Everybody has to experience buying first auto insurance policy before they become accomplished policyholders. But they do not need to make the same mistakes others have been doing. New drivers shouldn’t feel that vehicle insurance is a scary subject and hard to understand for beginners. They can quickly learn how car insurance works and confidently make their own choices. You can get it right at your first crack at insuring a vehicle and get yourself cheap car insurance for first time drivers. You just need to pay attention to several points discussed below.
How Much Does Insurance Cost for First Time Drivers?
New drivers are always high risk no matter at what age they start driving for the first time. However, your age affects how much premium you pay for your first car insurance. You can check here when does car insurance go down to understand the effects of age on premiums. Usually many insurers consider people mature after the age of 25 and they expect them to be more responsible behind the steering wheel. Teenagers are expected to be more compulsive in general and take risks without thinking its consequences much. That is why a teenage new driver and a first time driver over the age of 25 would pay significantly different premiums for their first auto insurance policy.
A few factors affect the costs in any case. The first one is where you live. Every state has its own unique insurance laws and regulations that affect premiums across the state. Also, demographic conditions like weather, crime, road conditions, wealth and driver education influence the average car insurance costs per month. Which insurer offers the quote for your first time car insurance is very important too. There can be a huge difference between the most expensive and cheapest quote that you should never buy a policy without comparing auto insurance companies.
On average, a teenage first time driver would pay about 4 – 5 times more than a standard risk driver with established, clean driving record, depending on where they live. Choice of auto insurer would affect your premium but for the sake of simplicity we are looking at average cost of auto insurance.
If a 25 year old is buying his/her first car insurance the premium would be about 2 – 3 times more than the same standard good driver, on average. A 16 year old would naturally have the highest premium quote. The costs would go down every year until the age of 25 and even out at that time. So, the premium quoted to a 16 year old new driver would be about 2.5 times more expensive than what is quoted to a 25 year old first time policyholder. On the other hand, a 25 and 35 year old new drivers would pay about the same or 25 year old would pay slightly more.
Best Car Insurance Companies for First Time Drivers
We have already said that first time policyholders are always high risk. This high risk profile is mainly due to lack of driving and insurance history. Being a first time policyholder is just a stage everybody has to go through. The first time driver insurance market is so big that most insurers cannot ignore or stay out of it.
In other words, new drivers may be the highest risk group but they can get good quotes from top car insurance companies. They don’t need to look for nonstandard auto insurance companies.
Saying that the most expensive quote can be 4 – 5 times higher than the cheapest quote you can get. Even under normal circumstances prices can be hugely different between insurers. This price gap becomes even more visible in the high risk insurance market.
Let’s try to identify the best car insurance companies for first time drivers. Large numbers of these novice policyholders are young drivers by definition. Therefore, you can start by checking the insurers that are known to be cheap for young people. Below are the cheapest auto insurance companies that can offer the best quotes for novice drivers even if they are young.
Each of these insurers has a different young driver program that may or may not work for your situation. You should get quotes from these insurers and a few more from others.
Several other websites and studies looked at high risk auto insurance companies and came up with a list that supports our above list. As you see below, only the order (starting from the cheapest) is different and Allstate is included too.
New and young drivers are always considered to be two of the the highest risk driver categories. That is why approaching insurers that are known not to be scared of high risks is a good strategy and one that can get cheaper car insurance for first time drivers. However, everyone is different in many ways and quotes will vary depending on your person circumstances. That is why you should be thorough and get a few more quotes.
If you are getting nowhere with traditional insurers you may have to look into nonstandard market. But they are usually more expensive and they may not offer as good policies as standard insurers.
Another options is to look at companies that offer pay as you drive insurance. There is a high chance allowing insurers to see how you are driving can get you cheaper car insurance especially if you are confident that you are a better driver than you are credited for. Both Allstate and Progressive offer pay as you drive policies that would require you to install a monitoring device to your vehicle.
Cheap First Time Car Insurance – 10 Mistakes to Avoid
Getting cheap car insurance for first time drivers requires attention to detail and doing a few things right. The best thing to do is to learn from others’ mistake. Have a look at 10 common mistakes below and try not to make them.
1. Vehicle Insurance Is a Great Tool
You need to understand that automobile insurance is a great tool that helps you avoid paying thousands of dollars in the future in exchange for manageable regular premiums. It is a type of investment that you could be extremely pleased you made it. Just like investments, you need to understand a little about the offerings and players to choose the right one for you. So, don’t see your first auto insurance as something that needs to be done so that there is no legal barrier to drive your automobile. See it as something that can be your ticket out of a financially sticky situation one day.
2. First Time Auto Insurance is as Important as First Car
The first mistake is that a few young people spend so much time on cars they like to buy that they do not have much time left for arranging insurance. This is a problem with experienced policyholders too. It is surprising how impulsive buyers people are. So many people go out to look at cars and end up buying one before the day is over. Then, they start thinking about insuring it.
Also, it is important to know which are the best cars to buy for new drivers in order to avoid huge surprises. After making the purchase, it is too late to discover that you picked one of the most expensive cars to insure with a new driver. So, you should read this post titled; cheap car insurance for new drivers and pay special attention to what it says about choosing a car.
3. First Time Is a Good Time to Learn about Auto Insurance
Quite a few people (even after years of driving) do not know the basic terminology or possible coverage options. Lack of knowledge is a recipe for mistakes when buying first auto insurance. A little knowledge as to how insurance works will go a long way. So, spend a little time to understand what are your policy options and how to save money on car insurance before attempting to purchase coverage.
4. Get the Right Coverage for Cheap First Time Car Insurance
Perhaps you should start with asking; how much car insurance do I need and reading that post, instead of asking what is the cheapest car insurance. We have all been there and know it is tempting to go with the cheapest coverage. By all means read both posts and decide what you really need. You should always look for cheaper policies as long as you get the same coverage. But do you really need the cheapest of the cheap?
5. Don’t Be Shy to Ask Questions
The next problem is not seeking the information or asking the question. There may be tons of information online but sometimes you will need to ask questions to clarify the position. Start with asking recommendations on a good auto insurer, agent or broker. Then, you can ask as many questions as you like to your agent, broker or parents. You can pick up a few tips along the way that helps you get cheap car insurance for first time drivers. It is hard to find this practical knowledge in books.
6. Always Check Insurance Ratings of Cars before Buying
Also, make sure to learn how insurance friendly is the vehicle you are looking at. This information isn’t hard to find since most automobile manufacturers publish insurance ratings on their vehicles. Your car’s safety and accident prevention features can help you get cheap auto insurance for first time drivers. Therefore you should try to choose a vehicle with good safety record for your wellbeing and low premiums.
7. Don’t Start your First Time Car Insurance with a Lie
You should keep in mind that you are making a declaration by filling up a quote form. It is better be correct and accurate. Therefore, you should take a little time before answering them. This will affect vehicle insurance quotes offered to you as well. Also, you will not have any problems or nobody will accuse you of giving false information in the future.
8. Don’t Fail to Shop for Auto Insurance
A few people make a costly mistake of buying first car insurance they come across. It may be bought after seeing a TV commercial from a company claiming to be the cheapest. It may in fact be the best policy you could ever get. But you don’t know the full story yet until you compare quotes and therefore rushing into quick decision can be costly for you. You should step back and look at other automobile insurance quotes before accepting any of them. This single tip is so valuable that it may be enough to get cheap auto insurance for first time drivers. Perhaps it is best to look at a few quotes even before you buy the automobile. Deciding on your insurer in advance alleviates the pressure to buy after seeing the first auto insurance quote because you are keen to start driving.
9. Don’t Repeat a Mistake at Renewal
This mistake of buying the first policy offered is taken a step further by many people. They keep renewing with the same company for years without checking how competitive their premiums are. You should remember to get alternative quotes at each renewal if you want cheap auto insurance. Otherwise, you will be helping insurance companies to make easy money. You will have plenty notice from current insurer and time to check other companies.
10. Don’t Be Easy Target and Get Cheap First Time Auto Insurance
And lastly new drivers can be persuaded to buy policies that they do not need. Buying too much coverage means much higher premiums than you should pay. If you have a cheap car to start with you may only need liability coverage. The rates for the new drivers are a lot higher and therefore piling up unnecessary covers to your policy will work against your aim to find cheap car insurance for first time drivers.
If you are not confident enough you can always talk to a broker or call several insurance companies and get advice from their agents. You can also get cheap auto insurance quotes online and still talk to the insurers you like before finalising your policy purchase. You have many options in terms of coverage and insurers. Make sure you make the most of them and get insured properly. Novice drivers are more likely to get involved in accidents than experienced motorists. That is why you need to be protected well just in case you may have to make a claim.