How to Get Cheap Auto Insurance for Your Car?

For new drivers, auto insurance rates will be expensive. In this article, you will learn how to get cheap auto insurance for your car.

If you are in USA, you will drive car one day or other.

To drive the car, you need Auto Insurance (car insurance).

Auto insurance rates depends on several factors.

Finding cheap auto insurance is definitely possible, only if you are willing to spend time to get insurance quotes from several companies.

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Last week we talked about when to get drivers license. Earlier you get your driver’s license, more driving history without tickets and accidents will lower your  auto insurance.

In addition to driving history, there are various factors that help you get cheap auto insurance. Lets look at those factors in detail.

  • Your Age
  • Your Gender
  • Marital Status
  • Where You Live
  • Your Driving Record
  • Type of Vehicle You Own

I will try to tailor this article relating to an international student in USA. I might have missed few factors that will get you cheap auto insurance, but above factors play a major role in determining your auto insurance rates.

Your Age vs Auto Insurance

Younger drivers are considered high risk. Till you turn 25, insurance premium will be higher.

When you rent the car, auto rental companies will charge like $10 per day per driver for under age fee.

Even if you were driving from 16 years, till 25 you are most likely to pay underage fee.

I had a friend who purchased brand new Toyota Camry while doing his Masters. He didn’t shop around for car insurance  before buying the car.

He was 23.

After calling several auto insurance companies, cheapest insurance (full coverage) he could find was $175 per month.

That comes to $2100 for 1 year.

He paid like $20,000 for his new Camry, but ended up paying lot of money on car insurance.

Your Gender vs Car Insurance

Logic is simple.

  • Male Drivers – Drivers more, more aggressive with driving and willing to cut corner and take  risks.
  • Female Drivers – Safer than male.

I read stats of Male drivers are involved in more accidents and got more speeding tickets.

Marital Status vs Car Insurance

I really don’t understand how this works or real reasoning behind this. After I got married, our auto insurance rate dropped by 20%.

But, when we got second car, rates shoot up a lot.

Since, my wife didn’t have driving history  (less than 1 year).

Where You Live

Your home address affects your rate.

Also, I think if car is parked in a garage,  it lowers the rate a bit.

If you live in high crime area, then expect higher insurance rates.

Plus, bigger city with more traffic will increase your auto insurance rates.

Remember, you get higher salary in bigger cities. Now you know, why you get paid bit more in bigger city.

Your Driving Record

We talked about driving record – when to get drivers license.

Even if you would drive the car only after 2 years of coming to USA, try to get your driver’s license ASAP.

Learn car driving before coming to USA.

Here is a comment from Vishal

I will strongly recommend against this. Please please never do this. The risk is insane. I did this stupidity to let someone try to learn on my car in the parking lot inside the community and the biggest problem is that the guys/girls who are new to drive hit accelerator instead of breaks when they panic. I pulled the hand brake just on time and luckily we stopped about an inch behind a parked lexus. another inch would have screwed us up (of course a guaranteed arrest for the driving friend). God forbid if you end up hitting a human with no license, you will be working all your life to pay for the losses.

Think about this scenario for a typical foreign student in USA.

  • Employment – Just your first job
  • Drivers License – Right after getting the job
  • Car – Recently purchased  a used car
  • Age – Less than 25

Typical student with first job would buy a car for $4000 to $10,000. Some folks even buy a brand new luxury car (like me).

So, expect to pay high monthly auto insurance premium.

Also remember, accidents and  speeding tickets will increase your insurance premiums. Single ticket can increase your auto insurance to 3 to 5 years.

Type of Vehicle You Own

Type of care you buy increases your auto insurance premium.

  • Expensive car =  High auto insurance premium.

After you have decided on which car to buy, shop around for cheap auto insurance. If you have to pay $200 per month on insurance and $600 for auto loan, then make sure you can afford that payment.

Cheap Auto Insurance

  • You cannot control age, but you can control driving history.
  • You can control at fault speeding and accidents.
  • You can control the type of the car you buy. Buy, expensive car, when your auto insurance is cheap.

Drive safe, shop around for cheap auto insurance quotes.

  • Do you have more tips to share?
  • Do you have any further questions on getting cheap car insurance?

Got questions about getting cheap auto insurance in USA or have additional tips to share? Post them in comments sections below.

Next –  Used Car buying guide for students in America.

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  1. I always forget that age is a factor. Is this just because younger drivers are considered less reliable? It’s seems a little crazy that the insurance fee for a year would end up being so much! I am not going to lie that it makes me happy to read that women are considered safer drivers. This will be something to bring up the next time my husband is back-seat driving. Thank you for the detailed insurance information!

  2. GEICO was expensive to me (probably first yr of my driving history). I switched to Safeco and now with Esurance. Try quotes in different companies, before selecting one…

  3. 21st century is now a part of state farm therefore, listed as big player in auto insurance. I have been with progressive, and pretty happy with it. The best part with progressive is that the saving becomes huge if you take your car for long trips. You can stay on basic insurance all round the year and switch to comprehensive for a couple of days while interstate drives and pay separately for that. This switching back and forth requires just a mouse click.

    Another tip for saving money in auto-insurance is to include a friend aged more than 25 (if you are below 25) or a clean driver to your insurance or share car insurance with a friend/roommate. This also makes you liable for insurance claims by your friends. But that risk is less. Insurance claim history stays for 10 years.

  4. I will not recommend 21st century. They, without figuring out the real situation consider all claims as major claim and report it to NCIS. This increases the premium while trying to switch. Progressive and Geico only reports accidental claims. My car got stolen and I asked for free towing when I got it back, which increased my number of claims from 21st century. It is better to take AAA for roadside assistance and be free from increasing your claim history.

  5. Hi,

    I have a question. Does the driving history also include the time frame when the driver was driving with a learners permit?

    Thank you

    1. I recently got quote for all the companies. Gieco was the cheapest which is my current. Also I got one more quote from company called 21st century insurance, this was $70 cheaper than gieco for 6 months. Does anybody know about this company? Is it ok to switch from geico to such unknown company?

      1. 21st Century is known company. If you haven’t heard about the company doesn’t mean is unknown company 🙂 Yiu may be able to lower your rate, if you get renters insurance with them.

      1. its not true. it depends on location. some companies have service and office there, others dont. i have GEICO here at MD and it was cheaper than any competitor by $50 a month. any thoughts??

          1. I have a hint for you guys. You can not get driving records from India but you can establish driving history using your Indian license (date of issue of Indian License). No Insurance company gives you a benefit for this automatically. ASK for it and in most cases you will have a big drop on your insurance payments.

          2. I already have another comment inline in this post.

            Thanks HSB, its nice to know my comments are welcome and with a million people writing comments, you remember me. 🙂

        1. you are good with geico, until a claim. thats my friend’s experience.. go with smaller companies like safeco, esurance, 21st century… rather than bigger ones like geico, all state, state farm..

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