How much does first driver insurance cost: everything you need to know
If you have a new driver in your family, you may be wondering how much first-time driver insurance costs. Although insurance policies for new drivers often cost more than those offered to more experienced drivers, there are ways to save on premium costs.
what factors influence the cost of insurance for first-time drivers?
In auto insurance, the term “new driver” refers to a person who has no driving record or insurance record. These drivers include newly licensed teens, new to the country, or those who obtained their driver’s license later in life.
Several factors and the type of vehicle insured influence the cost of car insurance for a first-time driver. the average price of new drivers will be higher than that of more experienced ones. however, it is important to remember that insurance costs vary widely. Some of the factors that insurance companies take into account when calculating the cost of a policy include the following:
- age of driver
- driver’s driving history, including accidents or violations
- driver credit score
- the make and model of the vehicle
- driver’s address
- geico. Considered one of the most affordable companies, a six-month premium for a 16-year-old male averages $1,545. It also offers specific features to help new drivers, including a nice student discount, company-created driver safety programs, and discounts for completing driver training programs.
- nationally. While $1,142 isn’t exactly an affordable six-month premium, nationally it still offers the best value for a 16-year-old male. also offers certain discounts for new drivers, including a nice student discount, accident forgiveness, roadside assistance, and its smartride usage-based insurance program.
- usaa. for a 16-year-old male, usaa premiums average just $1,105 for a six-month policy. to qualify, drivers must be in the military or from a military family. has discounts for good students, those who complete a driver training program, and has a safe driver program that encourages safe driving habits.
- Stay on your parents’ policy. Your parents’ insurance history, driving history, and credit scores are likely to earn first-time drivers lower rates. college students can also stay on their parent’s policy, as long as they don’t have title to the vehicle or claim permanent residence away from home.
- Check it out. Don’t be afraid to compare other companies’ rates. Each insurer writes policies based on different factors, so doing so may help you find a lower rate.
- Select an economy vehicle. Driving a luxury vehicle carries higher premiums, especially for new drivers. First-time drivers driving a new vehicle are a red flag for insurers, so consider buying a budget model.
- Opt for a higher deductible. Some states only require drivers to have liability coverage, while certain lenders may require comprehensive or collision coverage, which can increase your premium. Your deductible is calculated inversely with your payment, so if you want a lower deductible, your insurance premiums will be higher.
- defensive driving. After taking a defensive driving course, submit your record or receipt to your insurance company. these classes make you a safer driver, which makes you less risky.
- good driver. If you have a clean driving record with no citations or at-fault accidents, you may qualify for a discount.
- occupation. some companies give you a discount based on your profession if you prove your profession by means of a photocopy of the title. according to wallethub, teachers, police officers, and doctors are less likely to file a claim and therefore are offered cheaper premiums.
- good student. drivers under the age of 25 who have at least a b average (3.0 gpa) may qualify for a discount. you may need to provide a transcript every six to 12 months.
- equipment. If your vehicle has an anti-theft device, your company may be able to offer you a discount. these devices are usually fitted to modern vehicles, so make sure your dealer knows your vehicle has one when looking for a quote.
- multiple cars. If your family has more than one vehicle insured by the insurance company, you may qualify for a multi-car discount. usually applies at policy inception or when you add another vehicle to the policy.
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Of these factors, two carry the most weight: your driving record and where you live. If you compile tickets for speeding, DUIs, or accidents, your rates will increase exponentially. In addition to tickets, these tickets can stay on your driving record for three to five years. avoiding violations can save you thousands of dollars.
Similarly, where you live influences costs. If you live in an area with a high theft rate, your insurance rates will increase to offset those costs. Also, if you live in a place with a lot of traffic, your accident rate will go up, as will your premium.
what are the best insurance companies for new drivers?
Without an insurance history or driving experience, new drivers are considered risky to insure, which is why companies often charge them fees. Despite this, some companies offer competitive rates. the zebra has ranked three of the best:
One thing to keep in mind is that it is more expensive to insure a first-time driver on a separate policy than it is to include them in a family plan. according to wallethub, for a 17-year-old driver, a separate policy is likely to cost more than $5,500 a year. however, if you add that same child to a parent’s policy, the annual cost is approximately $2,750.
Premium costs decline somewhat after the youngest drivers turn 20, but they still pay almost double the US average. uu. driver, according to the zebra.
how can first time drivers save money on car insurance?
To help first-time drivers save money when buying car insurance, they should consider doing the following:
what specific discounts are available?
In addition to the aforementioned ways to save money, some insurance providers offer specific discounts for first-time drivers. check with your provider to see if you qualify for the following:
Wondering how much first-time driver insurance costs? don’t be fooled by the numbers. Just because first time driver insurance can be expensive doesn’t mean you have to pay full price. shop around and shop for discounts, and you may be able to lower your costs significantly without reducing coverage.