Average Car Insurance Cost For First Time Drivers

What Is the Average Cost of Car Insurance for First Time Drivers?

Getting your first car is an exciting time. But when it comes to insuring your new vehicle, the cost can be a bit of a shock. Knowing what to expect before you start shopping for car insurance can help you make an informed decision that fits your budget.

So what is the average cost of car insurance for first time drivers? According to the Insurance Information Institute, the average annual cost of car insurance in the United States is $1,548. This figure is based on a 2020 study of insurance rates from six large carriers in all 50 states and Washington, D.C. However, rates can vary significantly depending on your age, gender, location, driving record and vehicle type.

Factors That Affect Car Insurance for First Time Drivers

When you’re a first-time driver, you don’t have an established driving record on which an insurer can base your rates. So the insurer will look at other factors, such as your age, gender, location, and the type of vehicle you drive. Let’s take a look at each of these factors and how they affect your car insurance rates.

Age

Generally, young drivers are more likely to be involved in an accident than more experienced drivers, so they typically pay more for car insurance. According to the Insurance Information Institute, drivers under 25 years old are the most expensive to insure. In fact, drivers between 18 and 24 years old pay an average of $3,593 per year for car insurance.

Gender

In most states, gender is a factor that can affect car insurance rates. In general, women pay less for car insurance than men do. However, this isn’t always the case, as some companies may offer discounts to men or women depending on the state.

Location

Where you live can also affect your car insurance rates. For example, drivers in densely populated urban areas tend to pay more for car insurance due to the higher rate of accidents and car thefts. On the other hand, drivers in rural areas tend to pay less because they are less likely to be involved in an accident.

Vehicle Type

The type of vehicle you drive can also affect your car insurance rates. Insurers typically charge higher rates for vehicles that are more expensive to repair or replace, such as high-end sports cars or luxury vehicles. On the other hand, more affordable vehicles tend to have lower insurance rates.

Tips for Finding Affordable Car Insurance for First Time Drivers

If you’re a first-time driver looking for affordable car insurance, there are a few tips that can help you save money. First, consider raising your deductible. When you do this, you are agreeing to pay a higher amount out of pocket if you are in an accident, which can help lower your insurance premiums. Second, shop around for different insurance policies to compare rates. Different companies offer different rates, so it’s important to compare them to find the best deal.

Finally, consider bundling your car insurance with other types of insurance, such as homeowners or renters insurance. Many companies offer discounts for customers who bundle their policies, so it can be a great way to save money on your car insurance.