How to Get a Newly Licensed Discount
Save 5% on your auto insurance rates with a newly licensed discount. Only Liberty Mutual offers the newly licensed auto insurance discount, and you must have only had your license for six months and have a clean driving record to get it. Save even more with similar auto insurance discounts for new drivers, such as a good student or driver’s ed discount.
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UPDATED: Aug 11, 2021
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- You can save 5% on your auto insurance with a newly licensed discount if you’ve gotten your driver’s license within the last six months
- Liberty Mutual is the only auto insurance company with a newly licensed discount
- Your age and driving record has a huge impact on your auto insurance rates
Auto insurance rates for new drivers are really expensive, but car insurance discounts can help lower those rates.
While you can save 5% on your auto insurance rates with a newly licensed discount, only one major company offers it. However, you can still take advantage of other discounts offered to young drivers.
Shop around before you buy auto insurance with a newly licensed discount. Compare rates and discounts to see which company can offer you the best deal.
If you’ve just received your driver’s license, enter your ZIP code before jumping into this newly licensed discount review to compare free auto insurance quotes from companies near you today.
How can drivers get a newly licensed discount on auto insurance?
Auto insurance is expensive, especially for new drivers. It can be tempting to forego auto insurance entirely, but driving without insurance is never smart.
Thankfully, there are ways for drivers to save money. That’s why knowing how to get discounts on car insurance is so important.
The newly licensed discount can save you 5% on your auto insurance rates, but Liberty Mutual is the only top insurance company that offers it.
This table shows you the average annual Liberty Mutual auto insurance rates minus the 5% discount.
|Coverage Type||Liberty Mutual Average Annual Rates||5% Savings||Average Annual Rates After Newly Licensed Discount|
When you get an auto insurance quote with a newly licensed discount, keep in mind that rates will be different for each driver.
In order to qualify, you must be a Liberty Mutual customer who has gotten your license within the last six months. However, this discount doesn’t last very long.
Typically, it’s younger drivers who are just getting their license, but you don’t have to be a teen for this discount. Even if you are an older adult or from another country just getting your driver’s license, you can still qualify for a newly licensed driver.
If you are past the six-month window, you can still save with similar discounts. Look for good student, young driver, and new graduate car insurance discounts to lower your rates.
How does your age and driving record affect your auto insurance rates?
Two of the most important factors that affect auto insurance rates are your age and driving record. These factors can affect how affordable auto insurance with a newly licensed discount will be.
Newly licensed drivers are usually teens or young adults. Since age equals experience in the driving world, new drivers that are young are much riskier to insure.
In fact, the CDC reports that 16-19-year-olds are three times more likely to be involved in a fatal crash.
This table shows you just how much more you will pay for auto insurance if you are a young driver.
|Age, Gender, and Marital Status||Allstate Average Annual Rates||American Family Average Annual Rates||Farmers Average Annual Rates||GEICO Average Annual Rates||Liberty Mutual Average Annual Rates||Nationwide Average Annual Rates||Progressive Average Annual Rates||State Farm Average Annual Rates||Travelers Average Annual Rates||USAA Average Annual Rates|
|Single 17-year old female||$3,424.87||$2,288.65||$8,666.24||$5,405.23||$9,875.56||$5,431.46||$8,625.44||$4,875.91||$7,586.79||$4,695.06|
|Single 17-year old male||$10,642.53||$8,130.50||$9,202.06||$5,955.63||$12,181.54||$6,815.00||$9,467.29||$6,130.77||$11,904.09||$5,225.88|
|Single 25-year old female||$3,424.87||$2,288.65||$2,672.81||$2,312.93||$3,287.35||$2,431.91||$2,574.87||$1,979.45||$2,059.71||$1,913.08|
|Single 25-year old male||$3,570.93||$2,694.72||$2,791.21||$2,171.06||$3,502.13||$2,739.66||$2,735.72||$2,176.45||$2,165.03||$2,119.73|
|Married 35-year old female||$3,156.09||$2,202.70||$2,316.82||$2,253.30||$3,085.88||$2,202.69||$2,176.32||$1,734.93||$1,899.93||$1,484.88|
|Married 35-year old male||$3,123.01||$2,224.31||$2,306.44||$2,237.96||$3,179.88||$2,214.18||$2,087.50||$1,734.93||$1,914.91||$1,482.91|
|Married 60-year old female||$2,913.37||$1,992.92||$2,117.42||$2,107.40||$2,706.04||$1,987.35||$1,908.06||$1,558.06||$1,806.15||$1,395.84|
|Married 60-year old male||$2,990.64||$2,014.38||$2,179.61||$2,188.44||$3,088.10||$2,005.06||$1,900.18||$1,558.06||$1,882.23||$1,400.76|
Although rates are very high for young drivers, the good news is that they decrease as you get older.
Your driving record also has a big impact on your auto insurance rates. Companies use it to determine if you are a risky driver since you will be charged more if you have accidents, tickets, or DUIs.
This table shows you how much your driving history affects your car insurance rates.
|Insurance Companies||Average Annual Rates with a Clean Record||Average Annual Rates with One Accident||Average Annual Rates with One Speeding Violation||Average Annual Rates with One DUI|
Newly licensed drivers have no driving history to use as a predictor so auto insurance companies charge higher rates.
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What are other ways for new drivers to save on auto insurance?
Perhaps the best way for new drivers to save on auto insurance is to take advantage of discounts. There are many different types of car insurance discounts, and drivers can bundle discounts to save even more.
This table shows you the available discounts from some of the best companies in the country. The discount amount is listed if it is known.
|Auto Insurance Discounts||Allstate (%)||American Family (%)||Farmers (%)||GEICO (%)||Liberty Mutual (%)||Nationwide (%)||Progressive (%)||State Farm (%)||Travelers (%)||USAA (%)|
|Adaptive Cruise Control||N/A||N/A||N/A||N/A||5||x||x||N/A||N/A||N/A|
|Daytime Running Lights||x||x||x||1||5||5||x||N/A||x||x|
|Driving Device / App||x||x||N/A||x||30||40||20||50||30||5|
|Electronic Stability Control||x||x||x||N/A||5||x||x||N/A||N/A||N/A|
|Forward Collision Warning||N/A||N/A||N/A||N/A||5||x||x||N/A||N/A||N/A|
|Garaging / Storing||N/A||N/A||x||N/A||N/A||N/A||N/A||N/A||x||90|
|Lane Departure Warning||N/A||N/A||N/A||N/A||x||x||x||N/A||N/A||N/A|
|Membership / Group||N/A||N/A||N/A||x||10||7||N/A||N/A||x||N/A|
|New Customer / New Plan||N/A||N/A||N/A||N/A||x||N/A||N/A||N/A||N/A||N/A|
|Paperless / Auto Billing||x||x||x||N/A||x||$30||x||$2||3||3|
|Seat Belt Use||N/A||N/A||N/A||15||N/A||N/A||N/A||N/A||N/A||N/A|
|Students & Alumni||N/A||x||N/A||x||10||7||N/A||N/A||N/A||N/A|
There are also other ways for new drivers to save on auto insurance. Consider being added to your parent’s policy, choose a car that’s cheap to insure, and raise your deductibles.
Even though rates are high for new drivers, take advantage of any way you can lower those rates.
Newly Licensed Discount: The Bottom Line
A newly licensed discount is considered one of those hidden auto insurance discounts since only Liberty Mutual offers it and you only have six months to use it.
Even if you can’t take advantage of a newly licensed discount, there are lots of discounts you can be eligible for, like good student and young driver discounts.
Every auto insurance company will offer different rates and discounts to new drivers, so shop around to find your best deal.
Whether you are a new driver or someone who’s been driving for years, now that you’ve finished this newly licensed discount review, enter your ZIP code now to compare quotes from auto insurance companies near you for free.