The words "low-cost" and "insurance" really don't belong together, in particular when you are shopping around for the lowest insurance prices for college graduates. Because it's not cheap, let's go over some of the factors that help determine car insurance prices, and come up with some ideas to cut the cost of the next policy you buy.
The vehicle model on the policy is one of the biggest factors when shopping for the cheapest car insurance for college graduates. Vehicles with average performance, a great safety record, or low incidents of liability claims will cost quite a bit less to insure than fast, unsafe models.
The next table presents car insurance costs for a handful of the more afforable vehicles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$954|
|Honda Accord EX 4-Dr Sedan||$984|
|Honda CR-V EX-L 4WD||$1,011|
|Toyota Camry LE||$1,028|
|Chevrolet Equinox LT 2WD||$1,036|
|Hyundai Elantra SE Touring Station Wagon||$1,036|
|Dodge Grand Caravan SXT||$1,047|
|Toyota Tacoma 4WD||$1,068|
|Toyota Corolla LE||$1,085|
|Jeep Grand Cherokee SRT-8 4WD||$1,104|
|Chevrolet Malibu LTZ||$1,110|
|GMC Sierra SLE Extended Cab 4WD||$1,104|
|Ford Explorer XLT 4WD||$1,108|
|Ford F-150 XL Crew Cab 4WD||$1,133|
|Chevrolet Impala LS||$1,135|
|Ford Focus SES 2-Dr Coupe||$1,158|
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Prices based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, multi-vehicle, multi-policy, claim-free, and homeowner. Premium costs do not factor in Colorado location which can lower or raise premiums substantially.
Based upon the table data, we can presume that vehicles like the Ford Escape, Toyota Prius, Honda Accord, and Honda CR-V are likely to be a few of the cheaper vehicles to insure for college grads.
For college grads, one of the big considerations that are looked at to help calculate auto insurance rates is where you live in Colorado. Areas with high crime rates or more dense population like Pueblo, Aurora, and Security-Widefield will most likely pay more, whereas areas with fewer weather claims and lower vehicle theft rates benefit from having to pay less for coverage.
The following table rates the most expensive places in Colorado for college graduates to buy an auto insurance policy in.
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Price information shown is estimated as the specific geographic location can change price quotes noticeably.
Shopping around for low-priced auto insurance is challenging, and deciding which companies have the cheapest insurance rates for college graduates in Colorado will involve even more work.
Each insurance company has a proprietary formula for filing rates in each state, so let's begin by examining the most competitive insurance companies in Colorado. Keep in mind that Colorado insurance rates are based on many factors that control the cost of having a policy. This price variability is why it is important to do a thorough rate comparison when trying to get the most affordable auto insurance rates for college graduates. Prices are determined by many risk factors and change substantially, so the most economical company six months ago may now be one of the more expensive options.
Cheap Insurance Rates for Grads
The Hartford quotes some of the lowest car insurance rates in Colorado at around $825 each year. Grange, USAA, Nationwide, and GEICO also qualify as some of the cheapest Colorado car insurance companies.
In the above rates, if you are currently insured with Nationwide and switched to Grange, you might realize a yearly price reduction of roughly $165. Drivers with GEICO might save as much as $198 a year, and Auto-Owners policyholders might reduce rates by $226 a year.
To find cheaper insurance rates for your vehicle, click here to start a quote or quote prices from the following companies.
Be aware that those premium estimates are averaged for all insureds and vehicles and do not factor in a rate decrease for college graduates. So the company that fits your needs best may not even be in the list above. That underscores the importance of why you need to get auto insurance quotes using your own driver data and vehicle information.
Responsible drivers pay cheaper insurance rates
The common sense way to maintain low insurance premiums for college grads is to be a careful driver and have a clean driving record. The diagram below highlights how speeding tickets and accidents can affect car insurance rates for different age categories. The data assumes a single male driver, full coverage, $100 deductibles, and no discounts are factored in.
The chart shows that the average cost of a car insurance policy per year with no violations or accidents is $2,013. Add in one speeding ticket and the average cost increases to $2,266, an increase of $253 each year. Next add one accident along with the one speeding ticket and the annual cost of insurance for college graduates in Colorado goes up to an average of $2,982. That's an increase of $969, or $81 per month, just for not driving attentively!
Types of discounts on Colorado insurance rates
Insurers that offer cheap quotes for college graduates may provide special discounts that can reduce rates by 25% or more if you are eligible. A list of insurance companies and a selection of discounts are shown below.
- State Farm discounts include safe vehicle, accident-free, Drive Safe & Save, multiple autos, passive restraint, and Steer Clear safe driver discount.
- Farmers Insurance has discounts for bundle discounts, good student, early shopping, switch companies, and multi-car.
- Progressive offers discounts including continuous coverage, multi-vehicle, online quote discount, online signing, multi-policy, and homeowner.
- GEICO policyholders can earn discounts including air bags, five-year accident-free, membership and employees, anti-theft, anti-lock brakes, and defensive driver.
- Auto-Owners Insurance offers discounts for safe driver, teen driver, anti-theft, anti-lock brakes, multiple vehicles, paperless, and paid in full.
- The Hartford includes discounts for driver training, air bag, anti-theft, vehicle fuel type, defensive driver, and bundle.
- Farm Bureau may include discounts for multi-policy, youthful driver, multi-vehicle, renewal discount, and safe driver.
- USAA offers premium reductions for family discount, new vehicle, loyalty savings, safe driver, and multi-vehicle.
The diagram below compares insurance prices with and without discounts applied. The costs are based on a female driver, no accidents, no driving violations, Colorado state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.
The first bar for each age group shows premium with no discounts. The second shows the rates with passive restraint, defensive driving course, anti-theft, claim-free, vehicle safety, and multiple vehicle discounts applied. When drivers qualify for the discounts, the the amount saved on insurance for college graduates is 28% or $424.
Price comparison of only insuring for liability
Paying less for insurance should be important to most vehicle owners, and one of the fastest ways to reduce the cost of insurance for college graduates in Colorado is to not insure for full coverage. The information below illustrates the difference between insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premium estimates are based on a clean driving record, no at-fault accidents, $1,000 deductibles, drivers are single, and no discounts are taken into consideration.
If averaged for all ages, full coverage costs $1,476 per year more than just buying liability insurance. A very common question is when is the right time to remove full coverage. There is no clear-cut formula to stop buying physical damage coverage on your policy, but there is a guideline you can consider. If the yearly cost of full coverage is more than about 10% of the vehicle's replacement cost less your deductible, the it may be a good time to stop paying for full coverage.
For example, let's say your vehicle's replacement value is $4,500 and you have $1,000 policy deductibles. If your vehicle is destroyed, the most your company would pay you is $3,500 after the deductible is paid. If you are paying over $350 annually for comprehensive and collision coverage, then you might want to consider buying only liability coverage.
There are some cases where eliminating full coverage is not a good plan. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage in order to prevent your loan from defaulting. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should not eliminate full coverage.