Cheap car insurance for new drivers: A guide to finding affordable coverage

It may not be obvious that “cheap car coverage” is synonymous with “new driver.” However, if you add a teen to your policy, you have options that will be fine. Including a teenager on your existing policy is often cheaper than purchasing a separate one.

Find the Cheap car insurance for new drivers rates by comparing coverage, complaints and rates.

Cheap car insurance for new drivers under 25

Allstate has the lowest liability coverage rates for new drivers aged under 25. In general, new drivers will pay an average of $2,743 for their insurance. Allstate’s insurance costs $56% less per year, $1,205.

State Farm offers the lowest rates for full coverage insurance. The average is $3,308 annually or $276 monthly. This is about half the average annual cost for full-coverage insurance, which is $6 527.

Allstate offers the lowest minimum coverage for new drivers aged over 25. Allstate charges $395 a year, 56% less than the average.

State Farm offers the lowest rates for full coverage policies. State Farm charges $1,398 for new drivers per year. This is $1,000 less than the average.

All three companies offer rates that are lower than the average. Geico is the company that charges the lowest amount to add a second car and driver onto an existing policy. The average cost for this is $1,419 a year.

State Farm’s rates are lower than those of its competitors, even though it charges more for adding another vehicle and driver.

State Farm’s full coverage policy for parents and teens costs an average of $2,201 annually. This is $813 less than the average.

Car Insurance Types to Consider for New Drivers

It would be best to consider buying extra coverage for your young driver. Three types of auto insurance provide extra protection in an accident.

Accident forgiveness

Accident forgiveness insurance is a good financial backup for policies that include newly licensed drivers. Accident forgiveness Insurance will prevent your rates from going up after an accident as long as you are eligible. Eligibility requirements vary between car insurance companies.

Some insurance companies provide accident forgiveness coverage as an add-on to the insurance you purchase, while others offer it automatically. Others combine both.

You must typically maintain a good driving record for at least a certain time, such as three years, to qualify for accident forgiveness policies. Some companies will forgive your first accident after you have been their customer for a specified period.

You can, for example, qualify for accident forgiveness after three years of being a client with Erie. USAA offers accident forgiveness free of charge after five years for drivers who have not been at fault in an accident.

Auto-Owners offers accident forgiveness if the drivers in your household have not had any at-fault accidents or major violations during the previous three years.

Gap Insurance

Gap coverage is available to help if your new driver damages your car and you still owe money on your loan or lease.

Your insurance company will pay the depreciated worth of your vehicle minus your deductible when you submit a claim for comprehensive or collision coverage.

You’ll have to pay off the car loan if you don’t carry gap insurance and your loan balance exceeds your car’s worth.

Replace your car with a new one

It’s a good idea to purchase car replacement insurance if your teenager is driving a car you purchased for them or your own.

You don’t get the depreciated worth of your totalled vehicle after an accident. Still, you get money to buy a new car with the same model and make.

You can ask your insurer what their car’s age and mileage requirements are. Insurance companies have different eligibility requirements for coverage of new cars.

As an example:

• Erie’s Auto Security Add-on offers money to replace an older vehicle with a newer model.

• Nationwide’s new car replacement insurance pays for replacing your vehicle if it is less than three years old.

• Farmers’ new car replacement insurance pays for a brand-new vehicle of the same model. It makes if you total your car within the first 2 model years or under 24000 miles.

What is the cost of insurance for a new driver?

According to full coverage rates estimates, the average price for new drivers will be

$5,827 per annum or $486 per month. The rates are higher for young drivers and new drivers.

Price of car insurance for first-time drivers

Here are the average costs of full coverage insurance from several popular providers for a driver aged 25 with good credit and driving records.

Cheapest car insurance for new drivers

The table above shows that USAA and Geico are the two companies that offer the lowest rates to new drivers. For a full coverage policy, we found that drivers aged 25 and older who qualify for USAA coverage pay, on average, $1292 per annum and $108 per month.

Why is car insurance so expensive for new drivers?

Depending on the insurance company, new drivers may pay up to $3,000 or even more per year for auto insurance.

Insuring new drivers is more expensive due to their need for driving experience. In addition, younger drivers are more likely than older drivers to have an accident. This increases the cost of car insurance.

Cheapest Car Insurance Companies for First-Time Drivers

Travel Insurance

According to WalletHub, Travelers offers the cheapest car insurance for new drivers. The average cost of a minimum Travelers policy for a new driver is $1,372. Travellers offer 14 discounts, and many first-time drivers are eligible for them.

USAA Insurance

Usaa offers many discounts for new drivers, whether they are veterans, military personnel, or family members.

USAA offers discounts to first-time motorists. For example, a good student discount is available for those still in school.

GEICO

Geico is a good choice for new drivers because it offers low prices, 17 discounts and a variety of coverage options. WalletHub editors also give Geico high marks for its streamlined claims process.

Mercury Insurance

Mercury offers affordable coverage for new drivers in the 11 states that it serves. Mercury offers fewer discounts than other companies, but its rates are still competitive. Mercury has an easy-to-use claims process that is perfect for new drivers.

Common car insurance discounts for new drivers

Discounts for multi-policy policies

Multi-policy discounts can be obtained by combining multiple insurance policies, such as home-and-auto or renters-and-auto, with one provider.

These discounts are often applied to both policies. By bundling auto and homeowners policies, you can save $66 on average compared to bundling renters and homeowners. The main reason is that homeowners insurance generates more revenue than renters.

Multi-car discount

A Multi-Car Discount is similar to a discount for multiple policies. It refers to the insurance of more than one vehicle with a single provider. Discounts are automatically applied at the time of policy inception if you have two vehicles insured right from the beginning.

Discount for defensive driving

You must provide proof of completion in the form of a receipt or transcript. This discount has a simple logic: defensive driving courses make you a better driver and, therefore, less risky to insure.

We have partnered with iDriveSafely to offer online defensive driving classes at an affordable price. You can take a defensive driving course in almost every state.

It will help you keep a clean driving record, and it could save you money in the future on your car insurance. Find out more about iDrive Safely’s defensive driving courses.

Equipment discount

Your insurer may offer you a discount, usually less than the multi-policy bonus or the defensive driver bonus if your vehicle is equipped with an antitheft device or uses a service such as Lojack. Modern vehicles are often equipped with antitheft devices. Be sure to include any security devices in your quote.

Good driver discount

This discount is only available to drivers with a clear driving history, meaning no accidents or citations. This valuable discount will be applied to your policy if you are a safe driver.

Your Motor Vehicle Report (MVR), obtained at the beginning of your policy, should show that. You may not be receiving a good-driver discount despite your safe driving habits. Contact your insurance provider to inquire.

Profession/occupation discount

The idea behind this discount is the same. Insurance companies may offer discounts based on occupation. Statistics show that occupations like teachers or doctors have a lower claim rate. Insurers often request a photocopy of a degree or other proof of occupation.

Good student discount

Ask your insurer about a discount for good students if you are under 25 years old and have good grades – typically a 3.0 GPA or higher. They’ll usually ask for your transcripts every six to twelve months as proof that you are still in good standing.

Conclusion:

With the right research and guidance, new drivers can find cheaper coverage. Cheap car insurance for new drivers can save money by shopping around and taking advantage of discounts from insurers.

Understanding what factors influence your rates, which coverages you value, and how much money you will need to spend to remain safe on the road can help young drivers to make informed decisions about their auto insurance policies.