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How Much Does Car Insurance Cost For New Drivers?

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Younger drivers are more likely to be in an accident, which also raises car insurance rates. New drivers can pay as much as $3,000 per year or more for car insurance depending on the company.

This article provides will give an overview of what new drivers can expect when paying for car insurance, who qualifies as a new driver, and what factors shape the price of an insurance policy.

TABLE OF CONTENTSSHOW

Who Is A New Driver?

Each state establishes its own minimum vehicle insurance requirements, and new driver’s car insurance will be similar to those of any other driver. While a lack of driving experience has no bearing on the amount of insurance you require, it does affect the cost. 

Here are a few people that could be classified as new drivers: 

  • Drivers under the age of 18 
  • Individuals who are over the age of 65 and do not have a driving record 
  • Immigrants to the United States 

There is no such thing as a new driver’s auto insurance coverage. You’ll be forced to get at least the state’s minimum necessary coverage, which usually covers bodily injury and property damage liability vehicle insurance. Uninsured/underinsured motorist coverage and personal injury protection are also required in several areas.

What Factors Influence The Cost of Car Insurance? 

When determining coverage estimates, car insurance companies consider a variety of factors. Some are related to the auto policy itself, while others are based on a driver’s demographics and driving history. Insurers place a high value on age and driving experience because they are key indicators of a driver’s likelihood of being involved in an accident. 

Here are some of the key elements that influence vehicle insurance quotes:

  • Age
  • Gender
  • Marital status
  • Location
  • Vehicle make, model and mileage 
  • Credit score
  • Driving history  
  • Coverage limits

How Much Does Insurance Cost For A New Driver?

Minimum-coverage insurance costs $1,582 per year for new drivers, on average, while a full-coverage policy costs $3,867 per year. Young drivers may be able to save money by sharing a policy with parents or older family members.

Teenagers aren’t the only ones who are learning to drive. A person of any age who has lived in a big city and relied heavily on public transit or who hasn’t been able to afford a car could be labeled a new driver. 

As previously said, the vehicle you choose, as well as your age, location, and credit score, will all influence the cost of a new driver’s auto insurance. Even if you have no driving experience, if you’re over 25, you may be eligible for lower rates than a minor driver.

If you reside in an area with public transportation or don’t plan on driving much, you can resort to usage-based insurance. This sort of coverage, sometimes known as pay-per-mile insurance, tracks driving habits and mileage to determine prices. By connecting a monthly fee to the actual time on the road and excellent driving behaviors, usage-based insurance policies frequently end up costing customers less than standard auto insurance, according to the National Association of Insurance Commissioners.

What Do You Need To Get Car Insurance?

To get car insurance, you’ll need to provide the following details: 

  • Enter your personal information (complete name, age, address, and license number)
  • Vehicle information (make, model, VIN number, date of purchase, and mileage)
  • Driver’s license
  • Social security number
  • Payment information (usually bank account or credit card).

How Does Experience Affect Cost Of Car Insurance?

When determining prices, auto insurance companies take into account a variety of factors, including driving experience. People with little to no driving experience are more difficult to insure, so they’ll have to pay higher premiums in their first few years behind the wheel. Your insurance prices will begin to decrease as you spend more time behind the wheel.

Here’s an outline of annual average premium and proportional percentage increases to expect;

Years LicensedAverage Annual PremiumPercentage Increase
0$1,10543%
1$88415%
2$85511%
3$8328%
4$8277%
5$7720%

How Does Age Affect Car Insurance Rates For New Drivers?

One of the most important elements influencing new-driver rates is age. Teenagers, who have a higher risk tolerance than middle-aged drivers, cause more accidents on average. Some people, though, start driving later in life. 

Even if you’re not a new driver, you’ll pay higher rates than other people your age. You will, however, observe a smaller growth than your younger peers.

AgeMinimum CoverageFull Coverage
16$3,097$7,229
17$3,021$7,079
18$3,107$7,450
21$1,747$4,351
25$1,198$2,984
35$1,016$2,577
45$1,007$2,495
55$946$2,310

Cost Of Car Insurance For New Drivers By Provider

The cost of new driver car insurance varies greatly depending on where you shop. Annual full coverage insurance costs for a 24-year-old with a good credit rating and driving record from several popular providers are listed in the table below.

Car Insurance CompanyAnnual Cost For 24years Old
USAA$1,422
Geico$1,627
State Farm$1,765
Progressive $2,029
Allstate$2,959

How To Save Money On Car Insurance For New Drivers

There is no one-size-fits-all solution for finding the best auto insurance rates, but there are a few things you can do to save money. If you’re looking for auto insurance for new drivers, we propose employing the tactics below.

1. Compare insurance companies 

You will not receive the same pricing from two insurance firms. Comparing vehicle insurance quotes will give you a good sense of what you can expect to pay when adding a new driver to an existing policy — or how much you may save by switching providers. 

When picking between two companies, comparisons such as our Allstate vs. State Farm or Progressive Vs State Farm reviews may be useful. These compare and contrast each company’s discount offers and customer reviews.

2. Scout for possible discounts

Several vehicle insurance companies provide discounts to new drivers and students, but there are other ways to save money. Check to see if your insurer gives a multi-policy discount if you bundle policies like homeowners insurance with your auto coverage.

Here are some common discounts offered by insurance providers:

  • Safe driver discount
  • Multi-policy discount 
  • Multi-vehicle discount
  • Military discount
  • New vehicle discount
  • Vehicle safety feature discount

3. Modify your coverage

If you want to save money and have a new driver on the road, you might be able to get a better rate by modifying your current auto coverage. When you choose a higher deductible, your overall rates will be lower, but you will pay more upfront if you submit an insurance claim. 

Another alternative is to cancel coverage that you don’t require. If one of your vehicles is older and you own it outright, you may be able to forego collision and comprehensive coverage. Remember that you’ll still have to pay for liability insurance if you opt to eliminate the rest of your full coverage policy.

4. Choose a less expensive vehicle

Select a vehicle with a reasonable price tag. 

Insurance prices are influenced by the value and other attributes of a driver’s car. Choosing a luxury vehicle, such as a Mercedes-Benz, for example, comes with an added cost: higher insurance prices. 

This is particularly true for inexperienced drivers. For an insurance company, a first-time driver in a brand new automobile or pickup truck is a significant red signal. 

A vehicle with a multitude of safety features, on the other hand, can save money. If these safety measures incorporate high-tech sensors or other specialist equipment, however, the insurance premium may increase. New drivers who want to save money should begin by driving an older vehicle.

FAQs On New Drivers Insurance

Is it cheaper for new drivers to get their insurance?

If at all possible, new drivers will discover lower rates by being added to someone else’s insurance. This is especially true for teenagers and young adults, who may be subjected to significantly higher prices when purchasing insurance on their own.

Why is car insurance so expensive for teenage boys?

The heightened level of driving inexperience amongst teenage boys is what increases the cost of insurance premiums.

How much is insurance for a first-time driver?

Minimum-coverage insurance costs $1,582 per year for first-time drivers, on average, while a full-coverage policy costs $3,867 per year.

How much does car insurance cost for a 16-year-old?

A full coverage policy for a 16-year-old girl costs $813 per month, and a 16-year-old boy can expect to pay $876 per month.

Conclusion

The cost of insurance for new drivers is more expensive to insure due to the lack of a driving record. Therefore, before choosing a vehicle insurance company, make sure you compare available options before reaching a consensus. 

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