How do I get insurance on a car?

To get car insurance, first think about the coverage you need — at minimum, liability coverage that pays for damage you cause, plus any extras such as coverage for repairs to your own car (called full coverage). Next, research a few insurance companies online or call local agents to compare what they offer and check for discounts tied to things like a clean driving record, setting up autopay or bundling home/renters and auto policies. Request quotes by answering some basic questions online or over the phone, then compare the prices for the same level of coverage. Finally, choose the company that gives you the coverage you want at the best price and purchase the policy online or through an agent.

What is liability car insurance?

Liability insurance is the coverage that protects you financially if you are found to be at fault in an accident that causes damage or injuries. It is mandatory in almost all states, and is central to a robust insurance policy. Most states require a minimum amount of liability coverage, but insurance experts generally suggest that you purchase more than the minimum if you are able so that you can be adequately covered in the event of an expensive accident.

What is comprehensive car insurance?

Comprehensive car insurance is an optional coverage that can be added to your policy for greater financial protection. It is typically added along with collision coverage to create a full coverage policy. Comprehensive insurance generally helps to pay for repairs or replacement of your vehicle if it is damaged in an incident other than a collision, such as theft, vandalism or severe weather.

How much car insurance do I need?

Almost all states require car insurance to drive legally. To understand the types of coverage and policy limits you’ll need, it may be a good idea to review your state’s minimum coverage requirements. Note that experts typically recommend obtaining more coverage than what’s required for better financial protection. Speaking with an insurance professional is usually the best way to design a policy that suits you best.

Can I stay on my parents’ insurance policy?

The decision to remain on your parents’ insurance policy depends on your circumstances. While you are away at school, most insurance companies still view you as a household member and will allow it, assuming that one or both of your parents owns or co-owns your vehicle. But if you own your vehicle, you may need your own policy. And once you graduate and move out of your parents’ home, you’ll likely need your own policy, too.

Car Insurance for College Graduates

Key takeaways

College graduates typically pay more for car insurance than older, more experienced drivers.
On average, car insurance costs between $274 to $347 per month for full coverage for drivers ages 22 to 25.
Factors such as age, gender, credit, driving record, annual mileage and geographic location play a role in determining car insurance rates.
Getting quotes from multiple companies and taking advantage of car insurance discounts may help lower your insurance bill.

How much is car insurance for college graduates?

Data from Quadrant Information Services indicate that the average cost of full coverage car insurance is $223 per month, while minimum coverage averages $67. However, college graduates will likely pay more. Car insurance premiums for young adults are typically higher, as statistics show this cohort is more likely to be involved in an accident.

In most states, gender also plays a role in how insurance providers calculate rates. The cost of car insurance for males is generally higher than for females because research suggests men are more prone to risky driving behaviors.


22-year-old	Avg. monthly min. coverage for males $107	Avg. monthly full coverage for males $360
23-year-old	Avg. monthly min. coverage for males $100	Avg. monthly full coverage for males $338
24-year-old	Avg. monthly min. coverage for males $94	Avg. monthly full coverage for males $320
25-year-old	Avg. monthly min. coverage for males $83	Avg. monthly full coverage for males $281


22-year-old	Avg. monthly min. coverage for females $101	Avg. monthly full coverage for females $331
23-year-old	Avg. monthly min. coverage for females $95	Avg. monthly full coverage for females $313
24-year-old	Avg. monthly min. coverage for females $90	Avg. monthly full coverage for females $298
25-year-old	Avg. monthly min. coverage for females $82	Avg. monthly full coverage for females $268


22-year-old	Avg. monthly min. coverage for males $107	Avg. monthly full coverage for males $360
23-year-old	Avg. monthly min. coverage for males $100	Avg. monthly full coverage for males $338
24-year-old	Avg. monthly min. coverage for males $94	Avg. monthly full coverage for males $320
25-year-old	Avg. monthly min. coverage for males $83	Avg. monthly full coverage for males $281


22-year-old	Avg. monthly min. coverage for females $101	Avg. monthly full coverage for females $331
23-year-old	Avg. monthly min. coverage for females $95	Avg. monthly full coverage for females $313
24-year-old	Avg. monthly min. coverage for females $90	Avg. monthly full coverage for females $298
25-year-old	Avg. monthly min. coverage for females $82	Avg. monthly full coverage for females $268

Bankrate insight

Each car insurance company has its own underwriting process, so rates often vary from company to company for the same coverage. Shopping around can help you find the coverage you need for the most affordable price. Experts recommend getting quotes from at least three providers. When doing so, be sure to ask for the same coverage types, policy limits and deductibles so that you can make an apples-to-apples price comparison.

Learn more: How much car insurance do you need?

How being a college graduate impacts car insurance

When searching for car insurance, keep in mind that a number of factors impact rates.

Credit: Depending on the laws in your state, your insurance-based credit score could be factored into your quote. Graduates with lots of debt or no credit may find that they face higher premiums. Building your credit history might help you earn lower rates over time.
Driving record: Younger drivers (those under age 25) are viewed as the riskiest. With a higher likelihood of accidents leading to costly claims, insurers typically charge these drivers more. But if you can maintain a clean driving record — meaning no speeding tickets, accidents or DUI convictions — you may avoid even higher rates.
Annual mileage: Driving long distances on a regular basis equates to more opportunities to be involved in an accident. If you make a point to drive fewer miles, you might save some money on car insurance.
Geographic location: Where you live has a big impact on how much you pay for car insurance. For instance, drivers who live in big cities with dense populations, limited parking and higher-than-average crime will likely pay more. Living in a suburb and having access to garage parking may help you pay less.

Bankrate’s take: Car insurance rates vary by state, city and even ZIP code. According to Bankrate’s 2025 study of quoted annual auto insurance premiums, Florida, Louisiana, New York and Nevada are the nation’s most expensive states for car insurance. When choosing where to live after graduation, college students may want to factor insurance into an area’s cost of living if budget is a concern.

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Powered by Coverage.com (NPN: 19966249)

Advertising disclosure

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Insurance disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Cheap car insurance for college graduates

Bankrate reviewed average premium data from Quadrant Information Services to pinpoint some of the best cheap car insurance for graduates. The rates below are based on a 22-year-old with a bachelor's degree.

Cheapest car insurance companies for college graduates


Nationwide	$89	$247
Auto-Owners	$74	$251
Geico	$69	$255
USAA	$76	$264
Travelers	$84	$279
Progressive	$93	$288
AAA	$82	$300
The General	$167	$333

How to save on car insurance for college graduates

Finding affordable car insurance after graduating may be difficult, but it’s not impossible. Shopping around, driving safely and improving your credit by paying down debt are just a few ways you may be able to secure lower insurance rates. Here are a couple of other strategies to find the best car insurance for college graduates.

Car insurance discounts

When considering different insurers, be sure to look into discount opportunities. You may be able to find discount information on a company’s website, but you’ll likely need to speak with an agent to determine which savings opportunities you're eligible for. Common discounts include:

Telematics discounts: Telematics programs collect data on your driving habits, mileage and more through an in-vehicle device or app on your smartphone. Some insurance companies offer discounts for drivers who consistently display safe-driving behavior.
Bundling discounts: If you own or rent a home following graduation, consider bundling a homeowners insurance policy or renters insurance policy with your auto insurance. Doing so could save you a significant amount, depending on which provider you select.
Organizational/professional discounts: Several insurers extend discounts to certain organizations or professions like health care workers, teachers, military members, university alumni and more. Offerings vary widely, so you’ll need to do some research to determine how you may benefit.

How to pick a cheap car insurance policy

"Take the time to shop for auto insurance so you can compare costs and coverage levels,” recommends Mark Friedlander, director of corporate communications for the Insurance Information Institute.

Get at least three quotes. Find out what discounts you may qualify for. Most importantly, focus on getting the most robust coverage that fits your budget so you are financially protected from at-fault accidents. If you need guidance, work with a local insurance agent.
Mark Friedlander, Director of corporate communications, Insurance Information Institute

Frequently asked questions

To get car insurance, first think about the coverage you need — at minimum, liability coverage that pays for damage you cause, plus any extras such as coverage for repairs to your own car (called full coverage). Next, research a few insurance companies online or call local agents to compare what they offer and check for discounts tied to things like a clean driving record, setting up autopay or bundling home/renters and auto policies. Request quotes by answering some basic questions online or over the phone, then compare the prices for the same level of coverage. Finally, choose the company that gives you the coverage you want at the best price and purchase the policy online or through an agent.
Liability insurance is the coverage that protects you financially if you are found to be at fault in an accident that causes damage or injuries. It is mandatory in almost all states, and is central to a robust insurance policy. Most states require a minimum amount of liability coverage, but insurance experts generally suggest that you purchase more than the minimum if you are able so that you can be adequately covered in the event of an expensive accident.
Comprehensive car insurance is an optional coverage that can be added to your policy for greater financial protection. It is typically added along with collision coverage to create a full coverage policy. Comprehensive insurance generally helps to pay for repairs or replacement of your vehicle if it is damaged in an incident other than a collision, such as theft, vandalism or severe weather.
Almost all states require car insurance to drive legally. To understand the types of coverage and policy limits you’ll need, it may be a good idea to review your state’s minimum coverage requirements. Note that experts typically recommend obtaining more coverage than what’s required for better financial protection. Speaking with an insurance professional is usually the best way to design a policy that suits you best.
The decision to remain on your parents’ insurance policy depends on your circumstances. While you are away at school, most insurance companies still view you as a household member and will allow it, assuming that one or both of your parents owns or co-owns your vehicle. But if you own your vehicle, you may need your own policy. And once you graduate and move out of your parents’ home, you’ll likely need your own policy, too.

Methodology

Bankrate utilizes Quadrant Information Services to analyze September 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits with bundling and paperless billing discounts applied:

40 year old

Single male and female driver

2023 Toyota Camry

Primary vehicle

Good credit score

Clean driving record

Commutes 5 days

Bodily injury liability

$100,000 per person
$300,000 per accident

Property damage liability

$50,000 per accident

Personal injury protection

$100,000 per accident

Uninsured motorist bodily injury

$100,000 per person
$300,000 per accident

Collision deductible

$500

Comprehensive deductible

$500

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.

If otherwise specified, the base profile has been modified with the following driver characteristics:

Other profiles

Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.
Rates were calculated by evaluating our base profile with the following differences in mileage: 2K, 5K, 12K (base), 15K and 20K.
Unless otherwise stated, rates are for 2023 vehicle models. For new vs used vehicles, we included the following year in our calculations: 2013.
Rates were calculated by evaluating our base profile with the ages 18-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations. For teen drivers, rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Rates were evaluated based on the following marital/family status: single (base), married, 40-year-old married man and woman. Marital status is not a rating factor in Hawaii and Massachusetts.

Car insurance for college graduates

Key takeaways

How much is car insurance for college graduates?

Car insurance rates by age and gender

How being a college graduate impacts car insurance

Compare auto insurance rates

Cheap car insurance for college graduates

Cheapest car insurance companies for college graduates

How to save on car insurance for college graduates

Car insurance discounts

How to pick a cheap car insurance policy

Frequently asked questions

How do I get insurance on a car?

What is liability car insurance?

What is comprehensive car insurance?

How much car insurance do I need?

Can I stay on my parents’ insurance policy?

Methodology

Rates

Other profiles

Credit-based insurance scores:

Incidents:

Mileage:

Model:

Age:

Gender:

Status: