The words “economical” and “insurance” probably shouldn’t be used in the same sentence, especially when shopping around for the best coverage prices for college graduates. Let’s start off by going over some of the things that determine car insurance premiums, and find out if we can help you reduce the cost of your next policy.
Determining which companies have the lowest-priced insurance rates for college graduates calls for a bit more effort in order to find the best policy.
Every insurance provider has their own process for setting prices, so let’s look at the rankings for the most budget-friendly insurance companies in Wisconsin. It’s important to understand that Madison insurance rates are based on many factors that will increase or decrease the price you pay for coverage. Simply having another birthday, moving to a new city, or having an at-fault accident may cause policy rate changes that can make some companies affordable when they were higher priced.
Compare Cheap Insurance Quotes for Grads
|Rank||Company||Cost Per Year|
|6||Rural Mutual Insurance||$756|
|13||West Bend Mutual||$926|
|14||Auto Club Group||$939|
|Get a Custom Quote Go|
USAA has some of the best car insurance rates in Madison at around $580 each year. Partners Mutual, Erie, Rockford Mutual, and Nationwide also make the cut as some of the cheaper Madison, WI insurance companies.
As shown in the rates above, if you are currently insured with Partners Mutual and switched to USAA, you might achieve savings of roughly $46. Policyholders with Erie could save as much as $137 a year, and Rockford Mutual policyholders might lower prices by up to $144 a year.
To discover how much you can save, click here to get a free quote or visit any of the companies below.
Bear in mind that those premium estimates are averages across all insureds and vehicles and do not factor in a specific zip code for college graduates. So the car insurance company that fits your situation 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 information and specific vehicle type.
The make and model of vehicle needing coverage is a large factor that determines whether or not you find low-cost insurance for college graduates. Vehicles with average performance, an excellent safety record, or a low likelihood of having liability claims will cost quite a bit less to insure than higher performance models. The next list presents car insurance costs for a handful of the cheaper automobiles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$967|
|Ford F-150 XL Super Cab 2WD||$1,058|
|Hyundai Elantra GLS Touring Station Wagon||$1,105|
|Dodge Grand Caravan Crew||$1,158|
|Ford Explorer Eddie Bauer 4WD||$1,168|
|Ford Focus SES 4-Dr Sedan||$1,176|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$1,180|
|Toyota Corolla XLE||$1,196|
|Honda CR-V EX-L 2WD||$1,212|
|Chevrolet Silverado 2500HD LT Crew Cab 4WD||$1,218|
|Jeep Grand Cherokee SRT-8 4WD||$1,227|
|Chevrolet Equinox LTZ AWD||$1,218|
|Volkswagen Jetta SE 4-Dr Sedan||$1,224|
|Toyota Tacoma 4WD||$1,236|
|Hyundai Sonata SE 4-Dr Sedan||$1,281|
|Start a Quote Go|
Above prices assume single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include safe-driver, claim-free, multi-vehicle, multi-policy, and homeowner. Rate information does not factor in Madison, WI location which can increase or decrease auto insurance rates considerably.
Looking at the rates, we can assume that vehicles like the Ford Escape, Ford F-150, Hyundai Elantra, Dodge Grand Caravan, and Ford Explorer are most likely going to be some of the most budget-friendly vehicles to insure for college grads.
Does it make sense to buy full coverage?
Reducing the cost of insurance is important to the majority of drivers, and an effective way to lower the cost of insurance for college graduates is to not buy comprehensive and collision coverage. The example below shows the comparison of insurance costs with and without physical damage coverage. The rate quotes are based on a clean driving record, no claims, $250 deductibles, drivers are single, and no discounts are applied to the premium.
Averaged out for all age groups, comp and collision coverage costs an extra $1,217 per year over liability only. That is a large expense which might make you wonder when is the right time to remove full coverage. There is no exact formula of when to exclude full coverage, but there is a guideline you can consider. If the yearly cost of full coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it might be time to buy liability only.
For example, let’s pretend your vehicle’s claim settlement value is $8,000 and you have $1,000 policy deductibles. If your vehicle is totaled, the most you would receive is $7,000 after paying the physical damage deductible. If premiums are more than $700 a year for full coverage, then you might want to consider buying only liability coverage.
There are a few cases where removing full coverage is not financially feasible. If you still owe a portion of the original loan, you have to maintain full coverage as part of the loan conditions. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should not drop full coverage.
Get discounts on Madison insurance
Insurers that offer coverage for college graduates may also provide discounts that may potentially lower prices by 35% or more if you are eligible. Large insurance companies and the discounts they provide include:
- 21st Century offers premium reductions for teen driver, student driver, automatic seat belts, 55 and older, and theft prevention.
- Progressive may include discounts for multi-policy, continuous coverage, online quote discount, online signing, and multi-vehicle.
- State Farm policyholders can earn discounts including good student, anti-theft, multiple policy, Drive Safe & Save, passive restraint, and defensive driving training.
- Nationwide may have discounts that include defensive driving, multi-policy, anti-theft, accident-free, Farm Bureau membership, and good student.
- Esurance may offer discounts for Switch & Save, claim free, DriveSense, safety device, multi-policy, and renters.
- The Hartford offers discounts for air bag, vehicle fuel type, anti-theft, driver training, defensive driver, and bundle.
The illustration below shows the difference between yearly insurance costs with and without discounts applied to the policy rates. The information is based on a female driver, a clean driving record, no at-fault accidents, Wisconsin state minimum liability limits, full coverage, and $500 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with claim-free, accident-free, multiple policy, passive restraint, multiple vehicle, and defensive driving course discounts applied. When discounts are applied, theaverage amount saved on insurance for college graduates is 28% or $383.
Impact of speeding/accidents on Madison insurance rates
One of the best ways to maintain the cheapest insurance prices in Wisconsin for college grads is to be a good driver and have a clean driving record. The chart below demonstrates how citations and fender-benders can influence yearly insurance costs for different insured age categories. The premiums are based on a married female driver, comprehensive and collision coverage, $500 deductibles, and no discounts are taken into consideration.
In the previous example, the average cost of an auto insurance policy in Madison per year with a clean driving record and no accidents is $924. Get one speeding ticket and the average cost increases to $1,072, an increase of $148 each year. Now include one accident along with the one speeding ticket and the 12-month cost of insurance for college graduates increases to an average of $1,493. That’s an increase of $569, or $47 per month, just for being a less-than-perfect driver!
The auto insurance agents in Madison shown below can aid you in deciding which policy is best, as some drivers aren’t sure which coverage they need and prefer to have a consultation when shopping around for cheaper insurance for college grads. It’s not always easy to find coverage yourself, and professional agents can add peace of mind knowing your policy gives you adequate protection in case of an accident or claim.
To locate a Madison auto insurance agent close to where you live, click the button at the bottom of the list or click here to get price quotes now.
Universal Insurance Agency Corporation
6709 Raymond Rd – Madison, WI 53719 – (608) 216-7060
Farmers Insurance – Debra Armstrong
621 N Sherman Ave, Ste B16 – Madison, WI 53704 – (608) 222-1400
American Family Insurance – Daniel Piazza
2601 Crossroads Dr Ste 100 – Madison, WI 53718 – (608) 241-9000
Aaron Perry – State Farm Insurance Agent
2605 Monroe St – Madison, WI 53711 – (608) 238-7107