How to Get Auto Insurance for the First Time (2024)

Buying first-time car insurance can be a bewildering and even stressful event. Car insurance terms can be confusing, and knowing where to look for quotes might not be obvious to new drivers.

If you’re wondering how to get auto insurance for the first time, first determine how much auto insurance you need to get the right coverage. Read on to learn the best car insurance for new drivers and compare free quotes to find the most affordable auto insurance companies for first-time drivers near you.

Finding the Best Auto Insurance for New Drivers

Insurance companies consider many factors when determining your rates, and one of the most impactful is your age. Not all first-time drivers are young, but those who are, have some of the highest insurance rates. Auto insurance costs more for young, inexperienced drivers because they are more likely to file a claim.

To get an idea of how much you might pay for car insurance as a young driver, check the rates below.

Full Coverage Auto Insurance Monthly Rates for Teen Drivers

You might notice that insurance is much more expensive for 16-year-olds than older drivers. Rates for young drivers tend to stay high until you turn about 25, assuming that you keep your driving record clean.

Teens can cut their insurance rates by joining a parent or guardian’s existing policy. The parent or guardian’s rates will increase, but the amount will be far less than what the teen would pay by themselves.

🚗Drivers under 25 pay up to $5k more a year for insurance than those in their 30s.😲 Do you fall in this age range? 👉Price match here: https://t.co/TSq0vDEjME. Learn ways to save on auto insurance for young drivers: https://t.co/J43PJYIyTo pic.twitter.com/CkyAQkMKeN

— AutoInsurance.org (@AutoInsurance) February 16, 2023

However, age isn’t the only factor insurance companies look at for new drivers. Another important aspect of your rates is your driving experience. Since insurance companies look at your riskiness of making a future claim, having no driving history makes them nervous.

Why First-Time Buyers Pay More

Young or inexperienced drivers pay more for insurance because insurance companies consider them a higher risk. Insurance companies keep careful track of claims numbers, and young, inexperienced drivers are more likely to get into an accident or need to file a claim.

According to the Centers for Disease Control and Prevention (CDC), teens are more likely than any other age group to get into an accident. They also exhibit riskier driving behaviors, such as texting, interacting with passengers, and speeding. New drivers pay more for car insurance because they don’t have the experience to know how to navigate dangerous driving situations, like black ice, aggressive drivers, or low visibility.

While your rates will start high, they will gradually decrease with time. It’s integral that you avoid tickets, at-fault accidents, and other traffic incidents as a new driver so your rates will decrease as quickly as possible.

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How To Get Auto Insurance for the First Time

Although you should know the basics about car insurance, you don’t need to be an expert to buy a policy.

Follow the steps below to get the coverage you need, but be aware that your rates will likely be much higher as a new driver.

Decide How You Want To Buy Your Auto Insurance

When you’re looking to buy car insurance for the first time, your first step is to decide how you want to purchase it. There are several options to secure coverage for your car.

The first is to use a quote-generating tool from an insurance marketplace to get multiple quotes. When you get quotes this way, you only need to enter your information once to see prices from multiple companies.

You can also get a quote directly from an insurance company by visiting its website or calling a representative. Getting a direct quote makes the application process faster for the company, but it also makes comparing quotes much more time-consuming. Find out how to ask an auto insurance company for quotes.

A third option is to have a parent or guardian add you to an existing policy. As long as you live with them, you’re probably eligible to join their policy. Joining an existing policy can cut your rates by up to 50%. Learn more about how to obtain quotes for auto insurance here.

Consider How Much Auto Insurance You Need

Once you figure out how you want to buy your insurance, the next step is to determine how much coverage you need.

There are several primary options for car insurance, including the following:

• Liability insurance: Liability insurance pays for damage to other cars and driver injuries you cause in an accident. Most states require drivers to carry a minimum amount of liability insurance.
• Collision insurance: Liability insurance doesn’t cover damage to your car if you cause an accident. You need collision coverage if you want car insurance to cover your vehicle.
• Comprehensive insurance: There’s a lot more than car accidents that can damage your car. Comprehensive insurance protects your vehicle from damaging events like weather, fire, vandalism, and theft.
• Uninsured/underinsured motorist coverage: While most states require drivers to have insurance, not everyone follows the law. Uninsured/underinsured motorist insurance protects you against drivers with inadequate coverage.
• Medical payments coverage and personal injury protection: Injuries after an accident come with expensive medical bills. Personal injury protection and medical payments help pay for health care costs.

Unless you live in a state without insurance requirements, you’ll at least need liability coverage.

You’ll probably need full coverage auto insurance if you have a loan or lease on your car. Full coverage includes all of the primary insurance types and is more expensive than state minimum requirements.

Select Auto Insurance Add-Ons

Most companies offer add-ons you can purchase to increase the value of your coverage. While buying additional coverage will better protect your car, it will also increase your rates.

It might be tempting to buy as much coverage as possible, but you should only add what you need. These are some of the most popular add-ons:

• Rental car reimbursement: If you add this coverage, your policy will cover a rental car while your vehicle is being repaired.
• Gap coverage: If you total your car while you owe more on your loan than the vehicle is worth, you’ll be stuck paying for a car you no longer have. Gap coverage pays off the remainder of your loan.
• New car replacement: This coverage will replace your new car with a comparable vehicle rather than send you a check for its cash value.
• Roadside assistance: Roadside assistance helps you with tire changes, dead batteries, fuel deliveries, and other emergency services when you’re stranded.

Progressive had the best roadside assistance plan, with rates between $15-$18. With plans starting at $4, State Farm had the cheapest rates.

 Average Annual Roadside Assistance Costs by Company

Though it is probably the most well-known, AAA’s rates were higher, at $38-$164 annually. However, AAA offers the best towing options with coverage of up to 200 miles depending on your package.

Gather Vehicle and Personal Information

Before you start looking at quotes, it would be helpful to have all the information you’ll need at hand.

You’ll need the following information for everyone who will be on the policy:

• Driver license numbers
• Birthdays
• Address where cars are parked
• Vehicle identification numbers
• GPAs for student drivers
• Annual mileage

The insurance company you get a quote from will know other important information, like your state’s minimum requirements.

Look for Auto Insurance Discounts

An important aspect of cheap first-time car insurance is finding discounts to take advantage of.

Most major insurance companies offer a variety of auto insurance discounts to help customers save, including the following:

• Safe driver: Keep your driving record clean to earn this discount. Most insurance companies require three years of clean driving to qualify.
• Anti-theft devices: If your car comes with an anti-theft device or you have one installed, you’ll probably be eligible for a discount.
• Good student: Full-time students under 25 can earn a discount by maintaining a 3.0 GPA.
• Bundling: Most insurance companies offer other types of insurance — if you purchase more than one policy, you’ll likely get a discount.
• Pay in full: Most people pay for their car insurance monthly, but many companies offer a small discount if you pay for the entire six-month policy.
• Usage-based: Many companies offer usage-based insurance plans that track driving habits. You’ll likely get a small discount for signing up and additional savings if you’re a safe driver.

Finding car insurance discounts you qualify for will help you reduce your first-time driver insurance costs. Most companies automatically check for discount eligibility when you apply for insurance. You can also ask an insurance representative to double-check you’re getting every discount possible.

Compare Auto Insurance Quotes

Whether you decide to get quotes by yourself or with a comparison tool, comparing rates from different companies is integral to finding affordable coverage.

A variety of factors affect your auto insurance rates, including your age, credit score, marital status, driving record, and what type of car you drive. Each company has a unique formula, which means there will be a lot of variation in the auto insurance prices you’ll see.

Rates and add-ons aren’t the only thing that matters when looking for the best car insurance for first-time drivers. It might be worth paying a little extra to buy insurance from a company with high customer satisfaction ratings.

Buy Auto Insurance

Once you’ve compared quotes, looked for discounts, and decided how much insurance you need, you’ll be ready to buy a policy.

Each company is different, but you can usually finalize your purchase online without having to speak to a representative. You can elect to pay for your entire policy to save a little money, or you’ll need to make your first monthly payment.

Some insurance companies require a down payment, but finding auto insurance coverage that doesn’t require a down payment is usually easy. However, you’ll always have to pay something when you first buy a policy — no down payment simply means you won’t have to pay more than your first month.

How Long It Takes To Buy New Driver Auto Insurance

The amount of time it takes to buy insurance depends on what you need and how fast you work. The process can be as short as half an hour or as long as a week.

For example, buying online is usually quick if you need basic car insurance coverage for a vehicle you already own. On the other hand, if you need SR-22 auto insurance, have multiple incidents on your driving record, or want specialty coverage, finding insurance could take much longer.

As a first-time driver, getting help from someone with insurance experience can significantly reduce the time it takes to buy coverage. If no one is available to help out, you can always contact an insurance representative for guidance.

Save Money When You Get Auto Insurance For the First Time

Waiting until you turn 25 or have five years of driving experience isn’t the only way to lower your insurance rates.

New drivers can use the following tips to find the lowest-priced insurance possible:

• Compare quotes with as many companies as possible.
• Take a defensive driving course.
• If you’re a student, keep your grades up for a good student discount.
• Join an existing policy belonging to a parent or guardian.
• Take advantage of other discounts.
• Keep your driving record clean.
• Buy a car with low insurance rates — older, less expensive cars tend to come with lower rates.

While you’ll probably be stuck with higher rates than you’d like to pay, searching for the right insurance, taking advantage of discounts, and keeping your driving record clean will help keep your prices down. Learn how to find and compare the best auto insurance quotes.

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Find the Best New Driver Auto Insurance Rates Today

Whether you get your license as a teen or an adult, finding cheap first-time driver insurance can be a bit challenging. While it might take more time to find the right coverage compared to more experienced drivers, the process of buying insurance as a first-time driver doesn’t have to be complicated.

Comparing quotes is one of the most integral parts of getting affordable first-time driver insurance. Once you’ve determined how much coverage you need and gathered your information, looking at as many quotes as possible will help you save money.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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