Wouldn’t it be easy if you could just know the one company that has the cheapest rates for first-time drivers? Unfortunately, it’s not that simple as there are a ton of unknown elements like whether you just need liability insurance, whether you are male or female, and whether or not you are currently insured, that all impact the price you pay. We will try to teach you about some of these things and will hopefully give you a good start in finding the cheapest insurance.
The car, truck, or SUV to be insured is a large consideration when shopping for cheap car insurance for first-time drivers. Vehicles with high performance, poor safety features, or high incidents of liability claims will cost more to insure than more modest models. The table below showcases coverage costs for the most cost-effective vehicles to insure.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$3,445|
|Honda CR-V LX 2WD||$3,452|
|Jeep Wrangler Sport 4WD 2-Dr||$3,616|
|Honda Accord EX-L 4-Dr Sedan||$3,695|
|Ford F-150 XL Super Cab 4WD||$3,868|
|Dodge Grand Caravan CV||$3,874|
|Ford Edge SEL AWD||$4,052|
|Toyota Tacoma 2WD||$4,058|
|Jeep Grand Cherokee Laredo 4WD||$4,085|
|Chevrolet Equinox LS AWD||$4,093|
|Chevrolet Malibu Hybrid||$4,085|
|Toyota RAV4 Limited 4WD||$4,091|
|GMC Sierra SLE Crew Cab 2WD||$4,085|
|Ford Explorer Limited AWD||$4,117|
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Cost estimates assume single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in garaging location in Fort Wayne, IN which can raise or lower prices substantially.
Based on these rates, you can infer that vehicles like the Ford Escape, Honda CR-V, and Jeep Wrangler are most likely to be the cheaper vehicles to insure for new drivers. The price of auto insurance will be higher anyway just due to the fact that there is more exposure for first-time drivers, but generally speaking those models will tend to have the lowest insurance prices compared to other vehicles.
For new drivers, one of the big things that determine insurance cost is where you normally keep your vehicle. Regions with more people or even just more weather-related claims tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents tend to receive slightly lower rates.
The following table lists the highest-priced areas in Indiana for first-time drivers in which to buy car insurance. Fort Wayne is listed at #19 with an annual cost of $956 for the average insured, which is around $80 each month.
|Rank||City||Premium Per Year|
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Rate information is estimated as the specific zip code location can increase or decrease insurance rates substantially.
Irresponsible driving raises your rates
The obvious way to obtain cheap car insurance premiums for new drivers is to drive safely and have a clean driving record. The example below illustrates how speeding tickets and at-fault fender-benders can raise car insurance costs for each different age group. The premium estimates are based on a married male driver, full physical damage coverage, $500 deductibles, and no discounts are factored in.
In the prior example, the average cost of auto insurance in Indiana per year with no accidents and a clean driving record is $1,133. Get written up for two speeding tickets and the average cost increases to $1,557, an increase of $424 each year. Now add two accidents along with the two speeding tickets and the 12-month cost of car insurance for first-time drivers jumps again to an average of $3,212. That’s an increase of $2,079, or $173 per month, just for not driving responsibly!
Full coverage rates compared to liability only
Finding the cheapest car insurance is important to the majority of vehicle owners, and one of the quickest ways to reduce the cost of insurance for first-time drivers is to only buy liability insurance. The diagram below illustrates the difference between auto insurance rates with full physical damage coverage compared to only buying liability only. The rates are based on no accidents or driving violations, $1,000 deductibles, drivers are not married, and no additional discounts are factored in.
As an average, physical damage coverage on your policy costs an extra $1,184 per year more than just buying liability insurance. At some point, almost every driver questions if buying full coverage is a good investment. There is no set guideline to exclude physical damage coverage, but there is a general convention. If the annual cost of coverage is more than about 10% of replacement cost minus your deductible, then it may be the right time to buy liability only.
There are some circumstances where only buying liability is not recommended. If you haven’t paid off your loan, you have to carry full coverage to protect the lienholder’s interest. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should not drop full coverage.
The example below illustrates how choosing a deductible can influence insurance rates when researching cheap insurance for first-time drivers. The information is based on a married male driver, full coverage, and no policy discounts are applied.
The chart above illustrates that a 40-year-old driver could save $198 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $296 by changing to a $1,000 deductible. Even younger drivers, like the Age 20 category, could lower their rates $652 every year by selecting a higher deductible. If you make the decision to raise deductibles, it will be important to have enough spare savings to be able to pay the extra out-of-pocket expense, which deters some people from using high deductibles.
The insurance agents in Fort Wayne listed below can help you make a decision which coverages are best, since lots of people like to get help from a professional when shopping for cheaper insurance for new drivers. It can be complicated to find the best coverage on your own, so getting advice from a licensed Indiana insurance agent can bring peace of mind knowing your policy gives you sufficient coverage for your assets. To find an auto insurance agency close to you, click the button at the bottom or click here to compare rates now.
- Farmers Insurance – Larry Elliott
7529 W Jefferson Blvd – Fort Wayne, IN 46804 – (260) 434-1952
- American Family Insurance – Janie Laboube Agency Inc.
2810 Beaver Ave – Fort Wayne, IN 46807 – (260) 744-9798
- Masters Insurance Fort Wayne Indiana
4324 Flagstaff Cove – Fort Wayne, IN 46815 – (260) 702-0945
- Traxler Insurance Agency
10729 Coldwater Rd #100 – Fort Wayne, IN 46845 – (260) 494-9035
Ideas for finding the cheapest car insurance for first-time drivers
Here are a few penny-pinching solutions that can help drivers buy more affordable auto insurance.
- Improve your credit
- Do not get traffic tickets
- Safer vehicles generally have cheaper insurance rates
- At-fault accidents will increase rates
- Raise deductibles
- Shop around for cheaper prices often
The last tip in the list is incredibly crucial, as we noted in this piece. Prices charged by auto insurers can change significantly in a year, so don’t be tentative to change insurance companies if a lower price can be found. Being loyal to a particular company is commendable, but is isn’t recommended if that devotion results in you overpaying hundreds of dollars year after year. If you have a few minutes, now is a great time to compare prices and find cheaper car insurance for first-time drivers in Fort Wayne.