How Does Car Insurance Work?
The purpose of car insurance is to protect yourself financially because in reality, our circumstances can change very quickly. For example:
Let’s say you have auto insurance and are involved in a car accident that causes damage to both your car and the other driver’s vehicle. You would need to file a claim with your insurance company to cover the costs of repairing or replacing your car, as well as any medical expenses if you or the other driver were injured in the accident.
The insurance company will then investigate the accident to determine who was at fault. If it is determined that you were at fault, your insurance company will pay for the damages to the other driver’s car and any medical expenses that they might have incurred. This is called liability coverage.
If you have collision coverage, your insurance company will also cover the cost of repairing or replacing your own car, regardless of who was at fault. However, you may be required to pay a deductible before your insurance company will cover the cost of the repairs.
Is Car Insurance Required?
Most states in the US (except Virginia and New Hampshire) require that you have auto insurance with liability coverage, however, each state set it’s own laws and limits as to what is required for that particular state. Car insurance for new drivers isn’t any different.
How Much Does Car Insurance For New Drivers Cost?
On average, car insurance for new drivers cost more.
Why?
New drivers may find themselves paying more for car insurance because they are generally considered to be a higher risk due to the fact that they are young, inexperienced drivers who may have a poor credit score due to either having no credit at all and/or college loans.
The statistics don’t help the situation either. They show that driver’s between the ages of 16 and 25 and much more likely to get into a car accident than a more older, seasoned driver.
On the other hand, some insurance companies offer college students discounts for those who maintain good grades or complete a driver education course. So not all is lost with car insurance for new drivers.
Car Insurance For New Drivers
Ezekiel
Age 18
Male
2010 Toyota Corolla
Liability Only
$389.00 A Month
Car Insurance For New Drivers: How Can I Save My Money?
As was mentioned above, car insurance for new drivers may be higher due to factors such as limited driving experience and higher perceived risk. However, here are a few tips to help you save on car insurance:
- Take a defensive driving course: Completing a recognized defensive driving course can demonstrate to insurance companies that you’re committed to safe driving, and may result in a discount on your premiums.
- Choose a car with lower insurance costs: Some cars are more expensive to insure due to factors such as higher repair costs or higher likelihood of theft. Consider choosing a car with a lower insurance rating, which typically means lower insurance premiums.
- Opt for a higher deductible: Choosing a higher deductible, which is the amount you pay out of pocket before your insurance coverage kicks in, can lower your insurance premiums. However, make sure you can afford the higher deductible in case of an accident.
- Be a safe driver: Avoid accidents, traffic violations, and DUIs to maintain a clean driving record. A good driving record can help you qualify for lower insurance rates over time.
- Add safety features to your car: Installing safety features such as anti-lock brakes, airbags, and anti-theft devices in your car may result in insurance discounts, as they can reduce the risk of accidents and theft.
- Consider being added to a parent’s policy: If you’re a young driver, being added to a parent’s car insurance policy as an additional driver may be more cost-effective than getting your own separate policy.
- Look for discounts: Many insurance companies offer discounts specifically for young drivers, such as good student discounts, which are given to students who maintain a certain GPA, or discounts for completing driver education courses. Inquire with your insurer about any available discounts.
- Compare quotes from multiple insurers: Shopping around and obtaining quotes from different insurance companies can help you find the best rate for your coverage needs. Don’t settle for the first quote you receive – compare your options to ensure you’re getting the best deal. Some carriers gear there car insurance for new drivers specifically.
- Build a good credit history: Insurance companies often use credit scores as a factor in determining premiums. Building a good credit history by managing your finances responsibly can help you qualify for lower insurance rates.
Consequences Of Driving Without Car Insurance
“Paying for car insurance is such a pain!” – Have you felt that way? Before you decide to go without, know that driving without car insurance can have serious consequences, both legally and financially. Here are just some of the consequences listed below:
Legal penalties: In most states in the US, driving without car insurance is illegal. If you are caught driving without insurance, you may face legal penalties such as fines, suspended license, and even vehicle impoundment or confiscation.
Liability for damages: If you cause an accident while driving without insurance, you may be personally liable for any damages that you caused. This could include property damage, medical expenses, and other costs, which can really add up. You would then have to pay out of your own pocket, most likely leading to crippling debt.
Loss of financial protection: The purpose of car insurance is designed to provide financial protection in the event of an accident, theft, or other covered events. Without insurance, there are financial risks – paying the full cost of repairing or replacing your vehicle, covering medical expenses, and dealing with other damages or losses.
Legal consequences for being an uninsured motorist: If you are involved in an accident with another driver who does have insurance, but you do not, you may be considered an uninsured motorist. This could result in legal consequences, such as being held personally responsible for damages to the other party, losing the ability to sue for damages, or being subject to additional fines or penalties.
Difficulty obtaining insurance in the future: Driving without insurance can negatively impact your insurance history and make it difficult for you to obtain insurance coverage in the future. Insurance companies may view you as a high-risk driver, which can result in higher premiums or even denial of coverage.
Negative impact on credit score: If you fail to pay fines or other penalties related to driving without insurance, it may result in collections or legal action, which can negatively impact your credit score.
Legal liability for injuries or damages: If you are at fault in an accident and do not have insurance, you may be personally liable for injuries or damages suffered by other parties involved in the accident. This can result in costly legal battles and financial obligations that can have long-term consequences on your personal finances.
It’s essential to comply with the legal requirement of having car insurance and to ensure you have adequate coverage to protect yourself and others on the road. This doesn’t apply to only car insurance for new drivers, but for all driver’s.
Why Trust A Plus Insurance
A Plus Insurance is a small family owned business with just a dozen employees (including the owners), but this does not mean that we aren’t capable! In fact, we work harder to care for our clients needs compared to large corporations who may view a person as “just another number”.
Here at A Plus Insurance, our goal is to serve you by educating you on how insurance works and providing a variety of options based on your needs.
If you would like a free quote, feel free to call us at 888-445-2793. You could also get a quote through text here.
Whether your looking for car insurance for new drivers, renters insurance for your apartment, or homeowners for the beautiful new house you just bought, we got you covered!
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