Cheap Auto Insurance for Graduate Students in 2024 (Find the Top 10 Providers Here)

State Farm, Progressive, and Allstate are our top picks for cheap auto insurance for graduate students. These companies offer cheap student auto insurance through excellent discounts and robust UBI programs.

The best car insurance for graduate students costs $70 from State Farm, which is much lower than the national average. Young students can take advantage of State Farm’s good student discounts, while older drivers should consider enrolling in Drive Safe and Save.

Our Top 10 Company Picks: Cheap Auto Insurance for Graduate Students

Read on to learn more about cheap auto insurance for graduate students. You should also enter your ZIP code above to compare rates with multiple companies and find the cheapest policy possible.

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#1 – State Farm: Best Student Savings

Pros

• Flexible payment options: State Farm makes it easy to manage your insurance payments by letting you choose how often you pay, when you pay, and how you pay.
• Student discounts: You can find cheap car insurance quotes for students by taking advantage of State Farm savings like the good student discount. Older students who don’t qualify can find other State Farm discounts to help them save.
• Online tools: State Farm offers several online tools to help you manage your policy, make payments, and start claims.
• Rideshare insurance available: Graduate students working for companies like Uber and Lyft can get extra protection with State Farm’s rideshare insurance.

Cons

• Rates can increase: Many customers report that their rates increased after the first policy term. Read our State Farm auto insurance review to learn more about State Farm rates.
• No gap insurance: Gap insurance pays the difference between what you owe on a car loan and your vehicle’s worth if you total your new car. Unfortunately, State Farm does not offer gap insurance.

#2 – Progressive: Best for Students on a Budget

Pros

• Snapshot: Snapshot is Progressive’s usage-based car insurance program that tracks your driving behaviors. Read out Progressive Snapshot review to see how much you can save.
• Name Your Price Tool: When you’re looking for cheap insurance for college students, Progressive’s Name Your Price tool is ready to help. Simply enter how much you can spend per month, and Progressive will give you a list of options.
• Ample discounts: Progressive offers 13 discounts, many of which apply to your account automatically. Check out which discounts Progressive provides to learn more.
• Cheap DUI coverage: Graduate students looking for low rates with a DUI could find cheap coverage with Progressive, since the company offers competitive rates to certain high-risk drivers.

Cons

• More complaints than expected: Despite having affordable rates and solid discounts, many Progressive customers are unhappy with their service. See what customers have to say in our Progressive auto insurance review.
• Limited agents: Progressive focuses more on online quotes and policy management, meaning there are fewer local representatives to get face-to-face.

#3 – Allstate: Best for UBI Savings

Pros

• Policy customization options: Allstate offers a variety of ways to customize your policy, including rideshare insurance and roadside assistance.
• New car discounts: Among Allstate’s 12 discounts are savings for having a new vehicle.
• Milewise: Milewise is a pay-per-mile insurance option designed to help low-mileage drivers save. Learn if this UBI program is right for you in our Allstate Milewise review.

Cons

• Higher average rates: Allstate offers cheap insurance for students, but its rates are usually among the highest. Find more information about Allstate’s rates in our review of Allstate insurance.
• Mixed customer reviews: While there are plenty of happy Allstate customers, the company also has its fair share of unsatisfied drivers.

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#4 – Farmers: Best Roadside Assistance Plans

Pros

• Signal app: Download the Signal app to enroll in Farmers’ UBI program. Signal can save you up to 30%, but it might increase your rates if you don’t drive well enough.
• Add-on options: If you have space in your budget for a more robust policy, Farmers offers excellent add-ons like new car replacement and customized equipment coverage. Read our Farmers auto insurance review for more information.
• Excellent roadside assistance plan: Farmers offers one of the best roadside assistance plans.

Cons

• Less competitive rates: Farmers offers affordable car insurance for college students, but it’s usually not the cheapest option.
• Low customer satisfaction: Farmers struggles with its customer service ratings, particularly about its claims resolution.

#5 – Nationwide: Best for Vanishing Deductible

Pros

• Vanishing deductible program: Sign up for Nationwide’s Vanishing Deductible to save $100 on your deductible for every year you spend claims-free, up to $500.
• SmartRide: Nationwide’s SmartRide can save you up to 40% for safe driving, and you won’t have to risk your rates going up. Learn more about SmartRide in our Nationwide auto insurance review.
• Competitive rates for bad credit: Most insurance companies charge higher rates when you have a bad credit score, but Nationwide tends to have affordable prices.

Cons

• Rates increase after an accident: All insurance companies increase monthly premiums after an at-fault accident. However, you’ll likely see a more significant increase at Nationwide than you would with another company.
• Expensive for high-risk drivers: Drivers with speeding tickets, at-fault accidents, or a DUI will likely find cheaper coverage elsewhere.

#6 – Liberty Mutual: Best for Safe Drivers

Pros

• Accident forgiveness: Amongst its many add-on options, a popular choice is Liberty Mutual’s accident forgiveness. Learn more about this and other add-ons in our Liberty Mutual auto insurance review.
• RightTrack: According to Liberty Mutual RightTrack reviews, you can save up to 30% on your policy by enrolling in the program and practicing safe driving.
• Ample discounts: Liberty Mutual offers an impressive 17 discounts to help you find the best insurance for graduate students, including savings for driving an electric vehicle and staying accident-free.

Cons

• Low claims satisfaction: Liberty Mutual struggles with customer reviews, particularly around its claims resolution process.
• Rates can be high: Graduate student car insurance quotes from Liberty Mutual are more affordable for drivers in their 20s, but Liberty Mutual is usually not the cheapest option for older adults.

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#7 – Travelers: Best Coverage Options

Pros

• IntelliDrive: Enroll in Travelers’ UBI program IntelliDrive to save up to 30% for your good driving habits.
• Add-on options: Travelers offers add-ons that can be hard to find, like gap, identity theft, and rideshare insurance. Learn more about Travelers’ add-ons in our Travelers auto insurance review.
• Solid customer service: Travelers usually receives positive reviews about its customer service experience and claims resolutions.

Cons

• Limited coverage availability: Travelers offers an excellent selection of insurance add-ons, but not everything is available everywhere. Check with a representative to see what’s available where you live.
• Above average rates: Travelers is rarely the cheapest option for insurance, no matter what type of driver you are.

#8 – American Family: Best Claims Service

Pros

• Coverage options: American Family offers excellent add-on options to expand your coverage, like rideshare or gap insurance.
• KnowYourDrive: Safe drivers can save up to 30% on their policies by enrolling in the KnowYourDrive program.
• Underwrites Costco insurance: Costco members can purchase auto insurance from the warehouse, which is underwritten by American Family subsidiary CONNECT.

Cons

• Limited availability: American Family sells auto insurance in just 19 states but operates CONNECT in 44. See if AmFam sells policies in your state in our American Family auto insurance review.
• Higher rates for some drivers: American Family might offer cheap car insurance for graduates, but you’ll see much higher rates if you have a bad credit score.

#9 – Erie Insurance: Best Customer Service

Pros

• Excellent customer service: Erie focuses resources on providing an excellent customer service experience for each of its policyholders.
• Rate Lock: Erie’s Rate Lock program ensures your policy will cost the same even if you make a claim. However, certain conditions apply – learn more in our Erie auto insurance review.
• YourTurn: Earn cash rewards for your safe driving habits in Erie’s YourTurn program.

Cons

• Coverage not available in most states: Erie is a smaller insurance company than many of its competitors. Currently, it sells insurance in just 12 states.
• Lacking online options: If you’re looking for cheap car insurance for students from Erie, you’ll need to speak with a representative. Erie has limited online tools to get quotes and manage policies.

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#10 – MetLife: Best for Bundling Multiple Policies

Pros

• Policy bundling discounts: MetLife offers several discounts, including savings for bundling multiple policies with an auto insurance plan. Explore other MetLife discount options in our MetLife auto insurance review.
• Quality repairs guarantee: MetLife guarantees any repairs made to your car after you make a claim, as long as you use a preferred mechanic.
• Financial stability: As one of the largest insurance providers in the world, MetLife offers superb financial stability. That means you won’t have to worry about claims going unpaid.

Cons

• No new policies: MetLife was recently acquired by Farmers Insurance, but existing MetLife customers can still enjoy their current policies.
• Higher average rates: Whether you’re looking for student car insurance rates or a policy for anyone else, MetLife is almost always more expensive than competitors.

Auto Insurance Rates for Graduate Students

When you’re looking for the cheapest coverage possible, you should look at the minimum amount of coverage required in your state. Take a look below to see how much insurance costs for minimum coverage.

Minimum Coverage Monthly Auto Insurance Rates for Graduate Students

While minimum insurance is your cheapest option, it doesn’t offer your vehicle much protection. If your budget allows, you should consider full coverage instead. Check the average graduate student rates for full coverage below.

Full Coverage Monthly Auto Insurance Rates for Graduate Students

Remember that these are averages and the actual quotes you’ll see might be different. Car insurance rates are affected by several factors, including age, gender, and location. Comparing quotes from multiple companies is essential to find the best price possible.

How Your Age Affects Your Auto Insurance Rates

Student car insurance in the US is quite expensive, and car insurance for high school students is even higher.

Average car insurance rates for college students are quite high since rates don’t usually drop until age 25. However, the average age of graduate students in the United States is on the rise.

Nowadays, high school grads wait to go back to school and undergraduates will wait a few years to establish themselves in a specific field before returning to school. That’s why the average age of people enrolled in a master’s program is 33.

If you’ve been licensed for years and you are paying for your own car, you got to watch your rates drop while you were earning your four-year degree.

When you were in high school, your rates were exorbitant because you were in a high-risk age group. As you gained years of experience, your risk class dropped and your rates declined.

Watch this video for things to think about if you are in college.

Your best bet is to speak with an agent to determine how to compare car insurance companies for students.

The Ages When Auto Insurance Rates Begin to Decrease

All throughout your undergraduate college career, you’ll probably be stuck paying a high-risk rate. In most states, you don’t fall completely out of the high-risk age range until you’re at least 25.

After three years of holding your license, you’ll see a drop, but the biggest rate decrease is after nine years of clean driving.

This table shows you just what to expect your average annual auto insurance rates to be based on your age.

Auto Insurance Monthly Rates by Marital Status, Age, & Gender

The average monthly rate for a 17-year-old is $691 while the rate for a 25-year-old is $233. That’s about a $460 a month difference, just for turning 25.

You’ll have to consider your age when you’re applying for graduate school to really assess what your insurance costs are going to be.

If you’re enrolling in college right away and then you enter a master’s program in your early 20s, you’ll pay higher rates than someone who waited to take advanced coursework until they were in their 30s.

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Good Student Discount Eligibility

If you’ve made the Dean’s List every year and you’re committed to getting good grades, you’re familiar with how much discounts for good students can reduce your rates. Insurance with student discounts is generally much cheaper.

For high school students and college students who get the required Grade Point Average every semester, it’s a noticeable discount of as much as 30 percent off.

When you graduate with your bachelor’s, you’d expect to lose the Good Student Discount, but not when you’re going straight into a Master’s Program right after you walk the line.

Unfortunately, you probably won’t qualify for a Good Student Discount after you turn 25. If you saw it drop off, ask your insurer and see if there are special discounts specifically for graduate students.

Ways to Save on Auto Insurance for Graduate Students

There are several other ways to find cheap auto insurance for students. You can stay on your parent’s plan and apply for discounts, for example. Keep reading to discover other ways to lower your car insurance rates. 

Grad Students Living With Parents

For the first time in over 130 years, more young adults between the age of 18 and 34 live with their parents than with their partners. While this statistic is alarming to some, it’s understandable considering how expensive living expenses are.

Your housing situation while you’re a graduate student will impact your rates.

The IRS will allow your parents to claim you as a dependent up to age 24 if you are a student. If you are a graduate student age 25, you can’t be claimed as a dependent.

You might not qualify to be listed as a dependent any longer according to IRS standards, but living at home can still save you in the form of insurance premiums. If you still live at home, you’ll be able to combine your coverage for huge savings.

How to Save on a Parent or Guardian’s Policy

If you’re under the same roof as your parents or other adult family members, you can purchase a combined plan. With a combined plan, you’ll get a lot of different discounts that you wouldn’t get if you had a separate policy in place.

Here are a few ways that you can save by obtaining coverage with your family:

• You will receive a multi-car policy discount when there are multiple vehicles on the same family plan
• If your parents are getting a loyalty discount from their current carrier, you’ll get the discount as well
• You will receive a multi-line discount if the named insured also has property insurance or another line of coverage with the company
• You can keep your insurance history credit for staying insured continuously
• You’ll get higher limits of liability for less money to protect your assets

In order to get these discounts and stay on your parents’ policy, you must still live with them. Once you move out, you will need to find your own insurance.

Update Your Education Information

Don’t forget to make the small changes that need to be made to your insurance. Earning your degree can help your rate if you’re on a family plan or you’re on your own insurance plan.

Most companies also ask about your education when you first get a quote, though you’ll be asked about your ZIP code first.

If you update your level of education to show that you possess a bachelor’s degree, it could certainly help reduce your rates.

Discounts for Student Organizations

When you study for your undergraduate degree, you probably don’t know what career you want to pursue right away.

In an advanced program, you’re studying curriculum focused on what you want to do so you’ll have more opportunities to join professional or student organizations.

If you join one, be sure to look for affinity discounts so that you can get a special group rate for studying for a degree. You might get a discount for being a student, or you could qualify for special reduced rates on your own separate plan.

You may be on your way to a higher salary, but you’re not there yet. The high cost of studying for an advanced degree creates the need to save on other expenses.

Get instant quotes for auto insurance coverage online, and save money that you can spend on books. Enter your ZIP code to find the best car insurance for students.

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