New driver car insurance policies are typically priced higher than the average because the driver is at risk for getting into an accident. Inexperience and a lack of knowledge about the vehicle and roadways can make the driver more vulnerable to getting in a car accident, so most insurance companies extend a higher premium until the new drivers proves themselves with a consistent driving record.
As of 2010, the national average for auto insurance premiums for males and females between the ages of 18 and 25 years – the majority of new drivers – is $1,566. Average insurance rates from August 2009 to July 2010 for teen drivers range between $2,141 to $2,741, which is considerably higher than the national average.
Reasons Why New Driver Car Insurance Is So High
New driver car insurance rates are considerably higher than the national average because car insurance companies are investing in a driver who is at a high risk of being involved in a car accident. Here are some of the key reasons why new driver car insurance rates are so high:
– Teenage drivers are statistically more likely to be involved in both fatal and nonfatal crashes than other drivers.
– New drivers have yet to build up a proven driving record.
– New drivers may be too inexperienced to handle high-risk driving situations and have a higher chance of being involved in a collision or serious accident.
Getting a Lower New Driver Car Insurance Rate
Even though most new drivers will not be eligible for the cheapest car insurance rates, they may be eligible for certain discounts that can lower their insurance premium. A new driver may be able to reduce their car insurance rates in the following ways:
– Show a good student record. Student drivers who have a high GPA may be eligible for certain insurance discounts because they are proving that they are responsible.
– Apply for insurance as part of a multi-line insurance policy. Families who purchase a multi-line insurance policy may be able to get a lower-priced insurance policy for new drivers.
– Show and maintain a good driving record. Even though a new driver hasn’t had the chance to build up a strong driving record, they can make sure they are not involved in any DUI incidents and take extra precautions to stay safe while on the road. Maintaining a good driving record in the long-term can lower the new driver’s insurance rates.
Typical rates for new driver car insurance are much higher than the national average, but there are several things that the new driver can do to lower their rates over time. Shopping around for the best new driver car insurance rate is the first step to ensuring the driver is getting the best available rate.
Sources:
“Teen Auto Insurance and New Driver Car Insurance,” State Farm. “Car Insurance for Teens and Young Drivers,” CarInsurance.com. “Average Annual Teen Premium Rates,” CarInsurance.com.
