Tips For Getting New Driver Car Insurance

Shawn Plummer

CEO, The Annuity Expert

Getting new driver car insurance can be overwhelming, especially for first-time drivers unfamiliar with the process. In addition, insurance companies offer different policies, rates, and coverage options, making choosing the best one for your needs challenging. However, by understanding the basics of car insurance and knowing what to look for, you can find the right coverage and save money on your premiums. This guide will provide tips on getting new driver’s car insurance that meets your needs and budget.

Understand the Types of Car Insurance Coverage

Car insurance coverage can be divided into three main types: liability, collision, and comprehensive coverage. Liability insurance covers damages or injuries you cause to others in an accident. Collision coverage covers damages to your car in an accident, regardless of who is at fault. Finally, comprehensive coverage covers damages to your car caused by factors other than an accident, such as theft, vandalism, or natural disasters. Before purchasing car insurance, you must understand what each type of coverage includes and decide which ones you need based on your driving habits and budget.

Shop Around for Car Insurance Quotes

Don’t settle for the first insurance policy you come across. Instead, shop around and get quotes from multiple insurance companies to compare rates and coverage options. Insurance premiums can vary significantly depending on the company, so it is essential to get several quotes to find the best deal. You can compare quotes online or by calling insurance companies directly.

Consider Your Deductible

When weighing the pros and cons of different insurance policies, it is essential to consider your deductible level. A higher deductible could mean lower premiums, but you will pay more money out-of-pocket in case of an accident– meaning that a closely tailored assessment of both budget and driving habits must be made when determining how much one should pay for their coverage options.

Look for Discounts

Many insurance companies offer discounts that can lower your premiums. Some standard discounts include safe driving discounts, multiple vehicle discounts, and good student discounts. Ask your insurance company about available discounts and take advantage of them to save money on your car insurance.

Safe driving discounts

Safe driving discounts are car insurance discounts that reward drivers for safe driving habits. Insurance companies offer safe driving discounts to encourage drivers to practice safe driving habits and reduce the risk of accidents. Safe driving discounts can vary depending on the insurance company, but they typically reward drivers for avoiding accidents, following traffic laws, and driving fewer miles.

To qualify for safe driving discounts, drivers must maintain a good driving record. This means avoiding accidents, traffic violations, and other incidents that could raise insurance premiums. Safe driving discounts can be substantial, with some insurance companies offering discounts of up to 30% for safe drivers.

To earn safe driving discounts, drivers may need to participate in a safe driving program offered by their insurance company. These programs can include classes, online courses, or mobile apps that track driving habits. In addition, drivers may need to demonstrate safe driving habits, such as avoiding hard braking or accelerating, staying within speed limits, and maintaining a safe distance from other vehicles.

New Driver Car Insurance

Multiple vehicle discounts

Multiple vehicle discounts are car insurance discounts that reward drivers who insure more than one vehicle with the same insurance company. Insurance companies offer multiple vehicle discounts to encourage drivers to consolidate their insurance policies and insure all their vehicles with one company.

Multiple vehicle discounts can vary depending on the insurance company, but they typically offer a percentage discount on the total premium cost for all insured vehicles. The discount can increase as more vehicles are added to the policy.

Drivers must insure two or more vehicles with the same insurance company to qualify for multiple vehicle discounts. The vehicles can be owned by the same person or by different family members living in the same household. In addition, some insurance companies may require that all vehicles have the same coverage options and deductibles.

Good student discounts

Good student discounts are car insurance discounts that reward students for academic achievement. Insurance companies offer good student discounts to encourage students to excel academically and reduce the risk of accidents caused by inexperienced drivers.

To qualify for good student discounts, students must maintain a certain grade point average (GPA) or be in the top 20% of their class. The exact GPA requirement can vary depending on the insurance company, but most companies require a GPA of 3.0 or higher.

Good student discounts can be substantial, with some insurance companies offering discounts of up to 25% for qualifying students. In addition, the discount can apply to the student’s car insurance policy or their parents’ policy if the student is a dependent.

To qualify for good student discounts, students must provide proof of their academic achievement, such as a report card or transcript. Depending on the insurance company, the discount may apply for the entire school year or semester.

Improve Your Credit Score

Your credit score can impact your car insurance premiums. Insurance companies use credit scores to determine your risk as a driver. Therefore, a higher credit score can result in lower insurance premiums. Therefore, it is essential to maintain good credit by paying bills on time, keeping credit card balances low, and checking your credit report regularly.

Consider Usage-Based Insurance

Usage-based insurance is a type of car insurance that tracks your driving habits and adjusts your premiums based on how much you drive, how safely you drive, and other factors. If you don’t drive often or have safe driving habits, usage-based insurance can save you money on your premiums.

Next Steps

Getting new driver’s car insurance can be daunting, but by following these tips, you can find the right coverage and save money on your premiums. Understand the types of coverage available, shop around for quotes, consider your deductible, look for discounts, improve your credit score, and consider usage-based insurance. With these tips, you can find new driver car insurance that meets your needs and budget, giving you peace of mind on the road.

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Frequently Asked Questions

How long do you count as a new driver?

All new drivers who pass their driving test for the first time will be subject to a probationary period of 2 years from the date they pass their driving test.

What type of car insurance coverage should I have for new drivers?

New drivers should consider at least basic liability coverage for their vehicles. This will help protect you in an accident, covering any damages to property and other people and medical costs. You may also want to consider adding comprehensive and collision coverage to your policy if you are financing or leasing a car so that you are covered.

How long can a new driver be on their parent’s insurance?

A new driver can typically remain on their parent’s insurance policy for up to three years, and at this point, they will likely need to purchase their policy. To help save money, many insurers offer discounts for young drivers who maintain a good driving record and take an approved defensive driving course.

What is the cheapest car insurance for new driver?

The cheapest car insurance for new drivers can vary depending on location, vehicle type, and age. Some popular low-cost options include Geico, Progressive, and State Farm. Always compare quotes.

What is the average cost of car insurance for a new driver?

The average cost of car insurance for a new driver is typically higher due to their lack of driving experience. Usually, it can range from $1,200 to $2,600 annually.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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