When you’re looking for the best car insurance for first-time drivers, it’s crucial that you do your research and look for providers that offer policies with sufficient coverage.
While securing a low rate is particularly appealing to new drivers, it’s not as important as finding an insurance provider that can process claims reliably and who makes sure you’re covered thoroughly in the event of an accident.
Insurance providers all have different ways of calculating risks, but they all agree that writing policies for first-time drivers come with higher risks. That’s why rates for new drivers are generally higher than those of an average insurance policy.
You can find a good policy at a reasonable rate by taking the time to research multiple insurance providers and getting several quotes. When looking for the best car insurance for new drivers, it’s also essential to ask the right questions.
The information below explains the unique insurance needs that first-time drivers have and helps you find affordable coverage from the industry’s top auto insurance companies.
What’s The Cost Of Car Insurance For First-Time Drivers?
When insurance companies determine rates for a first-time driver’s insurance, they use complex equations that take into account many risk factors.
In addition to driving experience, insurance underwriters look at other elements, such as:
- Your age and gender
- The make, model, condition, and year of your vehicle
- Your credit history or the credit history of the primary policyholder
- How much you drive each year on average
- Other drivers insured on your policy
- Certain conditions of your geographic region
It’s important to keep in mind that each insurance provider looks at these factors differently when quantifying the risks associated with a new driver’s insurance policy.
First-time drivers are considered a higher risk than other drivers due to their inexperience on the road. They’re also known for making more poor decisions on the road and having a longer reaction time, which can lead to increased accident rates among new drivers.
According to the Centers for Disease Control and Prevention, fatal car accidents are the leading cause of death among young drivers. The Insurance Information Institute states that for every 100,000 registered drivers in the United States, 36.76 of new drivers aged 16 to 20 were involved in fatal crashes.
The preferred way to find the best car insurance for first-time drivers is to do some comparison shopping, so we’ve gathered some information to help you understand the average rates for first-time driver’s insurance.
We’ve based these examples on average rates in California, the most populous state in the United States, and therefore, a good sample of the rates you can expect to pay for first-time driver’s insurance.
- A single female who has one to two years of driving experience and no violations, who drives between 7,600 and 10,000 miles per year, can expect to pay between $762 and $4,671 for basic liability insurance on a Toyota Camry in the city of Clovis in Fresno County. The average price for all quoted companies rests around $1,675.
- A single male with one to two years of driving experience and no violations, who drives between 7,600 and 10,000 miles per year, can expect to pay between $784 and $3,870 for basic liability insurance on a Toyota Camry in the city of Encinitas in San Diego County. The average price would be $1,751.
Drivers who’ve been licensed for less than one year can expect to pay rates that are even higher than these, especially when purchasing the best car insurance for first-time drivers.
Also, adding in one at-fault accident to the single male’s record —unfortunately, a common occurrence for this age and type of driver—causes rates to increase dramatically. His new average would be $2,300, and some companies even show quotes above $3,500.
Companies With The Best Car Insurance For First-Time Drivers
Many companies in the country offer first-time driver’s insurance, but if you’re looking for the best car insurance, it’s vital to take your time researching prices, discounts, coverage options, and financial strength ratings.
Start by determining which carriers have features that encourage good driving habits, and who give discounts to young drivers and their families.
While this company isn’t an insurance provider, it’s an insurance brokerage with access to most of the top insurance companies throughout the United States.
Working with a broker provides a unique experience since they give coverage recommendations and negotiate with insurance providers on your behalf. New drivers who are uncertain of where to start when buying insurance may find shopping with Kelly Klee to be the simplest way to find affordable car insurance.
This online marketplace has access to quotes from more than 40,000 insurance companies across the country.
QuoteWizard makes it easy for users to find the best car insurance for first-time drivers by letting them input basic details and receive quotes from multiple providers in their area. For new drivers who aren’t sure where to find the right policy, QuoteWizard is a great place to start.
This insurance provider rewards young drivers with discounted rates for performing well in school.
New drivers who are enrolled in high school, college, or university programs that maintain a “B” average or higher can submit their grades to receive a discount. Customers who choose to share a policy with family members can also qualify for a discount from Progressive for insuring multiple vehicles on the same policy.
Progressive also encourages new drivers to keep a good record by rewarding good driving behavior with discounted rates and accident forgiveness.
New drivers can find several ways to save on their policy with this insurance provider.
High school, college, and university students under the age of 25 may be eligible for a good student discount if they can provide proof that they’ve kept a “B” average or higher. New drivers who share their policy with family members can also save with a multi-vehicle discount.
Liberty Mutual also encourages new drivers to practice safe driving habits by giving discounts to those who complete driver training programs and maintain a clean driving record for several years.
You can earn an 8-percent discount as a new driver with this Travelers by completing a driver training program and maintaining safe driving habits and a clean record.
Young drivers who perform well in school and keep a “B” average or higher also qualify for discounted rates on their insurance policy.
This company is an excellent choice for first-time drivers looking for insurance. Its simple purchasing system and reliable claims process make it one of the most user-friendly insurance providers in the industry.
Just like other companies, Esurance offers discounted rates to young drivers who maintain a “B” average or higher in school, as well as a multi-vehicle discount that’s ideal for new drivers that share their policy with family members.
You’ll find that Allstate is another premier provider well-suited for first-time drivers. Its teenSMART driver education program is tailored to teenage drivers, since those who complete it qualify for discounted insurance rates.
State Farm also encourages driver education for new drivers. Those who complete and pass driver training programs can save up to 25 percent on their insurance policies.
First-time drivers can also save with State Farm’s Steer Clear and Drive Safe & Save program, which rewards new drivers that maintain safe driving habits with a discounted insurance rate.
USAA is exclusive to military families. It encourages parents to add new teen drivers to their policies by offering discounted rates to students who perform well in school or who complete driver education programs.
It also offers a multi-vehicle discount to families who share a policy.
First-time drivers who are still in school can save up to 15 percent on their insurance policy with MetLife by maintaining a “B” average or higher.
Once new drivers have two years of experience behind the wheel, they can increase their savings by completing a defensive driving program.
How To Reduce The Cost Of Your Car Insurance
While car insurance seems pricey, especially for first-time drivers, it’s a necessary expense. If you’re caught driving without valid insurance, you may end up with a suspended license or vehicle registration, and might even receive expensive fines.
In some states, multiple offenses can even lead to jail time, and if you’re in an accident and don’t have insurance, you can be held responsible for all damages, including auto repairs and medical bills.
Therefore, it’s important to find first-time driver’s insurance rates that suit your budget. Luckily, there are several ways to help reduce your premiums.
The following tips can help you reduce your rate:
- Request an increase to your deductible
- Combine all vehicles and drivers in your household into a single policy
- Bundle your home and life insurance policies with your auto policy
- Reduce your mileage by carpooling or taking public transit
- Reduce coverage on older vehicles
- Complete driver training and advanced driver education courses
Once you’ve chosen an insurance provider that fits your needs, it’s time to secure a favorable quote. When you discuss rates with providers, supply them with thorough and accurate information so that you don’t miss out on valuable discounts.
Make sure you have the following data on hand when you’re purchasing your policy:
- Two pieces of identification, at least one should have a photo
- Your full home and mailing address
- The age and date of birth for all drivers on your policy
- Honest information about any infractions or traffic tickets on your record
- Information about where you’ll be parking your vehicle when you’re at home
- Details about your vehicle including the make, model, year, condition, safety features, and VIN
- An estimate of how many miles you drive each year
- Your estimated budget for an insurance policy
- Proof of school grades if you or anyone on your policy is a student under the age of 25
If you prepare yourself with the above information and at least 3 competing quotes, you’ll have a stronger chance to secure the lowest possible insurance rate with your provider.
Also, remember to purchase enough coverage for your driving needs, since skipping on coverage won’t save you money in the long run.
Now that you understand of how insurance companies calculate their rates, you’re well on your way to find the best car insurance for first-time drivers.
Find and compare rates with confidence, ask about discounts, and you’ll find the best policy available.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.