The words “low-priced” and “insurance” probably shouldn’t be used together, in particular when looking for the cheapest coverage for college graduates. Because it’s so expensive, let’s familiarize you with some of the things that influence insurance rates, and see how we can help you shave a little off your next policy.
For college grads, one of the largest components that are used to help calculate the amount you pay each year for auto insurance is where you live. Cities with more crime and/or more people tend to have higher auto insurance costs, whereas areas with less crime or weather claims benefit from lower coverage costs.
The information below lists the most expensive areas in Minnesota for college graduates to purchase a policy in. Minneapolis is ranked #2 with the annual price of $2,018 for the average policy, which is approximately $168 monthly.
|14||Saint Louis Park||$1,702|
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Rate information is approximated as the specific Minneapolis residence address can affect coverage prices noticeably.
The make and model of vehicle that is being insured is probably the most important factor when looking for low-cost insurance for college graduates. Vehicles with high performance, a lack of modern safety features, or high incidents of liability claims will cost much more to insure than safer, lower-performance models. The list below showcases coverage rates for some of the cheaper automobiles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$1,317|
|Honda CR-V LX 2WD||$1,324|
|Honda Odyssey LX||$1,450|
|Honda Accord EX 4-Dr Sedan||$1,505|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$1,609|
|Hyundai Elantra GLS 4-Dr Sedan||$1,640|
|Chevrolet Silverado LT Regular Cab 2WD||$1,669|
|Dodge Grand Caravan CV||$1,692|
|Dodge Ram Crew Cab ST 2WD||$1,700|
|Ford Edge SE AWD||$1,752|
|Kia Optima EX||$1,781|
|Ford F-250 XL Harley Edition 2WD||$1,787|
|Chevrolet Malibu Hybrid||$1,786|
|Ford Fusion S 4-Dr Sedan||$1,793|
|Jeep Grand Cherokee Laredo 4WD||$1,786|
|Dodge Ram 3500 Crew Cab SLT 2WD||$1,812|
|Ford Explorer Eddie Bauer 4WD||$1,820|
|Ford Focus SES 4-Dr Sedan||$1,846|
|Nissan Altima 3.5 SR 2-Dr Coupe||$1,862|
|Toyota Camry XLE||$1,880|
|Toyota Corolla XLE||$1,887|
|Chevrolet Impala LT||$1,908|
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Data rating is based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include multi-policy, claim-free, multi-vehicle, homeowner, and safe-driver. Rates do not factor in zip code location which can affect coverage rates greatly.
Based upon the table data, makes and models like the Ford Escape, Honda CR-V, Honda Odyssey, Honda Accord, and Jeep Wrangler are most likely to be the most affordable vehicles to insure for college grads.
Types of discounts on Minneapolis auto insurance rates
Insurers that provide policies for college graduates may provide discounts that could lower prices by 30% or more if you qualify. Large car insurance companies and their possible discounts are detailed below.
- 21st Century policyholders can earn discounts including good student, early bird, defensive driver, teen driver, 55 and older, and theft prevention.
- Progressive offers premium reductions for homeowner, good student, online signing, multi-vehicle, multi-policy, and continuous coverage.
- State Farm offers discounts for student away at school, good driver, multiple autos, accident-free, anti-theft, and good student.
- Nationwide includes discounts for good student, easy pay, multi-policy, defensive driving, business or organization, and accident-free.
- Esurance has discounts for renters, good driver, claim free, online quote, and anti-theft.
- The Hartford may have discounts that include driver training, bundle, vehicle fuel type, defensive driver, good student, and anti-theft.
The illustration below shows the difference between annual premium costs with and without discounts being applied to the rates. The costs are based on a male driver, no claims or driving violations, Minnesota state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with defensive driving course, anti-theft, marriage, accident-free, passive restraint, and claim-free discounts applied. In this example, theaverage amount saved on car insurance for college graduates is 28% or $618.
The diagram below shows how different deductible levels can influence premium costs when trying to find cheap insurance for college graduates. The data assumes a single male driver, comprehensive and collision coverage, and no discounts are factored in.
As shown above, a 30-year-old driver could save $292 a year by switching from a $100 deductible to a $500 deductible, or save $442 by switching to a $1,000 deductible. Even younger insureds, like the age 20 example, have the ability to save up to $856 each year just by choosing higher deductibles when buying full coverage. If you do decide to increase your deductibles, it will be necessary to have plenty of discretionary funds to be able to cover the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Your low-price policy may be costing you money
Minneapolis, MN car insurance rates are impacted by many factors that control the price you pay for coverage. Simply getting older, marrying your spouse, or getting a reckless driving citation can trigger rate changes that can now make some companies more affordable than before.
Not only may your situation change, but companies modify pricing multiple times each year to reflect underwriting profits or losses. Larger than normal claims can cause price increases, while profitable underwriting can produce cheaper Minneapolis car insurance rates.
For instance, the bar chart below shows the companies that have the cheapest car insurance in Minneapolis, MN for a 45-year-old female driver with a good driving record, no prior claims, and excellent credit. When comparing rates based on her current situation, Travelers may have the cheapest car insurance rates in Minneapolis at $834 a year. This is $587 less than the average policy premium paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, The Hartford, and Western National are the remaining best Minneapolis, MN auto insurance companies.
Now we will pretend the driver in the first example a couple of claims, slightly worse credit, and a traffic citation. Because each company has their own process for setting prices, comparing quotes most likely will result in a completely different list of cheap Minneapolis auto insurance companies as shown below.
USAA now has the cheapest car insurance in Minneapolis, MN with Allied, Farm Bureau Mutual, California Casualty, and Travelers now rounding out the top five. This example shows why it is critical to compare many different companies to find the cheapest auto insurance rates for college graduates. Rates are impacted by many risk factors and change dramatically, so the most affordable company the last time you compared rates may now be quite expensive.