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Best Car Insurance for New Drivers (Updated May 2022)
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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.
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.
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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:
Fortunately, there are a number of ways you can save money on your auto insurance policy as a new driver.
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.
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.
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.
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.
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.
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.
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.
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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.
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.
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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.
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.