There is so much to look forward to when earning your license. For the first time ever, you get to drive yourself to school, choose your own music, and fully absorb your newfound freedom. With this new freedom comes new responsibilities. Car insurance usually isn’t one of the things new drivers get excited about, but that doesn’t make it any less important. Car insurance exists to keep every person on the road safe and held accountable in case of an accident.
Car insurance can be intimidating to navigate as a new driver and seems complicated if you’re not familiar with all of its components. Driving without car insurance is illegal in Indiana, so before you hit the open road, it’s imperative to do some research and find the insurance that works best for you.
Factors that Affect Insurance Rates
Age and driving record: Younger drivers typically are more expensive to be insured. Older drivers tend to be more experienced and, therefore, less likely to get into an accident. Driving history also incorporates any accidents or violations you’ve had, such as a speeding ticket. These events can cause your insurance to increase as you’re more of a risk to the insurer.
Gender: Studies show that women are less likely to get into accidents, so if you identify as male, there’s a chance that will increase your insurance rate.
Location: Your geographic location will play a role in insurance costs. Whether you live in the city versus a rural area could make a difference. More so, if you live somewhere prone to natural disasters or in an area with higher crime rates, insurance rates will be more expensive.
Vehicle type: The make and model of your vehicle can affect your insurance costs. High-end cars like Porsche or Mercedes are more expensive to repair or replace, so their rates will be higher. Vehicles with higher theft rates may also be more vulnerable to higher premiums.
On the other hand, cars with superior safety ratings may receive discounts from their insurance.
Types of Coverage
As a new driver, car insurance isn’t cheap and there isn’t any way around that. If you want to be on the road, you need to be insured. The average cost of car insurance for a new driver is $5,055 per year. As you continue to drive safely with no accidents, your insurance cost will go down. While it depends on your insurer, companies typically consider a driver “new” for three to nine years after earning their license or until they’re in their mid to late twenties.
Coverage limits: In the event of an accident, how much you pay and how much your insurance covers will vary based on what type of coverage you have. Typically, the cheaper insurances cost less but offer less protection.
You may hear the term full coverage insurance. It’s not a type of coverage, but refers to the combining of 3 or more coverages and may be required if the vehicle is financed.
Liability insurance: This insurance is mandatory in Indiana to legally drive. Liability covers only the other car and passenger if you’re at fault in an accident. There are two types of liability insurance: bodily injury and property damage. It’s important to note this option does not cover yourself or your vehicle in the event of an accident.
If you’re caught driving without liability insurance, the BMV can suspend your driver’s license and make you pay fines. The suspension can last anywhere from 90 days to a year, and you’ll have to pay a fee to get your license back.
Collision coverage: While not required by Indiana law, it might be according to your insurance company. Collision coverage pays for your car’s repairs no matter whose fault in terms of an accident with another car or object, like a pole or tree.
Comprehensive coverage: This is also optional coverage according to Indiana law. Comprehensive covers the cost of your vehicle due to events other than an accident, such as fire, theft, vandalism, or anything else out of your control.
Uninsured/underinsured motorist coverage: Every insurance policy in Indiana includes this type of coverage, although you can reject it. Uninsured/underinsured motorist coverage helps pay for accident-related expenses if you’re hit by a driver without insurance or who is underinsured.
Consider Your Best Options
Car insurance isn’t one size fits all – tailor it to meet your specific needs and rates you feel comfortable managing. Do your research, compare different companies, and look for discounts applicable to you! Numerous insurance companies provide discounts for completing Driver’s Education programs. There are also new teen driver discounts and good student driver discount programs that provide breaks for students who maintain a B average or higher.
Learn How to Drive Safer with Driver Ed Safety
Understanding and purchasing car insurance coverage is only one step of the journey toward being a safe driver. At Driver Ed Safety, we offer our Online Class and Behind-the-Wheel instruction that teaches defensive driving practices to ensure you make the right decisions on the road. Get started today!
