Most new drivers are eager to get behind the wheel as soon as they leave the DMV with a learner’s permit. However, new drivers and their parents must be aware of the car insurance requirements for first time drivers. Even without a driver’s license, new drivers must have first time car insurance before they can start practicing.
In this guide, we’ll explain how young drivers can get new driver insurance, how much it costs and how to find the best car insurance for first time drivers.
Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.
How much does car insurance cost for new drivers? In general, the cost of first time driver insurance is expensive. This is because car insurance providers assign rates based on how risky your driver profile is to insure. Because new drivers have the least amount of experience behind the wheel, car insurance providers view them as one of the highest risk groups to insure.
Below are the rates in each state for a 17-year-old new driver with a 2022 RAV4.
Annual rates for a male driving a 2023 RAV4, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of January 2024.
Below are the average rates for a 17-year-old new driver with a 2022 RAV4 by top national companies.
| Company | Average Annual Premium |
|---|---|
| USAA | 5,551 |
| Auto-Owners Insurance | 5,768 |
| Nationwide | 6,677 |
| State Farm | 7,061 |
| Geico | 7,728 |
| Travelers | 8,090 |
| Progressive | 9,878 |
| Allstate | 10,780 |
| Farmers | 12,128 |
Annual rates for a male driving a 2023 RAV4, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of January 2024.
The rates above assume the new driver is the primary driver on the insurance policy. It’s often much cheaper for new drivers to join an existing policy, such as a parent’s policy. Parents who add a first time driver to their policy can expect their premium to increase significantly.
Remember, the car insurance price for new drivers will be unique to each individual. Insurance companies calculate premiums based on factors like the driver’s age, their location, the desired policies and coverage limits, the make and model of the vehicle and the annual mileage.
In addition, you can often get cheap car insurance for first time drivers by taking advantage of discounts. For example, many insurers offer special discounts to students who get good grades in school or new drivers that completed a driver’s education course. Parents may also qualify for discounts for bundling policies, paying the premium in full, insuring two or more vehicles on the same policy and maintaining a clean claim history.
The best insurance for a new driver depends on many factors. There isn’t a single best car insurance company that is the best option for everyone. For example, some drivers want the cheapest rates they can find. Others are looking for certain coverage options or discounts. And for others, the best insurance companies for new drivers have the best customer service.
Find the best car insurance for new drivers by taking our five-question quick start quiz. Based on your responses, you’ll receive personalized rate estimates for the top-rated car insurance companies in your state. You can click “get a quote” to see how much you’ll pay for the type and amount of coverage you want.
For a deeper look into car insurance for teens, visit one of the guides below to see data, insights, and recommendations specific to the age you’re most interested in:
New drivers are required to have car insurance before they can legally drive. However, they aren’t required to have their own car insurance policy. In most cases, young adults who receive a learner’s permit are insured on their parent’s policy until they get a car of their own.
First time drivers are required to carry a minimum amount of car insurance, based on the laws in their state. In most states, all drivers (regardless of age) must carry personal liability insurance, with minimum coverage limits per person and per accident. Here’s what personal liability insurance covers:
The most important thing to know about liability insurance is that it does not provide any protection for you or your vehicle. As a result, most first time drivers can benefit from additional coverage. Here are some coverage options that can be beneficial to new drivers:
Whether you’re a brand new 16-year-old driver or in your 20s looking for cheap car insurance for young adults, you have options. Here are a few steps you can take to get the best car insurance rates.
To find affordable car insurance regardless of your driving history, shop around and compare rates from top auto insurance companies. There can be a big difference in rates from one company to the next, so it’s important to compare your options from three to five companies.
Start today by finding the top insurance providers for your driver profile with Rate Retriever.
Some auto insurance companies offer discounts to help lower the cost of car insurance for new drivers, such as completing a Driver’s Education course or a Defensive Driving course.
Each state has auto insurance requirements for the type and amount of insurance every driver must carry to operate a vehicle legally. However, you may find that you want more coverage than your state’s minimum requirements. It’s most important that you feel safe and confident on the road, and your policy meets your unique needs.
Your deductible is the amount you agree to pay out-of-pocket for accident damages before your insurance covers the rest. If you raise your deductible, you will typically pay less annually for your premium. However, you should only raise your deductible if you can afford to pay the higher deductible out-of-pocket in case of an accident.
Drivers who have a learner’s permit are not legally required to have their own car insurance policy. In fact, it’s difficult to get a car insurance policy without a driver’s license. However, first time drivers must learn to drive on a car that is insured. So, if a new driver is learning to drive in their parent’s vehicle, their parent must have an active car insurance policy.
From a legal perspective, you can get car insurance with a learner’s permit. There’s no law that prohibits car insurance companies from issuing policies to drivers without a license. However, getting good insurance for new drivers with only a permit can be challenging and is often expensive. In addition, not every car insurance company will cover a driver that only has a learner’s permit, regardless of their age.
After your child gets their learner’s permit, it’s a good idea to add them to your car insurance policy, especially if they are going to be driving your vehicle. To add a first time driver, contact your insurance company and let them know that your child will be learning to drive with your car.
Depending on your car insurance company, you might not have to formally add the new driver as an operator until they have their license. However, the insurance company will still want to know if a new driver is learning to drive on a vehicle they are insuring.
Getting car insurance for new drivers over 21 starts with comparing quotes from top providers and selecting a policy that fits your needs and budget. Some providers also offer discounts for new drivers to lower the cost of car insurance.
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Rate Retriever rates are based on public rate filings obtained by analytics company First Interpreter. This data comes from the rating plans insurance carriers submit to each state’s department of insurance. Rating plans detail how each carrier calculates premiums using factors such as location, age, gender, and driving record, and they ensure that insurance premiums are both fair and competitive.
For the data on this page, we made the following assumptions: a single male with a clean driving record and Good credit score, driving a 2023 RAV4. We adjusted this profile by age to determine the rates you see on this page.
These rates are not actual quotes and should be used only for comparative purposes. Your rates can vary significantly based on your unique driver profile.
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