Cheapest Car Insurance Rates for First-Time Drivers

For first-time drivers, finding the cheapest car insurance company with lower rates can be a great way of reducing their monthly expenses.

Infoexpert24 presents you with data to help you the Cheapest Car Insurance Rates for first-time drivers

In the U.S., the average cost of minimum coverage car insurance is $565 per year, while full coverage costs $1,674 per year, on average. Choosing a car insurer that offers the cheapest insurance coverage for your situation can help you feel more in control of your finances.

READ ALSO: Car Insurance: Factors That Affect Car Insurance Rates In 2021

The cheapest car insurance policies for first-time drivers can save new drivers as much as 136% compared to the more expensive options, so it is very important to shop around. Overall, the cheapest car insurance companies for first-time drivers are Travelers, Grange, and Mercury.

Cheapest Car Insurance Rates for First-Time Drivers

1 State Farm

2 Progressive

3 Mercury

4 Travelers

5 Grange

The major factor in finding the cheapest car insurance for first-time drivers is to compare quotes from multiple companies.

Cheapest Car Insurance Rates for First-Time Drivers Comparison

Average Cost of Car Insurance for First-Time Drivers

The cost of car insurance for a first-time driver depends mostly on their age. On average, a policy for a 16-year old driver costs $3,343 per year. Premiums are usually the highest for teenagers compared to other age groups, but good drivers will see their rates drop by 12% to 20% once they turn 25 years old.

READ ALSO: Insurance: How To Lower Car Insurance Premiums In 2021

6 Tips for Getting Cheaper Car Insurance for First-Time Drivers

1. Shop around for coverage

Each car insurance company has its own method of calculating insurance premiums, so the first quote you get might not be the lowest price available. In general, it’s a good idea to get quotes from three different insurers before purchasing coverage.

For first-time drivers getting car insurance for the first time, it’s important to consider not only the company’s price, but also coverage options, available discounts, and overall reputation.  Even after you’ve bought your policy, you should still compare quotes every 6-12 months to make sure you’re getting the best deal.

READ ALSO: Car Insurance: Best Car Insurance Companies In USA

2. Consider joining an existing policy instead of purchasing your own

Adding a teen driver to an existing car insurance policy raises the policyholder’s premiums by an average of 140% to 160%. But considering how expensive car insurance is for new drivers, this might be a more cost-effective option than having them purchase their own policy.

3. Look for discounts

Most major insurance companies offer a variety of discounts for young drivers who are new to the road. For example, good student discounts allow high school and college students to save if they have at least a “B” grade point average. Young drivers can also get a discount if they attend school at least 100 miles away from where the insured car is garaged.

4. Purchase less coverage

You should always purchase as much car insurance as you can afford in order to minimize risk. But if you’re struggling to find an affordable policy, you should think about what types of coverage you actually need.

If you decide that you don’t need additional types of coverage like collision or comprehensive, you could save on your premium by only purchasing the minimum amount of car insurance required by your state. You can also decline optional coverage add-ons like rental reimbursement insurance and roadside assistance.

READ ALSO: Car Insurance Quote: An Important Factor To Consider While Choosing Car Insurance

5. Choose a higher deductible

One quick way to lower your rate is to raise your deductible, which is the amount that you’re responsible for paying if you file certain types of claims. The higher your deductible, the lower your premium will be. But you should avoid choosing a deductible that’s more than you can afford just so you can get a lower rate.

6. Stay safe on the road

As a first-time driver, the best way to lower your rates long-term is to avoid moving violations and at-fault accidents. Once you’ve had a few years of safe driving experience, your rate will gradually go down.

Methodology

WalletHub’s analysis of the cheapest car insurance companies for first-time drivers is based on data from the state DMVs and Quadrant Information Services. Using that data, WalletHub compared quotes for drivers aged 16-25 years old with a clean driving record, minimum coverage, and good credit.