Car Questions: What Is the Best Car Insurance for First Timers?

If you want to get behind the wheel of a car, insurance is a must. However, insurance rates are a bit expensive for beginner drivers. There are a variety of factors that are considered, which determine how car insurance providers handle inexperienced drivers.

Luckily, there is a way to search for the best car insurance company, even if you’re a rookie driver. With that said, check out these tips for finding the best car insurance rates.

Shop Around and Compare Rates

Not all car insurance companies are created equal. Therefore, you should call around and compare auto insurance rates. Consider comparing about five to seven different companies before you make a solid decision. As a first-time driver, you need to consider the rates, as well as the different coverage options available.

Plus, see if the monthly price will go down depending on how you pay the policy. For instance, your monthly rate might be more if you do a 12-month policy versus a six month, or if you pay the full annual amount. You may even want to consider a lesser-known insurance company.

Sometimes their rates are more affordable than going to bigger insurance providers like Allstate and State Farm. Just make sure that if you choose a smaller insurance firm, that they still have a good reputation.

Go online and read reviews before making a final decision. Getting feedback from other customers will help you decide if you should move forward.

Ask for Discounts

Even though first-time driver’s insurance is generally more expensive, you can get a lower rate by applying discounts. If you’re a young driver still in school, many insurance providers offer student discounts. Also, if the school that you attend is less than 100 miles from your car’s base location, you can usually get a discount for that as well.

Don’t be afraid to ask about every discount that they have available. You might be compatible with more than one. The insurance company may also offer a $5 monthly discount for customers who set their payments up on auto-pay.

If there are any driving classes that you can take to lower your premium, enroll into those as well.

Share Your Policy

If you’re shopping around for the best car insurance, and you’re not finding a good deal, consider adding yourself as a driver to an existing policy. For instance, if your parents have an established driving history, adding you to their policy would be much more affordable for you than purchasing it on your own. Their rates might go up a lot higher, but you can always pay them the difference of the increased rate.

Get Less Coverage

As a first-time driver, you may feel more comfortable if you get all of the features that come with your policy. However, a lot of the added coverage that comes with insurance policies isn’t a necessity.

For instance, you can save money just by taking off roadside assistance or rental reimbursement. You can even remove comprehensive and collision coverage to save money on your premium. 

Select a Higher Deductible

Another one of the best ways to get a lower premium is by choosing a higher deductible. Essentially, you’ll pay less per month. But if you were in a car accident, you’d have to pay more out of pocket before the insurance covers the remaining damages.

If you choose this option, just make sure that you don’t get a deductible that you couldn’t afford if you got into an accident. Car crashes happen all of the time, and if you were at fault for the accident, you’d have to dish out a lot of money upfront. So, be aware of that.

Drive Safely

When it comes to saving money on your car insurance, you have to think long-term. Don’t just focus on the amount you’ll have to pay starting out. If you are careful when you’re on the road and avoid accidents and tickets, your rate will go down over time.

Some insurance providers even offer incentives to insurers who maintain a good driving record. So, focus on the road when you’re out, and do your best to avoid accidents. 

Don’t Stop Looking for Good Rates

The good thing about insurance is that you don’t have to stay locked in once you sign up for it. If you find an insurance provider and get coverage, you don’t have to keep it for the duration of the coverage term. 

Thankfully, car insurance is one of those things that doesn’t incur a penalty for breaking the contract early. Therefore, if you need coverage on your car, you can go ahead and get insured and continue looking for a better rate. This is the best option if you need insurance fast, and you don’t have the time to look for the best premium price. 

Not only that, but you should look into finding better rates anyway. After three to six months of being insured and driving safely, try your luck again. You may be surprised to learn that the rate goes down. 

Finding the Best Car Insurance

If you’re a new driver, finding the best car insurance will take a bit of time. However, if you follow the suggestions above, it’ll make things a lot easier for you. After all, it’s no fun spending hundreds of dollars on car insurance each month.

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