Are You A New Driver? Find Out How Much Cheap Car Insurance Will Cost You
Whether you are new to the U.S. or a first-time driver, you may be wondering how much you will be paying in car insurance.
Before you start your search for cheap car insurance quotes, browse through this article.
We outline who is considered a new driver and where you can get car insurance at the best price, while providing you with suggestions on how you can save money.
Firstly, Who Does an Insurance Company Consider a New Driver?
Contrary to popular belief, teenagers are not the only new drivers on the road. In fact, a new driver can be any age.
A new driver is anyone who:
- Recently received their license (irrespective of their age).
- Has never had car insurance before, or never been a member on a car insurance policy.
- Recently moved to the U.S. from another country.
- Allowed their driver’s license and car insurance to lapse after having lived abroad for a long time.
- Have had a sizable gap in car insurance coverage for any reason, including not having had a car for a while.
Although new drivers can have less experience on the road, they will not necessarily need to get special car insurance.
The only difference between a new driver and a more seasoned driver is that car insurance will be more expensive for the new driver. This is because a new driver has no driving record.
Car insurance companies use your driving record to decide on your auto insurance rates.
Does a New Driver Need Car Insurance?
State driving laws require you to have minimum liability car insurance coverage in order to drive legally.
Key Point: What Is Minimum Liability Car Insurance?
Minimum liability car insurance covers two types of insurance—property damage liability coverage and bodily injury liability coverage.
Bodily injury liability coverage
If you are responsible for a car accident, bodily injury liability insurance (BI) pays for the medical costs of the people that are injured (excluding yourself).
This coverage will also help cover payment for legal defense in the event that you are sued for any damages.
Property damage liability coverage
Property damage liability coverage (PD) helps to cover the cost of repairs if you are at fault in an accident that damages another vehicle.
It will also cover you if you damage property such as a fence or building.
This liability insurance coverage does not cover any damage to your own vehicle. For this, you may want to consider additional insurance coverage.
If you are getting your driver’s license for the first time in the U.S., or you have had a long gap in your driving and insurance history, you will need to pay new-driver auto insurance rates.
A U.S. car insurance company will typically not recognize a driving or insurance record from a foreign country.
This means that if you have moved to the U.S. from another country, you will likely be paying higher rates for your car insurance.
U.S. citizens who have lived abroad for an extended period of time will also pay higher auto insurance rates, as there will have been a gap in their insurance and driving record.
Why Are Car Insurance Rates More Expensive for New Drivers?
A lack of experience behind the wheel of a car is the primary reason why auto insurance is more expensive for new drivers.
Car insurance companies will charge higher rates to new drivers, as they are considered to be at a higher risk of having an accident.
Seasoned drivers, on the other hand, have built up a driving history that the insurance company will use to determine car insurance rates.
Lower car insurance premiums are usually related to having a good driving record, which is one without tickets, convictions, and accidents.
A driver that has not had any accidents will not have had to make any insurance claims, and are therefore less of a risk to the auto insurance company.
How Do You Add a New Driver to an Existing Car Insurance Policy?
Most car insurance companies will need every licensed driver in your household, who is going to use your car, to be included in your car insurance policy.
You can usually add a new driver to your car insurance policy either online, through the insurer’s website, or their mobile app. Many insurers will also let you add a new driver telephonically.
You will need some information in order to add a new driver to your car insurance policy. This will include their:
- Social Security number.
- Driver’s license number.
Why Is Car Insurance So Expensive for First-Time Drivers?
Someone that has moved to the U.S. recently, may already have experience behind the wheel of a car. Discussing your driving history with your insurance company may help to earn you cheaper car insurance costs.
If you are a young driver or a first-time driver, however, you will need to gain driving experience.
Part of the reason why insurance companies increase rates for young and first-time drivers, is because they will be more likely to have an accident due to their lack of experience behind the wheel.
Car crashes happen to be the second-highest leading cause of death for teenagers, according to the Centers for Disease Control and Protection.
As a Young Driver, Should You Get Your Own Policy or Go on Your Parent’s Car Insurance Policy?
Typically, car insurance is more expensive for drivers under the age of 25.
In most cases, you will be able to remain on your parent’s car insurance policy if you are living at home and driving their car.
Unlike health insurance, there is no age limit when it comes to staying on your parent’s car insurance policies.
If you do decide to move out of your parent’s home, or more specifically—the parent who’s the policyholder’s home, there is a good chance that you will need to get your own car insurance policy.
However, there are exceptions to this rule and we cover this in detail in our article, “When Can You Be On Your Parent’s Car Insurance?”.
How Do You Get Car Insurance for New Drivers Who Have Just Moved to the U.S.?
If you have recently moved to the U.S. and are considered a new driver, you may be wondering whether you can get the required minimum liability car insurance in order to drive.
When you are ready to look for car insurance once you’ve moved to the U.S., you will need to consider a long list of considerations—like policy options, licensing, and immigration.
It’s important to know that a driver’s license from another country will not be valid in the U.S.
However, you can drive on your international driver’s license for up to three months, depending on the state that you live in.
If you are a legal immigrant who has become a U.S. citizen, you will, after a set period, need to obtain a U.S. driver’s license.
In terms of how long it will take to obtain your driver’s license, this will depend on the state that you are moving to.
Some states will allow you to convert your driver’s license from your country of origin to a state driver’s license.
In others, you will need to pass a written exam or a driving test to get a state driver’s license.
You can contact your local Department of Motor Vehicles (DMV) to find out what the procedure is in the state that you have moved to.
Once you have your driver’s license, you can then apply for full car insurance.
You will need the following information in order to apply for your auto insurance:
- Passport or Green Card as identification.
- Bank information.
- Vehicle information.
- Place where the car is parked at night and during the day.
- Details of all the drivers who will be driving the car.
Can New Drivers Get Car Insurance If They Are Undocumented?
If you are an undocumented immigrant, you must have a U.S. driver’s license in order to get car insurance. Until you have a license and are insured, it’s illegal to drive in the U.S.
Undocumented immigrants can get a driver’s license in the following 15 states:
|State||Department of Motor Vehicles (DMV) Link|
|District of Columbia||https://dmv.dc.gov/service/limited-purpose-driver-license|
What Influences the Cost of Car Insurance for First-Time Drivers?
Insurance companies will look at various factors when quoting you on your car insurance costs.
These factors mostly center around the age of the driver, as well as the make and model of the vehicle being insured.
The average price of insurance for new drivers will be higher than that of more experienced ones. It’s important to remember that insurance costs vary widely.
Some of the factors that car insurance companies take into account when negotiating insurance premiums include the:
- Driver’s age.
- Experience of the driver.
- Driver’s driving history, including accidents or violations.
- Driver’s credit score.
- Vehicle’s make and model.
- Driver’s address.
Once you’ve had your driver’s license for a while, your driving record and where you live will start influencing the cost of your car insurance premium the most.
If you rack up speeding tickets, DUIs (driving under the influence of alcohol), or accidents, you can expect to pay more for your car insurance in future.
Similarly, where you live plays a large role in how much you will pay for auto insurance. If you live in an area with a high rate of car theft, your insurance rates will increase to offset those costs.
In addition, if you live in an area where there is a lot of traffic, the accident risk will increase, and so will your premium.
How Can First-Time Drivers Save Money on Car Insurance?
Getting the cheapest car insurance is essential for anyone—but especially a new driver as they will typically pay more for car insurance.
Here are some ways that you can save money on your auto insurance:
Stay on your parent’s auto insurance
The best way for young drivers to save money on car insurance is to stay on a parent’s policy.
This is often a must for any drivers under the age of 18, as minors are not allowed to purchase a plan of their own.
Most of the time, either parent of the young driver will already have everything needed to get cheap car insurance. This can include their driving history, credit record, and insurance background.
By staying on your parent’s car insurance, you can save thousands of dollars per year.
One of the best ways to get the best car insurance is to compare rates from multiple insurance companies.
To do this, you can head to the top of this page, enter your zip code, and get dozens of car insurance quotes that are tailored to your needs.
Choose a well-priced vehicle
The value of a vehicle and its characteristics will contribute to insurance rates.
For example, choosing a luxury vehicle—like a Mercedes Benz—will come with an additional insurance cost. This is especially true for new drivers.
A first-time driver with a brand-new car is a high risk for an insurance company.
Similarly, a vehicle with a number of safety features that may be difficult or expensive to repair is a higher risk to insure.
In general, if you are looking to save money on your car insurance, you may be better off choosing an older, well-priced vehicle.
Choose a high deductible
Firstly, what is a deductible? This is the amount of money that you will need to pay before your insurer will contribute financially to any successful claim that you make.
The lower your deductible, the more you will pay for your car insurance. Conversely, if your deductible is higher, you will pay less for car insurance.
Ask about discounts
There are many discounts that are available to you from car insurance companies. While these discounts may not mean major savings, every dollar will make a difference.
Some insurance providers offer specific discounts for first-time drivers:
After having completed a defensive driving course through a company authorized by your insurer, give your insurance company the proof of course completion.
Defensive driving classes will make you a safer driver, and therefore less of a risk to insure.
If you’ve maintained a clean driving record over a number of years, you may be eligible for additional safe driver discounts.
There are some insurance companies that will offer you a discount based on your profession.
Teachers, police officers, and doctors are often given preferential insurance rates as they are seen as less of an insurance risk.
You will need to provide your insurer with proof of your qualification in order to get a discount.
If you are under the age of 25 and still a student, a B average and above can qualify you for a discount.
You may need to provide proof of your average every 6 or 12 months.
If you have installed an anti-theft device on your vehicle, your insurer may offer you a discount.
If you and your family have more than one vehicle insured with the same car insurance company, you may qualify for a discounted premium.
Get Cheap New Driver Car Insurance Today with CheapInsurance.com
As a new driver, you will often pay more for car insurance compared to an experienced driver with an established driving record.
Comparing auto insurance quotes is essential to make sure you get the best rate possible.
Finding a good insurer can be a time-consuming process. Fortunately, we are here to help you find the insurance coverage that you need—at the best price.
All you need to do is head to the top of this page and enter your zip code. You will find a wide selection of insurance quotes to choose from.
Once you have an idea of the auto insurance premiums that you could be paying, it will be time for you to contact the insurers that are offering you the cheapest rates to get a formal quote.
Getting car insurance should be quick, simple, and stress-free, and you deserve to get the best insurance rates possible.
At CheapInsurance.com, we’ve got you covered!