Although the cost of car insurance for new drivers is significantly higher than it is for more seasoned motorists, there are still cheaper options available. It is important to remember that new drivers over the age of 25 typically get cheaper car insurance rates when compared to those under the age of 25, who incur significantly higher costs. Getting car insurance as a new driver can be costly, but we found that GEICO, Nationwide, and USAA all have affordable options. Finding the cheapest car insurance for new drivers may require some digging and taking advantage of discounts.
Cheap Car Insurance for New Drivers
New drivers do not have a special type of auto insurance. New drivers’ auto insurance policies will look the same as any other driver’s policy because each state establishes its minimum coverage levels for vehicles. A lack of driving experience does not affect the minimum required insurance coverage, but it does affect the cost.
Even though the premium of $1,142 is higher than the market average for a 16-year-old male, it is still relatively low. The company’s $661 six-month premium is also below the industry average for drivers with no prior insurance coverage. Moreover, young and new motorists can benefit from additional coverage options offered by Nationwide.
Newer and younger drivers can benefit from GEICO’s long history as one of the more budget-friendly major auto insurers. The monthly premium of $257 for a male teenager is significantly lower than the premiums offered by most of the industry’s other providers. A new driver’s auto insurance premium averages $105 per year at age 30, which is significantly less than the rates offered by many other companies.
In addition to its general offerings, GEICO has a few tools that are especially useful for new or younger drivers. All new drivers can save money by taking a defensive driving course or driver’s education. In addition, those who maintain a high GPA in school and those who drive vehicles equipped with standard safety features like airbags and anti-lock brakes are eligible for savings.
USAA is known for having some of the best rates on car insurance for drivers of all ages and backgrounds. A six-month policy for a male teenager at USAA costs an average of $1,105, while the same coverage for a male teenager at age 18 with no prior driving record costs an average of $664. To qualify for USAA’s reduced rates, drivers must be either currently serving in the military, a veteran, or a member of a military family. If you qualify, USAA offers a wide variety of services that new drivers might find useful.
USAA is great for people who want to bundle policies or coverages because they offer discounts for having more than one vehicle or policy, as well as for policyholders whose parents or grandparents were veterans.
#4. Erie Insurance
With offices in 12 states across the Northeast, Middle Atlantic, and Midwest, plus the District of Columbia, Erie Insurance is a major regional insurer. Erie provides accident forgiveness to help new drivers recover from their first accident without incurring any premium increases, either temporarily or permanently. However, in most states, you need to have been an Erie customer for at least three years before you qualify for this discount.
Car Insurance New Drivers
It may appear that “cheap auto insurance” and “new driver” do not belong in the same sentence. However, there are affordable options for expanding your auto insurance coverage to include a new driver, especially a teenage driver. In most cases, adding a teen driver to an existing policy rather than purchasing a new one for them will save money.
Essential Car Insurance for New Drivers
Avoid the temptation to reduce coverage to save money on insurance for a new driver. For this reason, it is recommended that new drivers invest in comprehensive auto insurance coverage.
Here are the fundamental kinds of auto coverage that every new driver needs to have:
- Liability insurance: If you are at fault in an accident and other people are hurt or their property is damaged, your liability insurance will cover the costs. If you are sued due to an auto accident, your liability insurance will cover the costs of defending yourself in court as well as any settlements or judgements that may result.
- Collision insurance: When you have collision insurance, it does not matter who was at fault; the insurance company will pay to have your car fixed or replaced. If you hit a stationary object, such as a pole or fence, collision coverage will help pay for the costs of repairs or replacement.
If your car is stolen or damaged by something other than a collision, such as hail, fire, flooding, or animal strikes, and your insurance policy covers such events, the company will pay to have it repaired or replaced.
New Drivers Car Insurance Cost
Several variables can impact your auto insurance premium as a new driver, including where you live, the type of car you drive, your driving record, and your credit score. Insurers take into account age and driving experience because they are strong predictors of a driver’s likelihood of being involved in an accident.
Insurance Quotes for New Drivers
One of the best ways for a new driver to save money on auto insurance is to request quotes from multiple companies. When determining premium costs, insurance firms consider numerous factors. Many factors influence the cost of auto insurance, including those related to the driver’s age, gender, and marital status, to name just a few.
How To Save on Car Insurance for New Drivers
Finding the most affordable auto insurance premiums is not a simple task, but there are several options worth exploring.
#1. Compare Different Car Insurance Companies for New Drivers
You will get different prices from each insurance company. Getting multiple car insurance quotes will give you a good idea of how much it will cost to include a new driver on your policy ,or how much money you could save if you switched companies.
#2. Raise Your Credit Rating
If you want to pay less for your auto insurance as a new driver, it is a good idea to work on improving your credit score before you get behind the wheel.
#3. Seek Out Discounts on New Driver Car Insurance
Many insurance providers provide price reductions to safe young drivers and students, but there are other ways to cut costs. To save money on your insurance, ask your provider if they offer a discount for having multiple policies with them.
#4. Consider Usage-Based Insurance
Car insurance based on how often and how far you drive is called usage-based insurance, but it goes by another name: telematics insurance. Usage-based insurance policies typically cost less than standard auto insurance because they reward safe drivers with a lower monthly premium.
#5. You Should Add the New Driver to Your Car Insurance
If parents want to find the cheapest car insurance for their teens, they should know that adding the teen to a parent’s policy is often cheaper than getting the teen their policy.
#6. Choose a Higher Deductible
You will need to select a deductible if you opt for collision and comprehensive coverage. In most cases, increasing your deductible from, say, $500 to $1,000 will result in significant savings.
Get quotes from multiple insurance companies with increased deductibles by contacting your agent. Take into account that a new driver has a higher crash risk than an adult, and decide whether or not the savings are worthwhile.
#7. Pick Out a Cheap Car
Allowing your teen to drive an expensive sports car may not be the best idea. Instead, consider getting them behind the wheel of a used SUV, sedan, or minivan. They could save money on insurance by trading in their sports car for something safer and easier to repair but at the expense of bragging rights. The reason for this is that insurance companies factor in the value, repair costs, and theft risk of a vehicle when establishing premiums.
Best Cheap Car Insurance New Drivers
New drivers’ insurance premiums will decrease dramatically once they reach age 25, even though they are still quite high for those in their teens and early 20s.
Cheap Car Insurance New Drivers over 25
|Car Insurance Company||Average Monthly Cost for 25-Year-Old||Average Annual Cost for 25-Year-Old|
In some cases, drivers over the age of 25 can expect to pay less for car insurance than younger drivers.
As a general rule, new drivers over the age 25 can get the cheapest deals on auto insurance from Nationwide and Travelers. The average cost of a comprehensive car insurance policy for 25-year-old drivers who are eligible for discounts through Nationwide is $1,633 annually or $139 monthly. Travelers’ average annual premium for a new driver aged 25 is $1,692 ($141/month), which comes to a total of $1,692 ($16/year).
Usage-based insurance is an option to consider if you are a mature first-time driver who does not plan to drive frequently and who resides in a low-car-use area.
What Is the Best Auto Insurance for First-Time Drivers?
Geico and State Farm have the best auto insurance policies for young drivers. Student discounts and multi-vehicle discounts are two ways that policyholders can save money with either of these two insurers.
Which Type of Car Insurance Is Best for New Drivers?
You must maintain at least the minimum level of insurance required by your state The majority of states mandate some form of liability coverage, typically including bodily injury and property damage. However, it only protects those in the vehicles you hit. To ensure the safety of you and your passengers, you should think about investing in a full-coverage auto insurance policy.
Why is Geico so Cheap?
To its customers, Geico offers direct sales. Geico is so cheap because it sells directly to the consumer. Customers can save even more money with the many discounts offered by Geico.
At What Age Is Car Insurance Cheapest?
A driver’s insurance rates usually start to go down when they are in their early 20s. By 25, car insurance rates reduces a little, Then becomes cheaper between the ages of 30 to 70. When a person turns 75, their average premium starts to go up.
What Is the Most Basic Car Insurance?
Liability coverage is the minimum requirement for car insurance. Liability insurance for your vehicle typically falls into two categories: bodily injury and property damage.
What Type of Car Insurance Gives You the Most Coverage?
When it comes to auto insurance, full-coverage policies offer the most protection against things like theft, vandalism, and natural disasters. It is a legally binding agreement meant to cover your expenses in the event of damage to, or total loss of, your vehicle.
What Is the One Type of Auto Insurance Everyone Must Carry?
Most states require motorists to carry liability insurance. Each state has its requirements for the bare minimum of liability insurance that drivers must carry. Liability coverage has two components: If you are responsible for an accident that results in bodily injury to another person, you may be held liable for their medical expenses.
Which Driver Is Most Likely to Pay a High Insurance Rate?
The cost of auto insurance is highest for drivers under the age of 25, regardless of gender. Drivers under the age of 25 and those with less driving experience will have to pay higher premiums for auto insurance.
Is Car Insurance Cheaper for Male or Female?
Since men are statistically more likely to drive recklessly and cause accidents, they must pay higher rates. Women typically pay less for car insurance than men do. However, the amount you pay for insurance depends on more than just your insurer and where you live.
Car insurance premiums for new drivers are typically significantly higher than those of more seasoned motorists. The costs of auto insurance can be reduced, however, by shopping around for multiple quotes from different insurance providers and searching for discounts that apply.
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