Buy Cheap Car Insurance For New Drivers
Passing the driving test and buying a first car should be one of the happiest times for a young person. Instead, the cards are stacked up against drivers aged 17-25.
The costs of running a car are more likely to exceed the initial purchase price, especially if you’re buying used. Fuel, servicing and repairs, and road tax are bad enough, but it’s insurance that’s likely to be the hardest blow.
Young drivers pay the highest price for their insurance, and according to the latest AA British Insurance Premium Index, they also suffered the largest average increase of any age range during the first quarter of 2016.
While 40-49s saw a fall of 0.6% (down to £443.92), average shop-around premiums for drivers aged 17-22 went up 2.1% to £1,270.89.
The cruelty doesn’t stop there because the cheapest cars for teenage motorists aren’t necessarily the ones they want to drive.
There are 50 insurance groups and young drivers have little option but to start with vehicles in the lowest three groups which tend to be city cars and super-minis with small engines.
The good news is that these days new small cars are not all frumpy and gutless – many look smart, most gained a maximum five stars n Euro NCAP crash safety tests, while their engines may be small, but they’re pretty punchy too.
We’ve created two Top 10s to help you choose the cheapest car to insure. If you’re in the market for a new car, here are 10 of the best from Insurance Groups 1-3.
There’s also a selection of 10 good used cars with low insurance groups, good examples of which are available for as little as £2,500 in some cases.
Second-hand cars in this sector can represent great value for money, while a 2015 report by Warranty Direct revealed that the 2005-2014 Peugeot 107 is the most reliable “student car”, taking into account frequency of problems and average costs to fix them.
The 107 and its near identical sister car, the Citroen C1, were placed highly after recording not a single engine failure in any of the cars covered by Warranty Direct.
© Provided by Fresh Press Media Ford KA
10 of the cheapest new cars to insure for new drivers
- Seat Mii S 1.0 – £8,440
- Skoda Citigo S 1.0 MPI – £8,275
- Hyundai i10 1.0 S – £8,995
- Volkswagen Up 1.0 – £8,945
- Dacia Sandero Access 1.2 16v – £5,995
- Renault Twingo 1.0 Expression Sce – £9,495
- Vauxhall Corsa Expression 1.0i 12v ecoFLEX – £9,595
- Kia Picanto 1 1.0 – £8,345
- Peugeot 108 Access 1.0 – £8,495
- Skoda Fabia S 1.0 – £10,750
© Provided by Fresh Press Media Peugeot
10 of the cheapest used cars to insure for new drivers
- Peugeot 107/Citroen C1 (2005-14)
- Ford KA (1996-2008 & 2009 onwards)
- Vauxhall Corsa (2006-09)
- Toyota Yaris (2006-11)
- Suzuki Swift (2005-11)
- Ford Fiesta (2002-2008 & 2008 onwards)
- SEAT Ibiza (2008 onwards)
- Fiat 500 (2008 onwards)
- Mazda2 (2007-15)
- VW Polo (2002-9 & 2009 onwards)
How to reduce your car insurance
Before you even buy your first car, it’s also worth noting a few tips to keep your motor insurance premium down.
1. Choose your level of cover carefully
If you couldn’t afford to replace your car in the event of a loss, then go for the highest level of cover which is comprehensive insurance. However, if you have a high compulsory excess (the amount you have to pay in the event of a claim) and your car isn’t worth much, you might be better off with third party insurance.
2. Lower your insurance risk
Drive safely – prove to an insurer that you are not a high risk by staying accident-free, making no claims and avoiding points your licence. You should find that when you come to renew, you premiums will start to fall. As we’ve already said, drive a car in a low insurance group without any customisation such as a tuned engine or bigger wheels and drive less. Yes, opt for a lower annual mileage (eg 6,000 miles per year) and you premium will go down.
© Provided by Fresh Press Media Seat Mii
3. Push down the cost
There are a few things to try in order to lower your premium. For instance, get your name put on the policy of somebody else (a parent or sibling) as their second driver to benefit from named driver no claims discount. Just make sure they are aged over 25 with a good driving record. Also raise your voluntary excess. However,
this means you have to pay more in the event of a claim. Finally, consider have a so-called ‘black box’ fitted to your car. It will record your driving habits and give the insurance company an indication of whether you are a good driver or not.
4. Shop around
Go online and get some quotes to compare. The more time you put in, the more likely you are to get better cover and a cheaper price.
Best Cheap Car Insurance in New Jersey for 2018
If you’re looking for cheap auto insurance in New Jersey, having patience can pay off. Rates vary significantly from one company to the next, so it’s wise to compare several quotes rather than settle for the first price you see.
To help you save time and hassle, NerdWallet’s staff analyzed rates from the largest car insurance insurance companies in New Jersey. For each driver profile below we identified the cheapest insurers in the state:
In comparing your choices, note that New Jersey Manufacturers Insurance serves only people (and their families) employed by the state of New Jersey or one of its counties, municipalities or townships, the federal government, a New Jersey public school, or an organization in the New Jersey Business & Industry Association, or who have some other eligibility factor.
ALSO IN THIS ARTICLE
Cheapest for good drivers
For drivers with no at-fault accidents, DUIs or moving violations.
Geico was the cheapest insurer for good drivers in our analysis, with rates just shy of $100 per month. Second-place Travelers was only $7 per month more than Geico.
New Jersey Manufacturers Insurance was the third-cheapest option.
It’s a good idea to compare safe-driving perks among insurers before making your final decision.
Cheapest for young drivers
For drivers in their early 20s.
Because drivers in their early 20s often don’t have pricey assets or families to protect, they can typically get by with less coverage than older drivers. We factored this into our analysis by gathering rates for young drivers who carry the New Jersey minimum state-required coverage.
Geico delivered the lowest average quote for this group, $725 per year, which comes to roughly $60 a month. NJM and Travelers were the next-cheapest options, respectively.
Cheapest for drivers with one at-fault crash
Even drivers with an at-fault crash on their records can potentially save a lot of money by shopping around. NJM offered the best deal in our results, at $1,533 per year. This was $353 higher than the cheapest quote for drivers of the same age with clean records.
For drivers who don’t qualify for NJM, Geico was by far the most cost-effective option, with an average price tag of about $137 a month.
The highest rates in our analysis clocked in at over $6,000 annually, which proves it can really pay to shop around.
Cheapest for drivers with poor credit
For drivers placed in the “poor credit” tier.
Car insurance companies in most states use applicants’ credit histories to help predict the likelihood of future claims. New Jersey drivers who have poor credit are particularly susceptible to sky-high rates, based on our analysis.
For example, the cheapest car insurance in New Jersey for this group — $2,156 from NJM — was $976 higher than the most affordable rate for good drivers with no credit problems. And rates came in as high as $7,400 per year for the most expensive insurers we analyzed.
Cheapest for retired drivers
For drivers in their mid- to late 60s who no longer use their car for commuting.
Retirees can often score relatively cheap quotes thanks to their reduced time behind the wheel.
We researched rates for drivers in their 60s who travel half as many miles as most other groups. Geico notched the lowest average rate for cheap car insurance in New Jersey for retirees, at $920 per year. This was $260 less than the cheapest quote for good drivers half that age.
Motorists age 55 or older may also be able to earn a discount for completing a driver improvement course approved by the New Jersey Motor Vehicle Commission. Here’s a list of approved courses from the Motor Vehicle Commission.
Cheapest for low-mileage drivers
For drivers who travel 5,000 miles or less per year.
Minimum car insurance requirements in New Jersey
New Jersey requires drivers to carry liability insurance and personal injury protection, or PIP, in the following amounts:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $15,000 personal injury protection
Even though these minimums will allow you to drive legally, you may want to buy more liability coverage to better guard your savings and assets against lawsuits. For example, if you total another person’s car, the damage could easily exceed a $5,000 property damage liability limit on your policy. The difference would have to come out of your pocket.
It’s also wise to consider common optional coverages such as collision and comprehensive, which keep you from paying out of pocket if, say, you skid on ice and hit a tree, or your vehicle is stolen.
Learn more about your required and optional New Jersey coverages with our guide to state car insurance requirements.
Alternative car insurance in New Jersey
If DUIs, poor credit or other factors are preventing you from getting car insurance on the voluntary market, you can seek coverage through the New Jersey Automobile Insurance Plan.
For more help finding competitive car insurance quotes in New Jersey, try NerdWallet’s comparison tool.
Here’s a summary of where you’ll find the cheapest insurance, by category:
Buying cheap car insurance for teens: 6 essential tips
As the parent or guardian of a young driver, you know it’s essential to have good car insurance to protect them. Whether you’re paying for it or they’re working hard to foot the bill, it’s a new expense for your family. Fortunately, you can find cheap car insurance for teens without breaking the bank. Here are the six ways to lower the cost of a young driver on your policy:
1. Learn about Good Student discounts
Students with higher grade point averages are usually more responsible and better drivers. If your young driver earns a B average or better at school, you may qualify for a good student discount on Nationwide teen car insurance.
2. Install anti-theft devices
You may save when you install an anti-theft device in the vehicle. Your possible discount varies based on the type of device installed and the state in which the vehicle is garaged.
3. Keep rates low for teen car insurance with Accident Forgiveness
Accidents happen to even the best young drivers. And if one does occur, insurance rates may rise as much as 30%. If you have Nationwide’s Accident Forgiveness as part of your teen car insurance package, your rates will not increase following the first at-fault automobile accident.
4. Take a defensive driving class
When your teen successfully completes an approved motor vehicle accident prevention course, this Nationwide discount may help you get affordable car insurance.
5. Choose the right teen car insurance policy for your needs
With Nationwide, there are lots of ways to protect your teen while staying within your budget. For example, a higher auto insurance deductible may lower the rate, but could mean more out-of-pocket expenses after an accident. If the vehicle is older or has very high mileage, liability coverage may be a better option than collision or comprehensive – though it will not cover damages to the car after an at-fault accident. Getting the right coverage that best fits your needs is important for saving money on your teen auto policy. Learn more about Nationwide’s auto insurance coverage types today.
6. Stay safe with teen driving tips
One of the most reliable ways to keep insurance costs low is to avoid accidents. Learn about the risks teen drivers face and get tips for how to prevent them. Nationwide’s teen driving resource center offers practical information about teen decision making, distracted driving, the role of parents in teen driving and more.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which control coverage determinations. Such terms may vary by state, and exclusions may apply. Discounts may not be applied to all policy coverages.
How to Buy Auto Insurance for a New Driver
Buying auto insurance for a new driver can be an arduous and time-consuming process. While most every insurance company will offer policy options for new drivers, the rates they charge will be among the highest allowed by law.
New drivers face many obstacles when shopping for auto insurance. In order to find reasonable coverage at affordable rates, new drivers and their families should take the time to investigate all available local carriers.
It’s always best to comparison shop, asking each auto insurer about available discounts while exploring other ways to save money on car insurance premiums.
You will always find the best car insurance rates for new drivers when you enter your zip code into the FREE tool above!
Why Car Insurance is so Expensive for New Drivers
The golden rule in the insurance industry is, the higher the risk, the more you will pay for insurance premiums. This maxim is true when purchasing any kind of insurance but is especially relevant to automobile insurance.
New drivers, especially teenagers who are still in high school or college, are considered far greater insurance risks than individuals who are older and have more driving experience.
According to experts at the Insurance Institute for Highway Safety, IIHS, drivers at age 16 are six times more likely to get into an accident than drivers are in the 30 to 59 age group.
According to the IIHS, car crashes are the single biggest killer of teenagers in America.
The IIHS website provides links to brochures, videos and other useful information that can help prevent accidents while reducing fatalities and other serious injuries among teenage drivers.
It’s no wonder then that car insurance premiums are so much higher for younger, newer drivers.
While most insurance providers will charge significantly higher premiums for new drivers, the good news is that car insurance is readily available for new drivers and many companies will offer discounts to help ease the financial burden for newer drivers’ first few years on the road.
Factors to Consider when Shopping for Car Insurance for New Drivers
We know that new drivers are at the highest risk for traffic violations, accidents, and other auto mishaps.
We also know that because of these statistical certainties, new drivers are going to pay very high rates for car insurance.
New drivers and their families can save on car insurance by following these three simple rules, plan ahead, comparison shop, and once insurance is obtained, drive safely and carefully!
It’s important to remember that while car insurance can be expensive for new drivers, it is a necessary tool designed to protect drivers, their passengers, their vehicles, and other property.
By being proactive and planning ahead, new licensees can reap big dividends when it comes to shopping for auto insurance. Most states now require some form of driver training or other educational classes for new licensees.
However, there are always additional safety courses and training classes that can lead to auto insurance discounts.
It’s critical that you talk to your children in advance about the perils of driving under the influence of drugs or alcohol. While we know that drug use is illegal and that it is illegal for teens to drink in the United States, still many young people try alcohol or experiment with drugs.
It is imperative that young drivers understand that they must never get behind the wheel of a motor vehicle if they have been drinking, taking medications, or other drugs.
Not only is a driver under the influence at risk of serious injury or death, the financial costs alone of a single DWI or DUI traffic violation can amount to more than $10,000!
Parents should also discuss the dangers of texting, e-mailing and talking on the phone while driving.
The Automobile Club, AAA, discusses these issues in their recent article about distracted driving.
Studies conducted in the past year clearly demonstrates that drivers who use a cell phone or other handheld electronic device while driving are four times as likely to have an accident.
There are other distractions to avoid as well, such as smoking, eating or playing with the car radio or CD player.
Take a Class
The Automobile Club, AAA, sponsors many such classes for its members. Community colleges, public school districts, and other agencies also provide training for newer as well as older drivers that are more experienced.
Insurance companies know that educated drivers are better drivers and cause fewer accidents.
Speaking of education, most auto insurance companies offer discounts to student drivers who maintain at least a B average in school. Students with good grades get good rates as statistics show that better students tend to be better drivers.
Better students are apt to pay more attention while behind the wheel as well as follow motor vehicle laws and regulations.
Set a Good Example
Parents of young drivers can also be proactive by setting a good example when they are driving their youngsters from place to place. It’s not enough to teach new drivers proper road etiquette and the correct way to drive.
Older drivers should avoid displaying their own bad habits in front of younger, more impressionable drivers. In all cases, drivers should act responsibly and follow the rules of the road.
Teach new drivers to learn and obey all traffic regulations.
Ignorance of the law is never an acceptable excuse for a traffic infraction. According to automotive expert Edmonds.com, parents should try to make safe driving a family project.
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Add a New Driver to Your Policy
Adding your teen driver to your existing auto insurance policy can have a number of advantages. As a long-term customer, you are likely to be eligible for a number of benefits and discounts that a new driver would not be able to get on their own.
Existing policies offer discounts clean driving records and may even be willing to forgive a minor accident or traffic citation when it comes time for renewal.
Multi-policy discounts are also available to homeowners, renters, and those who purchase life, health, disability or other types of insurance products from the same company.
Buy the Right Car and Ride with your Teen
New, younger drivers are often encouraged to show off by their peers while driving. Research shows that teen drivers can lack the maturity and judgment to make appropriate decisions in the moment as they are driving.
A sports car or luxury vehicle might represent too big a temptation for a teen driver.
Not only are family minivans and sedans more economical to insure, they are far safer to drive and present far fewer risks on the road.
Young drivers should be encouraged to take out the family wagon and abandon thoughts of driving a fast, sporty car for their own protection and yours.
Edmonds.com recommends that parents ride with their teenagers. Younger drivers need to build confidence and feel safe behind the wheel of an automobile.
Praise your new driver for following the rules of the road and engaging in safe driving practices.
Parents can also help new drivers adjust their habits in a positive way while learning how to drive responsibly
Understand the Licensing Process
Today, new licensees in every state are required to go through a series of steps before receiving their permanent adult driver’s license. Graduated licenses help ease new drivers into the flow of becoming responsible motorists.
Each state differs as to the restrictions of new licensees, but most begin with learner’s permits that require a licensed adult be present.
The next step is usually a provisional license that limits the hours that a 16 or 17-year-old may drive without adult supervision. Finally, a permanent license is issued at age 18 or 19.
This process is beneficial for both new drivers and the community at large and guarantees that new drivers have met at least the minimum training, practice, and educational requirements for licensure.
Final Thoughts when Buying Auto Insurance for New Drivers
Buying auto insurance is both a time consuming and complex process.
It’s important to understand what types of insurance are available and what coverage is required in your state.
Unfortunately, many drivers ignore the law and drive without any insurance coverage. According to
According to recent reports by USA Today, one in seven motorists is driving without automobile insurance.
This represents almost 14 percent of American motorists, a number that has steadily increased during the recent economic downturn and recession. While understandable in light of the current economic climate in the U.S. today, these statistics are alarming and very costly!
While most drivers carry uninsured motorist protection, accidents, and damages caused by uninsured drivers totaled to nearly $11 billion in 2007, the last year that statistics are available, according to the National Association of Insurance Commissioners.
This association and the Center for Insurance Policy and Research, provide invaluable information for consumers about insurance matters nationally and for each individual state.
The most important consideration when buying auto insurance is the safety and well-being of the driver.
By following motor vehicle regulations and obtaining sufficient auto insurance coverage, motorists are providing for their own protection and the protection of their passengers, pedestrians and other motorists as well.
There is nothing more precious than the life of a 16-year-old driving to school or to a friend’s home. Fulfilling the requirements for obtaining a driver’s license, purchasing adequate auto insurance coverage, and paying strict attention to the rules of the road are a small price to pay for keeping your loved ones from harm’s way.
Whether you’re 16 or 60, click here to find the best auto insurance rates by entering your zip code in the FREE search tool below!