Getting your first set of wheels means receiving your first car insurance bill. Brace yourself: It’s likely to be much higher than you were anticipating. On average, new drivers pay 80% more for full coverage than more experienced drivers because carriers consider them riskier to insure.
Higher premiums aren’t exclusive to newly licensed teens and young adults; older adults who are new drivers may face similarly high premiums. Learn more about car insurance for new drivers, including the best options for young and older drivers, tips for saving and affordable car insurance companies.
- Premiums are often much higher for new drivers because they are statistically more likely to be involved in an accident and file a claim.
- New drivers pay almost 200% more for state minimum coverage than experienced drivers.
- Adding a teen to a parent’s policy is often much cheaper than getting a separate policy.
What kind of insurance do you need for a new driver?
Each state has minimum coverage requirements for auto insurance. This means you must carry a certain amount of liability coverage to drive legally; the required amount varies by state. Liability insurance only covers damage and injuries you cause others. It does not apply to your own losses. What’s more, state minimum coverage requirements are often too low to cover the cost of a serious accident.
Here is a range showing variations among states:
- Bodily injury: $10,000 to $50,000 per person and $30,000 to $100,000 per accident
- Property damage: $5,000 to $25,000 per accident
Some states also require uninsured/underinsured motorist coverage and/or personal injury protection (PIP). Your agent or insurance company can answer questions regarding your state’s minimum requirements.
States only require minimal coverage to protect others in case of an accident — your vehicle isn’t insured against damage or loss if you’re at fault. To protect your vehicle, you must carry full coverage insurance, which adds collision and comprehensive coverage to your policy.
Collision insurance will cover damage to your car if you strike another vehicle or stationary object, while comprehensive insurance pays for damage from theft, extreme weather, such as hail or flooding, and animal strikes. If you have a loan or lease on your vehicle, your financing agency will require that you carry full coverage and perhaps gap insurance also.
How much is insurance for new drivers?
If you recently got your driver’s license, expect to pay more for coverage than drivers licensed for years. Drivers under 25 (ages 16 to 19 in particular) and drivers over 50 typically see the highest premiums.
When we ran the numbers, on average, new drivers pay 200% more for state minimum coverage and 80% more for a full coverage policy.
The table below shows the average premium differences between a new driver and one with more experience. In this example, the driver profile is for a male driver, age 30, living in New York City, driving a 2017 Honda Accord, insured for state minimum and full coverage, including optional comprehensive and collision coverage with a $500 deductible.
| Coverage | Newly licensed driver rate | Experienced driver rate | Difference |
|---|---|---|---|
| State minimum | $3,392 | $1,134 | $2,258 |
| Full coverage | $4,752 | $2,638 | $2,114 |
Best car insurance for first-time drivers under 25
An Insure.com survey reported that millennials found the following three companies to have some of the cheapest prices for younger drivers:
- CSAA Insurance Group: Known as AAA NCNU for residents of Northern California, Nevada and Utah
- The Auto Club Group: AAA for other regions nationwide, younger drivers can take advantage of affinity (group) pricing
- USAA: For members of the military and their families
Best auto insurance for new drivers under 50
There are some ways that you can save as you get behind the wheel and begin building your driving history. The following companies offer the best car insurance for new drivers under 50, according to Insure.com’s data:
- The Auto Club Group: Also known as AAA, it is a reputable provider for teen, young and senior drivers, which makes them a good fit for drivers under 50
- Allstate: A top insurance provider for high-risk drivers, with a strong claims handling process and a good selection of discounts
- Geico: Offers good driver discount after five years with no accidents, bundling discounts, and DriveEasy program, which lowers rates for safe driving
Best car insurance for new drivers above 50
Seniors should get quotes on car insurance for new drivers from the following companies:
- The Hartford: Partners with the AARP to provide members affordable auto insurance for seniors
- USAA: Veterans and retired military may receive some of the lowest car insurance quotes around
- Hagerty: Provides classic car insurance for seniors who drive collector cars
Impact of driving experience on car insurance rates
Car insurance risk is determined by several factors, including age, vehicle type, driving experience, prior road incidents, and where you live. As a new driver, you can expect that your lack of driving experience will directly impact your premium. However, maintaining a clean driving record will help reduce your rates over time.
Your rates will increase if you get a ticket or are involved in an accident. But there are things you can do to save some money, like taking a driving course or signing up for a usage-based monitoring rewards program. Talk with your insurance agent or carrier representative to find out what other discounts may be available.
Best car insurance for families with new drivers
Most insurance companies allow policyholders to add family members to their policy. A family member is typically defined as a person living in the policyholder’s household related by blood, marriage or adoption. Some insurers may also permit roommates to be added to a policy. In many cases, adding a new driver to a family policy may be cheaper than buying a separate one.
The following car insurance companies are best for families with new drivers.
- Geico offers a good student discount and family pricing for young drivers. Its DriveEasy monitoring and reward program provides rate reductions for safe driving behaviors.
- Nationwide offers discounts for new drivers, such as defensive driving and multi-policy, and has a SmartRide telematics program that provides savings for consistent good driving behaviors.
- Progressive offers a Name Your Price Tool to help new drivers find affordable coverage options. It also provides discounts for teen drivers or those enrolled in its usage-based Snapshot telematics program.
- State Farm offers multi-car and multi-policy discounts and ways for teens and young drivers to save, such as a good student discount and driver training. New drivers can also inquire about the Steer Clear program and Drive Safe & Save options, which can reduce premiums based on driving behaviors.
Helpful driving programs for first-time drivers by insurance companies
You may be a new driver, and your premiums may be higher than other drivers, but it doesn’t mean you can’t save money on your coverage. One way to do this is by enrolling in your insurer’s usage-based insurance (UBI) program.
These programs use a telematics device – an app on your phone or a device that plugs into your vehicle – to monitor your habits while you drive. Typically, this includes when and where you’re driving, how fast you’re traveling, phone use, and habits like tailgating, braking suddenly or accelerating too quickly. The safer you drive, the bigger your discount can be. Conversely, aggressive driving may result in your premium being increased.
- Allstate: TeenSmart is an eight-hour online program aims to reduce teen crashes. The program offers interactive training techniques, driving simulations, video and in-car exercises to decrease accident risk and provides a discount on their insurance policy.
- Farm Bureau: Drivers aged 25 or younger who complete the Young Driver Safety Program can qualify for the Safe Young Driver discount. The program aims to not only help lower premiums but encourage safer drivers.
- GEICO: DriveEasy tracks your driving time and behaviors via the GEICO mobile app — like how hard you brake, how fast you go around corners, and how often you use your phone — to create a safe driving score. The better the score, the more you save.
- Liberty Mutual: The Right Track program tracks you when driving through the Liberty Mutual app or plug-in device. You can save up to 30% on your insurance premiums based on your good driving behaviors. It considers your driving habits, such as acceleration, braking and nighttime driving, and provides tips and coaching to help you improve your driving behaviors.
- Nationwide: Smart Ride is a usage-based insurance program provides you with personalized feedback to help you improve your driving habits. You can save up to 15% by signing up for the program and up to 40% based on your good driving behaviors.
- Progressive: Complete a defensive driving course and save on your premiums. Some of what will be reviewed includes dangerous situations, how to avoid risks and keep your stress low when driving, how to navigate weather road conditions and more.
- State Farm: The Steer Clear safety program is designed for younger drivers under 25, although you can discuss this option with an agent as a new driver of any age, and will provide good driver discounts based on driving habits. You can also receive a premium discount if you have a young driver in your household.
Car insurance checklist for first-time policyholders
Before you hit the road, you’ll need auto insurance to drive legally. That means shopping around for a new car insurance policy, choosing the best fit, and making sure it’s activated before you start driving. Many car insurance companies allow you to get a free quote online and purchase coverage. However, some new drivers may find the process overwhelming.
“We strongly recommend first-time policyholders work with a licensed insurance agent who can advise them on the coverages and policy limits that should be included in their policy,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I).
The checklist below can help you buy your first car insurance policy.
- Identify what you need. While minimum-coverage liability insurance is all you need to start with, you should consider what happens if you get into an accident or someone vandalizes your vehicle. Do you have funds to help repair your vehicle or cover medical bills? If not, you may want to consider a more robust liability policy or a full coverage insurance policy. Also, consider your budget: what can you afford monthly or annually? This will help ensure you stay within parameters when selecting your policy.
- Get your details in order. There is specific information a car insurance agent will need from you, including your driver’s license, vehicle information number (VIN), the make, model and year of your vehicle, and how many miles a year you think you’re going to drive. These details help to create your driving profile, which will be a factor in determining your premium.
- Compare quotes. You can use an online insurance comparison tool to get a basic idea of how much you can expect to pay for coverage. However, it will require visiting an insurer’s website or calling a company representative or agent to get a more precise quote. Whatever method you prefer, remember to get quotes from at least three different carriers before choosing a policy, and make sure you’re comparing the same coverages and amounts.
- Read, compare, think. This is the most important step — reviewing the quotes you’ve received, checking company ratings, and choosing an insurer. Once you decide on a carrier, you must pay for your policy, ensure it’s active, and create an online account to manage it. An agent or company representative can help you with this.
- Congratulations! Once you’ve signed your documents and paid your first month’s premium, you’ve ready to hit the road. Keep your policy somewhere you can find it in a pinch, and always keep a copy of your insurance ID in your vehicle.
When do car insurance rates drop for new drivers
When you’re just starting out as a driver, you have very limited experience navigating the rules of the road. Regardless of your age, if you have less than a year of behind-the-wheel experience, your premiums will be fairly pricey because car insurance companies see you as a higher-risk driver.
Typically, after a few years of driving, you’ll see a decrease in your rates. If you’re a teen driver, your rates will start to decrease significantly between the ages of 19 and 25. From there, and through most of your adulthood, your rates will decrease and stabilize until you are 75. After 75, you’ll likely experience an increase as your perceived risk as an older driver increases.
Other ways new drivers can save on insurance
Car insurance companies consider several factors when pricing new driver insurance. Fortunately, you can do a few things to help keep your premium affordable. Here are a few tips on how to find cheap car insurance for first-time drivers.
Choose a higher deductible
A car insurance deductible is how much you’ll pay out of pocket before your insurer covers the rest of an accident or repair cost. A low deductible, such as $100 or $250, is easier on your budget if you’re in an accident, but you’ll pay far more each month for the convenience.
Aim for a higher deductible, such as $1,000, to lower your monthly premium. It is important to choose a deductible you can afford if you have to make a claim. Setting money aside each month into an emergency savings account to cover your deductible is a good idea.
Work on your credit score
In most states, your credit score will affect the cost of car insurance. Nationwide claims up to 92% of car insurers price your auto insurance premium according to your credit score. A CarInsurance.com analysis of the worst states for drivers with bad credit found that drivers with bad credit pay an average of 77% more for coverage than those with good credit, according to the most recent data available.
If you have a history of making late payments or are just starting out and don’t have a credit history yet, consider improving your credit before shopping for car insurance.
Improving your credit takes time, so your efforts may not result in a huge premium drop immediately. Once your credit score has improved, ask your insurer to reprice your policy. Some ways to improve your credit score include:
- Ordering a free credit report and making sure the information listed is correct. Dispute any wrong or inaccurate information on your report to have it removed.
- Reducing or eliminating your credit card debt
- Asking a parent or loved one to add you to their credit card account as an authorized user to build up your credit score
- Opening a new credit card and making your payments on time each month. If you have poor credit or none, a secured credit card with a low limit could help you rebuild your credit.
Complete a driver safety course
Many insurers offer a discount to drivers who take and pass a defensive driving course, regardless of age or how long you have been driving. Older drivers can take advantage of the American Association of Retired Persons (AARP) online defensive driving course geared towards drivers 50 or older.
Check with your insurer to see if it offers this discount and to get a list of approved courses. For example, Geico refers clients to an online course through the National Safety Council or the American Safety Council. Completing one of these courses will typically result in a discount between 5% and 20% on your car insurance premium.
Bundle your insurance policies
Most insurers offer a bundling discount, and the savings can be significant. A multi-policy discount helps lower your premium when you bundle your renters, homeowners or other policies with the same insurer. Savings can range between 5% and 25%:
- Erie’s multi-policy discount averages 16% to 25% when you insure your home and auto with the company.
- Geico will give you 25% off your auto insurance policies when you have more than one vehicle insured through them.
- Progressive’s website says you’ll save 12% on average if you bundle car and renters insurance.
Look for other insurance discounts
Other typical types of new car insurance discounts you could take advantage of include:
- Auto-pay
- Prepaid annual premium
- Low-mileage
- Good student
- Senior
- Accident-free driving history
- Anti-theft
- Safety equipment (anti-lock brakes, multiple airbags, driver assistance and more)
Compare car insurance companies
Insurers rate risk differently, resulting in wildly different prices for the same type of car insurance. Shopping for coverage is the best way to find the most affordable policy, so visit several insurance company websites to get vehicle insurance quotes for comparison.
The best car insurance for new drivers will vary according to your needs and risk profile. We analyzed our data and found the following insurers are best for newly licensed individuals:
Cheaper car insurance for new drivers
If you can’t afford insurance, your state may be able to help. For example, low-income California residents who earn less than $31,900 if single and $65,500 for a family of four can apply for coverage through California’s Low-Cost Automobile Program.
Final thoughts on car insurance for new drivers
While car insurance for a new driver will always cost more than for more experienced drivers, there are ways to keep your premium affordable. Shopping your coverage regularly, improving your credit score, keeping your driving record clean, and taking advantage of discounts are all great ways to lower your premium.
Keeping safe on the road is one of the most important things you can do as a new driver. Getting a ticket or being involved in an accident as a teen will push your rates up dramatically for at least three years.
Sky-high insurance rates are never fun, but remember that as you gain experience and avoid tickets or accidents, your premium will start heading down and stabilize as you get older.
Resources & Methodology
Sources
- Allstate. “TeenSMART.” Accessed March 2025.
- GEICO. “DriveEasy Program.” Accessed March 2025.
- Farm Bureau Financial Services. “Young Driver Safety.” Accessed March 2025.
- Liberty Mutual. “Right Track.” Accessed March 2025.
- Nationwide. “SmartRide Program.” Accessed March 2025.
- Progressive. “Defensive Driving Insurance Discount.” Accessed March 2025.
- State Farm. “Steer Clear Training Program.” Accessed March 2025.
Methodology
CarInsurance.com editors collected rates from Quadrant Information Services for a 40-year-old male driving a Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible. We analyzed 51,088,003 records, 34,588 ZIP codes and 167 insurance companies nationwide.
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