First-Time Car Insurance Buyers: How to Buy Insurance and Find an Affordable Rate

even if you ‘re looking for car policy for the first time, you can find low-cost rates by shopping around. Getting multiple quotes, keeping a cleanse drive criminal record and taking advantage of available discounts are fair some of the ways people shopping for indemnity for the first meter can keep their costs low.

How to Get a Quote and Buy Car Insurance for the First Time

Understanding how car insurance works can be challenge, but it is something that every driver will need to figure out sooner rather than later. The most important contribution of shopping for low-cost car indemnity is getting multiple quotes. According to our data, new drivers can save up to $ 3,000 per class by getting quotes from respective companies to guarantee they are getting the best rate.

When shopping for car indemnity, you will need to gather your personal information, including :

  • Driver’s license
  • Date of birth
  • Address, including ZIP code
  • Employment information
  • Driving history
  • Prior insurance information (if you’ve been insured before)
  • Marital status
  • Education level
  • Vehicle information (make, model, year, etc.)

You will besides want to do some personal research before getting a quote. For model, if your employer, alma flat or another organization you are affiliated with offers a dismiss with certain policy companies, that is something you want to know ahead of meter. Teens and students who are newly drivers often find the best rates by staying on a parent ’ south policy and taking advantage of scholar discounts. young drivers should research which companies offer the best cheap cable car policy for teens before making a purchase.

What Is a First-Time Driver and Does Age Matter?

A first-time driver is person with no driving have. First-time drivers include teens who have just finished driver ‘s education, young adults who didn ’ thymine get their license until after commencement or adults who waited until later in life to get their license. It is common for people to wait until adulthood to get their license in areas with excellent populace exile options. But no topic the reason, first-time drivers of any senesce can expect to pay more for cable car insurance. Though a first-time driver who gets their license at 40 will pay less than a driver who gets their license at 18, they will still pay importantly more than a 40-year-old driver with 20 years of driving know.

Why Is Car Insurance Necessary?

It may seem like an unnecessary expense, but you need to have cable car indemnity — and not good because the law requires it. Car insurance protects you by covering your expenses up to your policy terminus ad quem in the consequence of an accident, so choose your coverage levels carefully. Liability insurance coverage pays for any damages you may cause to person else ’ mho property and any medical bills they incur. Comprehensive and collision policy, frequently referred to as full coverage, pays for wrong to your vehicle. This means if your car is damaged or stolen, your indemnity will pay to repair or replace it, minus the monetary value of your deductible .tip icon WHY TRUST MONEYGEEK ? Because we have cool glasses ! All jokes apart, it ’ sulfur significant that you can trust what you read. The policy cost data we collected consists of real quotes from actual indemnity companies and is updated on a coherent basis as data changes. See our editorial standards or methodology at the bottom of the page for more information.

The Best Cheap Car Insurance for First-Time Drivers or Buyers

Choosing the best car insurance for first-time drivers can be difficult, specially for younger drivers. Most first-time drivers get their license after the age of 16, then MoneyGeek calculated the cheapest policy rates based on an 18-year-old first-time driver. The two cheapest companies for state minimal liability coverage are State Farm, with an average annual premium of $ 1,771, and GEICO, with an average annual premium of $ 2,035. Unsurprisingly, the two cheapest insurance companies for broad coverage at the 100/300/100 level are State Farm, with an average annual premium of $ 3,309, and GEICO, with an median annual bounty of $ 4,151. USAA has the lowest overall rates but was not considered because they are not available to all drivers

Average Annual Car Insurance Rates for First-Time Drivers
company state Minimum lone 50/100/50 Liability only 100/300/100 Full coverage With $ 1000
Allstate $ 2,353 $ 2,914 $ 4,749
Farmers $ 5,021 $ 5,917 $ 9,052
GEICO $ 2,035 $ 2,584 $ 4,151
MetLife $ 4,227 $ 5,400 $ 8,012
countrywide $ 2,769 $ 3,235 $ 5,537
progressive $ 3,846 $ 4,925 $ 8,081
submit grow $ 1,771 $ 2,184 $ 3,309
Travelers $ 6,575 $ 8,019 $ 12,797
USAA $ 1,455 $ 1,778 $ 3,067

If you ‘re then new to driving that you do n’t flush have a license yet, MoneyGeek besides has resources on finding bum car insurance with no license. Your policy coverage can be broken down into two parts :

  • Liability: Covers bodily injury and property damage you cause to other people up to the limits of your coverage. If you cause more damage than your limits will cover, you will be held liable for the difference, so it is important to choose the highest coverage limits you can afford.
  • Comprehensive & Collision: Comprehensive and collision insurance covers the cost of damage done to your vehicle, typically up to your vehicle’s total value. Your rates will be charged accordingly, so choosing a more expensive car or one that is more costly to repair can increase your insurance premium.

When determining how much car policy you need, MoneyGeek recommends full coverage car policy with liability levels of 100/300/100. If you own a vehicle that isn ’ thymine worth very much, and you can afford to replace it out of pocket, you might consider carrying low-cost liability-only coverage. Loading …

Why First-Time Drivers Pay More for Car Insurance

Like any skill, driving is something that people tend to get better at with experience. Inexperienced drivers are a higher risk for indemnity companies, which means they charge higher rates to compensate for the likelihood of extra claims. It can seem unfair and overpower to be charged so much for policy, but the statistics don ’ t lie — in 2009, 16 % of drivers involved in fatal crashes were under 20, while the fatal crash rate per mile driven for 16-19 year-olds was closely three times the rate for drivers ages 20 and over in 2019.

policy companies base their rates, in separate, on your age and driving experience, so statistics like these mean that first-time drivers will pay more than those who have more experience behind the bicycle. But while there is no getting around higher rates for younger and more inexperienced drivers, if you keep your drive commemorate clean, you will see your rate go down over fourth dimension.

Average Annual Car Insurance Rates by Age and Driving Experience
company 18 Year-Old First-Time driver 40 Year-Old First-Time driver 40 Year-Old With 20+ Years have
Allstate $ 4,749 $ 2,429 $ 1,316
Farmers $ 9,052 $ 3,957 $ 1,558
GEICO $ 4,151 $ 2,816 $ 1,044
MetLife $ 8,012 $ 3,210 $ 1,662
nationally $ 5,537 $ 1,900 $ 1,319
progressive $ 8,081 $ 2,684 $ 1,385
state farm $ 3,309 $ 1,747 $ 1,207
Travelers $ 12,797 $ 3,513 $ 1,476
USAA $ 3,067 $ 1,720 $ 845

Shopping Tips for First-Time Drivers to Pay Less

indemnity for first-time drivers can be expensive, but there are things you can do to keep your rates angstrom depleted as potential. There are many ways to find cheap car indemnity for first-time drivers, including :

  • Shop Around: Get multiple quotes to make sure you have the lowest possible rate.
  • Take a Driving Course: This can save you anywhere from 5% to 15% on your insurance rate, depending on the insurance company you choose. GEICO, State Farm, Farmers, Esurance, Nationwide, Allstate, The Hartford, Liberty Mutual, Progressive and USAA all offer discounts for taking a safe driving course.
  • Stay on Your Parent’s Policy: If you are a teen or student, staying on your parent’s policy can save you a significant amount of money each year.
  • Good Student Discounts: If you are a student, you may be eligible for a good student discount. Each company has slightly different standards, so check with your insurance company to see if they offer this discount and what grades you’ll need to earn it.
  • Clean Driving Record: Avoiding accidents, speeding tickets and other blemishes on your driving record are some of the most important ways to keep your insurance costs low.
  • Choose Your Car Carefully: An older or less expensive car will cost less to repair, saving you money on comprehensive and collision coverage. Choose a vehicle that is cheap enough that you can replace it out of pocket, and you can skip comprehensive and collision coverage entirely, opting for liability-only coverage to save money on your insurance.

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FAQs About Buying Your First Auto Policy as a New Driver

New drivers intelligibly have lots of questions about buying their first car policy. Knowing the answers to some of the most common ones will help ensure you get the best rate .

department of state farm has the cheapest indemnity for first-time drivers, followed closely by GEICO. This is based on a sample distribution driver, which means there could be early companies that come in at more low-cost rates in your specific position. It is important to get multiple quotes based on your personal history, your location and any discounts that may apply to you to get the best car policy for first-time buyers .

You can use the quote tool on this page to compare quotes from multiple policy companies. You can besides contact each caller directly or reach out to an policy agent in your area to get quotes for car insurance .

car insurance prices will depend on your person site, the levels of coverage you choose and your insurance party. On the more low-cost end of the spectrum, an 18-year-old first-time driver could expect to pay anywhere from approximately $ 1,771 for express minimum levels of coverage to around $ 3,309 for full moon coverage at 100/300/100 levels of indebtedness. That same driver choosing the most expensive coverage could pay anywhere from about $ 6,575 for minimal coverage to around $ 12,797 for the entire coverage option .

It ’ s possible to buy indemnity through a cable car principal, but you won ’ metric ton have the opportunity to compare prices if you do so. MoneyGeek recommends you get multiple quotes on your own to make indisputable you are getting the best potential pace.

Methodology

MoneyGeek partnered with Quadrant Data Services to gather car insurance quotes for first-time drivers. Our data analyzes a variety of coverage options, as documented in the data postpone above, to help determine the least expensive car indemnity options. See MoneyGeek ’ sulfur methodology page for further information. About the writerexpert-profileexpert-profile Rachael Brennan is a professional finance writer and licensed insurance agent. She has worked in the policy diligence for more than a ten, earning her P & C license in all 50 states and her life, health and AD & D license in New York and the surrounding states. Rachael has worked for well-known companies such as twenty-first Century Insurance and BlueCross BlueShield and was the unitarian Universalist Association ( UUA ) insurance plans coordinator for three years. She specializes in property, casualty, health, life, accidental death and disability insurance. Rachael earned her bachelor of science degree in communications from Texas A & M University-Commerce. Rachael combines her write setting with her insurance and personal finance experience to share virtual cognition and help people make informed fiscal decisions.

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