Insurance of vehicles is necessary for financial protection against any damage or injury to the car or person. It solves risks associated with both properties as well as liability. It comes into play when a driver experiences an accident, theft, collision, keying, severe weather, and environmental conditions that cause damage to vehicles. Vehicle insurance is applicable on motorcycles, cars, jeeps, vans, trucks, and any other vehicle. Keeping the benefits in mind, it is advantageous to get vehicle insurance. The current excessive use of the internet and technology for all purposes means that insurance quotes are also available online. This article is a step-by-step guide to the best insurance quotes for young drivers.
Drivers, particularly the young ones, can make use of these online services. Conventionally, the insurance policy is finalized with an agent. However, the purchase processes can be completed on the website provided by vehicle insurance companies as well.
Prospects of Investing in the Best Insurance Quotes
There are many benefits associated with investing in the best insurance quotes for young drivers. It negates excessive expanses. In case of an accident, it can even cover health insurance which otherwise, medical insurance may not be able to cover. Quotes for vehicle insurance are provided easily on the websites of renowned insurance companies.
It can be cheaper to use online insurance however, an agent may suggest discounts that otherwise may not be provided online. It can save time and money as it removes the expenses of physical travel.
It makes it easy to specify features, and customers can easily browse through multiple vendors and adjust policy options. Customers possessing higher credit scores are less likely to incur losses on their policies.
In addition, the losses experienced also tend to be less costly for individuals with higher credit scores. Insurance quotes are available round the clock so, a young driver can access them at any time.
The Online Insurance Process
Every website has various methods to complete the online insurance process prior to selecting the best insurance quotes for young drivers. Some standard steps are described below:
1. Receive an Online Quote: First, the customer must get a quote using the website or by making use of a car insurance quote tool. The customer is prompted to enter their personal information such as their name, address, birthdate, driver’s license number, ZIP code, social security number, details of vehicles (make, model, year, safety features, annual mileage driven), vehicle identification number (VIN), and description of accidents, tickets or insurance claims in the past.
2. Comparing Quotes: Various options are then prompted, which show multiple costs. Some company websites may ask the customer to contact an agent via telephone or email, who will then provide the quotes and options.
The customers can also browse through various options from other company websites to compare quotes. The cost can depend on location, coverage selection, driving history, vehicle, annual mileage, credit history, age, and marital status, amongst many others.
3. Select Required Coverage: Customers are then asked to select their desired coverage and any extra options or add ons such as roadside assistance or accident forgiveness. There are various types of coverage available as described below:
- Liability coverage: It covers damages to individuals in the vehicle and any damages to the car in the accident. It is categorized into three types: $100,000 per person for injuries /$300,000 injuries per accident/$50,000 per accident for property damage (100/300/50). The highest recorded coverage levels available are 250/500/100.
- Additional coverage: Apart from the main liability coverage, personal injury protection (PIP) insurance covers non-hospital-based medical treatment and lost wages. Medical payments insurance covers damage to the person irrespective of who caused the accident. Uninsured/underinsured motorist coverage covers passengers in accidents caused by others who do not have insurance to cover the victims’ expenses (underinsured motorist coverage). Another coverage handles repairs irrespective of who was at fault (collision coverage). The additional insurances are covered by default if they are necessary for the customer’s country. Otherwise, they may be bought as options provided in the policy insurance configuration.
- Deductible: It is the amount to be paid before the accident.
- Add-on options: These include towing, roadside assistance, and allowance for car rentals.
4. Carrying Out Payment: Select the payment option such as credit or debit card, PayPal, etc., and enter the required information.
5. Get a Hardcopy of the Card: The last step is to print the insurance card. Some companies may mail the card directly.
Best Insurance Quotes for Young Drivers
We will now dive into the four top and best insurance quotes for young drivers. They are explained as below:
GEICO Average rate: $1,100
Government Employees Insurance Corporation (GEICO) was founded by Leo and Lillian Goodwin in 1936 in Texas. As of 2021, it is the second-largest insurer in the US. It currently has 17 million policies and covers 28 million vehicles. It has been rated as having the best insurance quotes for young drivers overall. It is the best insurance quote for young drivers with poor credit history as it is extremely cheap overall in that category.
Two-thirds of the customers rated the company a 4 and 5-star service. It provides multiple discounts such as a good driver discount, defensive driving or driver’s education course, good student discount, federal employees, multi-vehicle, and multi-policy discounts.
It was rated at third position in terms of customer satisfaction which described the company as having great services, rates, and an easy online policy. It is known to provide the best customer service and is known for its extremely cheap rates compared to other car insurance companies. Their costs are 25% less than the average value.
Rates By Age: The rate of young drivers is generally higher compared to other age groups. GEICO’s average rate is $1,228 for females, while men have a rate of $1,185. Men at age 35 have a rate of $1,084, while women are charged $1,060. At age 60, men and women have a rate of $1,035 and $1,004, respectively. In this case, the rates were found to be 10% to 15% less than other companies.
Rates by Annual Mileage: In the case of low mileage, vehicles are charged $1,042, while those with higher mileage are charged $1,100.
Rate by Coverage Type: For low coverage, the average rate is $1,015. Medium coverage is charged $1,100, and high coverage levels are charged $1,192 on average.
Rates by Credit History: GEICO once again has the lowest average rates regardless of a driver’s credit history. Therefore, it tops the list of the best insurance quotes for young drivers. In the case of poor credit, the average rate is $1,719. This is found to be 30% less than the average of $2,227. In terms of fair credit, the rate is $1,293, whereas, for good credit, it is $1,101.
Rates by Driving Record: GEICO’s rate is $1,735 for one accident. This is majorly less than the national average of $1,872. GEICO is harsh in terms of Driving Under the Influence (DUI). Its average rate is extremely high at about $2,836. This is 80% more than the lowest price.
- The cost of the premium on average is very low
- Satisfied customers
- Cheap for customers with poor credit history
- Drivers with Driving Under the Influence (DUI) are charged higher rates
- Inconsistent claim processing
Other Offered Insurances: Drivers insurance aside, it also offers property and business, renter’s insurance, medical insurance, flood coverage, cyber liability, medical malpractice, life insurance, travel and overseas insurance, yoga studio, and even pet insurance.
Average rate: $875
The United Services Automobile Association (USAA) was founded in 1922 by 25 Army officers. USAA scored the best for military families. It is eligible for active-duty military personnel, cadets, officer cadets (OC), retired veteran, and spouses and parents in possession of USAA auto or home insurance policy. It is ranked as the fifth-largest insurance provider. It was also stated that 80% of customers are satisfied with their services. Hence, it easily ranks at one of the top positions in the best insurance quotes for young drivers. They offer discounts of up to 30%.
USAA is much cheaper than GEICO. It offers a 15% discount on car garaging on a military base. It provides a mobile application on Play Store and receives more criticism compared to GEICO yet, it still ranks greater overall based on repair and estimated process, estimate process, and rental experience. They also provide multiple discounts such as safe driver discount, good student discount, multiple vehicle discount, and low annual mileage discount amongst many others.
Rates by Age: Men aged 25 pay $1,086, while women pay $1,032. 35-year-old women pay an average rate of $811, and married men in the same age category pay $809. Married 60-year-olds pay the lowest average rate of $755 for both genders.
Rates by Mileage: Mileage of 6,000 miles annually had to pay $818 while the 12,000-mile group paid $875 on average.
Rates by Coverage Type: For low coverage, the customer has an average rate of $823. For medium coverage, the price is $875, and for high coverage, it adds up to $930.
Rates by Credit Score: Customers with a good credit history have a charge of $860. In terms of fair credit history, the rate rises to $1,016. In the case of poor credit history, the rate is $1,602.
Rates by Driving Record: A clean record means a rate of $875. The rates for the record of one speeding violation ($1,048), accident ($1,219), and DUI ($1,661) are comparatively low.
- State Farm Insurance
Overall average: $1,168
It was founded in 1922 and is placed second after USAA. It scores second as the best insurance company and ranks as the third cheapest insurance company. It offers multiple coverages such as collision, uninsured/underinsured motorist, rental car insurance, etc.
It has the third-lowest rates and scores the second-highest ratings in terms of customer satisfaction. It also has the lowest rates for drivers with one recorded violation. However, it has the highest rates for customers with a poor record.
Rates by Age: The average rate for women is $1,261, whereas for men it is $1,396. Women aged 35 years old have an average rate of $1,139 while men have a rate of $1,138. 60-year-old married women have a rate of $1,038, while men have $1,037.
Rates by Mileage: The rates are less than 15% of the average rate. For 6,000 miles annually, the rate was $1,054. For 12,000 miles, it was $1,169.
Rates by Coverage Type: A high level of coverage has an average rate of $1,255. Low coverage has an average rate of $1,086 whereas medium coverage has an average rate of $1,168.
Rates by Credit History: Poor credit history is charged $2,802 (which is ranked as the most expensive). The average rate for fair credit is $1,552, whereas customers with good credit have a rate of $1,165.
Rates by Driving Record: The rate for a clean record is $1,168. The rates for one speeding violation ($1,300), one accident ($1,405), and one DUI ($1,568) are generally low. Because of these low rates, it ranks as one of the best insurance quotes for young drivers.
- The Hartford Insurance (AARP)
Overall average rate: $1,168
The Hartford Financial Services Group, Inc. (The Hartford) was founded in 1810 and is one of the best insurance quotes for young drivers. In terms of overall performance, Hartford Insurance scored 4.0 out of 5 stars.
It offers discounts for hybrid/electric vehicles, cars with more than one airbag, good student discounts, and defensive driver courses amongst many more.
The company offers the “Hartford’s Home Advantage Package,” which offers “New for old” protection which pays for upgrading items. It also provides personal injury liability coverage, identity fraud expense coverage, and disappearing property deductible; that is: the deductible drops to $50 every 3 years. After a $100 deductible, around $500 is rated for the replacement of keys and locks. Identity fraud expense coverage costs up to $25,000. 100% insurance is provided for scheduled personal property.
The Final Analysis
So this sums up the best insurance quotes for young drivers which are available. The advantages and process of insuring online are explained thoroughly.
In addition, this article explains the best insurance quotes for young drivers and states the price of each. Each of these quotes has different costs based on mileage, age, credit history, and driving record.
USAA is noted to be the cheapest one, closely followed by GEICO. USAA is more applicable to military personals. Overall, it can be noted that insurance is necessary in case of accidents, collisions, loss of life, and medical expenses, amongst many other reasons.