You've put in your time at university and now you have a new diploma in your hand. You are also likely stepping out fully into the adult world, which means you can no longer remain on your parent's auto insurance policy. The increase in costs can be shocking for a new graduate, since you will lose many discounts -- such as multi-policy discounts, your parents' driving history discounts, and any student discounts. As a young adult, you also likely have higher insurance rates simply because of lack of experience. Fortunately, the following tips can help you lower your insurance cost.

Tip #1: Combine policies

You may not own a home yet or have multiple cars to insure, but there are still ways to get that multi-policy discount. Easiest for most new graduates is to combine your rental insurance and auto insurance with the same company. If you pay for your own health or life insurance, you may also be able to combine your auto insurance with these policies. Shop around to make sure the discount is worth switching all of your policies to one provider, though.

Tip #2: Upgrade wisely

A new job and adult salary often results in new graduates upgrading their old college beater to a new car. Think twice and plan carefully when doing so. If you purchase a car on loan or lease, you will be required to carry full insurance coverage. This cost increase can shocking if you only had liability coverage on your college beater. The type of car also affects the insurance rate. For example, a sports car will generally cost more to insure compared to a sedan. When car shopping, stay in touch with your insurance agent so you can make sure the insurance rates won't be too much to handle.

Tip #3: Take a class

Age and gender has a lot to do with insurance rates. People in their twenties are considered higher risk, with males considered the highest risk drivers of all. Time will bring down your rates if you maintain a good driving record, but you may be able to speed up the discounts. Many insurance companies give rate discounts if you take a defensive driving course. Contact the agency to see what courses will qualify you for any discounts. If you already have tickets or accidents in your insurance file, you may be able to counteract the rate hikes by taking driver classes, as well.

For more help, contact an insurance agency, such as Insure With U.S.