Finding cheap auto insurance can be difficult if you’re a new driver. If it’s your first time behind the wheel, auto insurers interpret that lack of driving history as a high-risk factor. Because of this, you may see higher rates than an experienced driver.
To get your best car insurance rate, compare several quotes from different providers. Make sure you look at car insurance companies that have options such as getting onto a parent’s policy, discounts for married couples or bundling policies. These can help offset new driver premium costs. After that, buying a policy should be quick. This article will cover:
- How much is new driver insurance?
- Finding cheap car insurance for new drivers
- Who is considered a new driver?
How much does auto insurance cost for new drivers?
Based on our research, the average cost of car insurance for a new driver is $4,762 a year, or $397 a month. Due to their inexperience on the road, new drivers pay significantly more than experienced drivers for coverage. Your actual cost for new driver car insurance depends in part on the insurer you choose and the state you live in, among other factors.
The table below shows the average annual rates from different national providers for full-coverage auto insurance for new drivers.
How to get cheap car insurance as a new driver
Policy options, discounts and auto insurer programs are available to help you get your best and cheapest auto insurance rates as a new driver. Many of these options may apply whether it is your first time driving or if you’re just getting back on the road after a long break from driving.
Sharing an auto insurance policy with a parent
If you’re a young person who’s just getting a driver’s permit, the cheapest car insurance option will probably be to get on your parents’ policy. Teens are considered the highest risk group of drivers in the eyes of auto insurance companies. As such, premiums for teen drivers are notoriously high. If you were to get your own car insurance policy, it could be much pricier than joining your parents’.
Getting on your parents’ insurance could shave hundreds of dollars off your auto insurance costs. It will still raise their overall annual premium, but nowhere near the total cost if you had your own car insurance policy. To give you a sense of the cost difference, the graph below shows the average cost of full-coverage auto insurance for a new driver with their own auto insurance versus the average rate on a parent’s policy.
You can see in the graph that getting on a parent’s auto insurance policy saves a significant amount of money in comparison to a new driver buying their own coverage. Getting on another’s car insurance policy can save over 50%.
Individuals who have never driven before are considered high risk due to their unfamiliarity with driving. This will pass in time, and while these drivers are nowhere near as high a risk as teen drivers, they still present one. New adult drivers see higher rates than experienced drivers of the same age.
Bundle your insurance
If you already have renters, home or life insurance, check with your provider to see how much you could save by bundling your insurance policies with them. Bundling your insurance reduces the costs of both insurance policies involved. This can help knock down higher car insurance rates as a new driver.
Enroll in a safe driver program
Many auto insurance providers have safe driver programs that, if completed, can help reduce your rates. The advantage of such programs to new drivers is that they help set your rates based on your current driving patterns rather than only past driving experience. Such programs often require that you install a telematics device that monitors metrics such as your acceleration and braking patterns. Meeting the insurer’s criteria can get you a discount.
Compare multiple car insurance quotes
Having multiple quotes from different auto insurance companies is a great way to help you get your best policy at your best price. You can make sure you’re getting the minimum liability coverage you need, as well as other options you may want, such as collision or comprehensive coverages, all at a good price.
Car insurance for new drivers doesn't have to be so expensive.
Compare quotes to find affordable rates.
Drive a safe and affordable car
If this is your first car, your car make and model can affect your car insurance rates. The safety level of the car you drive can help reduce your risk of an accident. And some cars are considerably cheaper to repair than others, making their insurance rates lower. To save on insurance, look for a car with low repair costs and high safety ratings.
Who needs new driver insurance?
If you’re completely new to driving or haven’t been behind the wheel in a while, auto insurers will charge you higher rates for a policy. Groups that most frequently fall into this category are:
- Teen drivers: Teen driver car insurance is expensive as teens are the highest risk group in the eyes of auto insurance companies. This is because of their lack of experience and an overall higher chance of a crash. According to the CDC, in 2018, nearly 2,500 teens were killed in car crashes and around 285,000 were treated for injuries suffered in car crashes. Their auto insurance rates reflect this risk.
- Drivers with gaps in driving history: If you haven’t driven in many years, don’t be surprised if your auto insurer charges you new driver rates. A lack of recent driving history is a red flag for auto insurers and increases your risk.
Major auto insurers provide coverage to new drivers, but they may not be your best bet. Make sure to check with local and regional car insurance companies in your area. You could find a cheaper rate. Also, remember that getting on an auto insurance policy with a parent or partner may reduce your premium considerably.
The average rates used in this article are based on thousands of quotes for full coverage in random national ZIP codes for drivers 16 to 19 years of age with excellent credit and no accidents. The vehicle used for data is a 2012 Honda Accord LX with 16,000 in annual mileage.
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