The words “bargain” and “insurance” really don’t belong together, specifically when searching for the best coverage prices for college graduates. Because of the high cost, let’s take a look at some things that significantly impact insurance premiums, and find a way to shave a little off the next policy you buy.
Finding decent, reasonably-priced insurance is hard enough, and deciding which insurers offer the cheapest auto insurance rates for college graduates requires additional perseverance.
Every insurance company has a unique approach to set their prices, so let’s begin by examining the most budget-friendly auto insurance companies in Indianapolis, IN.
Best Cheap Insurance Rates for Grads
|Rank||Company||Cost Per Year|
|5||Indiana Farmers Mutual||$841|
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Travelers may have some of the cheapest car insurance rates in Indianapolis at around $614 per year. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual also qualify as some of the most economical Indianapolis, IN insurance companies.
As shown in the rates above, if you buy coverage from Erie and switched to Cincinnati Insurance, you could see savings of upwards of $55. Insureds with Indiana Farmers Mutual could save as much as $163 a year, and Western Reserve insureds might realize rate reductions of up to $168 a year.
Remember that these premium estimates are averages for all ages of drivers and types of vehicles and are not factoring in a specific vehicle garaging location for college graduates. So the car insurance company that has the lowest price for you may not even be in the list above. That point stresses why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
The type of vehicle you are buying coverage for is one of the biggest factors in finding the best cheap coverage for college graduates. Vehicles with higher performance characteristics, poor passenger safety features, or a high likelihood of having liability claims will cost much more to insure than safer, lower-performance models. The list below ranks insurance rates for some of the most economical automobiles to insure.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda CR-V EX 4WD||$1,165|
|Ford Explorer XLT 2WD||$1,276|
|Dodge Grand Caravan SE||$1,282|
|Ford F-150 XLT Regular Cab 4WD||$1,276|
|Ford Escape XLS 2WD||$1,285|
|Chevrolet Silverado LS Regular Cab 4WD||$1,415|
|Nissan Altima 2.5 S 4-Dr Sedan||$1,423|
|Chevrolet Impala LTZ||$1,433|
|GMC Sierra SL Crew Cab 4WD||$1,447|
|Chevrolet Silverado 2500HD LT Crew Cab 4WD||$1,456|
|Chevrolet Equinox LTZ 2WD||$1,447|
|Chevrolet Malibu LTZ||$1,455|
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Table data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, claim-free, and multi-vehicle. Table data does not factor in zip code location which can lower or raise price quotes greatly.
Based on these rates, we can presume that models like the Honda CR-V, Ford Explorer, Dodge Grand Caravan, and Ford F-150 are going to be a few of the more affordable vehicles to insure for college grads.
The example below shows how choosing a deductible can raise or lower insurance costs when getting quotes for cheap insurance for college graduates. The rate quotes are based on a married female driver, comp and collision included, and no policy discounts are applied.
The chart above illustrates that a 30-year-old driver could lower their policy premium by $300 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $454 by switching to a $1,000 deductible. Even younger drivers, such as the Age 20 example, could possibly save as much as $638 every year by using higher deductibles when buying full coverage.
When increasing deductibles, it will be necessary to have enough in a savings account to offset the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Rate difference between full and liability-only coverage
Saving on auto insurance is important to the majority of people, and one easy way to buy cheaper insurance for college graduates is to only buy liability coverage. The illustration below illustrates the comparison of yearly insurance costs with and without physical damage coverage. The premium estimates are based on a clean driving record, no at-fault accidents, $1,000 deductibles, drivers are not married, and no discounts are taken into consideration.
If averaged for all ages, comp and collision coverage costs $1,281 per year over and above liability only. Many people question when is it safe to stop buying full coverage. There is no set guideline to exclude comp and collision coverage, but there is a general guideline you can use. If the annual cost of having full coverage is 10% or more of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.
For example, let’s pretend your vehicle’s book value is $8,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most you would get paid by your company is $7,500 after paying your deductible. If premiums are more than $750 a year for physical damage coverage, then you might want to think about dropping full coverage.
Insurance rate increases from tickets or accidents
In a perfect world, the best way to obtain low auto insurance premiums for college grads is to pay attention while driving and avoid getting tickets or having accidents. The chart below shows how violations and at-fault fender-benders influence annual premium costs for each age group. The rates are based on a single female driver, full coverage, $1,000 deductibles, and no policy discounts are applied.
In the prior example, the average cost of a car insurance policy in Indianapolis per year with no accidents and a clean driving record is $1,130. Receive one speeding ticket and the average cost surges to $1,283, an increase of $152 each year. Then throw in one accident along with the one speeding ticket and the 12-month cost of auto insurance for college graduates jumps again to an average of $1,700. That’s an increase of $570, or $48 per month, just for not driving attentively!
Why you should be shopping around
Indianapolis auto insurance rates are calculated based on many things which can significantly increase or decrease the cost of your policy. Simply improving your credit, becoming a homeowner, or getting a reckless driving citation may generate price changes that can now make some companies more affordable than others.
In addition to those changes, insurance companies amend pricing as often as every quarter in order to remain profitable. Unexpectedly high claims may result in rate increases, while profitable underwriting may cause lower-cost Indianapolis car insurance rates.
As an example, the graph below shows the cheapest car insurance in Indianapolis, IN for a 30-year-old male driver with a clear driving record, no claims, and a high credit rating. If we estimate prices based on his current situation, Travelers might offer the cheapest car insurance rates in Indianapolis at $717 annually. This is $523 less than the average policy premium paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Indiana Farmers Mutual are the remaining top five cheapest Indianapolis, IN auto insurance companies.
The next chart shows rates after we give the driver from the above example a chargeable accident, a lower credit rating, and a speeding citation. Since every insurance provider has a unique approach to set premium rates, comparing prices may result in a different set of the cheapest Indianapolis car insurance companies as shown below.
The Hartford now has the best insurance rate in Indianapolis, IN with Auto-Owners, USAA, Nationwide, and Cincinnati Insurance now rounding out the top five. This example illustrates why it is critical to shop around when trying to get the most economical car insurance rates for college graduates.
Insurance rates are determined by many things and change dramatically, so the most affordable company the last time you compared rates may now not even be in the top five.
If you have coverage questions and would like to get help from a professional when shopping for the best coverage for college grads, the insurance agencies listed below can aid you in deciding which is the best policy. To locate an Indianapolis auto insurance agent near you, click the button at the bottom or click here to get price quotes now.
- GEICO Insurance Agent
3837 N High School Rd Suite 10 – Indianapolis, IN 46254 – (317) 216-0932
- Indiana Auto Insurance Group
201 N Illinois St – Indianapolis, IN 46204 – (317) 641-4572
- Leland Brown Sr. – State Farm Insurance Agent
5936 N Keystone Ave #201 – Indianapolis, IN 46220 – (317) 251-1400
- Allstate Insurance: Donald Oldham
303 N Alabama St #360 – Indianapolis, IN 46204 – (317) 687-0777
- Haleh Krauter – State Farm Insurance Agent
11204 Fall Creek Rd – Indianapolis, IN 46256 – (317) 849-9996