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New drivers pay significantly more for car insurance than experienced drivers, but some companies still offer great rates and comprehensive coverage.
Car Insurance Quotes Cheap Young Drivers
Written by: Daniel Robinson Written by: Daniel Robinson Writer Daniel is a staff writer for the Guides team and has written for a number of automotive news websites and marketing companies in the US, UK and Australia, specializing in car finance and car care topics. Daniel is a team leader of guides for auto insurance, loans, warranty options, auto services and more.
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Edited by Rashawn Mitchner Edited by Rashawn Mitchner Editor-in-Chief Rashawn Mitchner is a Guides editor with over 10 years of personal finance and insurance experience.
Reviewed by: Mark Friedlander Reviewed by: Mark Friedlander Consultant Mark Friedlander is director of corporate communications at the Insurance Information Institute (Triple-I), a New York-based nonprofit research and education organization focused on helping consumers better understand insurance. Mark serves as a national spokesperson for Triple-I and handles a wide range of insurance industry media issues. His responsibilities also include leading the association’s communications strategy for the hurricane season and supporting member businesses and media outreach in Florida, where he is based.
Here at the Guides team, we’ll walk you through what new drivers can expect when paying for car insurance, who qualifies as a new driver and what factors shape the price of an insurance policy. Our experts have analyzed and ranked the best car insurance companies in the industry, so we recommend comparing providers to find the best prices.
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How Age Changes Your Car Insurance Rates
The team of guides are committed to providing you with reliable information to help you make the best possible decision about your vehicle insurance. Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to create our ranking of the best auto insurance companies. We’ve collected data on dozens of auto insurance providers to rank the companies based on a number of ranking factors. After 800 hours of research, the final result was an overall score for each provider, with the top-scoring insurance companies at the top of the list.
There is no specific car insurance policy for new drivers. Each state sets its own minimum car insurance requirements and new driver car insurance will look the same as any other driver’s policy. While a lack of driving experience doesn’t change how much insurance you need, it will affect the price.
You are expected to purchase at least your state’s minimum required coverage, which usually includes auto liability insurance for bodily injury and property damage. Some states also require uninsured/underinsured motorist coverage and personal injury coverage. Below are the six standard types of auto insurance.
As a new driver, several factors can affect the level of car insurance you pay, including your location, vehicle, driving record and credit history. Age and driving experience are two factors that are heavily weighted by insurance companies, as they are key indicators of how likely a driver is to be involved in an accident.
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$6,050 per year or $504 per month. Rates are higher for new drivers, especially teenagers and younger drivers, highlighted in the table below:
*The rate averages above are stand-alone rates for teenagers and young drivers, which are among the most common groups of new and inexperienced drivers.
Below are the average annual costs of several popular providers for full coverage insurance for a 25-year-old with a good credit rating and good driving record.
As the table above shows, Nationwide and Travelers offer the cheapest rates for new drivers on average. We found that 25-year-old drivers who qualify for coverage through Nationwide pay an average of $1,633 per year or $139 per month for a full coverage auto insurance policy.
Best Cheap Car Insurance For Teens (2023)
New drivers can pay up to $3,000 a year or more for auto insurance, depending on the company. Insuring new drivers is more expensive due to the lack of driving records. Younger drivers are more likely to be in an accident, which also increases car insurance rates.
Part of the reason insurance companies raise rates for younger drivers is the increased likelihood of an accident due to a lack of experience behind the wheel. According to the Centers for Disease Control and Prevention, traffic accidents are the second leading cause of death among teenagers in the United States. An additional report from the Insurance Institute for Highway Safety shows that nearly two out of three teenagers who died in traffic accidents in 2020 were male.
The best way to ensure you get the lowest rates possible as a new driver is to contact multiple providers for auto insurance quotes. Auto insurance companies look at a number of factors when giving coverage estimates. Some focus on the auto policy itself, while many others are related to driver demographics and driving records.
There is no one surefire way to find the best car insurance rate, but there are a few things you can do to get a lower car insurance premium. We recommend using the following strategies when shopping for auto insurance for new drivers.
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No two insurance companies will give you the same price. Taking the time to compare car insurance quotes will give you a basic idea of what you can expect to pay when you add someone to your existing policy – or how much you could save by switching providers.
When deciding between two companies, reading comparisons like our Allstate vs. Progressive review or our State Farm vs. Geico review can also help. These break down each company’s discount offers and customer reviews side by side.
Since bad credit can make your interest rates go up, getting good credit before you start driving is a smart way to get cheaper car insurance as a new driver.
Improving your credit can seem like a daunting task, but there are many things you can start doing today to boost your credit score. Here are 7 easy steps to start building your credit so you can get lower car insurance rates.
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Several car insurance companies offer discounts for young drivers and students, but there are other ways to save money. Combining policies, such as homeowners insurance with auto coverage, can lower your premium, so check to see if your insurance company offers a multi-policy discount. Here are some common discounts offered by insurance companies:
If you want to save and have a new driver on the road, adjusting your current auto policy can get you a better rate. Opting for a higher deductible usually leads to lower premiums, but it means you have to pay more upfront if you file an insurance claim.
Another option is to drop coverage you don’t need. If one of your cars is older and you own it outright, you can probably stop paying for collision insurance and comprehensive coverage. In most states, you will still have to pay for liability insurance if you choose to drop the remainder of your full coverage policy.
Also known as telematics insurance, usage-based auto insurance measures driving behavior and mileage and uses that data to determine rates. By linking the monthly bill to actual time on the road and good driving habits, usage-based insurance policies typically cost customers less than traditional auto insurance, according to the National Association of Insurance Commissioners.
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Usage-based policies may not be available in all countries. They’re also not a good choice if you drive a lot or have a long commute, and people with bad driving habits can actually see their rates go up.
Although teenage drivers are the first group that comes to mind when we think of new drivers, there are several types of first-time drivers. Here are some examples of people who might qualify as new drivers:
Since the cost of car insurance varies from person to person, there are tips for new drivers that are specific to each of these groups. In the sections below, we will look at some of the specifics of taking out car insurance for each group.
It can be exciting for a teenager to start driving alone for the first time, but car insurance costs for new drivers are usually high. As already mentioned, age is one of the main factors that insurance companies take into account when calculating prices.
Car Insurance For New Drivers: What You Need To Know
Usually, the best way for young drivers to get cheap car insurance is to stay with their parents. Car insurance companies typically offer families several discounts to save money on insurance coverage, including:
Young drivers cannot buy their own policies unless they own their own cars and no longer have the same permanent address as their parents. Remember that drivers under the age of 25 usually pay much higher rates. Adding a young driver to an existing family insurance policy will
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