If you’ve recently gotten your driver’s license or are helping your teen navigate the world of auto insurance, you’ve probably experienced that jaw-dropping moment of seeing your first quote.
It’s no secret that new drivers in Maryland face steep premiums, but don’t let those initial numbers discourage you. Whether you’re a newly licensed driver or a parent adding your teen to your policy, there are proven strategies to find affordable insurance for new drivers without sacrificing the protection you need.
Why New Drivers Pay More For Car Insurance
In Maryland, new drivers aged 16-19 pay an average of $5,359 per year for full coverage car insurance—more than three times the $1,703 annual average for experienced drivers aged 30 to 60.
While these numbers might seem harsh, they reflect several key factors that insurance companies consider:
1. Lack of Driving History
Insurance companies rely heavily on driving records to assess risk. With no history to evaluate, they must be more conservative in their pricing.
2. Statistical Risk Factors
The data is clear: new drivers, especially teens, are more likely to be involved in accidents. Just like any skill, driving takes time to master, and insurance rates reflect this learning curve.
3. Limited Credit History
While it might seem unrelated, many insurance companies consider credit history when setting rates. New drivers, particularly teens, usually haven’t had time to build a credit history, which can lead to higher premiums.
While these rates might seem daunting initially, there are several effective ways to offset these higher premiums while maintaining the robust coverage new drivers need. But first, let’s talk about timing.
How Long Do You Have to Add a New Driver to Your Insurance Policy?
The moment a new driver gets their learner’s permit or driver’s license, it’s time to contact your insurance company. While some insurance companies may provide a grace period, the safest approach is to notify them immediately.
We recommend being proactive rather than risking a potential coverage gap or claim denial. As you consider this important step, several key factors will shape your insurance decisions:
-
Adding vs. Getting a Separate Policy
Most parents choose to add their new driver to their existing policy, and for good reason. Adding a teen to your policy typically costs less than getting them their own separate policy.
Plus, it allows them to benefit from your policy’s discounts and your established insurance history. However, every situation is unique—factors like the type of car your teen drives and your existing coverage can influence this decision.
-
Impact on Your Existing Policy
Yes, adding a new driver will increase your premium – there’s no way around that. As we discussed earlier, insurance companies view new drivers as higher risk.
However, many insurers offer specific discounts for new drivers, such as good student discounts or completion of approved driver education courses.
At Gerety Insurance, we specialize in helping families navigate the challenges of insuring new drivers. You can visit our teen driver page to learn more about our specialized approach to protecting new drivers.
What is the Best Insurance for New Drivers?
Getting “best” insurance for new drivers isn’t just about finding the lowest premium—it’s about finding the right balance of protection, price, and service.
Let’s break down what comprehensive coverage should look like for a new driver:
The Right Auto Coverage Mix
A solid insurance foundation for new drivers starts with comprehensive protection. While it might be tempting to opt for minimum coverage to save money, proper protection should include:
1. Comprehensive Coverage
This protects your vehicle from non-collision-related damage like theft, vandalism, weather events, and animal collisions. For new drivers learning to navigate various driving conditions, this coverage provides essential peace of mind.
2. Collision Coverage
Particularly important for new drivers who are still mastering their skills, collision coverage repairs or replaces your vehicle after an accident, regardless of fault. Given that new drivers are statistically more likely to be involved in accidents, this coverage is crucial.
3. Higher Liability Limits
We recommend limits above Maryland’s minimum requirements. Why? Because new drivers face a higher risk of accidents, and higher limits protect your family’s assets if a serious accident occurs.
4. Roadside Assistance
While roadside assistance isn’t as necessary, it provides an excellent safety net and ensures new drivers aren’t left stranded without help when they need it most.
Making the Right New Driver Insurance Choice
When choosing an insurance provider for a new driver, we recommend carefully considering these factors:
-
Balance of Premiums and Coverage
While cost is important, it shouldn’t be the only deciding factor. Look for a policy that offers robust protection at a reasonable price.
The lowest premium often means sacrificing important coverages that could leave you financially vulnerable after an accident.
-
Claims Handling Reputation
Research how different insurance companies handle claims. A smooth claims process can make a significant difference during stressful situations.
Look for insurers with a track record of fair, efficient claims settlement and 24/7 claims support.
-
Available Discounts and Programs
Most insurance companies offer various ways to save on new driver policies. Common discounts include:
- Good student discounts for maintaining strong grades
- Driver training program completion
- Telematics insurance programs that reward safe driving
- Multi-policy discounts when bundling with homeowners or other coverage
-
Customer Service Quality
Strong customer support is crucial when you have questions or need assistance. Consider:
- Availability of support (24/7 vs. limited hours)
- Multiple contact options (phone, email, chat)
- Local agent access for personalized service
- Response time to questions and concerns
Take time to research and compare these factors across different insurance providers to find the best fit for your specific situation.
Tips for Saving on Auto Insurance for New Drivers
While new driver insurance premiums start high, several smart strategies can help reduce these costs without compromising protection. Here are proven ways to save:
1. Look for Good Student Discounts
Good student discounts can lead to significant savings—often 10% to 15% off premiums for students maintaining a B average or better. Keep those grades up, and keep more money in your pocket.
2. Invest in Education
Completing approved driver education courses does more than build confidence behind the wheel–it can lower your insurance costs. Many insurers offer discounts for both basic and advanced driver training programs, defensive driving courses, and safety education.
3. Consider Using Telematic Devices
Telematics involves using a smartphone app to monitor driving habits. Safe driving behaviors like gentle braking, staying within speed limits, and avoiding late-night driving can earn substantial discounts.
Learn more in our guide to telematics car insurance.
4. Choose Your Vehicle Wisely
The car you drive significantly impacts new driver insurance costs.
- Older, reliable models often cost less to insure than new vehicles
- Safety features and good crash-test ratings can lower premiums
- High-performance vehicles typically mean higher rates
Some vehicles are known for lower insurance costs. Do your research before buying.
5. Bundle for Better Rates
If you’re adding a new driver to your policy, ask about multi-car discounts. Many insurers also offer savings for bundling auto coverage with homeowners, renters, or other insurance policies.
6. Shop Smart for New Driver Insurance
Beyond discounts and vehicle choices, these strategies can help you save more over time:
- Compare quotes annually to ensure competitive rates
- Consider higher deductibles if you can afford them
- Maintain continuous coverage to avoid gaps
- Review coverage needs as driving experience grows
By combining several of these strategies, new drivers can often get significant premium reductions while maintaining strong coverage. The key is being proactive about identifying and pursuing available savings opportunities.
Common Mistakes to Avoid in New Driver Insurance
As we wrap up this guide, let’s address some critical pitfalls that could cost you significantly in the long run:
-
Underinsuring to Save Money
While the temptation to choose minimum coverage is understandable, it’s a risky gamble. One serious accident could lead to out-of-pocket costs far exceeding the premium savings.
-
Overlooking Important Coverages
Don’t skip crucial protections like uninsured motorist coverage or personal injury protection. These coverages might seem unnecessary until you need them—and by then, it’s too late.
-
Not Reviewing Policies Regularly
Insurance needs evolve as driving experience grows. Set calendar reminders to review your coverage annually or when circumstances change. You might qualify for new discounts or find better rates as your driving record improves.
-
Failing to Update Coverage
Life changes like moving, changing vehicles, or heading to college require policy updates. Keep your insurance company informed to ensure you’re properly protected and taking advantage of any new savings opportunities.
Getting started with new driver insurance doesn’t have to be overwhelming. By avoiding these common mistakes and working with an experienced insurance partner who understands your needs, you can find the right coverage at the best possible rates.
Need Help Getting Insurance for New Drivers?
Gerety Insurance has served Harford County, Maryland, and beyond for over 25 years, specializing in finding the right coverage for new drivers at affordable rates. Our experienced team will guide you through your options, identify all available discounts, and ensure you have the protection you need.
Request a quote today to get started.
