Car insurance tends to be more expensive for new drivers than experienced ones due to their limited experience. Age, location, gender, driving record, marital status, credit history, coverage limits, and vehicle type are the factors that determine the insurance rate of a new car driver. Keep reading ahead to learn how car insurance works for new drivers.
Things That A New Driver Should Know About Car Insurance
Let’s take a look at all the things that a new driver should know about car insurance.
- The owners of sports cars, high-performance models, and luxury vehicles may have to pay more to get their cars insured. New drivers can save money if they have standard vehicles. Insurance companies usually charge more to insure an electric or performance vehicle.
- Drivers under 29 are charged more by the insurance companies as they are considered responsible for more accidents. New drivers over 30 may have to pay lower rates to get their car insured. The younger you are, the more you’ll have to pay to get your car insured.
- New drivers with higher credit ratings are charged less by the insurance companies as they are considered financially stable. With no or little credit established, new drivers may have to pay more to get their car insured.
- New drivers with clean records and no moving violations or at-fault accidents may have to pay less. If a new driver has a brief driving history, he may have to pay more.
- Married drivers may have to pay lower premiums as they’re considered responsible. If you’re single, you may have to pay higher premiums.
- If you reside in a city with high rates of uninsured drivers, theft, and vandalism, you may have to pay more for a car insurance policy.
- You can get great discounts by bundling your policies. If you have homeowner's or renter’s insurance, you can ask your insurance company to give you a car insurance quote. Many insurance companies offer a good amount of discounts if you bundle your policies.
- Always try to pay for your car policy upfront. If you decide to pay your policy on a monthly basis, on top of the premium price, your insurance company will charge you a convenience fee.
- While purchasing car insurance, shop around and compare quotes. This will help you save money. Each insurance company has rating factors that make a policy more affordable or expensive than a policy offered by its competitors.
Conclusion
New drivers need to get car insurance as it offers financial security in the case of an accident and damage to their vehicle. However, you should compare quotes offered by different companies, have a clean record, and pay for the policy upfront to save money on car insurance.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.