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Becoming a first-time driver is exciting but overwhelming with new responsibilities. In addition to getting your license and registering your vehicle, you must choose the right car insurance. Having proper coverage ensures you’re financially protected if an accident occurs.
But finding the best car insurance policy can be challenging. With unfamiliar terms and countless options, you may be unsure what coverage you need and how to get a fair price. So, we asked three car insurance professionals to share their advice for navigating the process.
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First-time driver’s guide to car insurance
Having car insurance is mandatory in most states. Below, experts explain how to choose the right coverage, the key protection types and ways to keep your premiums affordable.
Why auto insurance is essential and how to choose the right policy
“Your insurance carrier may not seem important — until you [need to file] a claim. That’s when you find out whether they handle claims fairly and efficiently,” emphasizes Ashleigh Trent, personal lines director and co-founder of Tower Street Insurance.
When shopping for auto insurance, look beyond the premium. “The lowest price might not be the best deal if it comes with low coverage limits, high deductibles or hidden fees,” warns Josh Damico, vice president of insurance operations at Jerry, an insurance comparison app. Many new drivers start with state-minimum liability coverage, but that’s often not enough protection if you cause a serious accident. Both Trent and Rajni Kapur, CEO of All Solutions Insurance, suggest watching out for these red flags as you shop around:
- Poor customer reviews: Avoid companies with complaints about delayed claims, denied payouts or bad service.
- Vague coverage details: A reputable insurer provides clear information about what’s covered, including liability limits and exclusions.
- Weak financial ratings: Companies with poor financial ratings might struggle to pay claims when you need them most.
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Key coverage types for new drivers
Here are six key coverage types you should know about and consider:
- Liability insurance is mandatory in many states. It covers costs if you cause injury or damage to others. Each state has different minimum requirements, but Damico recommends carrying at least 100/300/100 liability insurance. That means $100,000 of bodily injury liability per person, $300,000 of bodily injury liability per accident and $100,000 of property damage liability.
- Collision coverage helps pay for repairs to your car after an accident, minus your deductible. Lenders require collision insurance if you’re leasing or financing. But even if you own a car outright, it’s worth having for peace of mind.
- Comprehensive coverage covers non-accident damage from theft, vandalism or natural disasters, minus your deductible.
- Uninsured/underinsured motorist coverage comes in handy if a driver hits you and has little or no insurance. “Many drivers on the road are uninsured, and this coverage ensures you won’t be left paying for injuries or damages caused to you by them,” explains Kapur.
- Personal injury protection (PIP) or medical payments (MedPay) cover medical costs for you and your passengers. No-fault insurance states such as Florida, Kansas and New Jersey mandate PIP.
- Roadside assistance helps with breakdowns, flat tires and lockouts — common issues you may experience as a new driver.
Smart strategies to keep premiums affordable
Try these expert-recommended strategies to get cheaper car insurance without sacrificing protection:
- Choose your car wisely: “A brand-new vehicle with full coverage and a youthful driver as the primary operator will be more expensive to insure than an older, reliable car,” Damico notes.
- Consider a higher deductible: Selecting a higher deductible is one way to lower your monthly premium. This can work out well if you have healthy savings to cover the deductible in the event of an accident.
- Keep a clean driving record: Even a single ticket or minor accident can lead to rate increases for young drivers. Drive carefully and follow traffic laws to keep your rates low.
- Stay on a parent’s policy: “[Add] the new driver to a family auto policy instead of getting a single car/single driver policy,” suggests Trent. This allows you to take advantage of multi-car and multi-driver discounts.
- Use telematics programs: “Many insurance companies offer usage-based programs that track your driving behavior and reward safe habits with lower rates,” Damico points out. “Instead of being penalized for being young, you can get discounts based on how you actually drive.”
The bottom line
Generally, getting full-coverage car insurance is a good idea for first-time drivers. Adding collision and comprehensive coverage might cost more upfront. However, “it offers much broader protection and can save you from a big financial hit down the road,” Damico stresses.
Start by gathering quotes from at least three insurers. Compare car insurance prices, coverage limits, deductibles and available discounts. Once you’ve found a suitable policy, review it once a year for affordability and coverage. As you gain driving experience and maintain a clean record, insurance companies may see you as a lower risk and reduce your rates.
