Auto Insurance for Drivers with Bachelor’s Degrees

Here's what you need to know about car insurance for people with bachelor’s degrees and how you can cut your insurance costs.

UPDATED: Jul 20, 2022Fact Checked

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Written by Sara Routhier
Director of Outreach Sara Routhier

Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent Cynthia Lanctot

UPDATED: Jul 20, 2022

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A Concise Overview

  • Your bachelor’s degree may not impact your auto insurance rates very much
  • Your age, ZIP code, and the types of coverage you carry in your policy will have a more significant impact on your monthly or annual rates
  • Auto insurance discounts are a great way to keep rates down

If you’re searching for car insurance coverage, you know how difficult it can be to find a company that offers the coverage you want at a price that works with your budget. 

Car insurance companies consider many factors when determining car insurance rates for policyholders. For example, some companies may consider your bachelor’s degree when choosing your rates. Auto insurance for drivers with master’s degrees may also come with some benefits. But you may find that most companies are more concerned with other factors, like your age and where you live. But will having a bachelor’s degree impact your hunt for proper coverage?

Does a bachelor’s degree impact car insurance costs?

Every car insurance company uses a different method when determining auto insurance rates for policyholders. Insurance experts agree that the factors that are more likely involved in determining these rates are the policyholder’s age, gender, and level of coverage.

However, you may find that insurance companies are more likely to ascribe higher rates to individuals who only have a high school degree and do not have a bachelor’s degree. While it may be true that people with a high school degree might pay hundreds of dollars more each year for coverage, these individuals are likely teenagers who are given higher car insurance rates because of the risk associated with their age. Average car insurance rates vary by age, and younger drivers are always going to pay more.

Older adult drivers pose less risk to car insurance companies. Drivers with a bachelor’s degree can save around $300 annually on coverage. 

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How much is auto insurance with a bachelor’s degree?

As mentioned previously, certain factors determine auto insurance rates. Most insurance companies consider the following factors when calculating car insurance rates for policyholders:

  • Age
  • Gender
  • Car make and model
  • Credit score
  • Driving record
  • Coverage types

It’s impossible to know how much insurance will cost until you compare auto insurance quotes with multiple companies. One of the easiest ways to do this is to shop for insurance online.

The table below shows average rates for car insurance in each state based on the type of coverage.

Average Annual Auto Insurance Rates by State and Coverage Type
StatesAverage Annual Liability Coverage RatesAverage Annual Collision Coverage RatesAverage Annual Comprehensive Coverage RatesAverage Annual Full Coverage Coverage Rates
North Dakota$282.55$252.21$112.74$741.11
South Dakota$289.04$251.30$110.12$1,206.46
Iowa$293.34$251.46$230.65$819.14
Wyoming$323.38$270.48$222.86$816.71
Maine$333.92$331.72$146.77$1,077.97
Idaho$337.17$284.92$117.98$833.44
Vermont$340.98$278.38$118.31$737.67
Kansas$342.33$255.33$130.15$904.39
Nebraska$349.07$293.78$116.79$1,057.63
North Carolina$357.59$227.44$227.64$737.63
Wisconsin$359.84$209.93$126.34$696.11
Indiana$372.44$207.10$171.58$672.01
Alabama$372.57$299.10$146.28$817.95
Ohio$376.16$298.21$201.56$941.34
Arkansas$381.14$304.87$183.36$869.37
Montana$387.77$223.50$206.24$778.81
New Hampshire$393.24$365.23$123.18$1,353.96
Tennessee$397.73$290.39$135.62$823.74
Missouri$399.41$254.90$199.87$842.54
Virginia$413.12$264.70$129.89$807.71
Illinois$430.54$237.19$115.02$724.65
Mississippi$437.38$259.65$166.34$825.40
Minnesota$439.58$302.96$194.74$935.08
Oklahoma$441.57$212.47$89.66$855.57
Hawaii$458.49$209$110.78$656.95
New Mexico$462.21$358.45$156.66$1,300.09
California$462.95$364.56$99.29$926.79
Utah$471.26$254.41$106.57$832.24
Colorado$477.10$263.36$158.34$898.79
Arizona$488.59$259.31$184.20$932.10
Georgia$490.64$297.75$100.09$856.33
Pennsylvania$495.02$377.06$122.17$1,219.29
South Carolina$497.50$200.10$228.59$717.73
Texas$498.44$340.51$186.70$1,025.64
West Virginia$501.44$319.10$195.04$1,015.57
Kentucky$518.91$391.03$208.59$1,326.78
Alaska$547.34$360.18$141.08$1,048.60
Oregon$553.43$307.31$132.01$934.34
Washington$568.92$250.13$104.11$923.16
Massachusetts$587.75$383.21$147.02$1,252.27
Maryland$599.48$358.68$128.92$1,075.35
District of Columbia$628.09$449.27$230.25$1,307.62
Connecticut$633.95$348.70$126.02$1,108.67
Nevada$647.07$281.70$103.03$777.98
Rhode Island$720.06$247.62$165.38$910.51
Michigan$722.04$214.02$173.04$826.64
Louisiana$727.15$249$96.66$679.56
Delaware$776.50$296.60$113.23$1,186.33
New York$784.98$264.58$123$745.17
Florida$845.05$320.45$153.61$964.70
New Jersey$865.55$267.48$166.89$896.58
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If you have a bachelor’s degree, you may be able to find car insurance for less than the average in your state. But you will want to shop online to ensure you get the best deal in your area. 

How can drivers with bachelor’s degrees keep car insurance costs down?

You may find that car insurance rates are a bit too expensive. If that’s the case, there are a few things you can do to save money on coverage, including:

  • Compare quotes online
  • Take advantage of available discounts
  • Ask for higher deductibles
  • Reduce coverage on older vehicles
  • Improve your credit score
  • Improve your driving record

Most insurance companies offer options for discounts. You can check with your current insurer to see if there are any discounts you may qualify for. You have the opportunity to increase your insurance deductible or reduce the coverage on your vehicle. Still, you need to keep in mind that you’ll end up paying out of pocket in both instances if you ever need to file a claim.

You can work to improve your credit history and driving record to get cheaper insurance rates, as both factors are likely to impact your cost of car insurance.

What’s the best car insurance for people with a bachelor’s degree?

Finding the best car insurance for bachelor’s degree holders will depend on a lot of factors. While most car insurance companies will offer coverage to people with a bachelor’s degree, a few companies offer better coverage at reduced rates to college students or people with degrees. These companies include:

  • AAA
  • GEICO
  • Travelers
  • USAA
  • Esurance
  • Progressive
  • State Farm
  • Allstate
  • Liberty Mutual
  • Hartford

It will help if you compare quotes from multiple companies before choosing an insurance policy from one of the companies listed above. You may be able to find an online insurance degree discount if you shop around. This is the best way to find cheap rates with proper levels of coverage.

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Can I stay on my parents’ insurance if I have a bachelor’s degree?

Your college degree won’t impact how long you can stay on your parents’ car insurance policy, but your ZIP code will.

If you still live in the same house as your parents, you can stay on the same policy with most insurance companies. Plenty of companies offer discounts to families with multiple cars on the same policy or multiple policies in the same household.

Still, you’ll want to check with your insurance company to ensure you are not breaking any future rules that could cost you.

If you do not live in the same house as your parents, you cannot remain on their insurance policy. Instead, you’ll need to shop around and find the proper coverage for your vehicle. But certain companies may offer you a discount on coverage if you let them know you and your parents have maintained a policy for several years.

Car Insurance with Bachelor’s Degrees: The Bottom Line

Your degree may not impact your car insurance rates very much, but your age, location, and the type of coverage you choose on your vehicle are just a few factors that will likely matter to your insurance provider.

To find cheaper rates for car insurance, you can shop for online insurance with a bachelor’s degree. Shopping for coverage online can help you save money, and comparing insurance quotes from multiple providers is a great way to ensure you’re getting the best deal. It may be possible to find insurance degree discounts online.

You can save money on coverage by asking about available discounts. You never know how much you can save on car insurance until you compare rates and pursue discount options with different companies.

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