Those two words open many doors and may immediately spark questions in your mind—whether you are the person who just passed your driving test or the parent or guardian of the individual who just passed the test. This moment may be filled with excitement, happiness, a sense of freedom, a bit of anxiety or a combination of all four.
By law in the state of Indiana, all drivers that operate a motor vehicle on roads in Indiana must have the state’s minimum amount of liability insurance coverage for the vehicle they are driving. This means that before first-time drivers get behind the vehicle they plan to drive, they need to make sure their vehicle is covered.
First-time car insurance is a big deal, whether that may fall under the teen or young adult who just received their driver’s license, or a parent or guardian who wants to add them to their current auto insurance policy.
Purchasing car insurance for under 25-year-oldsmay increase your insurance premiums. If you are adding your teen or young adult to your auto insurance policy, there are new driver insurance discounts and new driver auto insurance tips that can help with lowering premium costs.
In the state of Indiana, you must be at least 18 years old to purchase your own auto insurance policy. That means that if you are under 18 you need to be added to your parents’ or guardians’ auto insurance policy. So where do you begin? Let’s talk about the various factors that may affect rates for new drivers.
Factors that affect rates for new drivers
Understanding how insurance companies determine insurance rates can be difficult to grasp. Insurance companies must consider how big of a risk you may be; they determine that with different measurable factors.
It’s important to note that not all insurance companies weigh pricing factors exactly the same. There may be variations based on location, age, driving history and more. Here is a list of the top factors that may affect premium rates for new drivers.
Zip code – Your zip code can affect pricing factors, which may include weather claims, car thefts and accidents. Rural versus urban zip codes may affect your rates. Drivers who live in more urban locations may be at an increased risk for some of those situations listed.
Age and driving experience – According to the Indiana Criminal Justice Institute, the leading cause of death among American teens is car crashes. The lack of driving experience and the age of most new drivers can affect premium rates of new drivers. New drivers may pose more risk to insurance companies which may lead to higher insurance premiums.
Gender – At many insurance companies, young men may have higher auto insurance premiums than young women. Although this may affect rates, items like zip code, age and coverage selections may affect your rates more significantly.
Car make and model – When purchasing an auto insurance policy as a new driver, the car’s make and model may affect your premium rate. There are certain vehicles that are statistically involved in more accidents or targeted by thieves, which makes those vehicles a bigger risk.
Coverage selections – At Indiana Farm Bureau Insurance, you can purchase different levels of coverage depending on what coverage you need. Your local insurance agent can walk you through different coverage selections and what the approximate costs may be. The cost varies based on the amount of coverage you need for your car, yourself and others on the road.
7 Tips for cheap car insurance for first-time drivers
After doing the research online and seeing various rates for auto insurance for new drivers, you might be thinking, “Why is car insurance for young drivers so expensive?”
Young drivers are a bigger risk for insurance companies than experienced adults who have been driving for many years. Regardless of the risk, there may be ways to lower the auto insurance premiums for first-time drivers. So, let’s answer your next question, “How to get cheap car insurance for first-time drivers.”
Here are seven tips for cheaper car insurance for first-time buyers:
Driver Education Discount – For eligible vehicles, Indiana Farm Bureau Insurance offers a discount for drivers up to age 21 who complete a state-approved driver education course. If a young driver on your policy has completed a state-approved driver education course and provides signed evidence of successful course completion, they may be eligible for up to a 15% discount.
Multi-Car Discount – If you have two cars in your family and insure both with Indiana Farm Bureau Insurance you can save on your auto insurance policy. If you have more than two cars, you may be able to save even more.
Paperless Discount – Receive a 5% discount on qualifying auto insurance premiums by signing up for paperless policy documents.
Top Scholar Discount – Youthful drivers who attain at least a 2.95 cumulative grade point average on a 4.0 scale (or its equivalent) in school may also qualify for an additional discount.
Youthful Driver Discount – Auto policies with young drivers age 16-24 may be eligible for a discount that rewards safe driving. The Youthful Driver Discount Enrollment form must be completed and signed to be considered for eligibility. For more information about this and other discounts contact your local insurance agent today.
DriveTrend® – This is a telematics mobile solution from Indiana Farm Bureau Insurance, that provides information and feedback to drivers based on their driving habits. You may receive up to a 15%** discount on qualifying auto insurance premiums by participating in DriveTrend®.
Reliable and older cars – Adding a more reliable and older car to your auto insurance policy may result in a cheaper premium. The make and model can impact the pricing scale of your premium cost. According to Farm Bureau Financials, the top five least expensive cars to insure include the Subaru Forester 2.5l Wilderness, Hyundai Venue SE, Honda CR-V LX, Mazda CX-30 S and Toyota C-HR XLE.
Explore payment options – When you purchase an auto insurance policy you have to decide when and how you would like to make your payments. Some options include once a month, twice a year or one annual payment. You can also choose to pay via check, or sign up for automatic payments. Depending on the insurance company, different payment options can result in different premiums. With the Full Payment Discount at Indiana Farm Bureau Insurance, policyholders may receive a 5% discount on eligible auto, home and farm coverages by paying their premium in full prior to the policy term.
Increase your deductibles – Your chosen deductible amount can also affect pricing. Even though a higher deductible may mean that you pay less for your auto insurance premium, it increases the “out-of-pocket” cost you would pay following a covered auto insurance claim.
Good driving history – As a new driver, you won’t have any driving history. Since you won’t have any driving history for an insurance company to reference when evaluating your risk, chances are you might pay more than if you have a good driving history. What does this mean? This means that as a new driver, it’s important to be smart and safe on the road. If you maintain a good driving record as you get older, this may result in lower car insurance premiums.
Teaching safe driving habits – This tip is for the parents and guardians of new drivers. It is important to teach and practice safe driving habits while on the road. As the driver of a teen, make sure to practice good driving habits for your teen to mimic once they get behind the wheel. On the flip side, once your teen or young adult begins driving, encourage them to drive safely and to minimize distractions. Check out these tips for driving undistracted.
The best car insurance for new drivers is an auto insurance policy that you can trust provides the coverage you need, from a company you can trust. If the unexpected were to happen, it’s important to trust your insurance company. Indiana Farm Bureau Insurance takes pride in its claims customer service. If you need help, a claims representative or your local insurance agent will be there for you when you need them most.
It’s time to get a car insurance quote for your young driver. It’s easy! Request a free quote online and one of our local Indiana insurance agents will reach out to start the insurance process today.
If you want to skip a step and talk to someone now, contact one of our local insurance agents today.
How much is car insurance for an 18-year-old driver?
Does getting a traffic ticket raise insurance rates for new drivers?
Getting a traffic ticket may raise insurance rates for new drivers. It is important to drive safely and follow the rules of the road, not only for potential insurance rate increases, but also to keep yourself and others around you safe.
How can students get cheap auto insurance?
Here are two ways students can receive a discount on their auto insurance policies at Indiana Farm Bureau Insurance. One way is through the Top Scholar Discount. Students may receive this discount if they attain at least a 2.95 cumulative grade point average on a 4.0 scale (or its equivalent) in school. Another discount students may take advantage of is the Youthful Driver Discount. Youthful drivers age 16-24 may be eligible for this discount. There is an enrollment form that must be completed and signed to be considered for eligibility. Contact a local insurance agent for more information regarding these discounts for students.
What vehicles are cheapest to insure for teen drivers?
As referenced above, according to Farm Bureau Financials, the top five least expensive cars to insure include the Subaru Forester 2.5l Wilderness, Hyundai Venue SE, Honda CR-V LX, Mazda CX-30 S and Toyota C-HR XLE.
* Limitations and restrictions apply. Discount ranging from 1% to 10%, based on mileage up to 12,000, can be applied to eligible personal auto policies issued or renewed on or after 1/1/2023.
** Limitations and restrictions apply; the DriveTrend® discount, ranging from 10% to 15%, is based on your driving habits.