Best Car Insurance for New Drivers

The best way for a young driver to get cheaper car insurance is to stay on their parents' plan. This is likely a must for drivers under the age of 18 anyway, as minors are not allowed to purchase a plan on their own.

Most of the time, the young driver's parents' insurance background, credit score and driving history may lead to lower rates than the new driver would find on their own. By staying on a parent's auto insurance policy as long as possible, a young driver can save thousands of dollars per year. College students can usually stay on their parents' policy as well, provided they don't drive their own car while living away from home.

One of the best ways to get affordable coverage is to compare rates from a number of companies. This is because every insurer underwrites policies based on slightly different rating factors, sometimes leading to large differences in premiums. Seek out auto insurance quotes from different companies to see which is offering the best rate.

Remember that the coverage level you choose has an impact on your rates too. Roughly 38% of The Zebra's customers go for "basic" coverage, which is a full coverage policy with elevated liability limits, typically 50/100/50.

In general, new drivers looking to save money should start by driving an older vehicle. This is because picking a new or luxury vehicle — like a Mercedes-Benz — combines the risks of inexperience with the high repair and replacement costs of premium cars, leading to higher rates. Another thing to keep in mind is while safety features can often reduce rates, highly specialized equipment and high-tech sensors can actually increase rates.

Depending on a driver's location, liability coverage may be the only insurance they're legally required to carry. However, some lenders may require physical damage insurance like collision coverage or comprehensive coverage, which can increase premiums dramatically. Deductibles for these coverages work inversely with payments: the lower your deductible, the more expensive the insurance premiums. This is because the insurer bears a larger financial responsibility when a claim is made.

Those looking for cheaper auto insurance rates should consider increasing deductible amounts to save money on car insurance coverage. Just be careful to not make your deductible higher than what you can afford should you have to file a claim.

Discounts are readily available in the auto insurance world. Many are subject to state and insurer restrictions. Below, we outline common discounts. While they won't halve your premiums, they can reduce costs for first-time drivers.

While it depends on the type of coverage you're looking for, Nationwide offers some of the most affordable premiums for both new and younger drivers.

If possible, new drivers are going to find better rates by being added to another person's policy. This is especially true of teens or young adults, who can face dramatically higher rates when getting a policy on their own.

Put simply, insurers don't know how you'll act behind the wheel. With no previous driving record to lean on, most will automatically assume that you present a higher risk. Young drivers face the double-whammy of inexperience behind the wheel and a perception of recklessness that causes most companies to increase rates substantially.