You just aced your driving test and are ready to hit the road! But there is something you need before you get behind the wheel – your first car insurance policy. Whether you have your own vehicle or you will be driving a car that your parents own, it is important to understand the basics of auto insurance, the type of coverage you need and what it will cost.
What is Auto Insurance and Why Do I Need it as a Young Driver?
Insurance is designed to protect you financially in the event of an accident. The cost of medical bills and property damage resulting from an accident can be costly, particularly for a young person. Auto insurance is necessary to avoid paying these costs out of pocket. Additionally, since a new driver is typically inexperienced, the risk of getting into an accident is high.
It is also necessary to have auto insurance because it is required by law in every state.
The Cost of Car Insurance for First Time Drivers
Car insurance premiums are based on a number of factors such as the type of vehicle you own, where you live, how often you drive and more. One of these factors is your personal information such as your age and gender.
Car insurance for teens can result in higher insurance rates because anyone under 25 is considered a high-risk driver. Premiums can be even higher for males because they are considered a higher risk than females.
Options for Securing First Time Car Insurance
As a new driver you can either purchase your own policy or be added to a parent’s existing policy. Since a first time driver insurance policy can be expensive, it may be more cost effective to be added to a parent’s policy if possible. A parent can also get a multi-car discount if they add their teen on with a designated vehicle.
Whether you get your own policy or are added to a parent’s, be sure that you have enough coverage. Cheap car insurance for first time drivers is not always recommended because it usually means bare minimum coverage. Minimum coverage limits may not cover all of the losses in the event of a claim.
What Type of Coverage Will Protect You If…
You caused damage? Liability insurance will help pay for the damages inflicted on another party by an accident you caused. There are two types of liability coverage: bodily injury liability and property damage liability coverage.
Bodily injury liability will help pay for the other driver’s medical expenses, emergency aid they require at the scene of the accident and any loss of income they face if they are unable to work as a result of the accident. This coverage will also protect you should the driver file a lawsuit.
Whether you hit a fence or a car, property damage liability coverage will help to cover the costs to repair the damaged objects. This coverage will also help cover legal fees if you are sued by the other party.
You were hurt in an accident? Personal injury protection (PIP) will protect you and your passengers if you were injured in an accident regardless of who is at fault.
PIP will help cover medical bills, lost income resulting from the accident, your health insurance deductible and other expenses. While PIP is required in some states, it is optional or not available in others. If PIP is not available, medical payments coverage is an optional coverage that offers similar protections.
You were involved in an accident with an uninsured driver? Uninsured/underinsured motorist coverage will help to pay for your medical bills and possibly damage to your vehicle if another driver caused an accident but didn’t have enough insurance to cover the losses or they didn’t have insurance at all.
Auto insurance can be confusing, especially for a new driver, but a little research can go a long way in selecting the best coverage for your first car insurance policy.
If you’re buying your first auto insurance policy, you’ve come to the right place. Freeway Insurance specializes in insuring high-risk drivers, including first-time drivers. Request a quote for new driver insurance online or over the phone at and we’ll compare rates from top insurance companies to find you the best coverage at the lowest price.