Cheap car insurance might not seem like something that can apply to a new driver. But if you\u2019re adding new drivers \u2014 namely teen drivers \u2014 to your car insurance policy, you can find options that won\u2019t break the bank. <\/p>\n\n\n\n
In fact, including a teen driver on your policy rather than buying a separate policy for them usually turns out to be the cheapest strategy.<\/p>\n\n\n\n
There\u2019s no specific auto insurance policy for new drivers. Each state sets its own minimum auto insurance requirements, and car insurance for new drivers will look the same as any other driver\u2019s policy. While a lack of driving experience doesn\u2019t change how much insurance you need, it will impact the price.<\/p>\n\n\n\n
You\u2019ll be expected to purchase at least your state\u2019s minimum required coverage, which typically includes bodily injury and property damage liability car insurance. Some states also require uninsured\/underinsured motorist coverage and personal injury protection. <\/p>\n\n\n\n
Below are the standard types of car insurance:<\/p>\n\n\n\n
Liability car insurance pays others<\/em> when you cause a car crash that results in damage or injuries to others. It also pays for your legal defense in case you\u2019re sued because of an accident. Here are some examples of what liability insurance covers:<\/p>\n\n\n\n Liability car insurance is required in every state, except in New Hampshire (where you don\u2019t have to carry auto insurance if you can meet the state\u2019s minimum financial responsibility requirements) and Virginia (where you can pay an uninsured motorist fee of $500 instead of buying car insurance). Even in those states, buying an auto insurance policy is the easiest way to ensure you\u2019re well-protected if you cause a car accident.<\/p>\n\n\n\n The minimum required amount will vary depending on your state. It\u2019s better to buy more than your state\u2019s minimum. That\u2019s because state minimums can be woefully inadequate if you cause an accident with multiple injuries. You\u2019ll be on the hook for any medical expenses above your policy limits. You\u2019ll want enough liability insurance to cover what can be taken from you in a lawsuit.<\/p>\n\n\n\n Uninsured motorist (UM) insurance and underinsured motorist (UIM) insurance pay for your medical expenses<\/em> if someone crashes into you who has no insurance or not enough. This coverage does not pay the driver who\u2019s uninsured.<\/p>\n\n\n\n UM can also pay for your medical expenses if another driver\u2019s insurance denies coverage or goes out of business.<\/p>\n\n\n\n UM coverage pays for:<\/p>\n\n\n\n Uninsured motorist insurance is required in some states. In other states, your car insurance must offer you this coverage, but you can typically reject it in writing. UM is generally a good coverage to have. You\u2019ll usually purchase UM in coverage amounts that match your liability insurance. It is a good car insurance policy to have for new drivers.<\/p>\n\n\n\n If you want coverage for car repair bills, collision and comprehensive insurance cover a wide range of problems. They\u2019re often sold together. If you have a car loan or lease, your lender or leasing agent will likely require you to carry both of them.<\/p>\n\n\n\n If you file a claim under one of these types of auto insurance, your insurance claims check will be reduced by your deductible. For example, if you have a $500 deductible and your car repair bill is $2,000, your insurance check will be $1,500.<\/p>\n\n\n\n Medical payment coverage, sometimes called MedPay, covers medical bills for you and your passenger for injuries suffered in a car accident, regardless of who caused the accident. It\u2019s usually sold in small amounts of coverage, often between $1,000 to $5,000. MedPay is not available in every state.<\/p>\n\n\n\n Personal injury protection (PIP) coverage is similar to MedPay and covers medical expenses for injuries suffered in a car accident for you and your passengers, no matter who caused the accident. PIP generally pays for:<\/p>\n\n\n\n Many states require PIP and it\u2019s sometimes part of the \u201cno-fault auto insurance\u201d laws, which generally require you to make smaller injury claims on your own PIP insurance. PIP is optional in some states and not available in others.<\/p>\n\n\n\n Although there\u2019s no special kind of car insurance for new drivers, rates for inexperienced drivers are usually higher than those for more seasoned drivers.<\/p>\n\n\n\n Insurers generally categorize new drivers as:<\/p>\n\n\n\n Auto insurance companies charge higher rates for teenage drivers because they\u2019re more likely than any other age group to be in an accident. The best way to get cheap car insurance for a teen driver is for the teen driver to be added to their parent\u2019s or guardian\u2019s policy, as long as they share the same permanent address.<\/p>\n\n\n\n Beware that “cheap” is relative \u2014 adding a teen to a married couple\u2019s policy may increase the couple’s rate, too. However, an insurance policy is mostly priced based on the primary driver, so a teen going it alone is likely to pay much more expensive premiums and will miss out on discounts for having multiple drivers and cars insured under one policy. <\/p>\n\n\n\n You can compare multiple new-driver insurance quotes online to be sure.<\/p>\n\n\n\n Some good news: Insurance companies offer plenty of discounts for students and young drivers, and rates will get better over time with safe driving.<\/p>\n\n\n\n Insurance rates typically get cheaper around age 25, provided the driver has a few years of experience under their belt.<\/p>\n\n\n\n Even if you have a long history of safe driving in another country, insurance companies consider you a new driver if you have no U.S. driving history. They access only domestic driving records when setting rates, so your driving history in the U.S. is all that counts. This also goes for your credit history, which is used to calculate auto insurance rates in many states.<\/p>\n\n\n\n Without a valid U.S. driver\u2019s license, you may have a harder time getting an insurance policy, even if you have an international driver\u2019s permit. However, most major insurers do insure people with foreign licenses or international driver\u2019s permits, as long as their state of residence accepts these as valid driver\u2019s licenses. If you\u2019re renting a car, the easiest option may be to use the rental car company\u2019s coverage.<\/p>\n\n\n\n If you plan on staying and driving in the U.S., you\u2019ll need a driver\u2019s license in the state where you live. Some states, like California, will issue a driver\u2019s license regardless of immigration status. Once you have your license, get at least three auto insurance quotes so you can choose the best rate and coverage.<\/p>\n\n\n\n Your license could be expired because you spent some time abroad, or your lifestyle doesn\u2019t require any driving. If you don’t have a driving history to check, insurers can consider you a new driver. And without continuous auto coverage, they may consider you a high-risk driver, which can increase car insurance rates.<\/p>\n\n\n\n Even if you have some driving history, if you\u2019ve had a gap in coverage at all, you\u2019ll likely pay more for insurance, so it\u2019s important to shop around for the best rates. Some companies make an exception for military deployment, so check with your insurer if that applies to you.<\/p>\n\n\n\n Since continuous coverage is one of the most important factors auto insurers consider, some may not accept your application if you\u2019ve had gaps between policies. If that\u2019s the case, you can look for high-risk insurance companies that specialize in coverage for people having a hard time getting insured.<\/p>\n\n\n\n Nationwide offers a wide variety of coverage options, backed by strong financial performance and very few reported customer complaints. A.M. Best gave Nationwide an A+ (Superior) rating for financial stability, while the National Association of Insurance Commissioners (NAIC) noted “minimal” complaints.<\/p>\n\n\n\n Nationwide\u2019s five main coverage options are highly customizable versions of classic coverage types:<\/p>\n\n\n\n However, Nationwide realizes the needs, liabilities and price points of younger drivers might be different, and has adjusted its discount offerings to target this group. The five main discounts afforded to young drivers are:<\/p>\n\n\n\n Progressive’s online interface includes an app and a mobile-responsive website. You can file claims online, chat with an agent or a customer service representative and even attach photos of your accident within the app to help speed up your claims process. Claims payouts are also online, with an auto-deduction feature linked to your bank account.<\/p>\n\n\n\n In addition to its digital features, Progressive offers discounts and bundling options geared toward the younger driver. They’ve developed the Snapshot program, which monitors bad driver habits like distracted driving and rewards safe driving with coverage discounts. Progressive also offers cost-cutting bundles for families, offering home, life and auto insurance as a package.<\/p>\n\n\n\n Although its premiums aren’t the lowest you’ll see on this list, the discounts and digital convenience may appeal to a young driver. The mobile app offers account management and payment, roadside assistance, claim reporting and quotes. <\/p>\n\n\n\n The website itself is also helpful, offering a digital user portal and lots of other information on Progressive quotes, claims and frequently asked questions.<\/p>\n\n\n\n Car insurance companies have found that offering discounts is an effective way to drive business with a younger demographic, and Allstate is no exception. The company promotes multiple discounts, programs and incentives geared towards the younger driver.<\/p>\n\n\n\n Top discount options include:<\/p>\n\n\n\n While some of these discounts can appeal to drivers of any age, they can be especially valuable for drivers who are just starting their on-the-road experience.<\/p>\n\n\n\n Liberty Mutual tops the customer service charts due to its helpful agents. Customers can file claims over the phone, 24\/7. Liberty Mutual also offers a variety of specific and unique discounts for everything from getting a quote before your current policy expires to going on autopay or paperless account management.<\/p>\n\n\n\n Another customer-friendly feature is Liberty Mutual’s deductible fund, which makes contributions to deductible payments. Liberty Mutual contributes $70 per year, while you add $30. If you have an accident, whatever has been built up in the fund goes toward your deductible. There’s also RightTrack, the usage-based insurance gadget and app that can lower your rates based on mileage and driving habits.<\/p>\n\n\n\n Like others in the industry, Liberty offers a variety of discounts targeted at different ages, demographics and driving records. Liberty Mutual customers also have the opportunity to bundle their car insurance with other kinds of policies, including homeowners and renters insurance.<\/p>\n\n\n\n Geico advertises itself as the best car insurance for young drivers, and in many cases, that may be true. The company offers lower rates for young men than most of its competitors, which could make it more attractive on a per-quote level, depending on your needs.<\/p>\n\n\n\n In addition to lower premiums, you can customize your policy with discounts like:<\/p>\n\n\n\n Geico also receives an A++ financial stability rating from A. M. Best and offers in-person agents in addition to a robust app and website. In the J.D. Power Carrier Switching Trends study, Geico was the most popular option for those switching providers.<\/p>\n\n\n\n Although Geico’s rates can be low, qualifying for them might be difficult depending on several factors, including where you live, your age, your driving record and even the kind of car you drive.<\/p>\n\n\n\n New drivers have some of the highest car insurance rates, but age and driving history aren\u2019t the only things insurance companies consider when setting rates. Factors that affect car insurance quotes include:<\/p>\n\n\n\n While new drivers will typically pay more for coverage than those with more experience on the road, there are still ways to save on a policy.<\/p>\n\n\n\n Shop around.<\/strong> Rates can differ tremendously depending on the insurer you use. To make sure you find the best possible price, compare quotes from at least three insurance companies. And continue to shop around each year \u2014 just because you had the cheapest rate a year ago doesn\u2019t mean you still do.<\/p>\n\n\n\n Stay on a family auto insurance policy.<\/strong> If you have the same permanent address as your parents or guardians, compare rates for a stand-alone policy and then compare that to what it would cost to stay on your family\u2019s insurance. It might cost less to stay on your family\u2019s policy.<\/p>\n\n\n\n Look for discounts.<\/strong> Many auto insurers offer discounts that new drivers can take advantage of, including:<\/p>\n\n\n\n\n
Uninsured motorist coverage<\/strong><\/h4>\n\n\n\n
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Collision and comprehensive insurance<\/strong><\/h4>\n\n\n\n
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Medical Payments (MedPay)<\/strong><\/h4>\n\n\n\n
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Personal Injury Protection (PIP)<\/strong><\/h4>\n\n\n\n
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Who needs new-driver car insurance?<\/strong><\/h2>\n\n\n\n
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Teenagers<\/strong><\/span><\/h3>\n\n\n\n
How teens and young drivers can get cheaper car insurance<\/strong><\/h4>\n\n\n\n
Immigrants and foreign nationals<\/strong><\/h3>\n\n\n\n
People with a driving or coverage gap<\/strong><\/h3>\n\n\n\n
Best car insurance providers for new drivers<\/strong><\/span><\/h2>\n\n\n\n
Nationwide<\/strong><\/span><\/h3>\n\n\n\n
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Progressive<\/strong><\/span><\/h3>\n\n\n\n
Allstate<\/strong><\/span><\/h3>\n\n\n\n
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Liberty Mutual<\/strong><\/span><\/h3>\n\n\n\n
Geico<\/strong><\/span><\/h3>\n\n\n\n
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Pricing factors in a car insurance quote<\/strong><\/h2>\n\n\n\n
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How to save as a new driver<\/strong><\/h2>\n\n\n\n
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Recommended Articles <\/strong><\/span><\/h2>\n\n\n\n
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References<\/strong><\/span><\/h2>\n\n\n\n
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