Did you know that about 700,000 drivers in the U.S. lose their cars to theft every single year? Needless to say, that’s one of the main reasons you need to have auto insurance.
Yet, insurance premiums for drivers in their teens and early twenties are much higher than those for those in their late twenties and early thirties. This complicates the challenge of getting affordable car insurance for young drivers.
However, if you search, you may still be able to find reasonable pricing. Keep on reading for our full breakdown of everything you need to know about car insurance policies for young drivers or new drivers.
Car Insurance for Young Drivers and New Drivers: Are You One?
Each state has its own minimum vehicle insurance requirements, and new drivers’ policies will appear the same as those of other drivers.
Despite the fact that a lack of driving experience does not alter the amount of insurance you require, it will have an influence on the cost. New drivers include, but are not limited to, the following individuals:
- Teen drivers
- People who immigrate to the U.S.
- Older individuals without a driving record
Car insurance policies for new drivers aren’t available, either. At a minimum, you’ll be obliged to obtain bodily injury and property damage liability auto insurance in your state. Uninsured/underinsured motorist and personal injury protection are also required in several states.
What Determines the Insurance Premium?
When providing coverage estimates, auto insurance companies consider a variety of criteria.
Many of these are with a driver’s demographics and driving record, while others revolve around the policy itself. Insurers use age and driving experience as major indications of a driver’s risk of getting into an accident.
Factors that affect vehicle insurance premiums include the following:
- Age
- Marital status
- Vehicle make, model and mileage
- Driving history
- Gender
- Location
- Coverage limits
- Credit score
Depending on your age and credit history, you may be able to save money on your car insurance.
So, before you get behind the wheel, it’s a good idea to build up a solid credit score. A low rating, on the other hand, may result in an increase in your rate.
How Teenager Car Insurance Works
New drivers’ vehicle insurance costs are likely to put a damper on a teen’s joy at getting behind the wheel for the first time. As previously stated, age is a significant factor in determining insurance premiums.
Younger drivers are more likely to be involved in an accident, which raises their insurance premiums.
According to the Centers for Disease Control and Prevention, car collisions are the second-leading cause of mortality among teens in the United States.
According to the Insurance Institute for Highway Safety, almost two out of every three adolescent fatalities in 2019 were guys.
Staying on your parent’s policy is usually the greatest method for a young driver to save money on vehicle insurance. Families may save money on their car insurance premiums by taking advantage of a variety of discounts, including:
- Good student discounts (must have B average grades or higher)
- Safe driving discounts
- Defensive driving course discounts
- College student and student-away-at-school discounts
Keep in mind that teenage drivers can’t get their own insurance coverage until they no longer live at the same location as their parents and also have their own vehicles.
Drivers under the age of 25 often receive higher charges. There is no doubt that adding a young driver to a car insurance policy would raise your rates significantly, but the amount may vary depending on your insurance provider, the vehicle, and where you reside.
Basically, you’ll want to explore your options of auto insurance for high-risk drivers.
Car Insurance for First-Time Drivers
Driving for the first time isn’t only a teenager’s responsibility. People of any age who have lived in a major city and depended on public transit or have not had the financial means to own a vehicle are termed “new drivers.”
In addition, if you reside in an area where public transportation is readily available or if you don’t intend on driving often, there are alternatives to standard insurance, such as usage-based insurance. It’s also known as pay-per-mile insurance, and it analyzes this data to establish premiums based on factors like driving habits and distance.
According to the National Association of Insurance Commissioners, usage-based insurance plans often cost consumers less than standard vehicle insurance since they are based on real driving time and excellent driving behaviors.
It’s possible that states don’t have usage-based rules. If you often travel or have a lengthy commute, they’re not the best choice.
Getting Car Insurance as an Immigrant to the U.S.
When immigrants and foreign nationals first arrive in the United States, they are considered new drivers. If you have a clean driving record in another nation, you may still be classified as a novice driver in the United States even if you have a clean driving record in the country of origin.
Car insurance might be more difficult to get if you are an illegal immigrant. Many vehicle insurance firms refuse to insure those who don’t have a valid driver’s license. It’s possible to receive a driver’s license even if you don’t have the required papers from the government.
In 16 states and the District of Columbia, illegal immigrants may get a driver’s license by providing evidence of residence, such as a foreign birth certificate, a valid foreign passport, or a government-issued identification card.
How to Save Money on Car Insurance
If you’re looking to save money on your vehicle insurance, there are a few things you can do.
Car insurance policies for new drivers should be purchased utilizing the following methods.
- Compare Quotes and Companies
Insurers don’t all charge the same premiums for the same level of coverage.
Comparing auto insurance quotes can give you an idea of what you may anticipate spending when you add someone to an existing policy, or how much you can save by switching providers.
- Look For Discounts
Many vehicle insurance companies provide discounts to young drivers and students, but there are other ways to save money.
Check with your insurance provider to see whether they provide a multi-policy discount for plans like house insurance and automobile insurance.
Here are some of the most typical insurance discounts:
- Discount for safe driving
- Multiple policy discounts
- Discount for multiple vehicles
- Discount for purchasing a new car
- Military members get a discount on their purchases
- Discounts for vehicle safety features
- Make adjustments to your coverage
You may save money by modifying your existing vehicle insurance coverage if you have a new driver on the road. To save money in the long run, you may want to consider increasing the amount of money you’ll have to pay out of your own pocket if anything goes wrong with your car.
Another alternative is to remove coverage that you don’t need from your insurance policy. Collision and comprehensive insurance may be unnecessary if you own an older vehicle entirely. Remember that even if you eliminate the remainder of your full coverage policy, you’ll still be responsible for paying for liability insurance.
Recommendations for Teenager Car Insurance
Even if you’ve been driving for years or you’re a novice, comparing quotes from many providers is a
smart method to get the best deal. New drivers should look at Geico, State Farm, and Liberty Mutual for vehicle insurance, according to our insurance experts.
Alternatively, you can use the form below to acquire free insurance quotes from the best companies in your region by reading on to find out more about these companies.
- For a Comprehensive Plan: Geico
Since Geico offers a variety of policies and discounts, we consider it the best insurance company. By having numerous cars insured, you may save up to 25 percent on your insurance premiums.
With an A+ rating from the Better Business Bureau (BBB) for customer service and good business procedures, Geico also enjoys a great reputation.
- The Most Popular Plans: State Farm
You may save money on your insurance rates if your student driver has a B average in school or is away at college and only uses their vehicle a few times a year.
State Farm’s Steer Clear® program for drivers under the age of 25 piqued our interest. If you’re a new driver and don’t know how much insurance to buy, the company’s local agents can help.
Best Car Insurance Policy for Teens and New Drivers: Simplified
So, you might be trying to figure out the process of getting car insurance for your teenagers, or you’re the one who’s new to the road, and you want to get a car insurance premium that won’t murder your financial future.
Regardless, you’re in the market for new car insurance. Hopefully, our guide has shed some light on the nuances of getting car insurance for young drivers.
And, if you liked reading our article, then you’ll love checking out our other tips and explainers. All of them will be available (for your convenience) on our website.