Cheap Auto Insurance for New Drivers

Posted by Harry Wagner

car insurance for new-driversAre you a first-time driver in the process of buying car insurance? If you answered yes, it is important to learn the basics of car insurance before you start shopping for auto insurance coverage. As a new driver, you will be charged higher premiums than an individual with experience on the road, but you can still find cheap auto insurance for new drivers if you set aside the time to do your homework. If you have found that shopping for auto insurance is overwhelming, here is a straightforward guide for new drivers to reference so that they can build a good policy that they can afford.

Familiarize Yourself With Coverage Requirements and Options

You should not start pricing the cost of insurance until you take time to familiarize yourself with all of the coverages you will be offered. Typically, states will require that you carry a minimum amount of liability insurance. Liability insurance consists of Bodily Injury cover and Property Damage cover, and will pay for the injuries or damages that you cause to a third-party. In addition to liability coverage, you will also need to decide if you want to purchase the following:

  • Comprehensive and Collision: Physical damage coverage to pay for repairs or replacements when your vehicle is damaged because of a covered claim. This is a requirement when you are financing or leasing your vehicle.
  • Uninsured Motorist: Some states require Uninsured Motorist so that drivers are protected against drivers who fail to carry insurance. This policy will pay for your medical bills sustained in an accident with an uninsured driver.
  • Medical Payments: Typically optional, medical payments as a supplemental form of medical coverage if you are injured in an accident, no matter who is deemed at fault for the accident.
  • Gap Cover: Will pay off your loan if you owe more than your vehicle is worth and the vehicle is totaled. This is optional.

Learn more about types of car insurance coverage here.

How to Build a Cheap Insurance Policy As a New Driver

Now that you have a basic understanding of some of the coverages you will be offered, it is time to learn how to save money off of your insurance, even if you are a new driver. Just because inexperienced drivers are considered to be high-risk policyholders does not mean there are not a variety of ways to lower their policy premiums. Here are some tips on how to keep premiums low as a new driver:

  • Choose a vehicle that has high safety ratings. The classification of the vehicle can play a major role in how much you will pay for insurance, even without full coverage.
  • Take advantage of Good Student Discounts and Driver Safety Training discounts if you are under the age of 25.
  • Inform your agent if you have an anti-theft device or added safety features that did not come standard.
  • If you drive less than the average person, take advantage of low mileage ratings.
  • If there is more than one vehicle in the household, take advantage of multi-car discounts by insured both cars with the same company.

The most effective way for new drivers to find cheap auto insurance is to use rate comparison tools to price the cost of coverage available through several different companies. Gather all of the information you need to retrieve quotes, fill in the information as accurately as possible, and select coverage from the company willing to give you the best rates.