If you are a newly-licensed driver and in need of car insurance, check out what’s available through these top 3 auto insurance companies for new drivers. It may be that you are a parent or guardian of a young driver and want to get the most reasonable premiums and best coverage possible for your new driver. Since all auto insurance companies are not equal, we look at three that are highly-rated and cater to new drivers.
In selecting these three auto insurance companies, we looked at the first through third-place ranking of the auto insurers in the J.D. Power and Associates 2011 National Auto Insurance Study, as well as ratings from A.M. Best, and the companies’ own websites.
- Amica Mutual – Winner of the annual JDPA National Auto Insurance Study for the past 12 years, Amica Mutual, headquartered in Lincoln, Rhode Island, is the oldest mutual insurer of automobiles in the United States, established in 1907. Amica Mutual also provides new drivers with competitive rates and a full-line of auto insurance products and services. Parents should take note of Amica Mutual’s good student discounts, as well as multi-line, multi-car, student away-at-school and other discounts. Amica also boasts an A++ rating from A.M. Best.
- Erie Insurance – Ranked number two on the JDPA 2011 National Auto Insurance Study, Erie Insurance, founded in 1925, offers the Youthful Driver Discount of up to 15 percent for new drivers. To be eligible for the discount, new drivers must be in a household without an at-fault accident during the past five years; be under 21 years old; unmarried; have a driver’s license, not a learner’s permit; all cars in the household must be insured by Erie Insurance; the new driver cannot be driving a performance car; and the new driver must review safe driving habits with an Erie agent (waived for 19 and 20-year olds who have existing auto policies with Erie Insurance). Contact Erie Insurance at 1-800-458-0811.
- Shelter Insurance – Coming in at third place on the JDPA 2011 National Auto Insurance Study, Shelter Insurance, in business since 1945, provides insurance coverage for new drivers with discounts that can significantly reduce premiums. These discounts include good student, new safe driver, driver training course discount, multi-car and multi-coverage discount, and more. Contact Shelter Insurance at 1-800-SHELTER (743-5837).
One other auto insurance company for new drivers worth mentioning is Nationwide Insurance, which offers insurance coverage for teen and new drivers with generous discounts. There’s the good student discount of up to 15 percent, for students who maintain a B average or better. There’s also Nationwide’s Accident Forgiveness coverage that parents can purchase for their new driver which can help hold down costs if the new driver is in an at-fault accident. And the Nationwide’s SmartRide online tool can help young drivers become better drivers by learning how to cope with driving and peer pressure, driving distractions, driving at night and in adverse weather and/or road conditions. Contact Nationwide Insurance at 1-877-669-6877.
Lastly, LendEDU offers a comprehensive guide that discusses auto insurance for teenagers. It includes plenty of information including complete company reviews, the general cost of car insurance, why car insurance costs more for teens, and how to save money on auto insurance for teens.