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How to Buy Car Insurance for the First Time – ValuePenguin

The average cost of a minimum coverage policy is $3,454 per year for an 18-year-old driver, while a 30-year-old can expect to pay $1,118 per year.

First-time drivers can buy insurance online or through an independent agent who has access to rates from multiple companies but doesn’t offer quotes from major insurers.

Reading: How much is beginners car insurance

how to take out car insurance for the first time

When buying auto insurance for the first time, you will need to:

what do you need to take out car insurance for the first time?

When searching for quotes, you will need personal information about yourself and anyone else listed on the policy:

You will also need details about your vehicle, including the year, make and model.

Some of this information, like driving history and location, will affect the cost of insurance for first-time drivers.

how to get car insurance before buying a car

Insurance companies require you to provide your car’s vehicle identification number (VIN) to purchase a policy. however, you can get a quote from most companies without the vin; You will only need to provide the make, model, and year of the car you plan to purchase. Once you’ve chosen a car, you can contact the insurance company to provide the vin and pay for your policy.

If you don’t plan to buy a car, but occasionally drive someone else’s vehicle, you can purchase third-party auto insurance. this type of policy may protect you financially if you cause an accident, but it will not pay for any damage to the vehicle you are driving.

cost of insurance for first time drivers

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The cost of insurance for a first-time driver varies significantly based on their age. On average, car insurance for first-time drivers age 18 and older costs $288 per month for a minimum coverage policy, which is $195 per month more than a 30-driver One-year first-timer pays the same coverage.

average annual rates of minimum coverage

why first time drivers pay more for car insurance than experienced drivers

Experienced drivers pay much less than new drivers because insurance companies consider them to be at lower risk of having an accident or filing a claim.

However, there are many factors that affect the price of auto insurance for new drivers, including location, demographics, driving history, and experience.

find cheap car insurance for first time drivers

drivers can find cheap car insurance by:

how to buy car insurance

We recommend comparing quotes from multiple auto insurance companies to determine which company offers the cheapest insurance quotes for first-time drivers.

Although first-time drivers typically have higher auto insurance quotes than more experienced drivers, you can still save by comparing insurers. Different companies use different factors when calculating their rates, and some of the more well-known insurance companies don’t necessarily offer the lowest rates possible.

Finally, be sure to take advantage of all available car insurance discounts when shopping for affordable car insurance for your first purchase. You can sometimes see these discounts through a company’s online quote tool, but you may be eligible for even more discounts if you talk to an insurance agent before finalizing your quote.

select the right amount of coverage

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One way to save money on auto insurance is to buy only what is necessary for your situation. It’s important to understand the different types of coverage, the requirements, and how much auto insurance you really need. otherwise, you’re paying out of pocket for unnecessary expenses.

We recommend purchasing as much coverage as you can afford to protect yourself if you cause a serious accident. First-time drivers shopping for the cheapest policy possible may want to consider purchasing minimum liability coverage. however, it could cost you more in the long run if you cause significant damage or injury to another driver.

improve factors that affect insurance rates for first-time drivers

Many factors affect auto insurance rates for first-time drivers. some of them cannot be controlled, such as age and location. But there are important factors, like your credit score, that you can take steps to improve in the long run to potentially lower your insurance rates.

If you have a low credit score, insurers think you’re more likely to file higher claims, leading to higher auto insurance costs in many states. Drivers can boost their credit scores by making credit payments on time and using only a small portion of the credit available to them. An increase in your credit score could result in more affordable car insurance payments.

gaining driving experience and being a safe driver will also make insurance companies charge you less.

methodology

To compare auto insurance quotes for first-time drivers, we looked at auto insurance quotes for texas zip codes. Our sample driver was a single male driving a 2015 Honda Civic Ex with an average credit score and no driving experience. the only parameter that changed was the age of the driver, who was 18 or 30 years old.

quotes are based on the following coverage limits:

valuepenguin’s analysis used insurance rate data from quadrant information services. These rates were obtained publicly from insurer filings and should be used for comparison purposes only; your own quotes may be different.

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