Auto Insurance for New Drivers (2023)
Learn everything you need to know about car insurance for new drivers.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Dec 20, 2022
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.
UPDATED: Dec 20, 2022
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.
On This Page
- Car insurance for new drivers is expensive because of the higher risk of an accident
- New drivers can save by joining an existing policy rather than buying their own
- Rates will go down as a new driver gets more experience behind the wheel
If you’re a new driver, you may be curious about finding the right car insurance. Finding the best car insurance companies for new drivers is a matter of finding the coverage you want at a price that works for you.
Unfortunately, auto insurance for high-risk drivers are usually higher than the average rates, but you may be able to discover different ways to save money on coverage.
As you search for new driver car insurance, one of the best things you can do is compare policies and prices from multiple providers. Doing so will give you peace of mind when you’re behind the wheel.
Table of Contents
Who needs new driver insurance?
There is no specific subset of insurance called new driver auto insurance. Still, most new drivers fall into a particular category regarding different insurance providers. Insurance companies often consider the following individuals to be new drivers:
- Teens who recently received a driver’s license
- Adults who are driving for the first time
- Immigrants or foreign nationals who have never driven in the U.S.
- Individuals with a gap in driving or insurance coverage
Auto insurance for new drivers is often more expensive than coverage for other individuals. This is mostly because of the high risk of insuring a new driver. Company rates vary, so make sure to shop around for the cheapest auto insurance companies for high-risk drivers.
Auto Insurance for Teenagers
Most insurance companies charge the highest rates for teenage drivers. This is because of their lack of experience and because they are statistically more likely to get into an accident or cause damage than any other age group.
The best way for teenagers to find affordable auto insurance rates is if they are added to an existing policy. In most cases, this will be a parent, grandparent, or guardian’s auto insurance policy. One added benefit of this arrangement is the potential to qualify for a multi-car discount.
Some insurance companies offer additional auto insurance discounts for young drivers, such as safe driving, safety features, and a good student discount.
(Read: Best Auto Insurance for Teens and Young Drivers)
Auto Insurance for Immigrants and Foreign Nationals
Auto insurance for immigrants is different because regardless of your history of safe driving in other countries, U.S. insurance companies will still consider you a new driver if you don’t have a driving history available to access.
If you’re from another country and have moved to the United States, you will need a valid driver’s license to purchase a policy. Unfortunately, even with an international driver’s permit, you will have difficulty finding car insurance without a U.S.-issued license.
The easiest way to get a driver’s license as a foreign national or an immigrant is to go to the department of motor vehicles in your state and start the process. In most cases, you will have to take a written test and a driving test, and you will have to submit the proper paperwork.
Acquiring a driver’s license in the U.S. can take a while, and your immigration status could play a role in your driving eligibility. You can speak with a representative from the department of motor vehicles to learn more and see what your options are.
Once you get a driver’s license, you can assume your rates will be higher than average, but if you’re over 25 years of age, you will probably pay less for coverage than most teen drivers in your area.
Auto Insurance for People With a Coverage Gap
Buying car insurance for first-time drivers, while expensive, is relatively straightforward. But buying car insurance if you’ve allowed your insurance to lapse is an entirely different story.
Gaps in coverage indicate to insurance companies that you’re a risk. Because of this, some companies may charge you high rates, while others may be unwilling to offer coverage at all. If you find that it’s challenging to find proper coverage, you may want to consider searching for a non-standard insurance provider.
Non-standard car insurance companies offer auto insurance for first-time drivers and new drivers. Still, these companies also provide coverage to drivers with poor credit, negative driving histories, and more. So while you will still pay higher rates for coverage, you can rest easy knowing you have proper coverage and can drive legally.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
What’s the average cost of auto insurance for first-time drivers?
The most important factor when considering the average cost of auto insurance for first-time drivers is the person’s age. For example, the average price of a car insurance policy for a 16-year-old is around $3,400.
Fortunately, most drivers’ rates will drop by as much as 20% by age 25 if they maintain a good driving record.
Insurance Company | 16-Year-Old Male With a Clean Record | 16-Year-Old Female With a Clean Record | 18-Year-Old Male with a Clean Record | 18-Year-Old Female with a Clean Record |
---|---|---|---|---|
Allstate | $638 | $608 | $519 | $448 |
American Family | $480 | $390 | $390 | $288 |
Farmers | $742 | $778 | $603 | $573 |
Geico | $312 | $298 | $254 | $220 |
Liberty Mutual | $778 | $716 | $633 | $528 |
Nationwide | $476 | $411 | $387 | $303 |
Progressive | $814 | $801 | $662 | $591 |
State Farm | $349 | $311 | $284 | $229 |
Travelers | $897 | $709 | $729 | $523 |
Average | $610 | $558 | $496 | $411 |
Get Your Rates Quote Now |
As you can see, teen and young drivers pay significantly more for car insurance.
(Read: Car Insurance for Older New Drivers)
What’s the best auto insurance company for new drivers under 25?
Rates with Allstate are the cheapest among the best auto insurance companies for drivers under 25. The average rate with Allstate is just over $1,200 annually. But on average, new drivers pay around $2,750 for coverage.
For parents with young drivers, it may be cheaper to add your child to your policy instead of letting them get their own car insurance.
Insurance Company | Rates for Teen Drivers | Rates for Parents with Teen Driver |
---|---|---|
Allstate | $50.17 | $55.59 |
American Family | $35.95 | N/A |
Farmers | $60.79 | $43.82 |
Geico | $23.55 | $28.26 |
Liberty Mutual | $60.72 | N/A |
Nationwide | $38.94 | $24.49 |
Progressive | $62.75 | $45.02 |
State Farm | $28.16 | $25.60 |
Travelers | $69.51 | N/A |
Average | $47.84 | $37.13 |
Get Your Rates Quote Now |
New drivers who want a full coverage policy will likely find the most competitive rates with State Farm. The average cost for a full coverage policy is around $3,300 for people under 25.
Remember that rates will vary based on your personal circumstances, so it’s wise to get quotes from multiple companies.
What’s the best car insurance for new drivers 25 and up?
The best insurance for new drivers over 25 may be with Allstate. The company offers the cheapest minimum coverage at under $400 per year, over 60% less than quotes from many other providers.
The cheapest full-coverage auto insurance policy for new drivers over 25 is with State Farm, with an annual rate of $1,398.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
What’s the best car insurance company for new drivers on an existing policy?
Rates for drivers added to an existing family policy are cheaper than new driver rates found elsewhere. For example, Allstate, Geico, and State Farm all offer new driver car insurance rates that are cheaper than average when a new car and driver are added to an existing policy.
Geico charges just over $1,400 on average for a year of coverage, but the company charges over $3,200 for a full coverage policy.
Does my credit score impact my car insurance rates?
Unfortunately, a low credit score can make your car insurance rates expensive. If possible, you should try to build good credit before purchasing auto insurance, as you will see a significant difference in how much you’ll pay.
Insurance Company | Rates with Poor Credit | Rates with Fair Credit | Rates with Good Credit |
---|---|---|---|
American Family | $203 | $136 | $116 |
Average | $226 | $148 | $123 |
Farmers | $269 | $161 | $140 |
Geico | $148 | $100 | $82 |
Liberty Mutual | $355 | $226 | $177 |
Nationwide | $166 | $133 | $120 |
Progressive | $206 | $138 | $109 |
State Farm | $200 | $118 | $91 |
Travelers | $194 | $128 | $107 |
USAA | $129 | $76 | $63 |
Get Your Rates Quote Now |
There are several states that do not permit auto insurance companies to check your credit when assigning rates, so make sure to check your local laws.
How can I get cheap car insurance rates as a new driver?
Car insurance for a new driver may be expensive, but there are a few ways you can try to lower your monthly or annual rates.
Compare Quotes Online
Each car insurance company decides on a person’s insurance rates differently. Because of this, you may find that some companies are willing to offer you auto insurance premiums that are a lot cheaper than other competitors.
Comparing multiple quotes online allows you to find the company that would work best for you based on the coverage you want and the policy’s price.
Join an Existing Policy
If you’re a teen driver, see if your parents or grandparents can add you to their policy. While their rates will go up significantly, you’ll still save a lot more than if you were to purchase a policy on your own.
Search for Discounts
Many insurance providers offer different auto insurance discounts on coverage to help policyholders save money on their insurance rates. Some of the most common discounts for auto insurance coverage include:
- Multi-vehicle
- Multi-policy
- Defensive driver
- Good student
- Safety equipment
- Occupation
If any of the above discounts apply to you, you can speak with an insurance company to see whether you’re eligible. Some discounts help policyholders save as much as 25% on their coverage.
Choose a Lower Level of Coverage
It’s a good idea to purchase as much auto insurance coverage as you can to help keep yourself and your vehicle protected. Still, if you cannot afford a full coverage policy, you can save money on car insurance by choosing a lower level of coverage.
Choose a Higher Deductible
You can also save money on coverage by choosing a higher deductible. Unfortunately, this would mean you’d pay more out of pocket if you were involved in an accident. But it could help you save money on your monthly or annual auto insurance premiums.
Drive Safely
The best way to save money on coverage over time is by developing a superior driving record. If insurance companies can see that you drive safely and do not get involved in accidents, you will likely save a good bit of money on car insurance.
(Read: How do auto insurance companies check driving records?)
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Car Insurance for New Drivers: The Bottom Line
If you’re driving, you need car insurance. But auto insurance for new and first-time drivers is more expensive than for other age groups and categories.
To find car insurance rates that work with your budget, you can shop online and compare quotes to see which companies might work best. Also, it’s a good idea to shop around and compare car insurance quotes at least once a year to ensure you’re not paying too much for your coverage over time.
Frequently Asked Questions
What do I need to buy a new car insurance policy?
Wondering how to get car insurance for the first time? When signing up for a new car insurance policy, you will likely need the following information:
- Bank or payment information
- Driver’s license
- Driver history
- Personal information
- Social Security number
- Vehicle information
The insurance company will use this information to calculate your rates and set up your policy.
Why is insurance so expensive for new drivers?
New driver insurance is expensive because, statistically, new drivers are more likely to be in a crash and file a claim than experienced drivers.
What is the best insurance coverage for new drivers?
New drivers should carry full coverage policies that include liability insurance, collision insurance, and comprehensive insurance. Because first-time drivers are more likely to be involved in an accident, carrying full coverage will better protect new drivers from financial issues after an accident.
Does a new driver need to have car insurance?
Yes, a new driver needs insurance. State laws require drivers to carry the state’s minimum liability insurance. Not carrying insurance is illegal and will result in fines and higher insurance rates.
What information do you need to get car insurance?
You will need to provide your personal information, such as your name, address, and driving record to get your first car insurance policy. You will also need to provide payment information and vehicle information.
How much does car insurance cost for a 16-year-old driver?
Insurance costs for 16-year-olds can range from a few hundred dollars a year to a few thousand a year. Costs depend on whether a 16-year-old joins their parent’s policy or purchases their own insurance policy.
How much does car insurance decrease when drivers turn 25?
25-year-olds can expect rates to drop over 10% from the previous year’s rates. Generally, rates will decrease at least a few hundred dollars from when new drivers are teenagers to when they turn 25.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
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.