New drivers pay some of the highest car insurance rates in the nation, but it is no mystery why.
Insurance companies base auto insurance rates on risk, and new drivers are inexperienced and at a higher risk for accidents and resulting insurance claims. Higher risk means higher insurance rates.
Adding a new 16-year-old driver to your policy will result in an average rate increase of 256%, depending on where you live and whether the new driver is male or female. If the new driver gets their own policy instead, the rates will be even higher.
Insuring a new driver is expensive, so it’s natural to wonder how long you are considered a new driver. Learn how long insurance providers consider you a new driver in this guide.
- Insurance companies differ in how long they classify drivers as “new,” with some extending this period up to nine years or until the driver reaches age 25.
- Accidents usually stay on your driving record for three years, but state laws and the seriousness of the incident can lengthen this duration.
- The best car insurance for new drivers varies based on individual needs, with the ideal choice providing the best rates for the required coverage.
A new driver is someone who has no driving history. This might include a teenager getting their driver’s license for the first time, someone getting a driver’s license later in life or a driver who has never had a license in the U.S.
How long are you considered an inexperienced driver for auto insurance?
Each insurance carrier used a different formula for defining what it takes for someone to move from new-driver status to experienced-driver status. For some car insurance companies, drivers are considered “new” until they have three years of experience on the road, for others, it can be up to nine years.
Some carriers do not look at the date you were first licensed, but instead, use your age as the only determining factor. In this case, typically that means you are deemed an inexperienced or “new driver” until age 25.
How long does an accident stay on your driving record for insurance purposes?
Whether you’re a new driver or not, an accident will most likely cause a noticeable car insurance rate increase. But if you’re a new, inexperienced driver already paying high rates, the extent an accident will stay on your insurance record is a concern.
Typically, an insurance company will charge you more after an accident for three years after the date of the incident. State laws vary, however, on this issue, so in some cases, it can be as long as five or seven years. Major infractions, such as a DUI, remain on your driving report longer than a fender bender.
If your rates are too high due to being a new driver in an accident or convicted of DUI, see how high-risk drivers can get lower car insurance rates
What is the best car insurance for new drivers?
The best car insurance company for new drivers depends on the situation. Are you looking for car insurance for new drivers under 25? Ultimately, the best car insurance for new drivers is the company that offers the best rates for the coverage levels you need.
Who is considered a new driver?
A new driver is any individual who recently got their driver’s license, including teenagers or young adults who got their licenses for the first time or individuals who got a license later in life. New drivers tend to be considered high-risk drivers, which can increase car insurance rates. Insurance companies consider new drivers as anyone without a recent driving record or insurance policy.
How does auto insurance work for new drivers?
In almost every state, vehicle owners are required to carry a minimum amount of car insurance. New drivers with their own vehicles must purchase auto insurance before they can legally drive. New drivers can usually benefit from optional coverages, like collision insurance, comprehensive insurance and accident forgiveness.
Auto insurance companies use various rating factors to determine rates, including vehicle type, driving record, ZIP code, location, mileage and credit history.
Factors affecting car insurance rates for new drivers
Car insurance rates for new drivers tend to be expensive due to lack of experience on the road. Factors that affect car insurance premiums include age, driving history, coverage types and coverage limits.
Insurance companies consider new drivers riskier to insure due to their lack of experience and know-how behind the wheel. Rates may vary depending on the state and individual circumstances.
How to save on car insurance for new drivers
New drivers should plan for high car insurance premiums, but there are ways to reduce the cost of their insurance policies. Maintaining a clean driving record may be one of the biggest factors that could save you money on car insurance. Car insurance companies generally see drivers who avoid tickets and accidents as less risky to insure and may reward them with lower premiums.
Discounts may also be available for drivers who go a set period of time without filing a claim. Taking a defensive driving course can also help lower car insurance rates.
Comparing quotes from multiple insurance companies can help new drivers find the cheapest car insurance rates.
Understanding car insurance companies’ risk assessment
Insurance companies base auto insurance rates on risk, and new drivers are considered a higher risk due to their lack of driving history. Car insurance companies use various rating factors to determine rates, including vehicle type, driving record, ZIP code, location, mileage and credit history. New drivers tend to be considered high-risk drivers, which can increase car insurance rates.
Final thoughts
New drivers often pay the highest rates for car insurance, but assuming a clean driving record, premiums usually decrease with age and driving experience. Understanding how car insurance companies assess risk and using tips to lower car insurance rates can help new drivers save money on their auto insurance premiums.
To find the lowest rate for your situation, shop around and compare rates, look for insurers that offer discounts, and avoid tickets and accidents.
Resources & Methodology
Carinsurance.com commissioned Quadrant Information Services to run auto insurance rates for a 2022 Honda Accord LX at several coverage levels for a driver with a clean driving record in all ZIP codes in each state.
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Laura Longero
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Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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