Car insurance policies for young drivers tend to be more costly than for experienced ones, although this cost can be reduced over time with safe driving practices. Some companies like Lemonade provide customized policies so drivers can select exactly the coverage they require rather than being limited by one set plan.
Car insurance rates depend on multiple factors, such as driver age, gender, and credit history. Here are some helpful tips for finding the ideal car policy for new drivers:
1. Check your state’s requirements
New drivers should become acquainted with their state’s requirements for car insurance coverage. Most states mandate liability coverage at a minimum; others may mandate comprehensive and/or collision policies as well.
Finding the ideal policy will depend on your age and driving experience; to find the most cost-effective policy it’s always wise to compare quotes. Reading company reviews can also be helpful when searching for premiums from various insurers; staying on your parent’s policy as you build up your driving history can reduce costs; taking a defensive driving course or other safe-driving programs could save money as well.
2. Get a quote
New drivers tend to pay higher premiums for car insurance due to less driving experience and an increased likelihood of accidents.
However, that doesn’t mean finding affordable coverage is impossible – getting quotes from various companies will help you locate the most competitive rates.
In most states, insurers assess a driver’s risk based on factors like ZIP code, age, gender, and credit history (in some instances). All of these can affect how much your premium costs.
Insurance carriers also consider the make and model of your car when providing coverage, and may evaluate its driving history and habits.
3. Choose the coverage you need
As a new driver, you must select an appropriate car insurance policy. While most states mandate at least liability coverage, collision and comprehensive are often worthwhile additions as well as roadside assistance covering rental car fees, meal expenses, and lost wages.
New drivers typically face higher premiums, but there are ways they can lower them. One key way is by maintaining a clean driving record; additionally, new drivers should seek discounts or ways to reduce rates such as staying on their parent’s policy or enrolling in a safe driving telematics program.
4. Get a multi-vehicle discount
A multi-vehicle discount can help save you money when buying car insurance. Typically applicable to policies covering multiple vehicles with drivers related or living at the same address, individual insurers may have different eligibility requirements for this discount.
Some companies also provide other discounts that can assist new drivers with saving money, including good student and away-at-school discounts, which help offset higher premiums they often incur. Other ways of cutting car insurance costs include enrolling in defensive driving classes and enrolling in safe driver telematics programs.
5. Get a policy with a high deductible
When selecting an auto insurance policy, be sure to compare quotes from multiple providers. When making this comparison, compare coverages, limits, and deductibles as possible – such as accident forgiveness and roadside assistance features.
As a new driver, car insurance can be costly, but there are ways you can cut costs on your premium. By following these tips and finding affordable coverage that meets both your driving and financial needs. Stay on your parent’s policy with good grades while taking advantage of discounts tailored specifically towards new drivers.
6. Get a policy with accident forgiveness
Accident forgiveness can be an invaluable option for drivers seeking to avoid rate increases related to at-fault accidents, but this benefit may only be offered by certain companies and only to drivers with clean driving records and no traffic violations in the last three or five years.
Accident forgiveness insurance policies often make the extra expense worth your while if you’re an excellent driver, but be sure to shop around for the best rates and find insurance providers with local offices, multiple coverage options, bundling discounts, and great customer service reviews.
7. Get a policy with good customer service
New drivers should shop around to find the ideal auto insurance policy, taking into account the price, coverage options, discounts available, and customer service of each insurer they consider. They may be able to save money by having their parents add them as drivers on their policy.
Insurers typically offer cheaper rates to those who pay their annual premiums all at once instead of in monthly installments, and also offer discounts to drivers with clean driving records. Nationwide and GEICO may be ideal options for young new drivers seeking affordability; however, premiums for young new drivers may still be expensive.
8. Get a policy with roadside assistance
Roadside assistance plans are typically offered as add-on options through auto insurance providers, with plans ranging from basic to comprehensive coverage containing options like towing, battery jump-starts, and fuel delivery. Furthermore, motor clubs, vehicle manufacturers, credit card companies, or cell phone providers all provide standalone roadside assistance plans as well.
New drivers looking for car insurance should take the time to compare quotes to find a policy suitable to their budget and driving needs. Furthermore, they should research companies with excellent reputations, customer satisfaction ratings, and digital tools available – plus discounts that might reduce premium costs!
9. Get a policy with a good price
New drivers typically pay higher car insurance premiums due to inexperience and limited driving history; however, there are steps they can take to find more cost-effective coverage.
New drivers should research companies with good customer satisfaction ratings and financial strength ratings before selecting one to drive for. Furthermore, new drivers may consider opting for a smaller car or combining coverage to reduce rates.
Young adults would do well to remain on their parents’ policies if possible, as it tends to be much cheaper than purchasing their policies separately. New drivers may opt to participate in safe driver telematics programs to further lower their insurance rates.