Car Insurance with No Insurance History

How to get car insurance with no insurance history

Obtaining a car insurance quote if you haven't previously had an auto insurance policy is possible — but your rates might be more expensive than average. The typical difference in premium between an auto insurance policy for a previously uninsured driver and a currently insured driver is 6%, or $51, per six-month policy period.

We tracked down the cheapest providers for a previously uninsured (and often new) driver and found the best methods to lowering your premiums. We'll review detailed rate information and ways to save below. 

The best car insurance companies for a previously uninsured driver

Although drivers without insurance history pay more up front, their rates may decrease every six months as long as they avoid a lapse in coverage. The difference in premiums between a driver with no insurance history and three years of prior insurance coverage is $86 per six-month period. 

This data is based on a composite driver profile.

Why insurance history is used as a rating factor

A few rating factors are used to calculate car insurance rates, some of which aren't tied directly to a driver's history of tickets or accidents. Credit score, age, homeownership, and insurance history are not tied directly to driving history. Car insurance companies see these characteristics as reliable predictors of risk.

In the opinion of an insurance company, a driver who has been licensed without insurance may have been driving uninsured — a potential signifier of risk. Similar to a bad credit score or poor driving history, a spotty insurance history may lead to more expensive insurance premiums.

How to save on car insurance if you're currently uninsured

There’s not much you can do to change your insurance history. However, there are ways to reduce the cost of your insurance policy. Let’s break down some cost-cutting solutions.

Method 2: Bundle your insurance policies

In order to earn a multi-policy discount, bundle any insurance policy you have with your auto policy (or vice-versa). A multi-policy discount will allow you to save on your home or renters policy, in addition to your auto insurance. 

If you don't have a renters or home insurance policy, consider acquiring one. They're relatively inexpensive and offer protection for your assets in the event of a major loss, or if you are found legally responsible for damages that occur on your property.

Method 3: Carry the correct coverage

Vehicles depreciate rapidly. If you own a vehicle worth less than $4,000, you might not need collision and comprehensive coverage. These coverage options are designed to protect your vehicle from property damage. However, if your vehicle isn’t worth much, you might be paying for coverage you do not need.

Use Kelley Blue Book and NADA online as resources to determine the value of your vehicle. If you determine you still need comprehensive and collision, consider raising your deductible. By raising your deductible, you can lower your premium.

Method 4:  Be smart with your claims

Unless you have accident forgiveness, every car insurance company will raise your rates after you file a claim. Most insurance companies will keep upcharging your premium for three years following an accident. This will cause the overall rate increase for one at-fault accident to equal well over your original premium.

If you’re involved in a collision-type accident, follow our steps to see if it is cheaper to pay out-of-pocket.

1. Get an estimate of the damage prior to speaking with your insurance company. This is what you would pay out of pocket.
2. Consult our State of Insurance to see how much at-fault accidents increased rates in your state.
3. Multiply the rate of increase by three (for the years during which you will be charged). Add this to your deductible.
4. Compare the costs and choose the least expensive option.

For more information on the claims process, check out our article on when and how to file a claim.

Method 5: Consider telematics

Telematics embodies an insurance premium based on your actual driving habits. While some non-driving attributes are still utilized, such as your age and credit history, it’s much more reflective of how you drive. Below are some average savings you could expect from popular providers in the U.S. 

Method 6: Check for available discounts

Although discounts can be helpful for lowering your premium, they will not drastically affect your rate.

• Multi-policy discount
• Good driver discount
• Paperless discount
• Payment by bank account
• Paid in full discount (paying your premium in one payment)
• Multi-car discount
• Good student discount (under 25)

You should not stay with your company simply because they offer you a discount. Make sure you consider the overall rate. However, these discounts can be helpful.

Method 7: Avoid lapses in coverage with a non-owners policy

A non-owners car insurance policy only provides liability coverage for drivers who do not own a car but want to maintain their insurance coverage. If you’re going to sell your vehicle, you should consider buying a non-owners policy. Because they offer no collision or comprehensive coverage, they tend to be fairly affordable. This will not only keep you continuously insured but offer you additional liability insurance when you’re driving.