Is There Cheaper Car Insurance For Young Drivers? | Complete Guide

Car Insurance For Young Drivers: Young people’s enthusiasm after receiving their first driver’s license might be hard to contain.

They long to take the wheel of a fancy four-wheeler and speed off. They hope one day they can fulfill their fantasies of taking romantic drives at midnight, on weekends, or for a quick getaway with a loved one.

Everyone must abide by the laws governing traffic and road safety. However, in their excitement to get behind the wheel, young drivers should consider the necessity of having auto insurance.

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If you are starting on the road, or if you are a parent worried about your teen’s “First Vehicle-Riding Experience,” keep reading to find out more about insurance for new drivers.

What is young drivers’ insurance?

Anyone aged 17 to 25 with a provisional or full UK driving license is often referred to as a “young driver.” While this post is intended for young drivers with full driving licenses, if you have a provisional license, check our guide on learner driver car insurance.

Many insurance firms provide customized policies to help young drivers get behind the wheel without breaking the bank. These often include the installation of black boxes, which monitor factors such as your speed, how sharply you brake and take turns, the time of day you drive, and the duration of your travel.

Many teenage drivers are thought to have a higher risk of accidents and are more expensive to insure due to their age and lack of experience. According to Green Pass Training, one in every four 18 to 24-year-olds is involved in a car accident within two years of passing their driving test. This means that regardless of whether you’re a safe driver or not, your rates will most likely be high because they’re influenced by the activities of other drivers.

Is young driver insurance the best option for you?

It is a personal choice whether you want young drivers insurance or basic car insurance or black box insurance. Young drivers, on average, are more likely to save money as compared to purchasing conventional auto insurance coverage.

While many young driver insurances include black boxes, it’s crucial to understand whether you want one on your car. Many drivers argue that continual tracking, curfews, and distance limits make earning rewards difficult, and other drivers dislike having their every move tracked.

By reading our guide to the best black box insurance, you can assess the benefits and drawbacks of black box insurance. If you’re not convinced telematics is for you, check out our guide to the best UK car insurance companies to find the best offer for you.

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How can Young Drivers Car Insurance be compared?

As in other high-priced sectors, multiple insurers compete for the attention of potential consumers. For many people, the sheer quantity of automobile insurance firms is not only perplexing, but often detrimental.

This is where price comparison services like Confused.com or Gocompare.com can assist you in finding the best offer for you. After you provide your information, you will receive quotations from insurers who are all competing for your business.

When it comes to comparison websites, though, there may be some limitations. Although they may be less expensive than the competition, many insurance firms may not provide the necessary levels of coverage.
Some insurers, such as Aviva and Direct Line, do not appear on price comparison websites.

Companies that provide teenage drivers with black box auto insurance

Insurers may follow and measure your driving behavior with black box insurance, often known as telematics. It logs information such as your position, vehicle speed, how hard you stop, and how sharply a driver turns.

Black box insurance policies generally re-evaluate insurance prices based on data from the black box on a monthly, quarterly, or annual basis. Driving shorter distances at lower speeds during the day rather than at night, with controlled acceleration and turning, results in cheaper insurance premiums over time and upon renewal.

How Much Auto Coverage Do You Need?

It’s no secret that auto insurance premiums may be steep, particularly in some jurisdictions. Don’t skip insurance, thinking you may save money if you’re involved in an accident, or your automobile gets damaged in some way that wasn’t your fault.

Find out what to look for in an insurance provider and how to get the best policy for your needs before an accident occurs to ensure your safety without breaking the bank. While it may seem difficult at first, remember that breaking the process down into manageable chunks will make it much more manageable.

Policies for New Drivers

First things first: get yourself covered by a car insurance policy. Insuring oneself for the first time can be a daunting prospect, but have no fear; Hastings Direct is here to guide you through the process. Everything you need to know about auto insurance for young drivers is in this handy guide…

How Can Young Drivers Compare Car Insurance?

Multiple insurers are vying for the same pool of potential clients, as is typical in high-priced markets. Many people find the abundance of vehicle insurance providers to be not just confusing but also counterproductive.

This is where a price comparison website comes in handy; sites like Confused.com and Gocompare.com are great places to start looking. By providing your information, insurers can compete for your business by providing you with competitive quotations.

Still, comparison websites do have their restrictions. Many insurance providers may provide lower premiums than competitors, but their coverage may fall short of your needs.

What Is The Best Auto Insurance For 21-Year-Olds?

According to the Bank rate’s analysis, some of the top auto insurance providers for twenty-somethings are Auto-Owners, Geico, Nationwide, Progressive, and State Farm. We began by looking at Quadrant Information Services’ average premium data.

As we anticipated an increase in auto insurance premiums in 2022, we set out to identify insurers offering competitive rates for new drivers.

To aid you in finding a provider that provides reasonable prices and sufficient coverage, we considered coverage choices, young driver-specific discounts, policy features, and independent ratings.

Remember that your insurance premium may vary depending on whether you rely on your parents’ policy, are married, or are a homeowner versus a tenant. Bankrate studied data for adding teen drivers to their parents’ policies and teen drivers on their policies to find the national average cost of auto insurance for young people.

Young Drivers without Insurance?

You might have a few choices if you’re eighteen and twenty-one and want health insurance coverage that doesn’t come with a black box.

There is nothing wrong with investigating the options presented by regular auto insurance packages. Although they do have some restrictions,

  • You may pay extra if you’re a youthful driver since they have a higher accident rate. Younger drivers’ premiums are generally higher because of their inexperience and the high accident rates reported by other drivers their age.
  • Because of the high costs associated with insuring a young driver, some insurance companies will only cover a specific range of vehicle ages, makes, and models.

Young Drivers’ Insurance Is Expensive.

You may be taken aback by the prices you see for drivers aged 17–25 who have already begun to compare auto insurance quotes. Because of their inexperience behind the wheel and increased accident risk, insurance premiums for young drivers tend to be higher than those for drivers of a more mature age.

According to data from the road safety organization Brake, young drivers account for only 1.5% of UK license holders yet are responsible for 9% of all severe and fatal accidents.

More specifically, young drivers (16-19) had a 33% higher risk of dying in a crash than middle-aged drivers (40-49). Moreover, 23% of new drivers between 18 and 24 are involved in an accident within the first two years after receiving their license.

Insurance companies price coverage for young drivers at a higher rate to account for their greater risk due to the greater likelihood of accidents and claims.

READ ALSO: Affordable Health Insurance for International Students in USA | A Complete Guide

Young Driver’s Auto Insurance?

Like every other motorist, you can select between third-party-only, third-party fire and theft, or complete coverage for your vehicle.

In an accident, the other driver’s expenses will be covered by a third-party policy, the minimum level of coverage needed by law. This implies that you will have to pay out of pocket if your automobile breaks down and needs to be replaced or repaired.

However, if you and a third party are involved in an accident, your comprehensive policy will pay for your expenses. You could be forgiven for assuming that these products would be much more expensive than third-party insurance, but in some cases, they can be cheaper. As a result, more claims are filed by policyholders with third-party coverage.

Even if it costs a little more than a third-party policy, comprehensive coverage will give you greater peace of mind while driving.

Best Car Insurance Companies

We’ve removed the guesswork from selecting the top auto insurers by considering the aspects that matter most to you, the client.

We compared the pricing of significant vehicle insurers for different types of drivers, the types of coverage they offer, the number of complaints they receive, the ratings they receive from auto body repair professionals, and the ease with which their websites can be navigated. Check out the best options we’ve selected.

  • Travelers
  • Auto-Owners
  • Geico
  • Progressive
  • Nationwide
  • USA
  • State Farm
  • Allstate
  • Erie
  • Farmers

Cheaper Car Insurance for Young Drivers

State Farm has the cheapest commonly available auto insurance for teen drivers, according to our research. A State Farm insurance for an 18-year-old costs $3,518 per year, which is 29% less than the national average of $4,917.

Country Financial, Erie, and USAA are the cheapest insurers overall, however, they aren’t for everyone. Country Financial is offered in 19 states, whereas Erie is only available in 12 states, and Washington, D.C. USAA exclusively provides coverage to current and past military personnel.

Teen drivers are nearly always charged significantly more since they have less driving experience and are more prone to dangerous behavior. A juvenile driver pays more than three times as much for complete coverage as a 50-year-old.

Best car insurance for young drivers
Best car insurance for young drivers

Cheapest Car Insurance for parents adding teens to a policy

If you’re a parent wanting to add your child to your insurance, Auto-Owners is the most affordable alternative, costing only $1,832 per year for a 50-year-old and an 18-year-old.

That is only $501 more than the coverage would have been without the teenager, a savings of thousands of dollars. Other less expensive options for adding a teen to your coverage are Erie, Farm Bureau, and State Farm.

When compared to the cost of the same 18-year-old acquiring their own coverage, keeping your child on your policy saves families an average of $3,108 per year – a 62 percent reduction in auto insurance expenses.

Best insurance for young adults
Best insurance for young adults

Best Car Insurance for Young Female Drivers.

The top auto insurance for new adults. According to our analysis at Bankrate, Auto-Owners, Geico, Nationwide, Progressive, and State Farm are some of the best auto insurance providers for young adults.

How To Save On Car Insurance For An 18-Year-Old

From discounts to usage-based savings programs, there are many ways for teens to save money on car insurance. Here are some of the discounts offered by major providers that could help you get lower rates for car insurance for 18-year-olds.

  • Good student discount: Many auto insurance companies offer student discounts for full-time students who maintain a certain average in school, usually a B or higher.
  • Driver training course: Some states require insurance companies to give customers discounted rates after completing a state-approved driver safety course.
  • Distant student discount: Do you have a full-time student who goes to school more than 100 miles from home? If your student is without a car, you could qualify for lower insurance rates.
  • Safe driver discount: Safe driving habits can be monitored through a plug-in device or cell phone app. If you accelerate and brake safely, you can save on car insurance.

Conclusion

There is no “young driver auto insurance” because most new drivers get the same policy their parents have. The only real difference is that the premiums tend to be substantially higher for this coverage; however, policy enhancements and optional riders can bring them down to a more reasonable level.

Frequently Asked Questions About Car Insurance For Young Drivers

What is the cheapest car insurance company for young drivers?

Geico has the cheapest rates (besides USAA), on average, for all ages in our young drivers 2020 rate analysis.

Who is the best insurance company for young drivers?

Some of the companies in our top young drivers’ insurance list who offer black box insurance include:

  • Direct Line DrivePlus Black Box Insurance.
  • Churchill DriveSure Insurance.
  • Hastings Direct SmartMiles Insurance.
  • Admiral LittleBox Insurance.

Which company has the best overall for new drivers?

State Farm is the best overall.

State Farm can provide the best inexpensive, diverse coverage for young drivers through its signature Steer Clear program. The State Farm offers virtually nationwide coverage, including most states and the District of Columbia; residents of Massachusetts and Rhode Island are not eligible for coverage.

Which car insurance is best for 18-year-olds?

ProviderProgramDetailsGoogle Play
AllstateDrivewise®Up to 10% cash back for signing up
Up to 25% off every 6 months
4.0 Stars
GeicoDriveEasyUp to 20% off for signing up3.1 Stars
ProgressiveSnapshot®Average discount of $26 for signing up
Average discount of $145 for completing the program
4.2 Stars
SafecoRightTrack®Guaranteed savings between 5% and 30%4.0 Stars
State FarmDrive Safe & Save™Up to 30% off3.6 Stars
USAASafePilot®Save 5% for enrolling
Up to 20% off at renewal
2.2 Stars
Liberty MutualRightTrack®Savings between 5% and 30%4.7 Stars

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