The right way to save on car insurance for brand spanking new drivers [2021 guide] – Market statement

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Inexperienced behind the wheel of a car usually translates into higher insurance rates, but doing some homework on prices can result in savings. As with any other driver, finding the best car insurance for new drivers will require you to research and compare prices from multiple providers.

This guide provides an overview of what new drivers can expect when paying for car insurance, who to consider as a new driver, and what factors determine the price of insurance. Enter your zip code below to compare free offers from top providers in your area.

In this article:

  • Who is the new driver?

  • Car insurance for teenagers

  • Vehicle insurance for first-time drivers

  • Get auto insurance after moving to the United States

  • Tips for Saving Money on Car Insurance for New Drivers

  • Some options for car insurance for new drivers

  • frequently asked Questions

  • Our methodology

Who is the new driver?

Each state has its own minimum car insurance requirements, and new driver car insurance looks just like any other driver's policy. A lack of driving experience doesn't change the amount of insurance you need, but it does affect the price. Here are some examples of people who might be considered new drivers:

  • Teenage driver

  • Older people without a license

  • People who immigrate to the USA

There is also no special car insurance for new drivers. You are expected to take out at least the minimum coverage required by your country, which usually includes personal and property damage liability insurance. Some states also require insurance for uninsured / underinsured motorists and personal injury protection.

What influences the insurance price?

Auto insurance companies consider a number of factors when making estimates of coverage. Some focus on car policy itself, but many others have to do with a driver's demographics and driving history. Age and driving experience are two factors that insurers weigh heavily as they are key indicators of the likelihood of a driver being involved in an accident.

Here are some of the key factors influencing auto insurance deals:

  • old

  • gender

  • marital status

  • location

  • Vehicle make, model and mileage

  • credit-worthiness

  • Driving history

  • Coverage Limits

Car insurance tariffs according to age and creditworthiness

Building up a good loan before you start driving is a great way to get cheaper auto insurance as a new driver. On the other hand, a bad score can drive your rate up. Here you can see how car insurance rates differ between two different age groups and across three credit ratings according to our cost estimates.

credit rating

Annual cost for 24 year olds

Annual cost for 35 year olds

Good

$ 2,377

$ 1,711

industrial fair

$ 2,957

$ 2,102

poor

$ 4,419

$ 3,191

Car insurance tariffs by provider

Car insurance for new drivers can vary widely depending on where they are purchased. Below are some popular providers with the annual cost for a 24 year old with good credit and driving experience.

Car insurance company

Annual cost for 24 year olds

USAA

$ 1,417

Geico

$ 1,645

District farm

$ 1,755

Progressive

$ 2,016

Allstate

$ 3,000

Car insurance for teenagers

It can be exciting for a teenager to drive solo for the first time, but the cost of new driver car insurance probably won't bring a smile to your face. As mentioned earlier, one of the most important things insurance companies look for when compiling prices is age.

One of the reasons insurance companies are raising tariffs for younger drivers is because they are more likely to have an accident. According to the Centers for Disease Control and Prevention, car accidents are the second leading cause of death among teenagers in the United States. Additional reports from the Road Safety Insurance Institute show that nearly two out of three teenagers killed in accidents in 2019 were men.

Usually the best way for young drivers to get cheap auto insurance is to keep their parents' policy. Auto insurance companies typically offer families several discounts to save money on coverage, including:

  • Discounts for safe driving

  • Good student discounts (must have B-grades or higher)

  • Discounts for college students and students outside of school

  • Discounts for defensive driving courses

Remember, young drivers cannot buy their own policies unless they no longer have the same permanent address as their parents and also own their own car. Also, keep in mind that drivers under the age of 25 tend to pay much higher prices. Adding a young driver to an insurance policy will still increase your premiums significantly, but the amount will vary depending on your insurance company, vehicle and where you live.

Vehicle insurance for first-time drivers

It's not just teenagers who drive for the first time. A person of any age who has lived in a large city and relied heavily on public transport or who was unable to buy a car could also be considered a new driver.

As mentioned earlier, things like the vehicle you choose, your age, your location, and your creditworthiness all affect the price of car insurance for new drivers. Even if you may not have any experience on the road, those over 25 are likely to see lower rates than new teenage drivers.

Also, if you live in an area that has public transportation or don't plan to drive a lot, consider that there are alternatives to traditional insurance, such as: B. a usage-based insurance. Also known as pay-per-mile insurance, this type of coverage measures things like driving behavior and mileage and uses this data to determine tariffs. By linking the monthly bill to actual time on the road and good driving habits, usage-based insurance typically costs customers less than traditional auto insurance, according to the National Association of Insurance Commissioners.

Usage-based policies may not be available in every state. They're also not a great option if you drive frequently or drive long hours to work, and people with bad driving habits may actually see their rates spike.

Get auto insurance after moving to the United States

Immigrants and foreigners can be classified as new drivers the first time they enter the United States. This is because auto insurance companies typically review domestic driving records so you have a clean driving record in another country and after moving to the states.

As an immigrant, it can be more difficult to get auto insurance. Many auto insurance companies reject applicants without a valid driver's license. If you don't have the proper government papers, you may still be able to get a license depending on where you live.

According to the National Conference of State Legislatures, 16 states and the District of Columbia allow undocumented immigrants to obtain a driver's license if they can present items such as a foreign birth certificate, valid foreign passport, or proof of residence.

Some states that offer driver license services to undocumented immigrants are:

  • California

  • Delaware

  • Hawaii

  • Maryland

  • New Jersey

  • New Mexico

  • Virginia

Tips for Saving Money on Car Insurance for New Drivers

There is no surefire way to find the best price on auto insurance, but there are a few things you can do to get lower prices. We recommend using the following strategies when purchasing new driver car insurance.

Compare companies

No two insurance companies will offer you the same price for coverage. Taking the time to compare car insurance quotes will give you a basic idea of ​​what to expect when adding someone to an existing policy – or how much you could save by switching providers. When deciding between two companies, it can also be helpful to read comparisons like our Allstate vs. Progressive Review or State Farm vs. Geico Review. These break down the discount offers and customer ratings of each company side by side.

Look for discounts

We mentioned earlier that several auto insurance companies offer discounts for young drivers and students, but there are other ways that you can save money too. If you combine policies such as home insurance with your car insurance, you can lower your premium. So check to see if your insurer offers a discount for multiple policies.

Here are some common discounts offered by insurance providers:

  • Safe driver discount

  • Discount for multiple policies

  • Discount for multiple vehicles

  • Military discount

  • New car discount

  • Discount on vehicle security features

Customize your coverage

If you want to save up and have a new driver on the go, adjusting your current car policy may help you get a better price. Choosing a higher deductible will usually result in lower premiums, but it means you'll have to pay more up front when you make an insurance claim.

Another option is to give up the cover you don't need. If one of your cars is older and you fully own it, you can probably stop the cost of collision insurance and fully comprehensive insurance. Remember that if you cancel the rest of your fully comprehensive insurance, you will still have to pay for liability insurance.

Some options for car insurance for new drivers

Whether you are a new driver or have been driving for decades, finding and comparing offers from different providers is a great way to find the best price. Some of the big names in the industry are Geico, State Farm, and Liberty Mutual. Read on to learn more about these providers, or use the tool below to get free quotes from top insurers in your area.

Geico

Geico offers a wide range of coverage and discount options. Students can get up to 15% off and if you have multiple vehicles in your policy you can save up to 25%. Geico also has a solid reputation for customer service and solid business practices, and has been rated an A + by the Better Business Bureau (BBB).

District farm

If your learner driver has at least a B Average in school or is in college and using their car sparingly, State Farm offers a number of discounts that can help lower your premiums. This includes programs like Steer Clear® for drivers under the age of 25. Also, the local agent network can come in handy if you are unsure of how much coverage to buy as a new driver.

frequently asked Questions

Is car insurance higher for new drivers?

New drivers are more expensive to insure due to the lack of a ticket. Younger drivers have a higher risk of accidents, which also increases car insurance rates.

What is the cheapest way to insure a new driver?

Ways to find affordable auto insurance rates include comparing offers from multiple providers, finding discounts, and giving up unnecessary coverage. In general, it is best for young drivers to follow their parents' guidelines as well.

What is the cheapest car that a 17-year-old can insure?

Older cars with higher mileage are usually cheaper to insure because they have a lower cash value than newer vehicles. Financing a vehicle also entails higher insurance requirements.

* Data correct at the time of publication.

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