Cheap Car Insurance for New Drivers
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Are you a new driver on the hunt for affordable car insurance? Many new drivers struggle to find cheap car insurance when they first start driving. This is because car insurance companies consider them to be at a higher risk for accidents. As a result, they charge more for their premium to offset this risk.
However, all hope is not lost. It is still possible to find cheaper car insurance even if you’re new to being behind the wheel.
This article will dive into how new drivers can secure cheap car insurance and what you can do to save money on your insurance policies.
Who’s Classified as a New Driver?
While anyone can be classified as a new driver, most new drivers belong to three groups: teenagers, immigrants, or drivers with a gap in insurance coverage.
Many new drivers on the road tend to be teenagers. Their lack of experience behind the wheel results in insurance companies charging them higher auto insurance rates.
One of the best ways to avoid higher teen insurance rates is to add them to their parent or guardian’s insurance policy. While adding your teen to your policy will cause your premium to rise, it’ll still be significantly cheaper than if they got a standalone policy. You’ll also qualify for discounts for insuring multiple vehicles under the same policy.
Teens and young drivers won’t pay steep car insurance rates forever thankfully.. Insurance rates generally decrease once drivers reach 25 years of age, as they’ve gained more experience on the road.
Also, see if your insurance company offers a good student discount. If a teen has a B average, they can typically save on their premium. While savings might be small, every little bit helps!
Even if you’ve been driving for years in another country, insurance companies view drivers with no U.S. driving history as new drivers. It’s difficult to secure auto insurance without a U.S driver’s license, even for drivers with an international driving permit.
If you plan on living in the U.S. long-term, you’ll need first to get a U.S license. Once you have this, you can start shopping for car insurance.
Drivers with a Gap in Insurance Coverage
Drivers who went a period without auto insurance are also considered new drivers. Whether you let your license expire after spending time abroad or previously canceled your insurance, these are all considered gaps.
Insurance companies view drivers without continuous auto insurance as not just new, but high-risk drivers. Some insurers may even refuse to insure you if you have a gap in coverage..
Whether you’re a teenager, immigrant, or have a gap in your auto insurance coverage, you’ll want to shop around to compare car insurance rates between different companies. Doing this before making a final decision can help you avoid overpaying for your auto insurance.
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How New Drivers Save Money on Car Insurance
Although it’s common for new drivers to pay more for car insurance than more experienced drivers, there are ways to save. Here are a few things new drivers can do to find the cheapest car insurance rates.
Shop Around and Compare Rates
Each auto insurance company has its unique method for calculating insurance premiums. So don’t take the first quote you get and run with it. Take your time to shop around and compare rates between several Insurance companies.
Instead of going to each insurance company’s online page individually, save time using an online auto insurance comparison tool. This way, you can see dozens of rates at one time and pick the company that best fits you.
Opt for Higher Auto Insurance Deductibles
A simple way to lower your insurance rate is to opt for a higher auto insurance deductible. Your deductible is the amount you pay out-of-pocket when filing a claim. The higher your deductible is, the lower your insurance premium will be.
However, if you choose a higher deductible, make sure you can afford to pay for it in case of an accident. Otherwise, you’ll be stuck with a car that needs repairs you can’t afford.
Join an Existing Policy
Instead of striking out on your own, consider joining an existing auto insurance policy. If you’re a young driver with the same permanent address as your parent or guardian, it may be more cost-effective to join their policy instead of purchasing your own. Compare rates to see which option is better for you.
Adjust Your Coverage Levels
All drivers, especially new ones, should purchase enough coverage to protect themselves and their assets. However, drivers trying to save money may decide that they don’t want optional coverage such as comprehensive or collision coverage. If you fall into this category, you might choose only to purchase the state minimum amount of coverage for your vehicle.
Look for Discounts
While there are several ways to lower your monthly car insurance bill, looking for discounts is one of the best ways to save. Not all discounts are advertised by insurers, so ask your insurance agent what discounts your company offers and find out which ones you qualify for.
Common Car Insurance Discounts for New Drivers
New drivers are more likely to pay higher premiums than more experienced drivers. That’s why looking for discounts is a great way to save money on your car insurance policy. Auto insurers offer various discounts, so you’ll likely qualify for a few, saving from 5%-40% on your premium. However, remember the amount you save will vary based on your insurance company and where you live.
Here are some common discounts available to new drivers.
- Good Student Discount: Many teenage drivers and college students may qualify for the good student discount to save on their premium. Companies typically consider you to be a good student if you have a B average or 3.0 GPA or higher. Some students may also use their SAT, ACT, or PSAT scores to qualify. This discount can save you up to 15% on your insurance premium.
- Multi-Driver Discount: Many new drivers join existing policies of family members living in the same house. Doing so allows you to save money by insuring multiple vehicles under the same policy. You can shave up to 25% off your premium with this discount.
- Anti-Theft Discount: Although vehicles come with car alarms, these aren’t the most effective at preventing theft. Equipping your vehicle with more effective anti-theft features like vehicle disabling or a vehicle tracking system can save you anywhere from 15%-20% on your comprehensive coverage premium.
- Defensive Driving Course Discount: Save 10% or more on your auto insurance while gaining more confidence on the road by taking a defensive driving course. You can refer to the National Safety Council to find reputable courses you can take online. You should also double-check with your insurance company to ensure the course will earn you a discount before enrolling.
- New Customer Discount: Sometimes, being a new driver isn’t so bad. Insurance companies love to reward new customers. You can see savings from 5%-10% during the first year you have an insurance policy with your insurer.
- Paid-in-Full Discount: One of the easiest ways to save on auto insurance as a new driver is to pay your policy in full. Insurance companies will often offer a discount if you opt out of making payments monthly.
- Paperless Billing Discount: Want to help the environment and save money on your insurance premiums? Opt to receive all your policy documents online and save a few extra monthly dollars.
How Are Car Insurance Rates Affected by Your Driving Experience?
Two of the main factors used to calculate your auto insurance rates are age and driving experience.
Age and experience often go hand in hand because insurance companies assume the younger you are, the less driving experience you have.
But, even if you’re an older driver, lack of driving experience can still lead to the same sticker shock a younger person would face.
This is because drivers with less experience on the road are more likely to get into auto collisions, which will cost insurance companies more in the end. Even if you’ve never been in an accident, being young and lacking experience behind the wheel can lead to you paying some of the highest rates for car insurance.
How to Secure Car Insurance as a New Driver
You’ll need to follow a series of steps to secure car insurance as a new driver. Here’s how to get affordable auto insurance as a new driver in five easy steps:
- Determine the level of coverage you need: There are plenty of coverage options offered by insurers. While most states have minimum liability coverage requirements, you might opt for full coverage to cover just about every potential scenario while on the road. It is good to explore the best coverage for you and what add-ons you may want before you start searching for quotes.
- Collect personal and vehicle information: Once you’ve decided the type of coverage you need, you want to prepare to get car insurance quotes. You’ll have to provide your driver’s license number, the make and model of your car, the VIN of your vehicle, and any other pertinent personal information. So, gather this ahead of time.
- Search for insurance and get quotes: Now that you have all your personal information handy, it’s time to start getting quotes. Most insurance companies allow you to request quotes online. Keep in mind that requesting quotes from each individual company can be unnecessarily time consuming. A better way to compare quotes is to use an auto insurance comparison calculator. Within a matter of minutes you’ll receive the cheapest rates available from some of the top auto insurance companies out there. At Compare, we look at rates from over 65 insurers to find the cheapest premiums for you.
- Pick a company: After taking a look at all of your quotes, you can narrow down your options and do a bit more research on what each company has to offer. Once you’ve chosen the best one for you, it’s time to pick your insurance company and proceed to the last step.
- Purchase insurance: The process of purchasing insurance might vary depending on which company you select. Some will allow you to complete the entire process online, while others require you speak to an agent on the phone or finish other steps. Either way, signing up for a plan is relatively easy once the legwork of finding the cheapest car insurance company is done.
Enter your zip code below and within just a few minutes we’ll provide you with the most affordable auto insurance rates on the market based on your coverage needs and driver profile.
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Cheap Car Insurance Companies for New Drivers
There are dozens of car insurance companies out there to choose from. Finding cheap car insurance for new drivers will depend on which category of “new driver” you fall under. Our search revealed that the following companies were reported as good options for cheap car insurance:
- State Farm
While these companies offer cheaper rates to new drivers, each driver’s premium will vary depending on their unique circumstances.
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Best Car Insurance Companies for New Drivers
So, which companies offer the best car insurance for new drivers? We’ve done the heavy lifting for you and found a few options for you to choose from. Here are three companies that are the best choices for each category of new drivers.
Best Car Insurance for Teens – Geico
Geico is a great car insurance company to insure your new teen driver. They have an impressive reputation and are known for insuring millions of families. In addition, Geico offers a wide range of coverage options and discounts.
For example, they offer a good student discount of up to 15% and savings of up to 25% for insuring multiple vehicles. In addition, their A+ rating from the Better Business Bureau shows that their customer service is well reported.
Best Car Insurance for Immigrants/ Foreigners – Nationwide
Nationwide is an affordable option for drivers with no previous driving history. Since it takes most immigrants a while to build up a favorable driving record, they can choose Nationwide as their first insurer.
It also offers accident forgiveness. This add-on will prevent your insurance rates from spiking if you get into an accident while adjusting to driving in the U.S.
They also provide roadside assistance to help you if you get stranded or are experiencing car trouble in an unfamiliar area.
Best Car Insurance for Drivers with Coverage Gaps – Allstate
Allstate offers some of the cheapest coverage for drivers over 25. If you’re just returned from an extended trip abroad, you’ll find that Allstate has affordable rates for drivers from all walks of life. Their extensive list of discounts gives you plenty of ways to save. Also, drivers who only want state-minimum car insurance will find their prices exceedingly agreeable.
New Driver Cheap Car Insurance FAQs
How does my age affect the cost of car insurance?
Drivers under 25 years old can expect to pay more for car insurance than experienced drivers. Since younger drivers tend to lack experience behind the wheel, they are more prone to accidents. The increased risk of collisions makes insurance companies charge them higher rates.
Who is considered a new driver by insurance companies?
Insurance companies typically classify new drivers as teenage or young drivers, immigrants, or those with a lapse in auto insurance coverage.
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