How to Find a Cheap First Time Car Insurance

Many young people are looking for a cheap car insurance for first time drivers, but premium for these people can be astronomically expensive. Inexperienced drivers, particularly if they are under 25, and especially if they are male, can be charged up to 50% more on insurance than other drivers. First time car insurance providers have marked this demographic the highest risk to insure. For the young driver, your premiums probably will not go down until you reach your mid-twenties, but there are a few things you can do in the meantime to get a cheap first time car insurance.

Know Your Coverage

Essentially, providers offer four kinds of coverage:

1. Liability: covers damage you do to others, whether it's repairing damages done to a vehicle or hospital bills. Every state except New Hampshire requires some level of liability coverage from its driver.

2. Collision: covers damage done to your vehicle in an accident. As of now, no states require this type of insurance.

3. Comprehensive: covers damage to your vehicle under circumstances other than an accident, such as fire, theft, vandalism or natural causes. As of now, there are no states where this coverage is required, but if you take out a loan from a bank, they may demand you have comprehensive coverage until the loan is paid off.

4. Uninsured Driver: covers damages and medical payments in a collision with an uninsured driver or a hit and run. Presently, 20 states require this insurance.

Ideally, you want every kind of coverage, but sometimes your budget doesn't allow for all of them. First research what coverage your state requires, then think about your needs. If your car isn't worth a lot, perhaps collision and comprehensive coverage aren't absolutely necessary. Before taking a policy, make a list of exactly what coverage you need, and always read the policy you select carefully.

One of the major determinants of your first time driver insurance rate is the car you drive. Luxury and sports cars can mean pricey repairs and difficult to find parts. Providers are always wary of a driver whose car can read high speeds, as an accident caused by speeding will involve more damage. Buy a sensible car with parts that are easy and inexpensive to replace. Expensive and unnecessary add-ons will also increase your premium, but you may want to beef up your security, as this conversely will decrease your premium. Lower mileage will also result in lower rates, so take note of your driving habits.

Know Your Resources

The internet is a great place to start looking for car insurance. There are countless websites competing with one another, producing lower rates and a variety of policies. Several sites specialize in First time insurance and may be able to offer a more affordable policy. With so many companies at your disposal, searching online will allow you to quickly and conveniently shop around and compare quotes. It's best to look at least three quotes before deciding on a policy. Because online sites have no overhead and no commission to intermediate agents, they can offer better rates than traditional venues.

The DMV is also a great source of advice on car insurance. Many locations have literature detailing how to find a policy and more suggestions on how to find a better rate.

Insurance providers base their rates on how many claims they predict you will make. Their statistical data have shown inexperienced drivers to be the highest risk, thus first time driver car insurance rates tend to be higher than average. Your first few years driving will be spent trying to prove them wrong. Once you secure a good policy, avoid careless driving that will result in speeding tickets and cause accidents. These are mistakes that will send your insurance through the roof, so it's very important to keep a clean driving record. If you are still a provision driver, following any restrictions placed on your license, such as a curfew. If you avoid accidents, traffic violations and making claims, proving you are a safe and responsible driver, your will be rewarded with a cheap first time car insurance.

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