Everybody has to experience buying the first auto insurance policy before they become accomplished at arranging them. But they do not need to make the same mistakes others have been doing. New drivers shouldn’t feel that it is a scary subject and hard to understand for beginners. They can quickly learn how it works and confidently make own choices. You can get it right at the first crack at it and get an affordable coverage. You just need to pay attention to several points discussed below.
How Much Does Insurance Cost for First Time Drivers?
Beginners are always perilous no matter at what age they are. However, it is an influential factor. You can check here when does automobile insurance go down to understand the effects of age on premiums. Usually many of them 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 teenager and someone over 25 would pay significantly different premiums for the first vehicle insurance policy.
A few factors affect the costs in any case. The first one is where you live. Every state has own unique laws and regulations that affect rates across. Also, demographic conditions like weather, crime, road conditions, wealth and education influence the average automobile premium per month. Who offers it is very important too. There can be a huge difference between the most expensive and lowest quote that you should never buy a policy without comparing companies.
On average, a youngster would pay about 3 – 4 times more than a standard risk driver with an established and clean record, depending on where they live. Certainly, choice of carrier would affect the price but for the sake of simplicity we are looking at average costs.
If a 25 year old is buying the 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 quote. The costs would go down every year until the age of 25 and even out. So, the premium for a 16 year old would be about 2.5 times more expensive than what is quoted to a 25 year old. On the other hand, a 25 and 35 year old new drivers would pay about the same or the former would pay slightly more.
Best Auto Insurance Companies for First Time Drivers
We have already said that novice policyholders are always high risk. This profile is mainly due to lack of history. Everyone has to start from somewhere. The market is so big that most carriers cannot ignore or stay out of it.
In other words, new motorists may be the highest risk group but they can get good quotes from top car insurance companies that they may not need to look for nonstandard ones.
Saying that the most expensive quote can be 4 – 5 times higher than the cheapest one you can get. Even under normal circumstances prices can be hugely different. This price gap becomes even more visible in the high-risk market.
Let’s try to identify the best names for this group. Large numbers of these novice policyholders are young by definition. Therefore, you can start by checking the ones that are known to be competitive for them. Below are the cheapest automobile insurance companies that can offer the best quotes for beginner drivers even if they are young.
Each of these has a different young driver program that may or may not work for your situation. You should get quotes from these and a few more from others.
Several other websites and studies looked at high-risk vehicle insurers 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.
Beginner and young drivers are always considered to be two of the most perilous categories. That is why approaching the names that are known not to be scared of taking chances with them is a good strategy and one that can get economical insurance for new drivers. However, everyone is different in many ways and quotes will vary depending on personal circumstances. That is why you should be thorough and get a few more estimates.
If you are getting nowhere with traditional carriers you may have to look into nonstandard market. But they are usually more expensive and they may not offer as good policies as standard ones.
Another options is to look at pay as you go plans. There is a high chance allowing them to see how you are doing behind the steering wheel can get you more affordable rates especially if you are confident that you are better than you are credited for. Both Allstate and Progressive offer them but they would require you to install a monitoring device to the vehicle.
Cheap First Time Car Insurance – 10 Mistakes to Avoid
Getting affordable coverage requires attention to detail and doing a few things right. The best thing to do is to learn from others’ blunders. 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 it is a great tool that helps you avoid paying thousands of dollars out of pocket in near 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 it as something that needs to be done so that there is no legal barrier to drive. See it as something that can be a ticket out of a financially sticky situation one day.
2. First Time Auto Insurance is as Important as Choosing the Car
One of the most serious misjudgements 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 a policy for it. This is a problem with experienced policyholders too. It is surprising how impulsive buyers people are. So many people go out to look at autos and end up coming home with one before the day is over. Then, they start thinking about coverage.
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 a car that attracts expensive premium. So, you should read this post titled; cheap car insurance for beginners and pay special attention to what it says about choosing a car.
3. First Time Is As Good As Any Moment to Learn
Quite a few people (even after years of experience) do not know the basic terminology or possible coverage options. Lack of knowledge is a recipe for miscalculations when purchasing coverage and a little knowledge as to how it works will go a long way. So, spare a few moments to understand what are the options and how to purchase an economical policy before going for it.
4. Get the Right Coverage for Affordable Premium
Perhaps you should start with asking how much protection do I need to figure out a sufficient defence strategy to deal with many unknowns you will be facing, instead of asking what is the least expensive automobile insurance. We have all been there and know it is tempting to go with the cheapest coverage. There is nothing wrong with it as long as the decision is taken after careful consideration and with the full knowledge of its shortcomings. You should always look for cheaper policies as long as you get the same coverage. But do you really need rock bottom prices?
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 carrier, agent or broker. Then, you can ask as many questions as you like to the agent, broker or parents. You can pick up a few tips along the way that helps you get cheap vehicle insurance for first time drivers. It is hard to find this practical knowledge in books.
6. Always Check Ratings of Cars before Buying
Also, make sure to learn how economical it is to cover the vehicle you are looking at. This information isn’t hard to find since most automobile manufacturers publish ratings. The car’s safety and accident prevention features can help you get economical automobile insurance for novice drivers. Therefore you should try to choose a vehicle with good safety record for your wellbeing and low premiums.
7. Don’t Start with a Lie
You should keep in mind that you are making a declaration by filling up a proposal form. It is better be correct and accurate. Therefore, you should take a little time before answering them. This will naturally affect the premium offered to you. 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 Around
A few people make the costly mistake of taking the only quote they get. 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 a few of them and therefore rushing into quick decision can be costly. You should step back and look at others 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 even before you pay for the automobile. Deciding on the carrier in advance alleviates the pressure to buy after only one quote because you are keen to start driving.
9. Don’t Repeat a Mistake at Renewal
The rush action just mentioned-above is taken a step further by many people. They keep renewing with the same company for years without checking how competitive premiums are. You should remember to get alternative quotes at each renewal if you want affordable rates. Otherwise, you will be helping them to make easy money. You will have plenty renewal notice to check others.
10. Don’t Be Easy Target and Get Several Quotations
And lastly most people can be persuaded to buy policies they do not need. Buying too much coverage means much higher premiums than you should pay. If you have a low value car to start with you may only need liability only. The rates for them are a lot higher and therefore piling up unnecessary covers will work against the aim to find cheap insurance for first time drivers.
If you are not confident enough you can always talk to a broker or call several carriers and get advice from agents. You can also get cheap quotes online and still talk to the ones you like before finalising the policy purchase. You have many options in terms of coverage and price. Make sure you make the most of them and get protected properly. You 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.