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
USAA and State Farm offer the most affordable rates for a previously uninsured 30-year-old male. For those who qualify, USAA’s average premium is an affordable $532 for a six-month policy. For drivers who aren't military members — or related to one — State Farm's policies cost $132 per month more than USAA's.
The Zebra’s Dynamic Insurance Rating Tool data methodology — auto insurance
The auto insurance rates displayed throughout this page come from The Zebra’s Dynamic Insurance Rating Tool, a proprietary insurance premium estimator that uses the most recent rate filings across the United States at the ZIP code level to provide up-to-date rate data. Most insurance companies file car insurance rates one to two times a year. This data comes from Quadrant Information Services, which sources the latest approved rate filings across carriers in each state from S&P Global. Quadrant then uses an internal QA process to validate the information and build reports before the data is programmed into The Zebra’s dynamic rating tool.
Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage at these levels:
- $50,000 per person/$100,000 per incident for bodily injury liability
- $50,000 per incident for property damage liability
- $500 deductibles for collision and comprehensive coverage
To provide insight to consumers on how specific personal factors (like age, location and coverage level) can affect your premium, this base profile is then adjusted for different factors commonly used by insurance companies. For more information, see our full data methodology.
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.
|Avg. Annual Premium
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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 1: Compare insurance rates
There are a few reasons this will be the best way to save on auto insurance. As soon as you have been insured for six months, you should expect your premium to decrease. But your current provider might not lower your rate by as much as another provider would. Considerable variance exists between insurance companies' premiums. Compare car insurance options carefully to find the one best suited to your price and coverage needs.
Weigh your options and get the best value from your next insurance policy.
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.
- Get an estimate of the damage prior to speaking with your insurance company. This is what you would pay out of pocket.
- Consult our State of Insurance to see how much at-fault accidents increased rates in your state.
- Multiply the rate of increase by three (for the years during which you will be charged). Add this to your deductible.
- 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.
|Average of $130
|Average of 10-25%
|State Farm Drive Safe and Save
|Up to 15%
|Up to 40%
|Liberty Mutual RightTrack
|Average of 5-30%
|Root Car insurance
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.
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Compare car insurance options and find the right policy for you.
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.