Getting your first driver’s license is a huge accomplishment, and offers freedom you may not have had before. But new drivers can expect to pay more for car insurance until they build up a driving record.
As the Zebra explains, insurance companies consider new drivers as high-risk because they lack driving history to review. This can be expensive, but there are ways to reduce costs.
Discounts
Many new drivers are surprised to find out that they don’t qualify for the discounts that older and more experienced drivers get. While this is to be expected, it’s important for new drivers to understand that their rates are based on several different factors that vary from company to company. In addition to age and driving history, insurers take into account the type of car that’s driven, whether it has anti-theft devices and how much mileage is driven each year.
Insurers often offer discounts for drivers who belong to certain organizations, such as professional associations, fraternities and sororities. A few insurance providers also have telematics programs that allow drivers to save money by showing good driving habits. For example, USAA’s SafePilot program adjusts insurance rates based on how well the driver operates the vehicle. Drivers who enroll in these programs will usually receive a discount that ranges from 5% to 10%.
Discounts are also available for drivers who complete a defensive driving course. This typically requires that the driver present the insurance company with a certificate of completion or transcript. Insurers may also offer a discount for full-time students who maintain good grades, although this varies from insurer to insurer.
Another way to lower premiums is to buy a car that’s inexpensive to insure. This can include a small or midsize sedan with excellent safety ratings and a low theft rate, as well as vehicles that are categorized as “low-risk” for being stolen, such as minivans and pickup trucks. Car and Driver recommends comparing the cost of insuring a few different models before making a purchase.
Aside from these discounts, new drivers can also save by avoiding expensive extras, such as satellite navigation systems and sun/moon roofs. Insurers can also reduce a new driver’s premium by offering a lower deductible or higher liability limits. These types of discounts can significantly increase a new driver’s savings.
Licensing requirements
Getting your license for the first time can be an exciting milestone in life. It can give you independence and freedom to go places on your own or run errands without having to wait for someone else. However, new drivers typically have to pay more for car insurance because they are a higher risk to the insurers. The best option for most new drivers is to stay on their parents’ policy until they get some driving experience under their belt.
There are some exceptions to this rule, however. For instance, if you have a clean record and you move from another state or country, you will be considered a new driver in the new location. In addition, the length of time that you’ve had continuous coverage can also affect your premiums.
The best car insurance for new drivers will depend on a number of factors, including their age and driving history. While young people may have to pay more for car insurance than those with a good driving history, it’s still possible to find affordable coverage. It’s important to shop around and look for discounts. You can use Clovered’s free tool to compare personalized rates and see how much you could save.
Some states require minimum car insurance coverage, including bodily injury and property damage liability. Other states have additional coverage requirements, such as uninsured/underinsured motorist protection or personal injury protection (PIP). While it’s a good idea to purchase the most comprehensive car insurance that you can afford, keep in mind that you may be able to reduce your rates by taking a defensive driving course or other safe driver training programs. In addition, you can also improve your driving record by keeping your traffic violations to a minimum. These steps can help you save money on your car insurance in the long run.
Required coverage
New drivers must have a certain amount of coverage in order to drive legally. The minimum requirement depends on the state, but usually includes bodily injury and property damage liability. Some states also require uninsured/underinsured motorist coverage and personal injury protection.
Because insurance companies see new drivers as a greater risk, their premiums are usually more expensive than those of older drivers. This is because they don’t have a driving history or insurance record to show that they’re safe drivers. In addition, younger drivers are more likely to be involved in accidents, which is another reason why they’re charged higher rates.
The best way to save on car insurance for new drivers is to add them to an existing policy. This is usually cheaper than purchasing a separate policy, and it can help build a driving history. You can even save money by dropping coverage that you don’t need, like collision and comprehensive coverage. However, you should always discuss this option with an insurance agent to make sure that you’re still fully insured.
Adding a new driver to your existing policy is generally a simpler process than buying a separate policy, but it’s important to know that you may not be eligible for all of the same discounts that are available to those who purchase a new policy. It’s also a good idea to shop around if you decide to add a new driver to your existing policy so that you can get the lowest rate possible.
New teen drivers should be added to an existing family policy if they have regular access to the vehicle, have their own driver’s license and live at the same address. In some cases, you can even add a new teen driver to your policy before they’re licensed in order to save money on their car insurance while they’re learning how to drive.
If you’re moving to the United States and getting a license for the first time, you’ll be considered a new driver, even if you have a great driving record from your home country. In most cases, you can avoid this increase in insurance costs by signing up for a usage-based program such as Drivewise or Rightrack, which allows you to save by being a good driver or driving less.
Optional coverage
Getting your driver’s license can be an exciting milestone that gives you freedom to get where you need to go on your own time. But because new drivers are inexperienced and tend to be more likely to be involved in accidents, insurance companies usually charge higher premiums for new driver car insurance.
The type of vehicle you drive, your age and your driving record are the main factors that determine the specific cost of your new driver car insurance. Some people also qualify for discounts based on their education, occupation or community involvement. Having a good credit history is another important factor that helps you pay less for your insurance. Adding your new driver to an existing policy can help save money as well. For example, teenage drivers often qualify for good student discounts that can reduce their rate if they maintain a minimum B grade point average. And many families save by allowing their children to remain on their parents’ policies until they’re old enough to get their own coverage.
While most states require that all drivers have liability car insurance, some also require other types of coverage such as personal injury protection (PIP) and uninsured/underinsured motorist coverage. Other optional coverages you can purchase include collision and comprehensive coverages.
Collision coverage pays for damage to your own car if you’re at fault in an accident, and comprehensive covers non-accident-related incidents such as vandalism, theft, fire or weather damage. It may also cover your car if it rolls over, or if it’s hit by an object that isn’t another vehicle, such as a tree or a guardrail.
Some states allow you to customize your policy by choosing the deductibles and limits that are right for you. You can also choose additional coverages like roadside assistance and towing and labor coverage that may be included in your policy or offered as an add-on. Other options include usage-based insurance, such as Metromile’s pay-per-mile auto insurance that rewards safe driving and low mileage with lower rates.
Conclusion:
Finding affordable new driver car insurance can be challenging, but it’s possible with some research and effort. Here are some key takeaways to keep in mind:
– As a new driver, you can expect to pay higher premiums due to the higher perceived risk.
– Shopping around and comparing quotes from different insurance companies can help you find the best rates and coverage.
– Maintaining a clean driving record and taking a defensive driving course can potentially lower your insurance rates.
– Consider choosing a higher deductible to lower your premiums, but be sure you can afford the out-of-pocket costs in case of an accident.
– Installing safety features in your vehicle and choosing a less expensive car can also help lower your insurance rates.
FAQs:
Q: How can I find affordable new driver car insurance?
A: To find affordable new driver car insurance, it’s important to shop around and compare quotes from different insurance companies. You can also consider maintaining a clean driving record, taking a defensive driving course, and choosing a higher deductible.
Q: How much should I expect to pay for new driver car insurance?
A: The cost of new driver car insurance varies depending on several factors, including age, location, driving history, and type of vehicle. As a new driver, you can expect to pay higher premiums than more experienced drivers.
Q: What is a deductible?
A: A deductible is the amount you pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible can lower your premiums but may result in higher out-of-pocket costs in the event of an accident.
Q: What is a clean driving record?
A: A clean driving record means you haven’t had any accidents or traffic violations in a certain period. Maintaining a clean driving record can potentially lower your insurance rates.
Q: What is a defensive driving course?
A: A defensive driving course is a class that teaches safe driving techniques and strategies. Taking a defensive driving course can potentially lower your insurance rates.
Q: What are safety features?
A: Safety features are features in a vehicle that are designed to protect the driver and passengers in case of an accident, such as airbags, anti-lock brakes, and backup cameras.
Q: Should I choose a less expensive car to lower my insurance rates?
A: Choosing a less expensive car can potentially lower your insurance rates since it typically costs less to repair or replace in case of an accident. However, be sure to choose a car that meets your needs and is safe for you to drive.
