, requiring individual considerations. Learn more in our American Family car insurance.
- Online Tools: While available, American Family’s online tools may not be as advanced as some competitors.
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#10 – Esurance: Best for Budgeting Tools
Pros
- Budgeting Tools: Esurance provides tools to help customers budget effectively.
- Up to 30% Safe Driver Discount: Substantial discounts for safe driving records.
- Comprehensive Coverage: Offers diverse coverage options for personalized plans. Learn more about this in our article called “Understanding Your Car Insurance Policy (Complete Guide)“.
Cons
- Mixed Customer Reviews: Customer satisfaction varies, necessitating careful consideration.
- Online-Focused: Esurance’s emphasis on online services may not suit all customer preferences.
Comparing Rates With the Best Car Insurance Companies for Drivers With a College Degree
When it comes to securing car insurance for drivers with a college degree, finding the right balance between cost and coverage is essential. Here’s a detailed comparison of average monthly rates for full and minimum coverage among the best car insurance companies tailored for graduates:
Car Insurance for College Graduates: Monthly Rates by Coverage Level & Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $72 | $190 |
| American Family | $55 | $147 |
| Esurance | $46 | $114 |
| Farmers | $68 | $180 |
| Liberty Mutual | $83 | $215 |
| Nationwide | $57 | $150 |
| Progressive | $54 | $146 |
| State Farm | $42 | $111 |
| Travelers | $44 | $116 |
| USAA | $32 | $85 |
Among the best car insurance options for college graduates, State Farm stands out with competitive rates of $111 for full coverage and $42 for minimum coverage. USAA takes the lead in affordability, offering unmatched rates at $85 for full coverage and $32 for minimum coverage, with exclusive benefits for military members.
USAA stands out as the top choice for college graduates with its exceptional coverage tailored for military members and unmatched affordability, offering rates as low as $85 for full coverage and $32 for minimum coverage.
Melanie Musson Published Insurance Expert
Progressive positions itself as a compelling choice for college graduates, providing a balanced combination of coverage and affordability at $146 for full coverage and $54 for minimum coverage. Consider these top-tier choices, weighing factors like customer service, discounts, and additional benefits to make an informed decision that suits your needs as a college-educated driver.
Read more: Compare Drivers Without a College Degree Car Insurance Rates
Minimum Car Insurance Requirements for College Students
The first thing you need to do is to make sure that you have the mandatory coverage amounts required in your home state.
To find out what your mandatory amounts are, go to this state map that covers the various insurance laws and regulatory mandates for insurance in the respective states.
The general mandatory insurance requirement usually runs from $25,000-$50,000 per person for bodily injury liability coverage, around $25,000 per accident for personal injury liability, and $10,000-$15,000 for property damage liability.
These are just estimates and averages, of course, and this varies from state to state.
Read more: Compare Medical Student Car Insurance Rates
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Optional Insurance Coverage for College Graduates
There are some other optional coverage areas that you can add to your car insurance policy if you choose to. Some of the most common extra coverage areas are listed below with their descriptions.
Uninsured/Underinsured Motorist Coverage
Uninsured and underinsured insurance is meant to cover expenses that the other driver cannot cover due to being underinsured or not insured at all.
This insurance would only need to kick in when the other driver was ruled at fault and when they did not have sufficient insurance to pay for damages.
This extra coverage is required in some states but not in others. Either way, it is a great coverage to have because it will cover your loss when the other guy’s insurance does not.
Read more: Compare Uninsured/Underinsured Motorist (UM/UIM) Coverage: Rates, Discounts, & Requirements
Medical Payments or Personal Injury Protection
Medical payments are optional insurance coverage that pays for medical costs or injuries to you or your passengers.
It is sometimes required but not always. It is considered duplicate medical coverage by some because it only goes to medical bills, but it can certainly come in handy if you discover you have more significant injuries than you thought or have to have ongoing treatments. Get the best personal injury protection (PIP) car insurance to embrace peace of mind.
Collision Coverage
Collision insurance is meant to cover damage to your vehicle that is due to your own negligence or fault.
Remember the other driver’s insurance will be used when they were ruled at fault, but you can use collision insurance when the accident is your fault.
Deductibles are included within collision coverage so you should make your deductible no more than you can afford to pay out-of-pocket costs in the event of a collision. When you compare collision car insurance, consider how different deductible amounts can impact your overall coverage and financial responsibility.
Comprehensive Coverage
Comprehensive insurance covers many things that are not covered by car insurance. Remember that theft, vandalism, acts of nature, and hail are all examples of factors that are not covered by your normal insurance coverage. Get more insights for Comprehensive insurance in our article titled “Compare Comprehensive Car Insurance: Rates, Discounts, & Requirements“.
Glass Coverage
Another smaller coverage that many people do not think about getting is glass coverage. Windshield replacement can cost anywhere around $200 or more. If you live in a storm or flood area or are on the road every day, you may want to consider this optional coverage. Read more in our article called “Does car insurance cover broken car windows?“.
Gap Insurance
If you are leasing a car, you may want to invest in temporary gap insurance.
This is insurance that is meant only to last around 28 days for a car that is leased to you while you are waiting to get your car. It only covers the difference between the street value of your car and the amount of the lease. It is not meant to be permanent insurance.
Read more: How does GAP insurance work after totaling a car?
Discover Available Discounts for College Graduates
Now that you know some of the kinds of coverage you’ll need to look for, you’ll also want to think about the kinds of discounts you may qualify for.
New college graduates, depending on your situation, may qualify for a variety of discounts.
Insurance providers offer discounts depending on the type of vehicle you drive, your age, and your driving record.
- Good Driver Discount: If you have a great driving record, you may qualify for a discount on your car insurance premium.
- Good Student Discount: If you plan to continue your education to the next level and enroll in graduate school, or if you are still a student on any level or in any training school, you will likely qualify for this discount if your insurance company offers it.
- Military Discount: If you plan to go into the military right after school, why not ask about a military discount. Almost all insurance companies offer some military discount for anyone who is either active or inactive duty.
- Civic Society Discount: Some insurance companies offer discounts for being involved in a civic organization.
- Government Employee Discount: If you work in any job that is considered a local, state, or federal government position, you may qualify for a discount in this area. Teachers, police officers, and firemen are some examples. Ask your insurance company when you apply.
- Telematics Program Discount: Many insurance providers offer discounts for drivers who sign up for their telematics program. However, you must allow your insurer to put a small device in your car to monitor your driving habits.
- Bundling Discount: Insurance providers may provide lower rates if purchase other types of coverage from them.
Read more: Compare Professional Teacher Car Insurance Rates
Identifying the Top Insurance Provider for College Graduates
In the end, you need to focus on finding the best insurance company for you and your needs. Always balance the amount you are going to pay out in premiums each month with the amount of risk you take on an average basis.
If you drive daily, for example, and drive a long way to work, your risk will be substantially greater than if you work at home.
If you carpool with other people, your risk may be higher since you are carrying other passengers with you, but lower because you will sometimes not be driving.
Think about your normal routine and how much in harm’s way you and your car will be and base your choice of insurance on the level of risk.
Think about your driving habits. Are you easily distracted? Do you have to drive through busy traffic on an almost daily basis? If you have to drive through busy traffic in the city during rush hour, your risk goes up more.
Distance traveled is a key factor in an insurance company’s decision on what to charge you, as is your driving record, age, and job status.
Everything counts when it comes to figuring your premium. From how frequently you drive to where you park your vehicle, insurance companies take into account a variety of factors to determine monthly premiums.
College graduates typically pay higher premiums because of their age group, because to insurance carriers age indicates your driving experience. Experienced drivers are less likely to get into a car accident or file a compensation claim. Other factors that affect insurance for college graduates include driving record, place of residence, and credit score.
So the best thing you can do is to be a good driver, be a good citizen, and drive defensively.
Read more: Compare Car Insurance Rates for College Students
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Case Studies: Navigating Car Insurance for Drivers With College Degree
In this section, we delve into three compelling case studies that highlight how drivers with college degrees navigated the complexities of car insurance to find solutions tailored to their unique circumstances.
- Case Study #1 – Alex’s Savings Journey With State Farm: Alex, a recent college graduate with student loans, embarked on a quest for budget-friendly car insurance. State Farm’s competitive rates and educational discounts, offering up to 10% savings, played a pivotal role in shaping Alex’s journey toward affordable excellence. Learn more in our State Farm car insurance review.
- Case Study #2 – Military Service and Premium Affordability With USAA: Meet Sarah, a college graduate commencing her military career. Dive into the narrative that explores how USAA, with its exclusive benefits for military members, provided exceptional coverage tailored to Sarah’s unique needs.
- Case Study #3 – Progressive Solutions for Lisa’s Comprehensive Coverage: Lisa, a diligent college graduate entering the professional world, sought a perfect balance between comprehensive coverage and affordability. Join us in exploring how Progressive’s loyalty rewards, offering up to 30% savings, and diverse coverage options became the key factors influencing Lisa’s decision-making process.
From State Farm’s budget-friendly rates to USAA’s military-specific benefits and Progressive’s comprehensive solutions, these narratives underscore the importance of finding a provider that not only meets one’s coverage needs but also offers tailored benefits and savings opportunities.
Shop and Compare to Find the Best Rates
When you are shopping for your car insurance, look for the insurance company that is going to give you the attention to detail that you need and explain the fine print.
It’s not enough to just get a good car insurance policy. Find someone who will answer your questions and who will take the time to get to know your situation.
Then choose based on your individual budget and needs. Remember the only thing worse than too little insurance is no insurance. Don’t risk the huge fines and other legal and financial risks associated with driving without insurance.
Enter your ZIP code below to compare car insurance rates from top companies in your area.
Frequently Asked Questions
How can having a college degree impact car insurance rates?
Some insurance providers offer educational discounts for drivers with a college degree, potentially leading to lower premiums. Companies like State Farm, USAA, and Progressive provide specific discounts for college graduates.
What discounts are available for college graduates when it comes to car insurance?
Drivers with a college degree may be eligible for various discounts, such as good student discounts, alumni discounts, and educational discounts. For example, State Farm offers up to 10% educational discount. Learn more about State Farm’s discounts in our State Farm car insurance review.
Are there specific coverage options that cater to the needs of drivers with a college degree?
Yes, insurance providers often offer coverage options that align with the preferences and lifestyles of college-educated drivers. For instance, companies like Progressive emphasize loyalty rewards, while USAA tailors coverage to meet the unique needs of military members, often including college graduates.
Ready to find affordable car insurance? Get started today by entering your ZIP code below into our free comparison tool.
How does credit score, mileage, and driving record impact car insurance rates as a college graduate?
As a college graduate, factors like credit score, mileage, and driving record continue to play a crucial role in determining insurance rates. Maintaining a good credit score, low mileage, and a clean driving record can contribute to more favorable rates.
What should you consider when comparing car insurance rates for drivers with a college degree?
When comparing rates, focus on factors like the educational discount offered, safe driver incentives, and any additional perks. State Farm, USAA, and Progressive, being among the top choices, provide competitive rates and benefits for drivers with a college degree.
How does marital status affect car insurance rates for college graduates?
Marital status can impact car insurance rates for college graduates, as married individuals often receive lower premiums compared to single individuals. Insurance companies may offer discounts for married couples, so it’s essential for college graduates to consider this factor when comparing rates. Get more insights in our article titled “Why are car insurance rates higher for singles vs. married couples?“.
What role does location play in determining car insurance rates for college graduates?
Location plays a significant role in determining car insurance rates for college graduates. Urban areas generally have higher rates due to increased traffic congestion and higher rates of accidents. Additionally, areas prone to severe weather or high crime rates may also experience higher premiums.
Are there specific discounts available for recent college graduates when purchasing car insurance?
Recent college graduates may be eligible for various discounts when purchasing car insurance. Some insurance companies offer good student discounts, alumni discounts, or educational discounts tailored specifically for college graduates. These discounts can help recent graduates save on their premiums.
How does the type of vehicle impact car insurance rates for college graduates?
The type of vehicle a college graduate drives can significantly impact car insurance rates. Generally, newer and more expensive cars will have higher insurance premiums due to the cost of repairs or replacement. Additionally, factors like the vehicle’s safety features and theft rates can also influence insurance rates.
Avoid overpaying for your car insurance by entering your ZIP code below in our free comparison tool to find which company has the lowest rates.
Do driving habits affect car insurance rates for college graduates?
Yes, driving habits can affect car insurance rates for college graduates. Factors like mileage, frequency of driving, and driving record all play a role in determining premiums. Safe driving habits, such as avoiding accidents and traffic violations, can help college graduates secure lower insurance rates.
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Enter your ZIP code below to view companies that have cheap car insurance rates.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences in ...
Commercial Lines Coverage Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
