Auto Insurance for New Drivers
Being a new driver can be tough and can also be expensive on auto insurance. Many auto insurance companies charge more for new drivers just because they see them as being more of a risk to have an accident. An insurance company uses a driver’s risk profile determined by numerous insurance factors to set their rates. This can be true for some drivers but definitely not all. You could also make the counter argument that new drivers could be more cautious drivers because they drive more conservatively than someone who has been driving for many years. Most new drivers are younger people driving for the first time and this is where the risk lies for the auto insurance carrier.
New driver insurance is not a specific kind of auto insurance policy it is used to generally categorize a segment of the market. But it is good to disclose to your auto insurance company your date licensed because this can have an effect on your rates. Just because you are a new driver doesn’t mean you can't find affordable car insurance prices it just may take a little more work.
Click to watch more about how auto insurance companies set their rates
Who may need new driver insurance?
Here are a few scenarios that could cause you to need new driver insurance:
- Teenage drivers who just got their license
- Old drivers who have never drove a car before
- Immigrants and foreign national drivers
These are just a few of the scenarios that might put you in the segment of new driver insurance. If you are in one of these situations and needing auto insurance as a new driver, we recommend calling a nonstandard auto insurance agency or company. Many of them do not charge higher rates for new drivers.
Click to read more about high-risk auto insurance
Auto Insurance for immigrants and foreign nationals
No matter how long you have been licensed in another country it has no effect on your auto insurance in America. Auto insurance companies look at how long you have been licensed in the U.S. So, your driving history in the states is what counts. The same goes for credit history which is also a major factor in your auto insurance prices with most companies.
If you do not have a valid U.S. license it can be difficult to find affordable car insurance. If you do not have an active U.S. driver's license and are renting a car we recommend purchasing their auto insurance coverage so you can be protected. If you do plan on living in the U.S. permanently it would be in your best interest to get a driver’s license in the state you reside in. Some states will still issue a license like California even if you are an undocumented immigrant.
Click to learn more about finding cheap insurance with no license?
Who has the best insurance for new drivers?
Finding the best auto insurance companies for new drivers depends on the situation on why you have not had a license. Overall, we feel nonstandard auto insurance companies have the best rates for new drivers in most cases. The one exception is if you are a teenager driver who just got licensed and can be added to your parent's policy. In this case companies like State Farm or Farmers would have good rates for this situation.
For most all other situations though we found some nonstandard auto insurance companies who have affordable rates for new drivers and here they are:
- Save Money Car Insurance
- Fred Loya
Click to learn more about auto insurance companies for new drivers
Finding an auto insurance broker or online quote comparison sites are good options for new drivers to look at getting quotes. They work with many of the nonstandard companies who specialize in specialized insurance policies.
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Car insurance for new drivers after a driving or coverage gap
If you spent time abroad or lost your license or maybe you just didn’t need to drive for a while. If you do not have a driving record to check, auto insurance companies can still consider you a new driver. If you have not had six months continuous auto coverage then you could be considered a high-risk driver which can cause your auto insurance rates to go up.
Even if you have a little driving history so insurance companies can run your driving record, it is crucial to shop around your insurance as much as possible since you have had a gap in coverage. Many auto insurance companies will grant an exception for military personnel being deployed and not charge higher rates. They should be rated with no extra cost and some companies will give a military discount. All companies should give discounts to military personnel in my opinion.
With continuous insurance being one of the most important factors insurance carriers consider, some may not be able to offer you coverage with a gap in coverage.
Cheap car insurance for new drivers
In auto insurance definitions, the term “new driver” is a driver with no driving history or previous insurance history. Just because you are a new driver does not mean you cannot find affordable auto insurance. Here are a few of the best things you can do to find cheap car insurance if you are a new driver:
- Set you payment plan to be auto debited
- Enroll in paperless billing
- Take a defensive driving course
- Keep a clean driving record
- Be claims free for at least 3 straight years
Getting as many quotes as possible and keeping a good credit score are two important factors new drivers need to keep in mind when getting quotes. Also be careful on the type of car you buy, the newer the vehicle the more auto insurance rate you will pay especially for full coverage insurance. Full coverage insurance is very expensive for new drivers.
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click to read more about full coverage insurance for new drivers
If possible, carrying liability only insurance will help new drivers save money on their car insurance. If you do choose full coverage insurance it will help keep prices down to get a higher deductible. The higher your deductible the lower your monthly premiums will be.
click to watch more about liability auto insurance for new drivers
New drivers that are 20 and below pay the most for auto insurance. They can pay up to 100% more than adult drivers. Due to lack of driving experience and tendencies to make poor decisions while driving like driving recklessly or texting and driving means insurance companies charge very high premiums for this risk.
click to read more about auto insurance coverages for new drivers to choose from
How to choose the best auto insurance company for a new driver
Whatever you decide, no matter how many discounts you have if you have the wrong auto insurance company it won't matter. Some insurance companies will see your age and lack of driving experience and charge a large amount of premium. But thankfully here at Cheapest Auto Insurance we help new drivers find affordable car insurance rates not matter their situation. We have numerous companies we work with that give new drivers the different coverage options they deserve.
click here to watch more tips for new drivers buying insurance for a new car
click here to learn more about the top insurance companies that new drivers can choose from
New Driver Insurance FAQ’S
How much is car insurance for a new driver per month?
Car insurance rates for a new driver depend on many different factors but overall, we found it would be about a 10%-20% increase for auto insurance rates if you are a brand-new driver. Most companies will segment out and give same rate per age segment. Here are the segments most insurance companies use:
What’s the cheapest way to insure a new driver?
We have found the cheapest way to insure a new driver is for a parent to add them to their policy.
What’s the best insurance for a new driver?
The cheapest insurance price a new driver can get would be just state minimum liability insurance but that isn't the “best” that would be comprehensive and collision insurance with all the bells and whistles added but this will be very expensive in most cases.
click to read more about liability car insurance