Now that you’ve learned how to drive, you can sit comfortably behind the steering wheel and tell your car which direction to take. You probably want to add car insurance to your portfolio, but you are asking questions like, How much is car insurance for a new driver per month? What are the factors that affect the cost of car insurance? and many more.
Well, car insurance is an important aspect of car ownership, and we will be providing you with every necessary piece of information you may need regarding your concerns.
You can agree with me that becoming a new driver and getting behind the wheel is a special milestone in a person’s life, but some financial challenges come with it, and one of the ways to tackle them is through car insurance.
Before we go into the details of the monthly cost of car insurance, let’s first understand the basics of car insurance.
What Is Car Insurance?
Car insurance is an agreement between an insurance company and you. The insurance company provides financial protection to you in case of accidents, injuries, or even vehicle damage.
It’s also a provision that you make against vehicle theft and accidents that may lead to injury, car damage, or even loss of life.
You can make your car insurance payment in installments or monthly, depending on your budget. However, the price of your insurance may vary due to some factors that we have outlined below.
Factors That Influence The Cost Of Car Insurance For New Drivers
Below are some factors that determine the cost of car insurance:
Overview of the Factors that Affect the Cost of Car Insurance
1. Type of Vehicle
The brand and model of your vehicle can affect your insurance in the sense that the higher the brand and the more expensive your vehicle is, the more expensive it will be to insure.
This is also because it is more expensive to maintain.
The environment you live in affects the cost of your insurance. Those who stay in rural areas are more likely to pay a lower premium because of less traffic, and there is a lower chance of being involved in accidents, while the opposite is the case for those in the city or urban areas.
Young drivers pay more for insurance, especially drivers below the age of 25. It has been statistically shown that young drivers are more involved in car accidents.
4. Driving History
A clean driving record with no accidents or traffic violations will attract a lower premium rate.
5. Marital Status
Married couples buy premiums at lower rates. It is believed that they have become more careful in their activities, even while driving.
While the factors discussed above can affect the rate of your car insurance plan, you must keep in mind that, as a new driver, the cost of the monthly plan in this article could be slightly higher or lower than the actual cost depending on individual factors or circumstances.
Also, to find a better and cheaper car insurance coverage rate, there are some vital tips you may need to employ. They are:
Tips to Find Affordable Car Insurance
Below are some tips for finding cheap car insurance:
1. Take Driving Courses
Completing a driving course will make you a safe driver and reduce your premium rate.
2. Shop Around
For you to finally pay for an insurance premium, there is a great need to shop around to compare different insurers’ quotes and decide on which to go with.
3. Ask About Discounts
Always inquire about discounts for good grades. This is specifically for students.
4. Own a safer vehicle
Safer vehicles with lower risk result in a lower premium rate
5. Drive less
Are you the type who does not drive much? Then you have to inform your insurer. Reducing mileage can lead to lower premiums.
Ways to Lower Your Premium as A New Driver
- Maintain a clean driving record
- Drive the right vehicle
- Increase your deductible
- Bundle your policies
- Shop around for the best rates.
Maintain a Clean Driving Record
As a new driver who wants your car insurance premium low, one of the things you should do is keep your driving record clean.
In maintaining a clean driving record, you should know that you won’t over-speed, get involved in accidents, obey traffic rules, and, overall, remain a safe and responsible driver.
Drive the Right Vehicle
Choosing auto insurance requires you to select your vehicle to reduce the premium you will have to pay.
Luxury and flashy vehicles cost more to insure because they also cost more to repair if they’re damaged or stolen.
Also, newer cars will also cost more to replace, so you’ll pay lower rates if you have an affordable, safe car that’s a few years old.
Insurance companies like safety tech that can help prevent accidents, so they might offer you a better rate if you have certain features on board.
Increase Your Deductible
Another way to lower your car insurance premiums is to increase your deductible. A deductible is the amount you have to pay out of pocket first before your insurance policy kicks in.
Typically, the higher your deductible, the lower your premiums will be. However, you must choose a deductible that you can afford.
Bundle Your Policies
Normally, a good number of insurance firms offer discounts to customers who bundle their policies. This includes bundling insurance plans such as car insurance and homeowners insurance, life insurance and health insurance, etc.
Insurance firms offer you discounts when you bundle your policies with them. In some cases, you can even save up to 15% or more on your premiums.
Shop Around for the Best Rates
It’s no longer news that different insurance companies offer different rates. As a result, it’s important to compare quotes from multiple companies.
Also, you can use online insurance comparison sites to get quotes from multiple companies at once.
You just have to compare banana to banana, meaning you should compare the same coverage limits and deductibles. Having gotten this far in this article, we can now delve into the monthly cost of car insurance and how it is divided.
How Much Is Car Insurance for a New Driver Per Month?
The cost of a car insurance plan depends on the type of package you are willing to choose. These packages are classified into 4. They are:
Overview Of The Different Coverage
1. Basic Coverage
Basic coverage costs an average of $100 to $200 per month for new drivers with clean records.
2. Teens Drivers Coverage
Teen drivers often face higher insurance rates, which may range from $300 and above per month.
3. Full Coverage
This option is comprehensive coverage, including collision. It ranges from $200 and $400 per month.
4. High-Risk Drivers Coverage
Your premium could be very high. As high as $500 per month if you have a record of an accident or traffic violation.
FAQs on How Much Is Car Insurance for a New Driver Per Month?
What is the difference between basic and full insurance
Basic coverage generally includes no more than two aspects of car insurance. The first is liability insurance. Every driver on the road MUST have liability coverage at a minimum, as it is illegal to not have it. The second element of basic coverage is collision coverage, which protects you if your car is damaged. This is especially useful if you have an expensive car or one that is expensive to repair. If you do not have collision coverage, you are responsible for your car’s, or the other driver’s, repairs, out-of-pocket. Full coverage includes both liability and collision coverage, for starters. It also includes coverage for things like vandalism and falling objects. You can also find floods, earthquakes, fires, and hail as part of the coverage. Many drivers do not opt for full coverage if cost is a major consideration. But, while it is more expensive than basic coverage, it can provide you with peace of mind that no matter what happens, your car will be covered. Also, depending on where you live, this type of coverage can be a better investment overall.
Is there a penalty for canceling auto insurance early?
In most cases, you will be required to pay a certain fee for canceling your insurance plan.
Why do insurance need my driver's license number?
Car insurance can only be sold to people with a valid driver’s license. Because your auto insurance quote is tied to your driver’s license, you will need it to request a quote.
As we have discussed, there are different insurance packages you can choose from as a new car driver.
Always check out which is best for you and go for it, but remember to make some personal findings before purchasing any plan.
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