Cheap Car Insurance for New Drivers in 2022.

The cheap car insurance for new drivers can save first time drivers up to 136% compared to more expensive options, so it’s very important to shop around. Lastly, the cheapest car insurance companies for new drivers are Travellers, Grange and Mercury, according to an analysis .

Cheap car insurance for new drivers companies list

New drivers typically pay more for car insurance than mature drivers with more experience, but it is still possible to get a good deal on your coverage. The best way to finding the cheapest car insurance for first time drivers is to compare quotes from multiple companies.

Cheap car insurance for new drivers companies comparison

Company                                            Average Annual Cost

Travelers                                            $1,313

Grange                                               $1,584

Mercury                                             $1,684

Progressive                                       $1,835

State Farm                                        $1,895

Safeco                                                $2,034

Liberty Mutual                                  $2,065

The Hartford                                     $2,116

Kemper                                              $2,128

Average Cost of Car Insurance for new Drivers

cheap car insurance for new drivers

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

Age          Average rate

16            $3,343

17             $2,752

18             $2,415

19             $1,812

20             $1,618

21             $1,250

22             $1,134

23             $1,053

24             $998

25             $862

Best Tips for Getting Cheap Car Insurance for new Drivers

1. Shop for Coverage

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

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

2. Consider Joining an Existing Policy Instead of Buying Your Own Policy

Adding a juvenile driver to an existing car insurance policy increases the policyholder’s premium by an average of 140% to 160%. But considering how expensive car insurance is for new drivers, it may be a more cost-effective option than buying their own policy.

3. Look for Discounts

Most and the major insurance companies offer a variety of discounts for young drivers who are new to the road. For example, the good student discount allows 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 go to school at least 100 miles from where the insured car garage is.

4. Buy Less Coverage

You should always buy as much car insurance as you can afford to reduce the risk. But if you’re struggling to find an affordable policy, you should consider what type of coverage you really need. If you decide you don’t need additional types of coverage, such as collision or comprehensive, you can save on your premiums by only purchasing the minimum amount of car insurance required by your state. You can also decline optional coverage add-ons such as rental reimbursement insurance and roadside assistance. In cheap car insurance for new drivers.

5. Choose a Higher Deductible

A quick way to lower your rate is to increase your deductible, which is the amount you pay to file certain types of claims. The higher the rate of your deductible, the lower will be your premium. But you should avoid choosing a deductible that is higher than what you can afford so that you can get a lower rate. In cheap car insurance for new drivers.

6. Be Safe on the Road

As a first-time driver, the best way to reduce your rates for the long term is to avoid violations and at-fault accidents on the go. Once you have a few years of safe driving experience, your rate will gradually decrease.

How long can you stay on your parents’ insurance?

There is no age limit for sharing a car insurance policy with your parents, so as long as you live in the same household, you can share the policy. Once you move out, you’ll need to get your own policy, unless you’re still considered their dependent (for example: a college student).

Best cheap Car Insurance for New Drivers on a Family Policy

cheap car insurance for new drivers

Young first time drivers can get much better rates by sharing the policy with their parents or an older relative.

Allstate, Geico and State Farm rates are all cheaper than average. Geico charges a minimal fee to add another car and driver to an existing policy — an average of $1,419 per year.

Although State Farm charges a higher fee for adding another car and driver, its overall rates are better than those of its competitors. On average, a full-coverage policy with three vehicles and drivers from State Farm costs $2,201 per year — $813 cheaper than the average. In cheap car insurance for new drivers.

How much is insurance for a new driver?

On average, new drivers can expect to pay $1,582 per year for minimum-coverage and $3,867 per year for full-coverage insurance. However, car insurance rates vary greatly depending on other factors such as your age, where you live and your credit score.

How does experience affect car insurance rates?

Auto insurance companies consider a wide range of factors to determine rates, including driving experience. People with little or no driving history are at significantly higher risk to be insured, so they must pay higher premiums during the first few years of their driving career. However, as you spend more time behind the wheel, you will notice that your insurance rates start to drop. In cheap car insurance for new drivers.

Who is considered the new driver?

  • Newly licensed teens
  • Older drivers who never had a license
  • People with differences in driving or insurance coverage
  • Immigrants and foreign nationals

Years of license     Average annual premium     Percentage increase

0                              $1,105                                        43%

1                              $884                                           15%

2                              $855                                           11%

3                              $832                                             8%

4                              $827                                             7%

5                              $772                                             0%

The percentage increase reflects the difference in premiums from a driver with five years of experience, which is when experience doesn’t affect average rates.

In Texas, a 30-year-old with no driving experience can expect to pay $1,105 per year for a minimum coverage policy. After a year of driving, his rates drop to $131. After he’s licensed for five years, his rates are $333 cheaper. In cheap car insurance for new drivers.

How to Save on Car Insurance as a New Driver

cheap car insurance for new drivers

Regardless of age, if you lack driving experience, you will have to pay more for insurance. However, you can take some steps to reduce your monthly bill.

  • Compare quotes from multiple insurance companies.
  • Join a family policy.
  • Consider the car you drive – Low to moderately priced vehicles with good safety ratings usually result in better rates than expensive, high-tech cars.
  • Choose a higher deductible.
  • Pay your premium in advance.
  • Bundle your auto and renters insurance policies.
  • Ask about additional discounts such as good students and defensive driving.

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FAQ about Cheap car Insurance for New drivers.

What is the cheapest car insurance for 18 year olds?

Cheapest car insurance companies for 18 year old drivers

          Company.            Annual premium.

  • State Farm.     $2,890.
  • GEICO.             $3,446.
  • Allstate.           $3,521.
  • Nationwide.    $4,212.
  • Progressive.    $6,280.

Which is the cheapest insurance group for new drivers?

Insurance Group 1

Generally, the smaller the number of insurance groups a car has, the cheaper it is to insure it. This means that the car in Insurance Group 1 is likely to be the cheapest car to insure, while the car in Group 50 will be the most expensive.

Is it cheaper to insure yourself for a new driver?

Insurance rates for new or first-time drivers are usually higher than rates for more experienced drivers. Since new drivers are seen as a greater risk to insure, car insurance companies charge them higher rates.

Is car insurance for 17 to 18 years cheaper?

Car insurance for 17 and 18 year olds is more expensive because you have little driving experience. Therefore, insurers will quote premiums based on what is likely to cover more claims costs than a more experienced driver.

What is the best way to insure a new driver?

There are several steps you can take to get cheap car insurance as a newly qualified driver. These include taking telematics insurance, enrolling an experienced driver on your premium, driving a low-powered car and paying in advance for a full year.

Thanks for reading about cheap car insurance for new drivers.

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