How To Get Car Insurance Discounts if You’re a Recent College Grad

Car insurance for graduates can be expensive because drivers in their 20s typically pay more for auto coverage than older drivers. Nevertheless, recent college grads may be able to lower their rates by taking advantage of various car insurance discount opportunities, such as bundling multiple policies together or signing up for a telematics program.

Keep reading to learn more about car insurance for college graduates, including how much you may have to pay for your own auto insurance policy and what factors can impact the cost of coverage.

On This Page

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  How Much Is Car Insurance for Graduates From College?

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  Can Being a College Student Impact Your Car Insurance Rates?

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  Do Car Insurance Companies Offer Discounts to Recent College Grads?

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  Which Car Insurance Companies Are the Best for College Graduates?

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  What Other Discounts Are Available for Students?

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  FAQs

How Much Is Car Insurance for Graduates From College?

As of August 2025, the average cost of car insurance for drivers between the ages of 22 and 25 — which is around the age when many students finish college — ranges from $268 to $361 per month, depending on gender.^[1] In general, young and inexperienced drivers are riskier to insure and tend to face higher car insurance premiums, so rates may decrease steadily over time before going up again around the age of 75.^[2]

Keep in mind that various external factors can affect your auto insurance premiums after you graduate from college, such as new driving habits related to work. For example, people who spend more time driving are more likely to file car insurance claims, meaning you’ll likely have to pay more for coverage if you get a job that requires a lengthy commute rather than a work-from-home job.^[3]

Can Being a College Student Impact Your Car Insurance Rates?

Being a college student can impact your car insurance rates in both positive and negative ways, depending on the circumstances. Several insurance carriers offer discounts that exclusively apply while you are in school, which means you may become ineligible for certain discounts and your premiums may go up at the first policy renewal after you graduate.

Meanwhile, insurance companies in many states are allowed to use a credit-based insurance score to calculate how much you should have to pay for a college student car insurance policy. As a result, a drop in your credit score triggered by a missed student loan payment could cause your car insurance prices to increase.

Another relevant factor is whether you decide to stay in state for college or move out of state. Each state has its own requirements regarding the types of car insurance you must buy and the minimum coverage limits you must select. For this reason, you may have to buy more coverage, or you may be allowed to purchase a cheaper policy with less coverage, depending on where you move.

Moving for school could also cause your premiums to change based on whether your college town has a higher rate of crashes, thefts or uninsured drivers than where you lived before.

Do Car Insurance Companies Offer Discounts to Recent College Grads?

While auto insurance companies generally don’t offer specific car insurance discounts for college graduates, some insurers take your level of education into account when setting your car insurance premiums. This means you could be offered lower rates as soon as you finish your degree, depending on your state and insurance company.^[4]

In addition, there are several other discounts offered by many insurance providers that new grads may be eligible for, even if the discounts aren’t exclusively available to recent graduates. Examples of common auto insurance discounts include the following:

• Bundling: By purchasing car insurance from the same company you get your homeowners or renters insurance from, you may qualify for a bundling discount.
• Telematics: Graduates who drive infrequently or practice safe driving habits may save money by signing up for a pay-per-mile car insurance or telematics program. You should note that enrolling in a telematics program can be a double-edged sword, as it could cause your rates to go up if you have a tendency to engage in risky driving behaviors, like speeding or braking sharply.
• Multicar: If you still live with your parents after college, you may be able to stay on their auto insurance policy, and the policy may be eligible for a multivehicle discount, meaning your share of the car insurance bill will be lower.
• Affinity: Some car insurance companies offer an affinity discount to all members of a certain organization. You may be eligible based on the company you work for or your university’s alumni association.^[5]
• Antitheft: Installing an antitheft device in your vehicle — such as a kill switch or car alarm — lowers your exposure to car theft and may be rewarded with a discount on your car insurance policy.
• Safe driving: Several insurers offer discounts to people who maintain a clean driving record or participate in programs designed to help them become better drivers. For example, State Farm’s Steer Clear program provides discounts to drivers under the age of 25 who go at least three years with no at-fault accidents or moving violations and complete a driving-focused training course.^[6]

Which Car Insurance Companies Are the Best for College Graduates?

Nationwide, Auto-Owners, GEICO and USAA typically offer auto insurance at below-average prices to 22-year-olds with bachelor’s degrees, making them among the cheapest car insurance companies for drivers who have just finished college.^[1] Keep in mind that you generally cannot purchase coverage from USAA unless you are an active or retired military service member or are closely related to one.

You may also be able to get cheap car insurance from an insurer that offers lower rates to people with a higher level of educational attainment, such as Liberty Mutual.^[4]

What Other Discounts Are Available for Students?

Many insurance companies offer discounts designed to help make coverage more affordable for active college students. For example, Liberty Mutual offers a good student discount for individuals with a B average or better in school and a student-away-at-school discount for parents whose children don’t regularly drive their cars on campus.^[7]

Specialized discounts may also be available for younger students. For example, teenagers in several states who are covered by an Allstate auto insurance policy can earn a discount by participating in the teenSMART driver safety education program — although they will have to pay around $70 up front to take the course.^[8]