Auto insurance can cost a fortune. The latest surveys show that most drivers pay so much for auto insurance yearly, even more than what they need. This is especially true for new drivers as well as those labeled high-risk. And if you are labeled as a high-risk driver and want to save on insurance payments, then these tips to get the cheapest insurance for new drivers may help you out.
High-risk drivers are people who are more prone to meeting accidents and violations on the road. From new drivers to drivers with a DUI charge, these people are labeled unsafe by insurance companies. These drivers are forced to take high-risk auto insurance to be able to stay safe while they drive.
Who Are high risk drivers?
Drivers classified as high-risk can be any of the following
- New drivers or inexperienced drivers
- Young drivers
- Old or senior drivers
- Drivers with a history of a DUI charge
- Drivers with a history of a traffic violation or accident on the road
- People with dangerous driving past times or sport
- Drivers with poor credit history
- Drivers who have previously defaulted on their auto insurance payments
It is very easy to see why auto insurance companies classify the first six drivers as high-risk. However, having poor credit and previous miss on auto insurance payments are also classified by companies as high risk because of important reasons.
Auto insurance companies think that if you are unable to keep your finances straight and you miss on payments for your coverage, chances are you won’t also be able to pay your monthly premiums and hence place yourself at risk when you drive.
Driving without insurance or unpaid insurance does not just place yourself at risk but also your passengers and people and property on the street. So if you are having a hard time financially, don’t ever think of overlooking your auto insurance payments.
Top 5 tips to get the cheapest insurance for new drivers
1. Find cheap insurance companies
A number of insurance companies are willing to ensure new drivers but will do so with a higher premium in tow. But only a few will offer cheap car insurance for teens with open arms.
One of these is Geico, an auto insurance company with an average ranking according to the latest surveys. Geico specializes in ensuring high risk teen drivers with the help of parents.
The company encourages parents of these young drivers to support their kids when it comes to all aspects of being a new driver such as choosing the safest car, introducing first-time drivers about safety on the road and so on.
Over the years, Geico is able to provide insurance for high-risk young and new drivers and have made them safe on the road. It is easy to find information about the company as well.
You can check out your local area for a nearby office where you can meet with an actual insurance rep or you may also check out their official website to get your first quote.
But this does not mean that you should consider only Geico auto insurance. Get a quote and then look for other companies and compare their rates and coverage.
2. Take advantage of discounts
Whether you are looking for the cheapest insurance for new drivers or cheap car insurance for young adults, you may find it hard to shop for an affordable quote. Most of the time, it’s better to stick to the quote and just take advantage of discounts to make up for the cost.
So how much are you going to save when you use discounts? It may depend on the discount or deal that you want to use. The most you can get is 5 to 10% combined discounts off your premium. Let’s check out the most popular discounts offered lately by auto insurance companies.
- Good student discount
- Homeowner discount
- Safe driver discount
- Good driving record discount
- Online payment or automatic payment discount
- Paperless bill discount
- Multi-policy discount
- Safer car discount
3. Pay only the minimum car insurance in your state
There is minimum auto insurance required for all drivers of a state. Take note that each state has a different requirement so be sure to check out the latest information from your local DMV for details.
Minimum auto insurance Pros and Cons
Minimum insurance will only give you limited coverage but is still better than no insurance at all. If you are certain that you are a safe driver and you have maintained a stellar driving record over the years then you may consider getting only the minimum coverage.
If you plan to upgrade on your coverage as soon as you get by then you can settle for the minimum insurance cover. Minimum insurance is sometimes referred to as practical insurance. This is because it is affordable, easy on the budget and you can still make an upgrade after your coverage has expired.
If you are also using a safe car not a sports car or an SUV then you may consider getting minimum coverage. And if you live in a safe neighborhood and you keep your vehicle, and yourself, safe on and off the road then you may consider taking the minimum coverage.
But there are also some disadvantages of taking the minimum coverage as well. In an event that you caused an accident and suffered fatal injuries, the minimum amount may not be enough to cover your own medical expenses.
What would happen if your passengers suffered severe injuries as well? And if you miss work, how will you pay for your missed day’s work? And what’s worse, what happens when you hit another vehicle and the driver decided to sue you? The minimum auto insurance will not be able to cover all these expenses! You might be forced to pay for these out of your own money.
So if you’re only carrying minimum auto insurance, don’t be reckless. As much as possible, don’t drive. Just commute. Drive your vehicle only if you really need it.
If you only have the minimum, avoid carrying passengers especially children. Never neglect vehicle maintenance so you’ll stay out of trouble and avoid using your coverage. And while you’re on your minimum auto insurance coverage, analyze your needs as a driver.
When you’re finally able to afford a better coverage, it’s time to upgrade to a better, more reliable insurance coverage.
4. Pay for your premiums in full
Yes, you are looking for cheap insurance but do you know that you’ll end up saving hundreds of dollars when you pay your premiums in full? Consider the amount you pay each month or semi-annually. There is a huge difference when you compare it to paying in full.
Also, full payments entitle you to discounted rates and this is additional savings on your part. And if you are looking for more ways to save but don’t want to pay in full, you can talk to your insurance representative to find out about discounts when you pay semi-annually rather than on a monthly basis.
How to pay in full
If you signed up for a semi-annual payment on your premiums but you changed your mind and decided to pay in full, you can’t just go to the bank or to a payment center and pay. You must contact your representative so you can change your payment status.
Other ways to save include paying for your premiums using automatic payments through your bank. To arrange this, enroll your auto insurance payments to your bank’s automatic payment system.
You may also get more discounts when you enroll your auto insurance bill to a paperless billing system. This means you won’t get a paper bill but get an online bill instead.
Still, you can get discounts when you use the auto insurance company’s preferred payment system. For instance, some companies recommend payment via PayPal or another online payment system.
5. Improve your high-risk status
You are a new driver and you’ve been given a high-risk rating by your insurance company, do not despair. Although you’ll be forced to pay for higher premiums, you can save money when you qualify for the following special discount options
- Get a driver’s course for safety
Your local DMV or community may have driver’s courses or classes. Your local DMV may have in-car driving lessons, defensive driving classes or traffic school classes. These classes are actually recommended for people who have recently received a traffic ticket or were involved in a traffic violation.
DMV offices offer mobile-friendly, licensed courses that will help drivers clear tickets and improve their driving records.
These courses may be completed in less than a day and it comes with a Certificate of Completion at no extra charge. You need to present this certificate to your auto insurance company to avail of your discounts.
- Use safety equipment as you drive
Adding safety and security systems in your vehicle will improve your premium payments. Add security alarm systems, dashboard cameras, rearview cameras and updated airbags for improved safety can greatly improve your insurance premium payments. Not all auto insurance companies offer this type of discount so make sure to inquire first. You may also ask your auto insurance agent if you qualify for a discount if you update your vehicle.
- Get an SR-22 inclusion or DUI insurance
SR-22 DUI insurance is for drivers that have DUI violations. These drivers need to include an SR-22 form with their DUI record to be able to drive. Not all states require DUI violations to use an SR-22 so talk to your insurance representative.
Some auto companies offer this feature but provide limited discounts to drivers. If you have had a DUI charge, you may end up paying higher premiums compared to other high-risk customers.
- Use a safer car
Old, broken down cars can affect your safety on the road. Meanwhile, faster cars and sports vehicles may also put you at risk for accidents as well.
Safer vehicles make safer drivers, therefore, any kind of upgrade the safety of your vehicle will reduce your high-risk driver status.
- Improve your credit rating
Some insurance companies check credit scores and use this to determine if a driver will be able to afford the monthly payment. Therefore, improving your credit standing will, in turn, improve or lower auto premium insurance payments.
It takes time to improve your credit standing but in the long run, you’ll see this as an opportunity to save so much on your monthly premium payments.
- Improve your driving skills
By improving your driving skills, you’ll be ready to perform well on the road and avoid accidents and traffic violations in the long run. Taking a driver’s course will help. Be sure to get certification regarding this class as well.
- Wait for the right time
Wait until you qualify for better discounts. Soon enough, you be able to feel more relaxed on the road and eventually become a skilled driver. All you have to do is to drive safely, mind traffic rules and to avoid any accidents and you’ll surely get better insurance payments at the right time.
Top 7 Best Cheapest Insurance for New Drivers and High Risk Drivers
The following are auto insurance companies to consider when you are looking for the best car insurance for new drivers under 25 as well as good coverage for high-risk drivers.
1. Infinity Auto Insurance
Infinity will let you select the coverage that’s right for your needs. You can choose from 3 packages including State Minimum, Good, Better or Best packages.
High-risk drivers may qualify for an education discount, credit rating discount, clean record discount, homeownership or renters discount, multiple automobile discounts and so many more. You can manage all your insurance packages in one convenient app for Android or iOS users.
Geico has affordable driver’s insurance packages and specializes in coverage for young and first time drivers. What’s great about Geico is that they involve parents in providing the best insurance coverage as well as resources for parents and young drivers to help them stay safe on the road.
Parents also get help on how to add driving children in their policy and how to remove them when they are ready to pay for premiums on their own.
Kemper has low-cost auto insurance packages that will fit anyone’s budget. Just some of the features in Kemper’s high-risk non-standard auto insurance include roadside assistance, SR-22 DUI insurance, Broad Form insurance coverage, and free text reminder alerts plus so many more.
Kemper’s discount options allow you to save money in the long run. Discounted prices are for people who want to pay in full, for people with previous insurance discounts, with residence discounts and those with multiple vehicles insured with Kemper.
Direct comes with discounts for high-risk drivers plus flexible payment schedules to help customers pay premiums on time without having to default. Direct’s non-standard insurance packages are for drivers with an SR-22 and those with a hard time getting auto insurance because of poor driving histories.
High-risk insurance does not cover accident forgiveness and new car protection. And if you live outside the Southeastern region, this may not be the insurance company for you.
5. Alliance United
Alliance United is a company that insures non-standard drivers in California. It is owned by Kemper and is related to Infinity Insurance.
In Alliance’s high-risk driver’s insurance, you’ll get non-owner insurance and SR-22 support forms. It does not cover gap insurance, rideshare insurance, and usage-based insurance. You can’t use Alliance auto insurance if you plan to drive to Canada or to Mexico.
And since this insurance only covers California residents, you may find your coverage limited when you visit other states. It’s best to check out the minimum coverage of each state before you travel with Alliance.
Progressive offers high-risk drivers customizable packages and tools. High-risk customers will still be able to enjoy discounts. Progressive was created to serve high-risk drivers. Now, it offers more packages to meet the needs of different drivers.
Progressive has body insurance and property damage liability, uninsured or underinsured body injury and medical payments, lease pay off and pet injury coverage as well.
Progressive covers DUI insurance customers with SR-22. Discounts are available all year round to help keep your premiums low. Just some of Progressive’s noteworthy discounts are Safe Driver, multi-vehicle discounts, homeowner discounts, a good student and student discounts, and the Name Your Price discount. Consult a Progressive representative through their online site or by calling their hotline numbers.
7. United Automobile
For cheap high-risk auto insurance, United Automobile may be the company for you. It serves only 12 states in the US including Florida, Texas, Nevada, Oklahoma, and Mississippi but they offer special packages for high-risk drivers.
Call customer service or visit their website to get a free quote. Most United Automobile insurance agents are ready to serve customers in local malls where you can talk to agents face to face.