Whether a teen buying your first car insurance or a new driver, you probably want to find a reasonable way to keep the costs down. Car insurance tends to be expensive for new and young drivers, so it’s important to find an insurer with many features for young drivers and discounts that can decrease your premiums.
But when young and new drivers are looking for car insurance, price is not the only thing they need to consider. You must also search for firms that provide optional coverage and protection plans for young and inexperienced drivers.
Who has the best prices for young adults?
Our research into auto insurance rates shows that USAA has the best prices for young adults. Our study shows that young adults who get their car insurance through USAA pay an average of $1,060 per year to cover their car.
Even though rates are different for each person, USAA’s average premium for our customer profile of a young adult is about $146 less per year than that of the next least expensive insurer on our list. USAA’s study prices for young men and women are, on average, $460 less than the average reflective rate for our young person driver profiles from the nine health insurers in our study.
USAA is only for military members, veterans, and their eligible relatives. Our survey of insurance company rates shows that Geico is the cheapest option for people not in one of these groups. The average study rate for just a young adult with this insurer is $1,206 per year.
Auto insurance for new and young drivers
Car insurance is not only required by law, but it also has a lot of benefits for young and new drivers. A car insurance plan is a promise made by the insurer to the insured and the terms and conditions governing it. It says that if an accident involves a car, the car insurance company will help pay for the damages.
Which car insurance to buy: full coverage or third-party liability?
Car insurance is a matter of opinion. Because of this, it is hard to say which policy is the best. The best policy for a person can be bought after figuring out what’s best for them. When it does come to young and new drivers, comprehensive car insurance tips the scales in its favor because it covers damage to the car itself.
This covers the third-party insurance required by law and protects the car against damage from accidents, theft, fire, and natural disasters. Costs to fix things are very high these days.
If you don’t have enough car insurance, you will have to pay more money out of your pocket to fix damage caused by an accident, flood, fire, etc. So, new and young drivers who want to buy a car should get a comprehensive auto insurance plan because it covers many different things.
Car Insurance Prices for New Drivers
No one wants to pay a lot for car insurance, regardless of buying a new or used car. Here, a little research and analysis will help you save money by getting the right car insurance quote. By knowing what goes into figuring out the cost of car insurance, young and new drivers can find cheap car insurance. In a comprehensive plan, the first-time car insurance premium for young and new drivers is directly affected by the following:
- Name of the car’s make, model, and type
- Registration location
- What type of auto insurance perform you have
- Coverage additions, if any
- Anti-theft devices and other safety features
How We Found the Most Affordable Insurance Providers for Young Adults
At U.S. News & World Report, our main goal is to help people make big decisions in life. When we started our college rankings in 1983, they were the first of their kind. In other areas, like healthcare, government, and the auto industry, our rankings help people and thought leaders make decisions that make their lives better. Now, with our Cheapest Car Insurance Rankings, we’re giving you more of the information you require to create the best decisions for your life.
Our Study Rates
For this study, U.S. News started working with Quadrant Information Services to look at a report of insurance prices in all 50 states from the ten biggest national car insurance companies. However, not every company works in every state. Quadrant got rate information from state regulators that were available to the public.
Our study rates are calculated on profiles of drivers who are 25, 35, and 60 years old, both male and female. The vehicles used are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F 150. Their annual mileage ranges from 6,000 to 12,000.
Three car insurance coverage tiers were used, as were good, fair, and poor credit deciles. Certain driver archetypes were based on driving records and records with one disaster, one speeding ticket, and one DUI.
We figured out the average percentage of male and female drivers ages 25, 35, and 60 who drive 12,000 miles a year, have medium coverage, excellent credit, and have a clean driving record of getting the study rates shown here.
The rates shown here are only for comparison and should not be considered average rates from different insurance companies. Your car insurance rates will differ from those shown here because they depend on things unique to you.
Whether you are a youthful or new driver buying your car insurance policy for the first time or a parent trying to add your teenager to your policy, you will want to figure out how to keep the costs down. Car insurance seems to be expensive for young and new drivers. Because of this, you should look for an insurance company with many features for young and new drivers and a number of discounts that can lower your premiums.