Insurance for first-time drivers

First-time drivers can learn about insurance and what it entails to get affordable car insurance from the best companies. New drivers are often considered high-risk by insurance companies due to their inexperience behind the wheel. New drivers can get multiple quotes to find the best rates and coverage for their car insurance.

New drivers need car insurance

Even if your driving skills are excellent, even a novice driver, it is still possible to make mistakes while learning the ropes. The longer you practice driving, the less you are seen as a high-risk driver by insurance companies. Any coverage that exceeds the minimum state liability limits will not be covered by your car insurance policy.

Insurance experts recommend that you purchase as much liability insurance coverage as possible. The liability insurance covers property damage and injuries to the other person if you are involved in an accident. You could be financially responsible for any excess liability insurance you have, depending on where you live.

Take, for example, Virginia’s minimum liability requirements. Virginia requires that you have a policy of 25/50/20. This means that your policy must include:

  • Maximum $25,000 per person to cover bodily injuries suffered in an accident
  • Maximum $50,000 per accident for bodily injury (meaning that your insurance company will pay the maximum amount per accident for any physical injuries you cause, regardless of how many were involved).
  • Property damage per accident is limited to $20,000 (cars, signs, fences and homes included).

Take this as an example: With the base 2020 Ford Explorer priced at $33,000, your property damage coverage could easily surpass your policy limits. You might want to consider buying as much liability coverage as you can afford in order to protect yourself from financial hardship.

You may also be eligible for additional coverage

As a new driver, you are at higher risk of getting into an accident. While liability insurance covers you if you cause an injury to another person, you can also get medical and physical damage coverage for your vehicle. These additional coverages should be considered when you purchase first-time car insurance.

  • Comprehensive coverage: This covers your car from such things as vandalism, theft, fire, hail, and damage from animals.
  • Uninsured/underinsured coverage: This will cover you if you’re hit by an uninsured driver or underinsured motorist. It may also help pay for your medical bills, and maybe your car’s repair costs or replacement costs depending on where you live.
  • Collision coverage: If you are involved in an accident with another vehicle, signpost, or property such as a fence, gate, or sign post, this covers you.
  • In the event of an accident, medical payments coverage is available. This covers both the driver’s and the passengers’ medical costs.
  • Personal injury coverage: This covers not only medical expenses for an accident but also helps with loss of income or childcare. In all states, personal injury protection is not offered.

These coverages provide additional peace of mind for new drivers.

How to get cheaper car insurance for first-time motorists

It may take patience and time to find cheap auto insurance for novice drivers. To find the lowest rates, shop around. To reduce the cost for new driver car insurance, you should look for companies that offer a variety of discounts. Many auto insurance companies have a discount page. Talk to a customer service representative if you are unable to find it.

You might be eligible for discounts such as:

  • Course in defensive driving: Many insurance companies offer continuing driver education courses.
  • Clear driving record: To get this discount, it is important to keep your driving record clear of accidents and speeding tickets.
  • Security system: Alarms, location devices and other security features can protect your vehicle and help you save money.
  • Good student: Keep a high grade point average and you may see your monthly insurance cost drop with some insurers that reward students and drivers who are good.
  • Family policy: It can be less expensive to add a driver to a family policy than adding a driver to their own policy. This distributes risk more evenly among multiple policyholders.
  • Multi-policy: Pair up your car insurance with homeowners, apartment or even boat insurance to receive a discount on each policy, with most insurers.
  • Multi-car: Insuring multiple cars with the same company will lower your premium.
  • Full pay: To save money, you must pay your premium each year in full.

Each company offers a different discount, but it is worth looking for the savings. You might be able save significant amounts if you combine them.

Laura Adams, an insurance expert, says “Another way to make car insurance affordable for new drivers is to enroll in usage-based insurance (UBI). These programs utilize technology to assess your driving habits and patterns. This includes how fast you turn, hit the brakes, speed, mileage, and times you are on the road. If the data proves that you are a safe driver you may be eligible for discounts up to 50% depending on which insurer you have.

New drivers deserve the best insurance

Finding the right company is key to finding the best car insurance rates for new drivers. Some of the best rates are offered by the largest car insurance companies. Bankrate compared the coverage and discounts offered by some of the most well-reviewed and popular insurance companies. The following four companies were particularly recommended for first-time car owners:

  • Geico: Geico offers lower rates than most other companies, in addition to a wide range of discounts to help make your premium more affordable. Geico offers a great student discount as well as membership discounts for certain fraternities, honor societies, and sororities to full-time students.
  • Nationwide: Nationwide is another top provider that offers competitive rates that new drivers may benefit from. You can either get a discount for students or accident forgiveness to protect your rates in the event of an at-fault crash.
  • State Farm: On average, State Farm charges more than other top providers reviewed by Bankrate, but it is still one of the more affordable national providers available. State Farm offers a simple app that allows new drivers to make changes to their policies, report an accident, and pay. They also offer discounts to lower your premium such as being a safe driver or completing a driver education course.
  • USAA: Available to active and former military (as well as their immediate family), USAA offers some of the best rates and customer service in the industry. USAA also offers accident forgiveness protection, and new drivers might consider roadside assistance to help if the car is broken down, or you need assistance while on the road.

Local companies may offer cheaper car insurance, but national companies often offer better discounts and incentives. It is a good idea to get quotes from several insurers in order to find the right fit.

New drivers insurance costs

Lack of experience often means new drivers pay higher car insurance rates, especially teen drivers. An average cost for car insurance for an 18 year old driver is $2,197 per annum for males and $1.753 for women. The driver’s age, location, annual driving distance, car type, age and coverage you select can all impact the rates. If you are a new driver who is 25 or older, you might see lower rates overall, even if you are an inexperienced driver.

Questions frequently asked

Why is it that first-time drivers are more likely to pay for insurance?

New drivers are more likely than experienced drivers to make mistakes. This is why car insurance for them is often more expensive. Inexperience has historically meant a higher chance of an accident and thus a higher risk for insurers. High risk usually means higher premiums. New drivers who are experienced and have good driving habits will likely see their rates drop.

What happens when new drivers have their rates drop?

New drivers will see their rates drop once they are in their twenties or after several years of safe driving. Laura Adams, an insurance expert, says that car insurance rates will decrease as you age and get more experience behind the wheel.

Which car is more affordable for new drivers to insure – an older car or a new one?

New drivers might find it expensive to get insurance. Some drivers may consider the insurance rates that could be affected by their vehicle model and make. Because older cars are less expensive to replace, they are usually cheaper to insure. Safety ratings can affect car insurance rates for new drivers. Talk to your insurer about your options and discuss them with him.