How to get cheap car insurance as a new driver

In 2020, the cost of auto insurance for new drivers fell slightly due to numerous lockdowns, which resulted in fewer claims. However, with an estimated annual auto insurance rate of $1269 for a 20-24-year-old, premiums remain exorbitant. To drive legally, every state needs you to have car insurance or evidence of financial responsibility. The minimum amount of insurance required by your state will decide how much coverage you need to buy. However, to be sufficiently covered, it's always a good idea to buy more than your state's minimum coverage. 

Unfortunately, as a new driver, auto insurance firms view you as a higher risk to insure and accordingly increase your premiums. Age is one of the most critical factors that contribute to the rise in new driver rates. We discovered that the youngest and oldest drivers pay considerably more than drivers in the center after comparing cheap car insurance quotes from more than 20 best car insurance companies. 

Young age is associated with a lack of driving experience. Teenagers, who are less risk-averse than middle-aged drivers, cause more incidents on average. Many people, however, start driving later in life. Even if you're not a new driver, you'll pay higher rates than most people your age. You will, however, see a smaller rise than your younger peers. 

Comparing customized rates from at least three insurance providers in your state is the easiest way to find cheap car insurance. While some insurers have the lowest rates nationally, smaller insurance providers in your region could have the best rates for you. If you're looking for insurance for a teen driver, you can compare quotes from your state's cheapest insurance agencies with quotes from national insurers like GEICO or State Farm. 

If you don't have any driving experience, you'll have to pay extra for your insurance policy, regardless of your age. You may, however, take a few measures to get car insurance for new drivers. 

Think about the vehicle you drive 

If you're buying your first car, think about how much it would cost to insure it. In general, the more luxurious a vehicle is, the higher the cost of auto insurance. Vehicles with high-tech technologies, such as rear-view cameras and bumper sensors, raise insurance premiums because even slight damage can be very costly to fix. Insurance firms, on the other hand, recognize a vehicle's protection when calculating rates. As a first-time driver, you may want to opt for a low- to a mid-priced vehicle with a high safety rating. 

Get into family policy 

Adding yourself to your parent's policy or other family members who drive can help you get lower rates. Most insurance providers can give you a discount if you have several individuals on your policy. However, adding a new driver to the scheme will raise the monthly expense disproportionately, so you'll need to figure out who will cover the extra premiums for your family. 

New drivers are more likely to cause injuries, so car insurance companies justify charging them more. Staying on their parents' policy for as long as they have the same permanent address is the safest way for a young driver in their teens to get cheap insurance.  

Keep in mind that "cheap" is a relative term; adding a teen to a married couple's policy would almost certainly double their premium.  

On the other hand, going it alone is likely to be more expensive; to be sure, compare several new driver insurance quotes online. 

Combine the insurance policies 

If you already have renters insurance, get a quote for auto insurance from your current insurer. They could give you a discount if you have several policies with them. 

Pay in advance 

Typically, the amount you'll pay if you pay the whole policy rate upfront is reflected in the quote you get from insurance providers. You'll end up spending more if you pay in monthly installments. Since insurers charge a convenience fee for subscription premiums, this is the case. The money you save by paying in one lump sum differs depending on the insurer.  

By paying for your whole policy in advance, you could save 5% to 10%. Your total insurance price may be more than you can afford to pay in one lump-sum payment as a new driver, but if you can, you may be able to lower your overall costs. 

Inquire about exclusive discounts 

Drivers in different stages of life are eligible for a variety of discounts from insurance companies. Many insurers have discounts for the following. 

• Drivers who have completed a defensive driving course are eligible for a discount. 
• Students with a 3.0 GPA or higher are qualified to drive. 
• If you've just had one mistake, you'll be forgiven. 
• If you keep your driving record clear, you'll get a discount. 

• Discounts if your car has an alarm, a location device, or other security features 

When drivers earn discounts on their car insurance rates, there are no hard and fast rules. You can see a reduction in your rates until you hit the age of 25 and have four or five years of driving experience (with no injuries or moving violations). 

Liability insurance, which covers injury and harm you cause to others and their property, is usually required. Liability insurance is divided into three categories: 

• Insurance for bodily harm per person injured 
• Accidental bodily harm protection 
• Insurance for property loss 

When determining how much risk they take on by insuring a driver, auto insurance companies look at various factors. One of those factors, unfortunately for new drivers, is driving experience. People with little to no driving experience are more difficult to insure, so they'll have to pay higher premiums in their first few years behind the wheel.  

However, some insurance providers have lower rates than others, and new drivers may be eligible for extra incentives that reduce the cost of their auto insurance plans.