Oftentimes, new drivers end up paying more for car insurance, but as you age and gain more experience, the cost will likely decrease. Here are some tips on finding car insurance as a new driver.
7 Steps to Finding Affordable Car Insurance for New Drivers
Understand the Types of Car Insurance Coverage
There are six basic types of car insurance to protect you and your vehicle in the event of an accident.
- Bodily Injury Liability: Bodily injury liability covers medical, rehabilitation and funeral expenses sustained by all injured passengers, including those not in your car if you are at fault in an accident.
- Property Damage Liability: Property damage liability covers parts and labor for car repairs, property inside the other party’s vehicle and any items you may have hit when you are at fault in an accident.
- Personal Injury Protection: Personal injury protection covers most medical expenses, as well as lost wage and funeral expenses incurred by you and your passengers regardless of who is at fault in the accident.
- Uninsured/Underinsured Motorist Protection: Uninsured/underinsured motorist protection pays for the medical expenses, rehabilitation and funeral costs incurred by you and any other passengers if you are hit by a driver with either no or inadequate coverage.
- Collision: Collision coverage pays for any damages to your vehicle if you are at fault in a car accident.
- Comprehensive: Comprehensive car insurance covers damage to your car from an event that is out of your control, such as a natural disaster, theft, vandalism or other unpredictable events.
Determine What Car Insurance Coverage You Need
At a minimum, you’ll need the basic level of coverage required by your state, but it’s important to make sure that the minimum is enough. This coverage quiz can help get you started on determining what and how much coverage you need.
Shop Around for Auto Insurance
Auto insurance rates vary widely for the same level of coverage from company to company, especially for new drivers, so it can pay off to shop around. While it’s easy to go with a less expensive policy, a policy might cost less because it offers less features or coverage.
Consider How Often You Pay
Many car insurance companies will offer discounts if you can pay for your insurance annually in full. This will also help you save on monthly fees and ensure there’s no lapse in coverage.
Build Your Credit Score
Having a strong credit score not only shows your ability to pay bills on time and repay borrowed money, but insurance companies consider you less likely to file for a claim and will often provide discounts for strong credit scores.
Look for Auto Insurance Discounts
There are various types of discounts, such as affiliation, student and good driver discounts, offered by insurance carriers. Usage-based insurance apps like Nationwide Smartride and Progressive Snapshot also provide discounts for safe driving practices and are becoming more popular across top insurance companies.
Bundle Your Home and Auto Insurance Policies
Bundling is an easy way to save money on your insurance. Also known as a multi-policy discount, bundling can save you money by going through the same carrier for more than one type of insurance.
Why is auto insurance more expensive for first-time drivers?
First time drivers are among the most expensive to insure because of higher accident rates and little experience behind the wheel. The more time and experience you have driving, however, the more likely you’re able to find opportunities to lower your insurance rates.
Let SelectQuote Help You Find Affordable Car Insurance Options
Finding cheap car insurance as a new driver can seem like a daunting task, but at SelectQuote, we’ve made the process easy. We can help you determine how much insurance you need based on your situation and then help you find the best policy for you at a price that fits your budget.