The cheapest auto insurance policies for first time drivers can save new drivers up to 136% compared to more expensive options, so it’s really important to shop around. In general, the cheapest auto insurance companies for first-time drivers are Travelers, Grange, and Mercury, according to analysis by Wallethub.
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cheapest car insurance companies for first-time drivers
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New drivers typically pay more for car insurance than more experienced mature drivers, but it’s still possible to get a great deal on your coverage. The key to finding the cheapest auto insurance for first-time drivers is to compare quotes from multiple companies.
cheapest auto insurance companies for first time drivers comparison
average cost of car insurance for first-time drivers
The cost of car insurance for a first-time driver depends primarily on their age. On average, a policy for a 16-year-old driver costs $3,343 per year. Premiums are typically higher for teens compared to other age groups, but good drivers will see their rates drop 12-20% once they turn 25.
6 tips to get cheaper car insurance for first-time drivers
1. look for coverage
Each auto insurance company has its own method of calculating insurance premiums, so the first quote you get may not be the lowest price available. In general, it’s a good idea to get quotes from three different insurers before you buy coverage.
For first-time drivers getting car insurance for the first time, it’s important to consider not only the price of the company, but also the coverage options, available discounts, and overall reputation. Even after you’ve purchased your policy, you should compare quotes every 6 to 12 months to make sure you’re getting the best deal.
2. consider joining an existing policy instead of buying your own
Adding a teen driver to an existing auto insurance policy increases the policyholder’s premiums by an average of 140% to 160%. But considering how expensive auto insurance is for new drivers, this might be a more cost-effective option than having them purchase their own policy.
3. look for discounts
Most major insurance companies offer a variety of discounts for young drivers who are new to the road. For example, good student discounts allow high school and college students to save if they have at least a “B” grade point average. young drivers can also get a discount if they attend school at least 100 miles from where the insured car is parked.
4. buy less coverage
You should always buy the most auto insurance you can afford to minimize your risk. But if you’re having trouble finding an affordable policy, you need to think about the types of coverage you really need. If you decide you don’t need additional types of coverage like collision or comprehensive, you can save on your premium by purchasing only the minimum amount of auto insurance required by your state. You can also decline optional coverage add-ons like rental reimbursement insurance and roadside assistance.
5. choose a higher deductible
A quick way to lower your rate is to increase your deductible, which is the amount you must pay if you file certain types of claims. The higher your deductible, the lower your premium. But you should avoid choosing a deductible that is more than you can afford just so you can get a lower rate.
6. stay safe on the road
As a first-time driver, the best way to lower your rates in the long run is to avoid traffic violations and at-fault accidents. Once you’ve had a few years of safe driving experience, your rate will gradually decrease.
video: cheapest car insurance for first-time drivers
WalletHub’s analysis of the cheapest auto insurance companies for first-time drivers is based on data from state dmvs and quadrant reporting services. Using that data, Wallethub compared quotes for drivers ages 16 to 25 with a clean driving record, minimal coverage, and good credit.