Cheap Car Insurance For First Time Drivers

Costs for car insurance can vary wildly, especially for first-time or new drivers. In the insurance world, anyone without a driving history or record of previous insurance is considered a new driver. While there are some new drivers who are adults, oftentimes new drivers are teenagers. 

New drivers can typically expect to pay more for car insurance in Utah than more experienced drivers, but it is still possible to secure affordable coverage.  The key to finding the best coverage at the best price? Do your homework. Get multiple quotes and compare them side by side.

Tips for Lowering Car Insurance Costs

1. Bundle Your Policy – This is one of the most tried and true ways to get a good deal or discount on auto insurance for a new driver. Adding the driver to a parent’s policy will allow for a multi-policy discount and will help your teen build prior insurance credits so they can maintain those discounts when they venture out on their own later on.
2. Shop Around – Get a few quotes and compare them. Choose the best coverage for your needs and budget based on your findings. More expensive rates do not always equal better coverage. Make sure you compare price, what is covered, deductible rates, and any additional factors that are important to you.
3. Find Discounts – Insurance companies often provide discounts for drivers who are less likely to drive irresponsibly. Some of the common policy discounts include a good grade discount for students, a clean driving record for more experienced drivers, and completion of driver’s ed classes. Insurance companies will raise or lower rates based on how you pay for your policy, your zip code, and the number of policies you have with them. Some will even offer discounts based on your profession or available technology in your vehicle.
4. Maintain a Clean Driving Record – One of the easiest ways to keep your auto insurance rates low no matter how long you’ve been on the road is to keep your record clean. Avoid speeding tickets and accidents by driving safely and within the limits of the law, and your insurance company will reward you with lower rates.
5. Check Your Deductible – A lower deductible means higher premiums. If you can afford to pay a higher deductible, you can raise it to get a lower premium. Be careful with this, however. Some drivers maintain a high deductible and then can’t afford to cover it when they need it most. Make sure your policy rates and deductible are balanced so you have both a manageable premium and deductible.
6. Choose Less Coverage – This is another area you’ll want to be selective with. If your car is older and not worth a lot, do you need full coverage? You can save a lot by dropping collision or comprehensive insurance, but make sure you set some cash aside to repair or replace the vehicle if you get in an accident or it stops running. You can also decline roadside assistance or rental car coverage to save some money on your policy.
7. Clean Up Your Credit – Most insurance companies offer significant discounts to policyholders with great credit scores. In fact, aside from a few states, credit can be a larger factor than your driving record. Only California, Hawaii and Massachusetts, do not allow insurers to consider credit when setting rates.

Best Car Insurance For New Drivers VS Cheap Car Insurance For New Drivers

How do you know you’re getting adequate coverage without breaking the bank? Striking a balance between getting the coverage you need and the price you want can be a challenge, but it is not impossible.

When it comes to providers, there isn’t a single company that positions itself specifically for first-time or teen drivers, but there is a handful that will purposefully provide incredibly high rates for those drivers to avoid providing their policies that you probably want to avoid. Often these are the “Preferred” companies that target the auto/home bundles and look for clients with high credit scores and sometimes even high net worth.

The best (and cheapest) car insurance for new drivers is often whichever company their family is already using. Adding a new teen driver to an existing policy will increase the cost of the policy significantly, but is typically far less expensive than the new driver purchasing their own standalone policy.

New Driver Insurance Cost

How much does it cost to add a teenager to car insurance? The typical new teen driver on their parent’s policy pays more than $1,300 for car insurance every six months. Teen driver insurance costs vary based on a number of details. Because different insurance companies price their policies based on different factors, it is difficult to estimate what a new driver’s insurance premiums will be without a bit of information about the driver.

Some factors that affect coverage costs are easier to control than others. While no one can change their age or state requirements, they do have some control over their driving record and the make and model of their vehicle. The main aspects of insurance coverage that drive the policy price include the age of the person getting coverage, the value of their vehicle, and the insurance requirements of the state they live in. 

Premiums are typically highest for teenage drivers, due to their higher accident risk. Male teen drivers can expect to pay even more than their female counterparts. On average, male teen drivers spend about $500 more for annual premiums than their female counterparts, according to Bankrate.com. 

The bottom line? Do your homework, know what coverage your new teen driver needs and what they don’t, know what you can afford, and choose the best car insurance coverage for your family accordingly.

Contact Keystone Insurance Services

Whether the new driver is an adult or a teenager in your house, our car insurance agents will work with you to find you the best coverage at the best price. Contact our offices in Provo or Payson to get your free quote.

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