Finding affordable auto insurance can be difficult if you’re a new driver. if it’s your first time driving, auto insurers interpret that lack of driving history as a high-risk factor. Because of this, you may see higher rates than an experienced driver.
To get the best auto insurance rate, compare multiple quotes from different providers. Be sure to look for auto insurance companies that have options like getting the parent’s policy, married couple discounts, or combined policies. these can help offset the premium costs of new drivers. after that, buying a policy should be quick. this article will cover:
- How much does new driver insurance cost?
- find cheap car insurance for new drivers
- Who is considered a new driver?
- Teen Drivers: Auto insurance for teen drivers is expensive, as teens are the highest risk group in the eyes of auto insurance companies. this is due to their lack of experience and an overall higher probability of having an accident. According to the CDC, in 2018, nearly 2,500 teens died in car accidents and about 285,000 received treatment for injuries sustained in car accidents. your auto insurance rates reflect this risk.
- Drivers with Gaps in Driving Records: If you haven’t driven in years, don’t be surprised if your auto insurer charges you new driver fees. Lack of a recent driving record is a red flag for auto insurers and increases your risk.
how much does auto insurance cost for new drivers?
According to our research, the average cost of auto insurance for a new driver is $4,762 per year or $397 per month. Due to their inexperience on the road, new drivers pay much more than experienced drivers for coverage. The actual cost of auto insurance for new drivers depends in part on the insurer you choose and the state you live in, among other factors.
The table below shows the average annual rates from different national providers for full coverage auto insurance for new drivers.
how to get cheap car insurance as a new driver
Auto insurance policy options, discounts and programs are available to help you get the best and cheapest auto insurance rates as a new driver. Many of these options apply whether you’re driving for the first time or just getting back on the road after a long break.
share a car insurance policy with a parent
If you’re a young person who just got a driver’s license, the cheapest auto insurance option is probably to buy your parents’ policy. Teenagers are considered the highest risk group of drivers in the eyes of car insurance companies. As such, premiums for teen drivers are notoriously high. If you got your own car insurance policy, it could be much more expensive than joining your parents’.
Getting insurance from your parents could save you hundreds of dollars on your auto insurance costs. It will still increase your overall annual premium, but it won’t come close to the full cost if you had your own auto insurance policy. To give you an idea of the cost difference, the chart below shows the average cost of full coverage car insurance for a new driver with their own car insurance compared to the average rate for a parent’s policy.
You can see from the graph that getting a parent’s car insurance policy saves a significant amount of money compared to a new driver buying their own coverage. Buying someone else’s car insurance policy can save you more than 50%.
People who have never driven before are considered high risk because they are unfamiliar with driving. this will pass over time, and although these drivers do not pose as high a risk as teen drivers, they still do. new adult drivers see higher rates than experienced drivers of the same age.
bundle your insurance
If you already have renters, home or life insurance, check with your provider to see how much you could save by bundling your insurance policies with them. Bundling your insurance lowers the costs of both policies involved. this can help reduce higher auto insurance rates as a new driver.
enroll in a safe driving program
Many auto insurance providers have safe driver programs that, if completed, can help lower your rates. The advantage of such programs for new drivers is that they help set your rates based on your current driving patterns rather than just past driving experience. Such programs often require you to install a telematics device that monitors metrics like your acceleration and braking patterns. meeting the insurer’s criteria may qualify for a discount.
compare multiple auto insurance quotes
Having multiple quotes from different auto insurance companies is a great way to help you get your best policy at the best price. you can make sure you get the minimum liability coverage you need, as well as other options you want, like collision or comprehensive coverage, all at a good price.
drive a safe and affordable car
If this is your first car, the make and model of your car can affect your auto insurance rates. the safety level of the car you are driving can help reduce the risk of an accident. And some cars are considerably cheaper to repair than others, which keeps your insurance rates lower. To save on insurance, look for a car with low repair costs and high safety ratings.
who needs new driver insurance?
If you’re brand new to driving or haven’t been behind the wheel in a while, auto insurers will charge you higher rates for a policy. the groups that most often fall into this category are:
Major auto insurers provide coverage for new drivers, but they may not be your best option. Be sure to check with the local and regional auto insurance companies in your area. you might find a cheaper rate. Also, remember that getting a car insurance policy with a parent or partner can lower your premium considerably.
Average rates used in this article are based on thousands of comprehensive coverage quotes in random national zip codes for drivers ages 16-19 with excellent credit and no accidents. Vehicle used for data is a 2012 Honda Accord LX with 16,000 annual miles.
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