How to Find the Best Insurance Rates for First-Time Drivers

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Factors such as age, previous driving experience or lack of experience, the type of vehicle you drive, your credit score, and even your gender, can affect how much you can expect to pay.

Automobile insurance rates can vary for a multitude of reasons. Factors such as age, previous driving experience or lack of experience, the type of vehicle you drive, your credit score, and even your gender, can affect how much you can expect to pay.

If you are researching the insurance cost for new drivers, you should be aware that the premiums for insuring first-time drivers will be higher than they would be for an experienced driver.

While higher rates for new drivers may seem unfair, the reasoning behind this is based on statistics. Drivers that have little or no driving experience are much more likely to be involved in an accident that could result in physical damage to the insured’s car or another car in a collision. They are also more likely to be involved in an accident that might cause physical injuries.

These are just a few examples of why an insurance company will consider a new driver as someone who is high risk and why they will charge more to insure the individual.

Each company will have different criteria to determine their rates but keep in mind that most of them will label anyone who has been driving for less than three years as a high-risk individual. To be certain you are getting the best insurance coverage for the most affordable price, you should always shop around and get quotes from various companies.

While most insurance companies will charge more for new or inexperienced drivers, there are some who offer discounts to new drivers. These discounts will pertain to drivers who have successfully completed a driver education course and those who are considered good students. To qualify for the good student discount, they will need to maintain a higher than “C” grade average.  

There are additional discounts for “distant students” who go to school and live more than 100 miles away from their home and that do not have access to a vehicle while they are at school. These discounts will vary for each insurance company which is another reason to get multiple quotes before making your final decision.

Additionally, as noted above, automobile insurers will take into consideration the type of vehicle you drive. They will charge more for newer, more expensive cars and for vehicles that are viewed as sports cars.  

One more item that automobile insurers will consider when calculating your insurance rate is your credit score. A new driver with an excellent credit score can save up to 35% on their insurance premium.

The state and city that you live in can affect the price you pay for your automobile insurance too. Areas that have a high crime rate and areas with an excessive amount of traffic can cause an increase in your insurance premium.

In summary, the best option for obtaining the most affordable rates for a new driver is to shop around and obtain quotes from a variety of insurance providers. While the numbers suggest that USAA and GEICO offer some of the lowest premiums for new drivers, expand your search to make certain you are getting the insurance policy that will best fit your needs at the most affordable price.