Are you interested in knowing how much does car insurance cost for a new driver? New drivers usually have to pay more for car insurance than their experienced peers as they are thought to be more prone to accidents given their limited experience. In any event, new drivers can find the coverage they need at affordable rates by exploring coverage options and comparing quotes.
How Much is Car Insurance for a New Driver?
For new drivers between the age group of 17 and 20, average annual insurance premiums are around INR 200,000. Meanwhile, for 21-25-year-old drivers, car insurance on average will cost a little more than INR 100,000. Your new driver's car insurance policy cost can vary depending on the kind of vehicle you have. If the market value of your car is higher, you will have to pay more for coverage. Insurance companies consider several factors while calculating your car insurance quotes. They assess the risk involved in insuring your vehicle by considering various factors, including your credit history and age.
By maintaining a clean driving record, new drivers can save lots of money on car insurance. If off-street parking such as a secure garage or driveway is available at your address, you will receive a lower quote. However, if you park your car away from your property or on the street you’ll get a higher quote because such places are considered at higher risk. If your permanent address is the same as your guardians or parents, you can assess a stand-alone policy’s rate and then compare that to how much it would cost to stay on the insurance of your family. It mostly costs less for new drivers to stay on their family’s policy. Most insurance companies offer lucrative discounts, of which some are:
- Multi-Policy Discount
- Safe Driver Discount
- Good Student Discount
- Multi-Vehicle Discount
- Loyalty Discount
- Low Mileage Discount
- Pay-in-Full Discount
- Paperless Discount
These discounts can help you save huge amounts of money on your new driver policy.
Will a Driving Course Lower My Premiums?
You can lower your car insurance premium by taking a driving course. Insurance companies consider drivers who complete their driving courses at lower risk and more responsible. Driving courses focus on teaching new drivers advanced strategies and techniques to improve their driving skills, minimise risks, and avoid accidents. These courses are considered valuable by insurance companies in reducing the chances of accidents and promoting safe driving behaviour.
On average, you can get 5% to 20% off the premium cost by completing a driving course. After you complete the driving course, the sum saved on your car insurance premium will depend on different factors. Insurance companies will calculate discounts based on specific courses you have completed, individual policies of the company, and the state where you live. For example, if you’re paying a $2,000 premium annually, you could save between $100 and $400 by completing a driving course.
Conclusion
Car insurance costs for new drivers can be significantly higher given their lack of driving history, which can be associated with increased risk. The premium amount is also determined by factors such as the driver's age, location, type of vehicle, and coverage type chosen. However, new drivers can expect various discounts and strategies to reduce costs. These strategies include maintaining good grades and completing driver education courses. Comparing quotes from different insurers can also help new drivers find the most affordable rates for their 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.