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Cheap car insurance for new drivers

  • Average cost to add a new driver to car insurance: $2,500
  • Cheapest cars to insure for new drivers: Subaru
  • Comparing quotes is the best way to find the cheapest insurance

Teenager car insurance rates

Why you can trust Rate Retriever

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. 

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. 

Picture of Written by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Written by Alyssa DiCrasto
Picture of Edited by <a href="https://rateretriever.com/about/rob-deming/"><span style="text-decoration: underline;">Rob Deming</span></a>
Edited by Rob Deming

Last updated: July 18th, 2024

Picture of Written by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Written by Alyssa DiCrasto
Picture of Edited by <a href="https://rateretriever.com/about/rob-deming/"><span style="text-decoration: underline;">Rob Deming</span></a>
Edited by Rob Deming

Last updated: July 18th, 2024

What's on this page?

Understanding car insurance for new drivers

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.

The cost of car insurance for new drivers:

$5k-$7k

average annual premium

150% more

than an experienced driver

$2,500/yr

when added to a parent’s policy

Why does this matter?
  • Knowing the average cost of car insurance for new drivers helps you benchmark your rate. If your rate is significantly higher, it might be time to shop around.

Best car insurance for new drivers

Finding the best car insurance for new drivers involves looking at several important factors, including cost, coverage, and customer service. Since new drivers are often seen as high-risk, their insurance can be more expensive, but you can still find good deals by comparing quotes.

When choosing a policy, consider: 

  • Policy coverage: For new drivers, full coverage is often recommended. Full coverage includes liability insurance, collision, and comprehensive coverage.
  • Additional coverage options: Consider extras like roadside assistance, rental car coverage, and accident forgiveness.
  • Customer satisfaction: Reviews and ratings can help you assess the company’s service quality.

Average rates for new drivers by company

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. 

We use these limits for a full coverage policy: 

  • $100k/$300k/100k for liability insurance 
  • $500k deductible for comprehensive and collision insurance 

Benefits of full coverage

  • More Protection: Covers a wide range of incidents, from accidents to theft. 
  • Peace of Mind: You’ll feel more secure knowing you’re covered in many situations. 
  • Financial Security: Helps you avoid big out-of-pocket expenses for repairs or replacement. 
  • Required for Loans/Leases: Often needed if you finance or lease your car.

The average cost of car insurance for new drivers

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. Additionally, car insurance companies consider you to be less risky if you’ve had car insurance before, which new drivers have not.

Your age will play a part in how much you pay for first time car insurance. Teenagers will pay the most, but new driver insurance for people over the age of 25 is still more expensive than insurance for someone over 25 who has had their policy for a number of years. 

How to save money on car insurance as a new driver?
  • It’s almost always cheaper for new drivers to be added to an existing car insurance policy instead of buying their own. If you still live with your parents or can be added to a spouse or roommate’s policy, that may be the cheapest option for you until you have more driving history.

Average rates for new teen drivers by state

Below are the rates in each state for a 17-year-old new driver with their own car insurance policy.

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. 

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:

Cost of adding a new driver to an exisiting policy

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. 

How adding a teenager affects your rates 2 infographic_Teens - New Drivers - How adding a teenager affects your rate

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.

Why does car insurance cost so much for new drivers?
  • Insurance companies see new drivers as high-risk due to their lack of experience. This leads to higher premiums, but rates generally decrease as drivers gain more experience and maintain a clean driving record.

Cheapest car insurance for new drivers

Although new drivers are considered high-risk, you can still find affordable car insurance by comparing quotes and utilizing discounts.

Start with Companies Known for Lower Rates:

  • Auto-Owners 
  • Nationwide 
  • Progressive 
  • Geico
  • State Farm

If you or a family member has served or is active duty military, you may qualify for USAA, which is the cheapest national insurance company on average for new drivers.

Consider staying on a Parent’s Policy

Being added to an existing policy is almost always cheaper than getting your own car insurance as a new driver. If possible, get your parent to add you to their car insurance policy.

Look for Local Companies

You may find that you can get a better rate at a local or regional car insurance company than at a national company. Be sure to keep your options open as you search for the best price for you, and compare quotes for the same amount of coverage at both local and nation companies.

Cheap car insurance for first time drivers

What are the different types of car insurance for first time drivers?

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:

  • Bodily injury liability: If you cause an accident, your bodily injury liability policy will compensate the other driver for their medical bills and lost wages if they get injured.
  • Property damage liability: If you hit another driver and their vehicle gets damaged, property damage liability insurance helps pay for their car’s repairs. It may also cover the cost of repairing private property, like a fence or mailbox, if you cause an accident.

Additional coverage options

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:

  • Collision insurance: Helps cover repairs to your own vehicle after an accident you cause, up to the actual cash value (ACV) of your car, minus your deductible.
  • Comprehensive insurance: Pays for your vehicle’s repairs after a non-collision incident like theft, vandalism, weather damage or flood damage. Often, comprehensive insurance policies pay out based on the ACV of your car, less a deductible.
  • New car replacement coverage: If your car gets totaled, this policy compensates you for the cost of a new vehicle of a similar make and model to your old car.
  • Gap insurance: If your car is leased or financed and the vehicle gets totaled before it’s paid off, gap insurance covers the difference between the car’s diminished value and the remaining balance.
  • Roadside assistance: Covers the cost of basic roadside repairs, such as a new battery, towing up to a certain mileage and flat tire changes. It will also cover fuel delivery if you run out of gas.

Factors that impact car insurance cost for new drivers

There are many factors that will impact the price you’ll pay for car insurance beyond your age or location. Here are some of the most common: 

Gender

In most states, your gender can play a role in how much your car insurance costs. The impact that your gender will play in your car insurance rates is generally minimal, especially as you get older. However on average, car insurance for males in their 20s is typically more expensive than car insurance for females.  

Credit

Your credit score can be used as a rating factor in all states except CA, HI, and MA. People with poor credit generally pay more for car insurance than people with good credit, and people with excellent credit pay the least of all.

Why does this matter?
  • Increasing your credit score is one way to get cheaper car insurance rates, even for new drivers.

Vehicle

The vehicle you drive will also impact the price you pay for car insurance, especially for new drivers. Basically, the more expensive your vehicle is to repair or replace or the more likely it is to get in an accident, the more your insurance will have to pay out if you make a claim. 

If you’re driving a newer vehicle, a luxury vehicle, or one with additional features or enhancements, you can expect your insurance to be more expensive than if you’re driving an older model with a basic trim level. Additionally, fast cars or ones with higher rates of accidents will usually have higher insurance premiums. 

Check out this resource for the cheapest cars for new drivers >

Unique factors that contribute to cost for new drivers

Additional factors contribute to the higher cost of car insurance for young or new drivers. 

Being a student may qualify you for certain discounts, like Good Student or Student Away from Home discounts.

If you live at home or with roommates, your car insurance needs may be different. If you live with your parent's you can be added to their car insurance policy for a lower rate than being on your own. If you live with roommates who occasionally drive your car, you  may need to add them to your policy. Talk to an insurance agent to see how your unique living situation will impact your insurance needs.

Completing a driver’s education or defensive driving course can help lower your rates.

How to get affordable car insurance for 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:

1. Shop around and compare 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.

2. Ask about driver discounts

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. 

3. Only purchase the coverage you need

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. 

4. Raise your deductible

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. 

Car insurance FAQs for new drivers

How to get car insurance for a new driver over 21 years old?

To get car insurance for a new driver over 21 years old, you can start by comparing quotes from different insurance companies. You will need to provide personal information, like your age, driving history, and the type of car you drive. It’s important to shop around for the best coverage and rates that fit your needs and budget. Finally, choose a policy that meets your state’s requirements and offers adequate protection for you and your vehicle. You may find that your insurance premiums are higher, as insurance companies tend to charge more for people without a history of being insured. In this case, your rates should go down each year as you maintain a clean driving record and insurance history.

How does car insurance work for new drivers?

Car insurance works for new drivers by providing coverage in case of accidents or damages to their car. New drivers usually pay higher rates because they are considered higher risk due to their lack of driving experience. Insurance companies evaluate factors such as age, gender, and location to determine rates. New drivers can lower their premiums by completing driving courses, maintaining a clean driving record, and choosing a higher deductible. It is important for new drivers to shop around and compare quotes from different insurance companies to find the best coverage that fits their needs and budget.

What factors affect the cost of car insurance for new drivers?

The factors that affect the cost of car insurance for new drivers include age, driving record, type of car, location, and level of coverage. Younger drivers typically have higher insurance premiums due to their lack of experience on the road. A clean driving record can lead to lower rates, while accidents or tickets can cause them to increase. The type of car being insured, where it’s located, and the amount of coverage also play a role in determining the cost. Shopping around and comparing quotes from different insurance companies can help new drivers find the best rates.

Can I get car insurance as a new driver if I don’t own a car?

Yes, you can get car insurance as a new driver even if you don’t own a car. This type of insurance is called non-owners car insurance and it provides coverage when you drive someone else’s car. It’s a good option for new drivers who may occasionally borrow or rent a car. Non-owners car insurance typically offers liability coverage, which pays for damages you cause to another person or their property while driving. Be sure to check with insurance providers to see if they offer this type of coverage.

Are there any specific types of coverage that are essential for new drivers?

Yes, there are specific types of coverage that are essential for new drivers. Liability insurance is required by law in most states and helps cover costs if you’re at fault in an accident. Collision coverage pays for damage to your car in a crash, while comprehensive coverage helps with damage from things like theft or weather. Additionally, uninsured motorist coverage can protect you if someone without insurance hits you. It’s important for new drivers to have these types of coverage to stay protected on the road.

Can I stay on my parents’ car insurance policy as a new driver?

Yes, as a new driver that lives at home, you can usually stay on your parents’ car insurance policy. This can help save money because insurance companies often give discounts to families with multiple drivers. However, it’s important to check with your parents’ insurance company to make sure they allow new drivers on their policy. They may require you to be a certain age or have a clean driving record. It’s also important to understand that adding a new driver to the policy may increase the cost, so make sure to discuss this with your parents before making any decisions.

How does my driving experience affect my car insurance rates as a new driver?

As a new driver, your driving experience can greatly impact your car insurance rates. Insurance companies consider how long you have been driving, any accidents or tickets you may have had, and how you drive in general. The more experience you have and the safer you drive, the lower your insurance rates may be. On the other hand, if you have a history of accidents or moving violations, your rates could be higher. It is important to drive safely and responsibly to not only protect yourself and others on the road, but also to potentially save money on your car insurance.

Are there any discounts available for new drivers to help lower insurance costs?

Yes, many insurance companies offer discounts for new drivers to help lower insurance costs. These discounts can include good student discounts, safe driver discounts, and discounts for completing driver’s education courses. New drivers may also be able to save money by bundling their auto insurance with other policies, such as home or renter’s insurance. It’s important to shop around and compare quotes from different insurance companies to find the best deal.

What should I do if I’m involved in a car accident as a new driver?

If you’re in a car accident as a new driver, the first thing to do is stay calm. Check if anyone is hurt and call 911 if needed. Exchange information with the other driver, like names, phone numbers, and insurance details. Take pictures of the scene and any damage to the cars. If you have a smartphone or camera, document as much as you can. Contact your insurance company to report the accident. It’s important to stay patient and cooperate with authorities to handle the situation responsibly.

Do I need to notify my insurance company if I get a speeding ticket or other traffic violation as a new driver?

Yes, as a new driver, you should notify your insurance company if you get a speeding ticket or any other traffic violation. Not telling them could lead to higher insurance rates or even having your policy canceled. It’s important to be honest with your insurance company to avoid any surprises down the road. It’s better to be safe than sorry and communicate any changes to ensure you are properly covered.

Methodology

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. 

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.  

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide.Â