Compare Car Insurance Rates for New Drivers [2023]
Car insurance for new drivers is expensive since new drivers lack experience. Drivers who are young or are older but have never had a driver’s license are considered new drivers. In addition, immigrants to the U.S. can also be regarded as new drivers even if they have a driver’s license in another country. While new driver car insurance is expensive, save money by adding discounts to your policy and lowering coverage amounts.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Jun 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- New drivers are considered to be young drivers, older drivers with no experience, and people who immigrate to the U.S.
- Car insurance rates for new drivers are much higher due to the lack of experience behind the wheel
- Get cheap car insurance for new drivers by adding discounts and lowering deductibles
Finding cheap car insurance for new drivers can be difficult. Although insurance companies want to see time behind the wheel, new drivers just don’t have the experience and are more likely to be in accidents.
However, you can find the best insurance for new drivers by shopping around. Lower rates by adding discounts, lowering coverage amounts, and increasing deductibles.
Being a new driver doesn’t have to come with scary car insurance rates. Keep reading to learn more about car insurance for new drivers and how to keep rates low.
Enter your ZIP code to compare free car insurance quotes for new drivers from companies in your area.
Who is considered a new driver?
New drivers typically fall into three distinct categories:
- Young drivers
- Older adults who have never had a driver’s license
- Immigrants new to the U.S.
Perhaps the most common type of new driver is a teenager. Although each state has its own rules regarding driver’s licenses, they allow teens to begin the process.
Young drivers will pay the highest car insurance rates because they are much more likely to be in an accident. In fact, the Centers for Disease Control and Prevention (CDC) report that drivers between 16-19 years old are three times more likely to be in a fatal car crash.
A new driver can also be an older adult who hasn’t had a driver’s license. Since millions of people use public transit in large cities, some adults have never needed a driver’s license. However, a move to an area with less convenient public transit can cause an older adult to require a license for the first time.
In addition, a new driver can be an immigrant or foreign national that moves to the United States. Since car insurance companies in the U.S. don’t check driving records from other countries, drivers new to the U.S. can’t verify a clean record.
Car insurance companies have to treat them as new drivers since they can’t evaluate the risk involved.
No matter who the new driver is, they need auto insurance that at least meets the state requirements. There is no specific new driver insurance, and full coverage is recommended to ensure damages to your vehicle are covered.
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What car insurance rates can new drivers expect?
New drivers are very risky to insure, mainly because of limited time behind the wheel. Drivers who lack experience are much more likely to be in an accident, which costs car insurance companies money.
How much is car insurance for a new driver? Unfortunately, there is not a one size fits all answer. Besides your driving record, many other factors affect your rates. Each company weighs those factors differently.
One factor that can affect new driver rates is your age. Take a look at this table that shows average annual rates from top companies to understand how much your age affects your rates.
Company | Average Annual Rates Single 17-Year-Old Female | Average Annual Rates Single 17-Year-Old Male | Average Annual Rates Single 25-Year-Old Female | Average Annual Rates Single 25-Year-Old Male | Average Annual Rates Single 35-Year-Old Female | Average Annual Rates Single 35-Year-Old Male | Average Annual Rates Single 60-Year-Old Female | Average Annual Rates Single 60-Year-Old Male |
---|---|---|---|---|---|---|---|---|
Allstate | $9,282.19 | $10,642.53 | $3,424.87 | $3,570.93 | $3,156.09 | $3,123.01 | $2,913.37 | $2,990.64 |
American Family | $5,996.50 | $8,130.50 | $2,288.65 | $2,694.72 | $2,202.70 | $2,224.31 | $1,992.92 | $2,014.38 |
Farmers | $8,521.97 | $9,144.04 | $2,946.80 | $3,041.44 | $2,556.98 | $2,557.75 | $2,336.80 | $2,448.39 |
Geico | $5,653.55 | $6,278.96 | $2,378.89 | $2,262.87 | $2,302.89 | $2,312.38 | $2,240.60 | $2,283.45 |
Liberty Mutual | $11,621.01 | $13,718.69 | $3,959.67 | $4,503.13 | $3,802.77 | $3,856.84 | $3,445.00 | $3,680.53 |
Nationwide | $5,756.37 | $7,175.31 | $2,686.48 | $2,889.04 | $2,360.49 | $2,387.43 | $2,130.26 | $2,214.62 |
Progressive | $8,689.95 | $9,625.49 | $2,697.73 | $2,758.66 | $2,296.90 | $2,175.27 | $1,991.49 | $2,048.63 |
State Farm | $5,953.88 | $7,324.34 | $2,335.96 | $2,554.56 | $2,081.72 | $2,081.72 | $1,873.89 | $1,873.89 |
Travelers | $9,307.32 | $12,850.91 | $2,325.25 | $2,491.21 | $2,178.66 | $2,199.51 | $2,051.98 | $2,074.41 |
USAA | $4,807.54 | $5,385.61 | $1,988.52 | $2,126.14 | $1,551.43 | $1,540.32 | $1,449.85 | $1,448.98 |
USAA and Geico offer the lowest rates to young drivers. However, USAA is only available to veterans, members of the military, and family members.
Remember that the best insurance companies for young drivers will vary because each company will offer different rates and discounts.
While young drivers undoubtedly pay the most for car insurance, a new driver who is older or just coming to the U.S. may see similar rates even if they are older.
For example, the best car insurance for new drivers under 25 should be slightly lower than insurance rates for new and younger drivers. However, new drivers won’t see the lower rates that more experienced drivers see, no matter the age.
What factors affect the cost of car insurance for new drivers?
Age isn’t the only factor that is looked at to calculate car insurance rates. In fact, there are many different factors looked at, and they can vary by company.
In addition to age, factors used to determine car insurance rates include:
- Driving record. Your driving record indicates if you are a safe or risky driver. Accidents, tickets, and DUIs will cause much higher insurance rates.
- ZIP code. If you live in an area with a lot of traffic or theft, your rates will be higher because the insurance company is more likely to pay a claim.
- Credit score. Although a few states don’t allow insurance companies to look at your credit score, most states do allow it. Insurance companies believe that drivers with a lower credit score are more likely to file a claim instead of paying for damages themselves.
- Vehicle. New or expensive cars cost more to repair and will see higher car insurance rates.
- Type of car insurance coverage. More coverage equals higher rates. While full coverage offers the most protection, it’s also the most expensive.
Each car insurance company determines what factors it looks at and how it weighs those factors. For example, while one company may be willing to overlook your speeding ticket, another company may charge you higher rates.
How can you save money on car insurance for new drivers?
The good news is that cheap car insurance for first-time drivers is possible. In addition, there are some practical ways to quickly lower rates for new drivers.
First, take advantage of car insurance discounts. Insurance companies offer various discounts based on the driver, policy, and vehicle. Even new drivers can take advantage of savings, such as a good student, safe driving, or defensive driving discount.
Car 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 |
Adaptive Headlights | N/A | N/A | x | N/A | 5 | x | x | N/A | N/A | N/A |
Anti-lock Brakes | x | x | x | 5 | 5 | 5 | x | 5 | x | x |
Anti-Theft | x | x | x | 25 | 20 | 25 | x | 15 | x | x |
Claim Free | x | x | x | 26 | x | 10 | x | 15 | 23 | 12 |
Continuous Coverage | x | x | x | x | N/A | N/A | x | N/A | 15 | N/A |
Daytime Running Lights | x | x | x | 1 | 5 | 5 | x | N/A | x | x |
Defensive Driver | x | x | x | x | 10 | 5 | 10 | 5 | 10 | 3 |
Distant Student | x | x | x | x | N/A | 10 | x | x | 7 | x |
Driver's Ed | x | x | x | x | 10 | N/A | 10 | 15 | 8 | 3 |
Driving Device/App | x | x | N/A | x | 30 | 40 | 20 | 50 | 30 | 5 |
Early Signing | x | x | x | x | N/A | 8 | x | N/A | 10 | 12 |
Electronic Stability Control | x | x | x | N/A | 5 | x | x | N/A | N/A | N/A |
Emergency Deployment | N/A | N/A | N/A | 25 | N/A | N/A | N/A | N/A | N/A | N/A |
Engaged Couple | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Family Legacy | N/A | x | N/A | x | N/A | N/A | x | N/A | N/A | 10 |
Family Plan | N/A | x | x | N/A | N/A | 25 | N/A | N/A | N/A | N/A |
Farm Vehicle | x | N/A | x | x | N/A | N/A | N/A | N/A | N/A | N/A |
Fast 5 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Federal Employee | N/A | N/A | x | 8 | 10 | N/A | N/A | 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 |
Full Payment | N/A | x | x | x | $5 | N/A | x | N/A | 7.5 | N/A |
Further Education | N/A | N/A | N/A | x | 10 | 15 | N/A | N/A | x | N/A |
Garaging/Storing | N/A | N/A | x | N/A | N/A | N/A | N/A | N/A | x | 90 |
Good Credit | x | x | N/A | N/A | N/A | x | x | x | N/A | N/A |
Good Student | x | x | x | 15 | 22.5 | 10 | x | 25 | 8 | 3 |
Green Vehicle | x | N/A | 5 | N/A | 10 | N/A | N/A | N/A | 10 | N/A |
Homeowner | N/A | N/A | x | x | x | 5 | x | 3 | 5 | N/A |
Lane Departure Warning | N/A | N/A | N/A | N/A | x | x | x | N/A | N/A | N/A |
Life Insurance | x | N/A | N/A | N/A | N/A | x | N/A | N/A | N/A | N/A |
Low Mileage | x | x | x | x | x | x | x | 30 | x | x |
Loyalty | N/A | x | N/A | x | N/A | 5 | x | N/A | N/A | x |
Married | N/A | N/A | N/A | N/A | x | x | x | x | N/A | x |
Membership/Group | N/A | N/A | N/A | x | 10 | 7 | N/A | N/A | x | N/A |
Military | x | N/A | x | 15 | 4 | N/A | N/A | x | N/A | x |
Military Garaging | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 15 |
Multiple Drivers | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Multiple Policies | 10 | 29 | x | 10 | 20 | 10 | 12 | 17 | 13 | x |
Multiple Vehicles | x | x | x | 25 | 10 | 20 | 10 | 20 | 8 | x |
New Address | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | 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 |
New Graduate | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
Newer Vehicle | x | N/A | x | x | N/A | x | x | 40 | 10 | 12 |
Newly Licensed | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
Newlyweds | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
Non-Smoker/Non-Drinker | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Occasional Operator | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | x |
Occupation | x | N/A | x | x | 10 | 15 | N/A | N/A | x | N/A |
On-Time Payments | x | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 15 | N/A |
Online Shopper | N/A | N/A | N/A | N/A | N/A | N/A | 7 | N/A | N/A | N/A |
Paperless Documents | x | x | x | N/A | N/A | 5 | $50 | N/A | N/A | N/A |
Paperless/Auto Billing | x | x | x | N/A | x | $30 | x | $2 | 3 | 3 |
Passive Restraint | x | x | x | 40 | x | 20 | x | 40 | x | x |
Recent Retirees | N/A | N/A | N/A | N/A | 4 | N/A | N/A | N/A | N/A | N/A |
Renter | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Roadside Assistance | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Safe Driver | N/A | N/A | x | 15 | N/A | 35 | 31 | 15 | 23 | 12 |
Seat Belt Use | N/A | N/A | N/A | 15 | N/A | N/A | N/A | N/A | N/A | N/A |
Senior Driver | x | N/A | x | N/A | N/A | N/A | N/A | N/A | N/A | x |
Stable Residence | N/A | N/A | N/A | N/A | N/A | x | x | N/A | N/A | N/A |
Students & Alumni | N/A | x | N/A | x | 10 | 7 | N/A | N/A | N/A | N/A |
Switching Provider | N/A | x | x | N/A | 10 | N/A | x | N/A | N/A | N/A |
Utility Vehicle | x | N/A | x | x | N/A | N/A | N/A | N/A | N/A | N/A |
Vehicle Recovery | x | x | x | 15 | 35 | 25 | x | 5 | x | x |
VIN Etching | N/A | N/A | x | N/A | 5 | x | x | N/A | x | x |
Volunteer | N/A | x | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Young Driver | N/A | N/A | N/A | N/A | x | N/A | x | N/A | N/A | $75 |
New drivers can also save money by lowering coverages and raising deductibles. Although making these changes will lower your rates, you will have to pay more out of pocket for any damages to your car.
In addition, if someone in your home already has a car insurance policy, consider being added to that policy. Then, you’ll be able to take advantage of savings like a multi-policy discount.
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Car Insurance for New Drivers: The Bottom Line
Drivers who are young, older but never had a license, or immigrants can all be considered new drivers. While car insurance rates are much higher for new drivers, there are ways to save.
Cheap insurance for new drivers is possible if you shop around and take advantage of discounts. Because every car insurance company will look at you differently, compare multiple companies to find your best deal.
Enter your ZIP code now to compare car insurance quotes for new drivers from companies near you for free.
Frequently Asked Questions
Who is considered a new driver?
New drivers can fall into three categories. The most common type is teenagers who are just starting the process of getting a driver’s license. Older adults who have never had a driver’s license due to relying on public transit can also be considered new drivers. Additionally, immigrants or foreign nationals who have moved to the United States and cannot provide a driving record from another country are also classified as new drivers.
What car insurance rates can new drivers expect?
Car insurance rates for new drivers are typically higher due to their lack of driving experience. Rates can vary depending on factors such as age, driving record, location, and the insurance company. On average, young drivers tend to pay the highest car insurance rates, with those aged 16-19 being three times more likely to be involved in a fatal car crash.
What factors affect the cost of car insurance for new drivers?
Several factors influence the cost of car insurance for new drivers. These factors can include age, driving record, type of vehicle, location, credit history, and coverage options. Each insurance company may weigh these factors differently, resulting in variations in rates.
How can new drivers save money on car insurance?
New drivers can take advantage of several strategies to lower their car insurance costs. One effective method is to explore discounts offered by insurance companies, such as good student discounts, safe driving discounts, or defensive driving discounts. Another way to save money is by adjusting coverage amounts and increasing deductibles. Additionally, being added to an existing car insurance policy held by a family member can often lead to savings through multi-policy discounts.
How can I find cheap car insurance for new drivers?
To find affordable car insurance for new drivers, it is important to shop around and compare quotes from multiple insurance companies. Each company may offer different rates and discounts, so comparing options can help identify the best deal. Utilize online tools that provide free car insurance comparisons by entering your ZIP code to view quotes from various companies in your area.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.