Do you know how much is insurance for new drivers? Your auto insurance coverage will be more expensive if you have a new driver’s license or have not driven in several years.
Just in case you know how to drive and are about to get your license, or perhaps you already have one, but what about insurance?
Do you know how much insurance a new driver needs? This is a critical component of budgeting for the actual cost of car ownership.
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Overview of Car Insurance
Car insurance is required in almost every state, and even in states where it isn’t, you must pay for any damage you cause in the event of an accident.
If you own and drive your own vehicle, you will be responsible for paying a monthly insurance premium.
Young drivers should learn about insurance before getting their licenses, but especially before purchasing their own vehicles.
Understanding the different types of coverage and how insurance companies calculate teen rates can help you budget for what you’ll pay when you start driving.
When budgeting their driving expenses, many new drivers only consider the vehicle’s purchase price, monthly payment, and fuel costs. Maintenance and repairs, registration, and insurance are all factors to consider for an accurate estimate.
Car Insurance for New Drivers
New drivers must have some form of insurance coverage in order to drive on city streets and interstate legally.
Drivers in both Virginia and New Hampshire can opt out of insurance, but this does not mean they will not have to pay if they are involved in an accident.
Virginia allows drivers to pay the state $500 if they do not want to carry car insurance, but they must pay for damages in an at-fault accident out of pocket.
Drivers in New Hampshire must pay a maximum of $50,000 in liability and $25,000 in personal property damage for accidents they cause. So, if you are in an accident, not having insurance will not help you save money.
For a variety of reasons, car insurance for new drivers is frequently more expensive, but they can find ways to save.
Although there is no specific insurance policy for new drivers, you may want to consider purchasing additional coverage until you gain more driving experience.
Cost of Insurance for a New Driver
The cost of insurance for a new driver varies, but the fact that teenage drivers pay more is consistent regardless of other factors.
It is also true that men pay more for insurance than women, so insuring a teen boy will cost more than insuring a teen girl.
Teenage boys pay much higher auto insurance rates than adolescent girls because they are at a much higher risk of car accidents. A 17-year-old male pays approximately 196% more than a 25-year-old male for a comparable policy.
A 17-year-old female will pay 103% more for auto insurance than a 25-year-old female will pay for a comparable policy. When most people reach the age of 25, their auto insurance premiums begin to fall.
However, if you have a history of accidents or claims, you will continue to pay high rates. As a new driver, your monthly premium could range anywhere from $150 to $200 or more.
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Take Home
Now that you know the cost of car insurance for new drivers, try to maintain a low credit score in order to avoid high insurance quotes from insurance companies.
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