If you get the wrong kind, you might end up paying too much or not having enough coverage. Keep reading to learn everything you need to know about coverage before you get behind the wheel. <\/p>\n\n\n\n
What is New Driver Auto Insurance? <\/h2>\n\n\n\n
It consists of policies for first-time drivers. It is called \u201chigh-risk\u201d coverage in the industry. Although high-risk policies are not just for those who are new and inexperienced, anyone with little to no experience behind the wheel will be seen as a higher risk. And that\u2019s because these people tend to get into more accidents than those with some experience on the road.<\/p>\n\n\n\n
You may also fall into the \u201cyoung driver\u201d category, which is another high-risk<\/a> subset of motorists to insurers. Teenagers tend to have more accidents, get more tickets and therefore, file more claims, than older, more mature folks.<\/p>\n\n\n\n So, if you are a teenager who just got your driver\u2019s license, you have a double whammy when looking for affordable coverage.<\/p>\n\n\n\n It depends on where you live, among other factors. Nationwide, the average monthly cost for full coverage is $148. The minimum for state-required liability averages $47 monthly. It\u2019s important to understand that these prices are for an established motorist with a clean driving history.<\/p>\n\n\n\n For someone new, that cost can be doubled or even tripled. For example, in Los Angeles, a 16-year-old male will pay on average $352 per month for the minimum coverage required by law in California. If they have financed a vehicle and therefore need to purchase full coverage, that averages $1,054 monthly.<\/p>\n\n\n\n On the other hand, a 45-year-old male in Los Angeles will pay on average $77 for the state-required minimum and $238 monthly for full coverage.<\/p>\n\n\n\n You can see that your premium will go down as you get older and\/or gain more experience. At this point, the law \u2013 and your insurer \u2013 view you as a child.<\/p>\n\n\n\n No matter how long you\u2019ve been driving, it\u2019s important to know ways to lower your premium<\/a>. <\/p>\n\n\n\n The good news is that someone is only considered this while they have no driving history. So as soon as you begin driving, you are no longer in that category. <\/p>\n\n\n\n The bad news, though, is that you simply go from that to being known as an inexperienced driver. And you\u2019re still going to pay more. <\/p>\n\n\n\n Generally speaking, your experience will be measured in terms of either your age or your time driving. So if the insurance company goes by age, you will likely be considered lacking experience (and paying higher prices for coverage) until you are in your early-to-mid 20\u2019s. <\/p>\n\n\n\n If your insurance company goes by driving experience, you may need to wait until you have driven for at least three years. Some insurers consider you lacking in experience for far longer, though, so make sure to ask so you can get a direct answer. <\/p>\n\n\n\n In most cases, practice makes perfect and that\u2019s true for learning how to be good behind the wheel and how to drive defensively. But you don\u2019t want to be on the road for any longer than is absolutely necessary. So, there are a couple of things you can do to help get the skills you need.<\/p>\n\n\n\n 1. Take a defensive driving course. These courses are not expensive and many of them are available online. You\u2019ll learn how to anticipate and avoid situations that are dangerous. And bonus \u2013 many insurers will give you a car insurance discount for successfully completing a course.<\/p>\n\n\n\n 2. Use an online driving practice tool. There are a variety of driving simulators and games you can access online. Some are free and some will cost, but this is a good (and some might say, fun) way of getting better at driving.<\/p>\n\n\n\n If you are a new teen driver, it\u2019s important to look for ways to get the cheapest car insurance possible, since teenage drivers typically see some of the highest car insurance premiums. But you do have some options and it\u2019s a good idea to pursue them. Keep in mind that not making a claim against your carrier is the best thing you can do to have those rates come down as you get older. Here are some other avenues to pursue.<\/p>\n\n\n\n Every carrier offers discounts to their customers. As a teenager, you won\u2019t be able to access most of those, but there are some that you can use to your advantage.<\/p>\n\n\n\n Another method teenagers can use to save some money is to get on their parents\u2019 policy, if that\u2019s possible. If they\u2019ll let you, they may get a price reduction for insuring another vehicle on their policy (multi-vehicle policy). Of course, that isn\u2019t going to offset the amount you will add by joining their package as their child. Overall, especially if they have good driving records (and have possibly been with the insurer for some time), this is a great way to find a lower price.<\/p>\n\n\n\n It\u2019s not something that most teenagers are thinking about, but establishing and maintaining a good credit score will help you in many more ways than just finding a lower car insurance premium. If you are working, see if your parents will help you get a low-limit credit card and commit to paying it off every month. Although the practice of using a credit score to assign rates is falling out of favor (and has been outright banned in some states), having a good credit score will serve you well in many different aspects as you get older.<\/p>\n\n\n\n An added bonus here is that you\u2019ll have a credit history, which opens many doors as you get older.<\/p>\n\n\n\n It\u2019s understandable that as you get behind the wheel as a new driver, you want to drive something cool. But keep in mind that it will greatly affect the type of policy you need to buy. Although you may not like the idea of driving something a little older and a little safer, there are really good reasons to factor this in to your choices. Obviously, if your insurance carrier looks at your auto as a safer ride, you will get bonus points<\/a> for that. And if it doesn\u2019t cost as much to repair it in the event you do file a claim, that will also be a factor. So, a used, but dependable Honda, will be cheaper than a flashy Chevy Corvette.<\/p>\n\n\n\n Also, if you outright purchase a vehicle without getting a loan, you are already ahead since you\u2019ll be able to access the cheapest car insurance available to you. This is the state-required minimum, which is the amount that your state says everybody must have and it typically consists of some bodily injury and property damage liability limits. If you finance an automobile, however, your lender is most likely going to require you to carry full coverage (liability plus comprehensive and collision). Let\u2019s look at some examples of average monthly prices for 16-year-old males in the U.S.<\/p>\n\n\n\n![\"young](\"https:\/\/www.freeway.com\/knowledge-center\/wp-content\/uploads\/sites\/2\/2022\/01\/how-long-are-you-considered-a-new-driver.jpg\")
<\/figure><\/div>\n\n\n\nHow Much is High-Risk Insurance?<\/h2>\n\n\n\n
How Long Are You Considered a New Driver? <\/h2>\n\n\n\n
How Long is Someone Considered Inexperienced? <\/h2>\n\n\n\n
How Can I Become a Good Driver?<\/h2>\n\n\n\n
How to Find Affordable Quotes<\/h2>\n\n\n\n
Money-Saving Discounts<\/h3>\n\n\n\n
Finding Cheap Car Insurance on Your Parent\u2019s Policy<\/h3>\n\n\n\n
Establishing a Credit Score<\/h3>\n\n\n\n
What You Drive Makes a Difference<\/h3>\n\n\n\n