For many of us, learning how to drive is like a rite of passage. But for parents, having a young driver in the home can create a mixed bag of emotions. Sure, you’re happy that you’re no longer responsible for driving your child to music lessons, sports practices, school, or to hang out with their friends. But there’s also the stress of realizing that inexperienced drivers are more likely to end up in a car accident. This is where car insurance can be helpful. Everyone is legally required to have a minimum level of car insurance to get behind the wheel of a car. But what’s the best types of auto insurance for a new driver?
Before we review the best companies to choose from, we’ll look at the factors that influence of the cost of insurance. We’ll also review the auto insurance coverages you should consider adding to your insurance policy.
Understanding the Cost of Auto Insurance
One of the key factors anyone is likely to consider when searching for the best types of auto insurance for new drivers is cost.
Keep in mind that the average cost of car insurance for new drivers is going to be higher than experienced drivers. This is because insurance companies believe they are going to be more likely to pay out a claim if they provide car insurance to an inexperienced driver. Some other factors that are going to affect the cost of car insurance include:
- Location: More often, those living within a safer area of town are likely to receive a better quote on car insurance
- Cost of the Car: The more expensive the car, the more expensive the insurance policy is going to be
- Prior Driving Record: Of course, for a new driver, there might not be much of a driving record; however, a poor driving record is going to lead to more expensive car insurance
- Coverage: The more the car insurance policy covers, the more expensive it is going to be
With these factors in mind, let’s look at some coverage options for car insurance.
Identifying the Different Types of Auto Insurance
In general, there are three separate levels of car insurance policies that new drivers are going to encounter. It’s important to understand the ins-and-outs of these car insurance policies so that parents and new drivers can find a policy that’s right for them.
- Liability: The lowest level of car insurance is liability coverage. If you are in an accident that was your fault and have a liability insurance policy, this coverage will pay to fix the vehicle of the other driver but not the vehicle of the policyholder. This is the lowest level of coverage that someone can have to drive legally.
- Collision Coverage: Collision coverage is one of the most popular types of insurance policies. If someone is in a car accident that is his or her fault, this insurance policy will pay to fix both vehicles. However, there are some levels of auto collision damage that might not be covered with this insurance policy. This can include theft, natural disasters, and other types of damage the car might accumulate along the way.
- Comprehensive Coverage: This is the most comprehensive car insurance policy available. As long as the vehicle was not intentionally damaged by the policyholder, this policy should pay to fix the car. This includes fires, floods, hurricanes, theft, and other disasters that might befall the vehicle.
As these policies become more comprehensive in what they cover, the cost is going to become more expensive. It’s important for all parents and new drivers to balance the cost of a car insurance policy with an appropriate level of protection.
Other Factors New Drivers Should Consider When Looking for Car Insurance
When searching for the best types of auto insurance for new drivers, there are a few other coverages to consider adding. These include:
- Accident Forgiveness: Accident forgiveness means that if the policyholder is involved in an accident, the rate will not go up after the first claim. This can be an attractive add-on for parents worried that their teenager is going to be involved in an auto accident.
- New Car Replacement: If you or a loved one is in a car accident, the value of the vehicle may not be enough to pay off the loan and allow the parents to buy another car. This is where new car replacement can be helpful. A new car replacement rider on an insurance policy helps teenagers and parents replace a car in the event of an accident.
- Discounts for Bundles and Security Features: Finally, it’s important to note that there are other options available that can help reduce the cost of car insurance. Policyholders willing to invest in advanced car security features might receive a discount on car insurance. This is because the car insurance company believes there is a lower chance the vehicle is going to be broken into and damaged. Individuals who are willing to bundle their home and auto insurance might also receive a discount. This can help families save money on having a new driver in the home.
Car Insurance Companies for New Drivers
Now that you know what coverages to look out for when creating a policy with an insurance provider, it’s time to review the best auto insurance companies.
Amica Mutual is known for its great coverage and customer service. Many studies have ranked them at the top of their list for claims satisfaction. Amica Mutual also offers exclusive insurance package benefits that some drivers might deem necessary, such as injury protection, roadside assistance, and glass coverage.
Additional benefits of working with Amica Mutual include:
- Ranked #1 in auto claims satisfaction
- For lost keys, there is a no-cost lock replacement option
- A high customer satisfaction rate
Some cons include:
- Amica Mutual is not available in all states
Progressive is a popular option because of their unique coverage options. Similar to a grocery store, everyone can pick and choose exactly what they need for their drivers. It is also easy to receive a quote online to compare with other offers.
Additional benefits of working with Progressive include:
- They provide gap insurance, which can help replace a car in the event of an accident
- There is an online rate comparison tool
- Drivers can customize their equipment and parts coverage
Some cons include:
- They do not handle claims quickly
- Their rates are often more expensive than other companies
For new drivers, Allstate is often one of the most popular insurance options. Their team of agents are known for guiding their customers through the hectic process of finding the right car insurance. They also handle claims efficiently, ensuring that claims get paid out in a timely manner.
Additional benefits of working with Allstate include:
- Their coverage options are vast, allowing drivers to pick what they need
- They often provide drivers with new auto parts when their vehicle is damaged
Some cons include:
- Allstate is more expensive than most other choices
- Their payout for claims is not usually as high as other companies
Find Top Auto Insurance Coverage At ONIT
ONIT Insurance Group is here to help families save money on auto insurance. We work with industry-leading insurance providers to make sure you’re getting top coverage and a strong safety net against anything life throws your way.
We’re happy to speak with you about finding the right coverage for you or any new driver in your life. Our team of experts understands that shopping for insurance can be stressful and confusing. That’s why we avoid using industry jargon and stick to keeping things simple so you can understand exactly what’s in your policy. Contact us today to learn more about how we can help you and your loved one’s stay protected on the road!