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Best Car Insurance for New Drivers (Updated May 2022)

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Anna Baluch

By: Anna Baluch

Edited by Jackie Cohen

Last Updated May 10, 2022

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Quick Facts

  • New drivers are usually teens, inexperienced adult drivers, and immigrants.
  • You can expect to pay higher car insurance premiums if you’re a new driver.
  • If you’re able to stay on your parents’ plan, you might save thousands.

Everyone looks forward to the day they get their driver’s license. A driver’s license can give you freedom like you’ve never had before. You’ll be able to drive to work or school, run errands, and even take a road trip with your friends and family.

The downside of being a new driver, however, is that you’ll need to find affordable car insurance. Until you get more experience under your belt, you should expect expensive rates. With this car insurance quote comparison tool, you can receive personalized auto insurance quotes from the best car insurance companies and find the right policy for your situation.

Who is considered a new driver?

How can new drivers save on car insurance?

Since less experienced drivers pay more on average for insurance coverage, new drivers can save by staying on their parents policies or qualifying for discounts.

If you’re getting your driver’s license for the first time and have limited or no driving experience, you’re considered a new driver. Car insurance companies usually classify these groups of people as new drivers.

  • Teenagers who just received their license after reaching the legal driving age
  • Adults who started driving later in life, such as those who relied on public transportation in their younger years
  • Adults with a gap on their driving record because they canceled their car insurance when they previously sold their car
  • Immigrants and foreign nationals who are new to the U.S.

See More: Best Car Insurance Companies

Why Car Insurance Is Expensive for New Drivers

Since new drivers pose a greater risk on the road than experienced motorists, car insurance premiums for them are more expensive. As a new driver, you simply don’t have the experience or track record to prove that you’re a responsible driver.

Your lack of experience can increase your chances of traffic violations like speeding tickets and DUIs as well as at-fault accidents. In most cases, car insurance companies will consider these factors when they provide you with auto insurance quotes:

  • Personal details: Including your age, gender, marital status, and credit score.
  • Your car: Your vehicle’s make, model, and safety features will impact your premiums.
  • Your location: The minimum car insurance requirements in your state and factors like the population density and crime rate in your neighborhood will play a role in your rates.
  • Your insured history: This relates to whether you’ve had any lapses in your car insurance coverage.
  • Your driving history: If you do have some driving experience, auto insurance companies will look at any recent violations or accidents.

See More: Best and Worst Sites to Compare Car Insurance

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How to Save Money on Car Insurance as a New Driver

Fortunately, there are a number of ways you can save money on your auto insurance policy as a new driver.

Stay on Your Parents’ Car Insurance

The ideal way for you to save money on car insurance is to stay on your parents’ policy. This is because your parents’ insurance history, credit score, and driving record can lead to lower premiums than you’d be able to land on your own. If you stay on your parents’ plan for as long as possible, you can potentially save thousands of dollars.

As long as you have the same primary residence as your parents, there’s a good chance you can be added to their policy. If you’re a college student, you can likely stay on their plan too, as long as you don’t drive your own car while you’re living away from home. Once you officially move out of your parents’ house, you will need to purchase your own separate policy.

Shop Around

Since car insurance companies aren’t created equal, it’s well worth your time to shop around and compare rates. You can use a car insurance quote comparison tool like Insurify to receive personalized quotes from multiple insurance providers at once and simplify the process of finding car insurance. When you shop around, make sure you compare apples to apples.

For example, if you’re looking at liability coverage from one company, make sure the other rates you’re comparing are also for liability insurance, not full coverage or another type of policy.

Choose a Safe, Affordable Car

It might be tempting to cruise around in a shiny luxury vehicle like a Lexus, BMW, or Mercedes-Benz. Doing so, however, will increase your car insurance premiums. This is because pricey models are more likely to get stolen. Ideally, you’d choose a safe, reliable car like a Honda or Toyota.

Drive Responsibly

One of the best ways to lock in the most affordable auto insurance rates as a new driver is to practice good driving habits and maintain a clean driving record. A good track record on the road, free of violations and at-fault accidents is important.

It increases your chances of securing a safe driver discount or locking in lower rates. If you’re a teen driver with a history of reckless driving, you may have to pay more for your car insurance plan.

Consider a High Deductible

Most states require you to buy liability coverage to drive legally. However, some car insurance companies might require add-on insurance like collision or comprehensive coverage, which can cause your premiums to skyrocket. If this is the case for you, you may want to set a higher deductible to save money on your car insurance premiums.

Bundle Your Car Insurance

If you already have a home, renters, or life insurance policy, find out if your provider will let you bundle your plans and save money as a result. You could always find another car insurance company that will reward you for bundling if your current one is unable to.

Explore Discounts

Typically, car insurance companies like GEICO, Allstate, Progressive, and State Farm offer a variety of discounts to their policyholders. These discounts can save you money on your car insurance plan, especially if you qualify for multiple. Below, we’ll go into more detail about the types of discounts that might be available to you as a new driver.

See More: Car Insurance Quotes

Common Car Insurance Discounts for New Drivers

Some of the most common new driver car insurance discounts that you might want to explore include the following:

A multi-car discount is for those who insure more than one car with a single car insurance company.

If you complete an approved defensive driving discount and show an auto insurance provider proof, they may discount your premium.

Some car insurance companies offer special occupation discounts to drivers who are police officers, doctors, teachers, and others who are likely to drive responsibly.

In general, if you’re 25 and under, earn good grades, and have a transcript to prove it, you may lock in a good student discount.

If you’re able to show a history of a clean driving record after a few years of driving under your belt, a car insurance company may reward you with a good driver discount.

See More: Cheap Car Insurance

The Bottom Line

It’s easy to get discouraged by the high cost of car insurance as a new driver. Fortunately, there are ways to bring down your premiums. Check out this car insurance comparison tool to compare auto insurance rates from leading car insurance companies and find the cheapest car insurance for you.

Also, keep in mind that you won’t have to pay an expensive premium forever. As you gain more driving experience and prove that you’re a responsible driver with safe driving habits, your rates will likely go down.

Frequently Asked Questions

  • Yes, most states require that you have an auto insurance policy to drive legally. You’ll need to purchase liability insurance to protect yourself against injuries and damage you cause to other drivers and their property. You can always invest in additional coverage, like comprehensive insurance and roadside assistance if you’d like more peace of mind.

  • Young drivers and first time drivers can expect to pay around $1,582 per year for their car insurance policy. Comprehensive coverage will increase this rate to $3,867 per year. You can save money on your auto insurance if you get added to your parents’ policy, shop around, and/or lock-in discounts like the good student discount or defensive driving discount.

  • In general, it’s less expensive for new drivers to stay on their parents’ car insurance plan. If you’re unable to, however, you will need to invest in your own policy. Just expect to pay higher rates because you lack the insurance history and driving experience your parents likely have.

  • The younger you are, the more you’ll pay for your auto insurance premiums. Fortunately, your rates will likely go down once you turn 25 and are no longer considered “high-risk” by car insurance companies. Keep in mind that if you rack up a history of accidents and violations, your car insurance will be expensive, even if you are an older driver.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Anna Baluch
Anna Baluch
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Content Writer at Insurify

Anna Baluch is a Cleveland-based freelance writer with a focus on personal finance and insurance. She enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many well-known publications including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance.

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