Young drivers can also get a discount if they attend school at least 100 miles from where the insured car is located. If the damages covered by your comprehensive or collision insurance make your car undrivable or in the repair shop, car rental reimbursement can help pay for the cost of renting the car. Children should have their own car insurance when they buy and title their own car and no longer live at home. The best way to get cheap car insurance at age 18 is to add it to the parents' car insurance policy.
Insurance companies set different prices to insure a newly licensed teen and someone who gets their driver's license later in life. While most of these companies operate across the country, Erie Insurance and American Family Insurance only operate in 12 and 17 states, respectively. Regardless of the insurance company you choose, time is the best tool for new drivers over 25 who want to save money on their car insurance. To get car insurance for the first time, drivers must decide what coverage they need, gather their personal and vehicle information, and search for the best policy at the lowest price.
For first-time drivers taking out car insurance for the first time, it's important to consider not only the company's price, but also the coverage options, available discounts, and overall reputation. As soon as your teen has a driver's license, you'll need to add it to your policy or prove to your insurer that they're insured or that they're permanently residing somewhere else. The cheapest car insurance companies for first-time drivers are Travelers, USAA and Geico, according to WalletHub analysis. The key to finding the cheapest car insurance for first-time drivers is to compare quotes from several companies.
Every auto insurance company has its own method for calculating insurance premiums, so the first quote you get may not be the lowest price available. Finally, it's important to remember that while car insurance rates are initially high for young drivers, they tend to fall by 12 to 20% when the driver turns 25, assuming the driver has at least a few years of good driving under his belt. One of the most common mistakes drivers make when taking out car insurance for the first time is buying only the minimum amount of insurance coverage. New drivers often pay more for car insurance than older drivers because of their lack of experience, so choosing the right car is a great way to reduce the cost of coverage.