Best Car Insurance for New Drivers: Best Rates (2024) (2024)

×

There’s no specific auto insurance policy for new drivers. Each state sets its own minimum auto insurance requirements, and car insurance for new drivers will look the same as any other driver’s policy. While a lack of driving experience doesn’t change how much insurance you need, it will impact the price.

Does a New Driver Need Insurance?

You’ll be expected to purchase at least your state’s minimum required coverage, which typically includes bodily injury and property damage liability car insurance. Some states also require uninsured/underinsured motorist coverage and personal injury protection. Below are the six standard types of car insurance.

As a new driver, there are several factors that can affect the specific car insurance rate you will pay, including your location, vehicle, driving record and credit history. Age and driving experience are two factors that insurers weigh heavily, as they’re key indicators of how likely a driver is to get into an accident.

How Much Is Insurance for a New Driver?

Based on full coverage rate estimates, the average cost for new drivers is

$6,050 per year or $504 per month. Rates are higher for new drivers, especially teenage and younger drivers, which are highlighted in the table below:

Insurance Rates for New Drivers

*The rate averages above are standalone rates for teenage and young drivers, which are among the most common groups represented for new and inexperienced drivers.

*Rates for 17, 18, 19, 21 and 30-year-olds were taken from 2022 information.

Car Insurance Prices for First-time Drivers

Below are several popular providers’ average annual costs for full coverage insurance for a 25-year-old with a good credit rating and a good driving record.

Cheapest Car Insurance for New Drivers

As the table above shows, Nationwide and Travelers tend to provide the cheapest rates for new drivers on average. We found that 25-year-old drivers who qualify for coverage through Nationwide pay an average of $1,633 per year or $139 per month for a full coverage car insurance policy.

Why Is Car Insurance So Expensive for New Drivers?

New drivers can pay as much as $3,000 per year or more for car insurance depending on the company. New drivers are more expensive to insure due to the lack of a driving record. Younger drivers are more likely to be in an accident, which also raises car insurance rates.

Part of the reason insurance companies hike rates for younger drivers is the increased likelihood of an accident due to a lack of experience behind the wheel. Car crashes are the second-highest leading cause of death for teenagers in the U.S., according to the Centers for Disease Control and Prevention. Additional reporting from the Insurance Institute for Highway Safety shows that nearly two out of every three teenagers killed in crashes in 2020 were males.

Insurance Quotes for New Drivers

The best way to ensure you get the lowest rates possible as a new driver is by reaching out to multiple providers for car insurance quotes. Car insurance companies review a number of factors when giving estimates for coverage. Some center on the auto policy itself, but many others have to do with a driver’s demographics and driving record.

Here are some of the main factors that influence car insurance quotes:

• Age
• Gender
• Marital status
• Location (including zip code)
• Vehicle make, model and mileage
• Credit score
• Driving history
• Coverage limits

There’s no one surefire way to find the best price for auto insurance, but there are a few things you can do to get a lower car insurance premium. We recommend using the following strategies if you’re purchasing car insurance for new drivers.

1. Compare Insurance Companies for New Drivers

No two insurance companies will give you the same price. Taking time to compare car insurance quotes will give you a baseline idea of what you can expect to pay when adding someone to an existing policy — or how much you could save by switching providers.

When you’re deciding between two companies, it may also help to read comparisons like our Allstate vs. Progressive review or State Farm vs. Geico review. These break down each company’s discount offerings and customer reviews side by side.

2. Improve Your Credit Score

Because having a poor credit score can make your rates go up, building good credit before you start driving is a smart way to get cheaper car insurance as a new driver.

Improving your credit can seem like a daunting task, but there are many things you can start doing today to raise your credit score. Here are 7 simple steps to start raising your credit so you can get lower rates on your car insurance.

3. Look for New Driver Car Insurance Discounts

Several car insurance companies offer discounts for young drivers and students, but you can save money through other means too. Bundling policies like homeowners insurance with your auto coverage can lower your premium, so check to see if your insurer offers a multi-policy discount. Here are some common discounts offered by insurance providers:

4. Adjust Your Car Insurance Coverage

If you’re looking to save and have a new driver on the road, adjusting your current auto policy might give you a better rate. Opting for a higher deductible usually leads to lower premiums, but it does mean paying more up front if you file an insurance claim.

Another option is dropping coverage you don’t need. If one of your cars is older and you own it outright, you can likely stop paying for collision insurance and comprehensive coverage. In most states, you’ll still have to pay for liability insurance if you decide to drop the rest of your full coverage policy.

5. Try Usage Based Insurance

Also known as telematics insurance, usage-based car insurance coverage measures driving behaviors and mileage and uses this data to set rates. By linking the monthly bill to the actual time on the road and good driving habits, usage-based insurance policies usually end up costing customers less than traditional auto insurance, according to the National Association of Insurance Commissioners.

Usage-based policies may not be available in every state. They’re also not a good option if you drive often or have a long commute, and people with poor driving habits may actually see their rates increase.

Though teenage drivers may be the first group to come to mind when thinking of new drivers, there are several types of drivers who are getting their licenses for the first time. Here are some examples of people who could be considered new drivers:

• Teens
• Adults who did not previously have a driver’s license
• People who immigrate to the U.S.

Because car insurance costs vary from person to person, there are tips for new drivers that are specific to each of these groups. In the sections below we’ll look at some of the specifics of getting car insurance for each group.

How To Get Cheap Car Insurance for Young Drivers

It can be exciting for a teen to start driving on their own for the first time, but the cost of car insurance for new drivers is typically high. As mentioned, age is one of the main factors insurance companies consider when calculating prices.

Usually, the best way for young drivers to get cheap car insurance is to stay on their parents’ policies. Car insurance companies typically offer families several discounts to save money on insurance coverage, including:

• Safe driving discounts
• Good student discounts (must have B average grades or higher)
• College student and student-away-at-school discounts
• Defensive driving course discounts
• Utilize telematics insurance programs or usage-based insurance, especially if the young driver won’t be driving as much

Young drivers can’t purchase their own policies unless they own their own cars and no longer have the same permanent address as their parents. Keep in mind that drivers under the age of 25 usually pay much higher rates. Adding a young driver to an existing family insurance policy will still increase your premiums substantially, but the amount will depend on your insurance company, the vehicle and where you live.

How To Get Car Insurance for New Drivers Who Are Older

Teenagers aren’t the only ones driving for the first time. A person of any age who has lived in a large city and primarily relied on public transportation or who hasn’t had the means to purchase a car could also be considered a new driver. Luckily, even though you may not have experience on the road, if you’re over 25, you may see lower rates than a teen driver.

If you are an older first-time driver and live in an area that has public transit or you don’t plan on driving much, there are alternatives to traditional insurance, like usage-based insurance (which we already discussed above).

Car Insurance for New Immigrants

Immigrants and foreign nationals can be classified as new drivers when they first enter the U.S. This is because auto insurance companies usually check domestic driving records, so you can have a clean driving record in another country and still be considered an inexperienced driver after moving to the States.

Being an immigrant can make it harder to purchase car insurance. Many car insurance companies will reject applicants who don’t have valid driver’s licenses. Depending on where you live, you may still be able to get a license if you don’t have the proper government paperwork.

According to the National Conference of State Legislatures, the District of Columbia and the 16 states below allow undocumented immigrants to obtain a driver’s licenses if they can produce items like a foreign birth certificate, valid foreign passport or proof of residency in the state.

New drivers can expect to pay significantly more for car insurance than experienced drivers. However, there are ways to keep car insurance costs down by comparing car insurance companies and looking for appropriate discounts.

Best Car Insurance for New Drivers

Whether you’re a new driver or have been driving for decades, researching and comparing quotes from several providers is a great way to find the best rate. Our insurance experts have found that Geico and State Farm are excellent options for car insurance for new drivers. Read on to learn more about these providers.

• Homeowners Insurance
• Renters Insurance
• Travel Insurance
• Pet Insurance
• Boat Insurance
• Home Appliance Insurance
• Dental Insurance

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.