Average Rates for a First Auto Insurance Plan

For a first time auto insurance plan, the average rate for a good driver is $124.58/mo. or $1,495/yr. Drivers can save up to 25% off of rates with a good driver discount.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Oct 19, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember...

  • Before buying your first car, you need to understand how to protect that vehicle
  • Knowing the different types of car insurance available is important for your first car
  • Compare several different insurance providers to ensure you are getting the best deal and adequate protection

The time has arrived for you to buy your first car. You might be focused on what type of car to buy or what color you want the car to be. After all, your first car is a big deal!

The most important decision in the car buying process is properly insuring your new investment.

You may be able to easily search for a new automobile, but you may not have a clue where to start when it comes to finding the proper insurance coverage.

A good recommendation and a stern warning for all newbies when it comes to finding an insurance provider is not to give into that nagging desire for saving money.

Everyone wants a bargain, but sometimes this cost-saving obsession will steer an individual in the wrong direction.

Click here to enter your ZIP into our FREE quote finder to find the best car insurance rates now!

Beginning the Search


Your Uncle Mac or Aunt Connie may offer you recommendations where to start looking, and perhaps your parents will offer to help you out.

No matter the route you take, the best suggestion is to always speak with an expert.

Commit to talking with an experienced insurance agent, a trained individual who’ll take the time to explain what all those special insurance terms mean.

This professional also should take the time to discuss with you the differences between different types of policies.

When you’re dealing with an independent agent, they also have the ability to show you the different pricing and discounts from a variety of different providers.

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Understanding the Different Coverage Options


If after consulting with friends and family about which direction to take finding average rates for your first auto insurance plan, you need to conduct a little self-education, keep these tips in mind:

  • Examine your needs. Determine the kind of coverage that you’re going to need based on the vehicle you purchase.
  • Understand that your rate will be determined by many factors and can be set to the amount of coverage you want to place on your new investment.
  • Keep in mind that each state requires vehicle owners to purchase a minimum amount of bodily injury, property damage, and under/uninsured coverage.

There is also optional insurance coverage that is not required in many states but that add more protection to your investment such as:

  • Collision coverage  pays for the repairs or automobile replacement in the event the vehicle becomes damaged due to an accident
  • Comprehensive coverage – protects the vehicle from damages from theft and vandalism or storms, fire, floods, and other natural causes
  • Personal injury coverage – covers of any medical expenses that either your or your passengers’ health insurance does not cover

Once you have determined the type or types of coverage you wish to obtain, you need to select an insurance provider.

Here’s where comparison-shopping comes into play. Compare at least three to five different companies in order to gain as much comparison information you need to make an informed decision.

If you are like most human beings walking on the planet today, you have neither the time nor the inclination to travel about seeking quotes. Use the Internet.

There are even one-stop shopping websites where the site does the work. Results are returned to you from various participating insurance companies providing you with quotes based on the information you delivered.

Always check with your state Department of Insurance for verification of a specific company’s history of consumer complaints.

Once you have chosen a company, carefully examine any contract before you sign on the dotted line. Remember that the most important part of an insurance policy is not its price.


Contract Words Do Matter

Pricing of an insurance policy is not the key priority. The key priority should be the wording of the contract and your ability to understand what each word means.

The provider will understand what every word means, and you must make sure you do likewise.

Face reality, insurance companies are in business to make money. When they have to pay on claims, they make less money. Therefore, it’s very important that you understand the contract before you agree to it.

For example, an insurance provider may demand that a customer always observes traffic rules, always observes standard safety regulations, and always keeps safe maintenance of the vehicle.

The insurance provider has the ability to place a variety of different meanings to what looks like a harmless phrase.

The ploy here is that if you fail to meet up with these requirements, the company will probably deny your claim. This is one way the insurance company saves money and you never do.

Look for as Many Discounts as Possible


In order to find the best possible average rate for your first auto insurance plan, seek out as many areas where discounts can be applied.

The types of discounts and their amounts will vary from one state to another, but most insurance companies offer similar discounts including:

  • Combo Rates – Discounts up to 20 percent are available when two or more vehicles or a vehicle and a home are insured with the same provider
  • Student Rates – Sometimes discounts are given for students who have successfully maintained good grades and have completed an in-school driving course
  • Defensive Driving – Many insurance providers offer a 10 percent discount for individuals who have completed defensive driving courses from an authorized organization
  • Security Devices – Often insurance companies offer discounts for clients that install a variety of different safety and security devices in a vehicle

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Shopping for Insurance is Worth the Time and Effort

Attempting to locate the average rates for your first auto insurance plan will be well worth the time and effort you put in.

Whereas your parents and grandparents had to take the day off from work or whatever they were doing in order to travel about town visiting one insurance agent after another, technology proves to be the shopper’s best friend today.

You can literally be sitting in your pajamas in front of your computer at two o’clock in the morning obtaining various quotes for an insurance policy.

There’s no need to postpone that round of golf or the trip to the mall in order to acquire insurance coverage. To obtain quotes, you will need to provide the following information:

  • Age
  • Address
  • Vehicle type
  • Other drivers in the household
  • Driving history including any tickets

Generally speaking, you might spend an hour or two online. But in order to find a decent rate for your first auto insurance plan, you need to put in the proper effort.

Type your ZIP code into our FREE search tool on this page to find affordable automobile insurance rates!


  1. https://www.thebalance.com/paperwork-needed-for-car-insurance-527454

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