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Auto Insurance for College Graduates

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The lowdown...
  • While you’re studying for your Associate’s or Bachelor’s Degree, you could qualify for auto discounts
  • Students qualify for a Good Student Discount (GSD) while they’re enrolled in school if they earn good grades
  • When you complete school, you’ll lose your GSD but you may receive favorable ratings for being a college grad
  • Degree holders receive lower rates than high school graduates because statistically, they are better drivers
  • When you finish school, you have to be sure to identify your new insurance needs so that you can make updates

About 30 percent of the population has graduated college with a Bachelor’s Degree and another 17 percent has earned their Associate’s Degree.

With the country becoming service-oriented rather than manufacturing focused, having a degree has become a common requirement for even an entry-level position.

It’s never been more important to advance your education when you want to start a fulfilling career.

Graduating college doesn’t just help you expand your knowledge base and improve your employment prospects. Spending that time in school studying for a degree can also help you save on your car insurance.

You must restructure your insurance portfolio and update your insurance after graduation. The first step is to compare car insurance quotes side-by-side. Enter your zip code above to get started for free.

Here’s a guide to help soon-to-be college grads:

How to Keep Your Insurance Premiums Low While You’re in School

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Many college students would classify themselves as “starving students” not because they’re hungry but because they’re living on a very small sum of money each semester.

Cutting costs at every term is important. If you’re lucky enough to have access to a car, you still have to find a way to cover the expense to pay for insurance.

There are ways to keep your premiums low while you’re enrolled in school. The best option is to stay on your parents’ plan for as long as you can.

Dependent college students can get both health and auto coverage through their parents until they reach their mid-20s. In fact, with auto coverage, you may be able to stay listed as a driver for longer if you’re a resident of the home.

Get Discounts While You’re In School

There are auto insurance discounts that are just for students who are attending high school or college. The most popular discount is for students who earn good grades.

Some companies also give their younger and inexperienced operators a discount if the driver takes a driver training course.

The Good Student Discount is offered by most larger and mid-sized carriers and it’s applied to the premiums charged for coverages including:

  • Bodily Injury
  • Property Damage
  • Medical Payments
  • Collision

Depending on all of your rating factors and your carrier, you could save 20 or even 30 percent on your premiums.

To qualify, you have to be 25 or younger and must be enrolled in a minimum amount of classes. High school students, vocational school students, and college students all qualify.

Some carriers will give discounts to part-time students and others will only give the discount to full-timers. It doesn’t matter what you’re majoring in because all majors qualify.

See If You Can Get a Student Affiliation Discount in School

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If you’re majoring in a specific field or you apply to join a student association, there’s a chance that you could qualify for group rates or affinity discounts when you buy your own coverage through a specific company.

The group rates are lower than standard personal car rates because you’re saving money for your affiliation with the student body or professional organization.

Make sure you get quotes through affiliated companies before you start to get personal quotes anywhere else.

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What happens to your insurance when you graduate school?

Once you graduate school, you’ll have to make some changes to your existing auto policy. As happy as you are that you finished school and you’re finally a degree holder, the updates to your policy could actually wind up costing you.

The cost increase is because you’re going to lose your student-related discounts like the sizable Good Grade Discount.

Graduating school is a life event. When you go through major life events, you need to sit down and enjoy the moment and then after that you need to assess your insurance portfolio to spot a need for updates.

You might lose some discounts, but other updates might benefit you in one way or another. Here’s a list of changes that you’ll need to make:

  • information on yourself to be listed as a graduate
  • location of your vehicle
  • employment information
  • marital status
  • home ownership

Update Your Information to Be Listed as a Graduate

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The carrier wants to know how many schools you’ve completed for a reason. You might not think it matters if you have a diploma, an Associate’s, a Bachelor’s, or a Graduate Degree, but the carrier does.

When you go from a high school graduate to a college degree holder, you will see your rates drop.

Update the Location of Your Vehicle

If you’re living in the dorm or near the campus of your school, you may have to change the zip code where your car is being stored. The carrier will call this theĀ garaging address.

Many college areas have high crime rates because they are highly populated. If you move to an area with less property crime, you’re bound to see your rates drop.

Update Your Employment Information

Your choice of occupation after you graduate could affect your insurance as well. After you land a job and you know your title you can contact the insurer and see if you’ll be able to get an occupational discount.

You may also qualify for group rates through a professional association.

Occupational discounts aren’t offered to everyone who’s employed. In fact, if you choose a high-risk career, you might end up paying more than the average person because of your occupation.

Typically, teachers and nurses get low-risk rates and doctors and entertainers pay high-risk rates.

Updating Your Marital Status

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If you met your college sweetheart and you’re ready to tie the knot, you’ll be experiencing another life event that will change your insurance. When you get married, you get to chose if you want to combine your coverage.

Combining insurance is an effective way to get multi-line and multi-car discounts after college.

Before you get around to making changes as a newlywed you can easily update your marital status to save money. Statistics show that people who are married tend to drive more responsibly, especially young males.

Tell your agent you’re married and that will be updated.

Update Your Home Ownership

The next step after graduating and starting a career is to buy a home. If part of your American Dream is to own a home, it could benefit you. Consider the zip code of the home to see if the rates are high in the area.

Also, update your living arrangements by telling your insurer you’re a homeowner and you could save.

If you leave college and you decide that you want to venture off to a new part of the country, you’ll have to update your insurance right away.

You can’t keep your old coverage for very long because you have to have insurance in the state where the car is registered. If you change your registration after your move, change your insurance.

Why do your rates drop for your education history?

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It’s nice to get discounts on your insurance because you hold a degree but many people don’t understand why the two are related. As you’ll quickly find out, your premiums are strongly influenced by statistics in a group.

Your personal factors matter, but it’s group trends that influence your overall rate.

According to claims trends all throughout the nation, people who hold their degree are more mature and more responsible behind the wheel.

If you decide to spend time committing yourself to post-secondary studies, you’ll get those lower rates because your peers who also have a degree drive responsibly.

The average college graduate’s income is about $17,500 higher than a high school graduate’s. Since you earn more money, it’s important that you have more financial protection.

Be sure to review your limits and get quotes. Compare rates online using our free quote tool and then secure a policy with a broad level of protection so that you have peace of mind.

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