Car insurance is not mainly an exciting topic.
However, it is a necessary discussion if you want to drive or continue driving a car.
Furthermore, if you are purchasing a car insurance policy for the first time, you need to know it’s what you are buying. It would help if you found cost-efficient car insurance.
However, insurance companies deem first-time drivers as risky making their insurance coverage both challenging to get and expensive.
But, first-time drivers can still get cheaper car insurance.
Read on to find out how.
Who Is Considered A First Time Driver?
A first-time driver is someone, whether a teenager, young adult, or an adult, who has just received their driver’s license.
Conventionally, first-time drivers can be called “graduates of driving school.”
First-time drivers have no history of driving because they are just starting. Lack of driving history makes them inexperienced drivers.
Nevertheless, being inexperienced makes them risky – both to themselves and to insurance companies.
Understanding Car Insurance
To first-time drivers, car insurance may not be the first thing on the to-do list.
But, car insurance is essential because the law mandates all drivers to have car insurance or risk penalties, including a fine and jail term.
In the event you are involved in a car accident, vehicle repairs and injuries can be expensive. Expenses increase if you get sued. This is where car insurance comes handy.
Car insurance protects you, your vehicle, and others – in the car and on the road – when an accident occurs. It also helps you with the lawyer’s fee and third party medical expenses if you get sued.
But, the policy you have determines what is covered.
As a result, in addition to having the right coverage, the cost of car insurance often becomes a big concern. This exposes first-time drivers to particular challenges in finding the right coverage, cost-efficient car insurance policy.
Is First-Time Drivers’ Car Insurance Expensive? Why?
Yes, car insurance for first-time drivers costs a lot more than for experienced drivers.
As a new driver, you’ll pay more for your cover for two reasons:
- Younger in age
Often, insurance companies scrutinize your driving history to determine your premium rates.
If you do not have a driving history, that means you are a new driver, and as a new driver, you have no history to share. Lack of driving history makes you risky.
Also, if you are a new driver, it means you are inexperienced, and inexperienced driving is risky on the road.
Risk and inexperience make you expensive to insure because you can cause an accident at any time. Hence, your insurance premiums are higher.
As a result, unlike experienced drivers, first-time drivers have a difficult time finding a great car insurance plan, which is also reflected in the price.
In addition, if you are a first-time driver and younger (under 25), your insurance cost will be more expensive. Insurance companies classify younger drivers as more likely to be involved in accidents, which increases the risk of insuring them.
However, if you are a first-time driver, don’t be discouraged. You can still reduce the cost of your car insurance.
How To Get Cheaper Car Insurance For First Time Drivers
You are a first-time driver, you are inexperienced on the road and risky to insure – and perhaps you are also young – hence your car insurance quote is expensive.
How can you reduce this price?
There are things you can do as a first-time driver or young driver to get cheaper car insurance:
- Choose the right insurance company – preferably a cheaper insurer
- Choose to pay higher excesses
- Add an experienced second driver to your insurance policy
- Use student discounts if you are a student
- Avoid expensive cars
How Much Car Insurance Do You Need?
The type of coverage plan you want is an important decision to make.
There are several different types of car insurance policies that you can choose from. Be careful not to pay for what you don’t need. Choose the right coverage plan.
Typically, there are three types of car insurance coverage to choose from:
This is also called liability coverage. It covers you against bodily injury and property damage, including damage to other people, cars, and property.
Third-Party, Fire, and Theft
This coverage is the same as third-party only, but also provides coverage for your car if it gets stolen or catches fire
In addition to third-party, fire and theft, comprehensive further covers your vehicle against any damage it sustains in an accident or collision with fixed objects such as a pole or wall.
You need to take time to consider the type of cover you need and set a limit on it to get cheap car insurance for a first-time driver.
Choose The Right Insurance Company
Shop around and thoroughly research the plans and rates offered by different insurance companies or agencies.
Ensure that the policy you choose and the insurance company offers a cheaper car insurance policy and one that will adequately cover you.
Name An Experienced Second Driver To Your Policy
Insurance companies allow an additional driver in your coverage.
Adding an older, experienced named driver to your policy will effectively reduce the cost of car insurance for first-time drivers.
It is a sign of reassuring your insurance company that it is not just the young, first-time driver who will be driving the car. Hence, there is the hope of reduced chances of an accident occurring.
Take care to avoid ‘fronting’. Insure the car on the name of the main driver – the first-time driver. Otherwise, you risk breaking the law, which may invalidate future claims.
Avoid Expensive Cars
Choose moderate Vehicles.
Expensive cars are risky to insure. The more valuable your car is, the higher your insurance premium will be.
If you are a first-time driver, investing in a moderately priced vehicle will keep your insurance cost down.
Pay Higher Excesses
Increase your excess.
An excess is an amount you must pay upfront if you make a claim.
Increasing your excesses will significantly lower the cost of your car insurance, particularly when you are a first-time driver.
When doing this, you need to be sure that you will be able to pay the excess in case of a claim.
Use Student Discounts
Cheap car insurance for first-time drivers does not just happen.
If you are a first-time young driver, seek information about how to exploit the “good student discount.”
Many insurance companies give discounts to students for excellent performance, particularly on their first-time driver’s insurance.
Make use of the discount, and add it to other price cuts that you have exploited to get cheaper car insurance as a first-time driver.
Getting car insurance as a first-time driver is both challenging and costly.
Statistics cite first-time drivers are more likely to have an accident compared to the more experienced drivers.
The inexperience and risk of insuring first-time drivers often translate to high premiums. Insurers compensate with higher premiums for the risk they take to insure inexperienced new drivers.
Some providers ultimately take a risk on your inexperience as a first-time driver and give you cheaper car insurance.