Affordable Auto Insurance Quotes for New Drivers (2024)
Getting car insurance for new drivers is a fairly straightforward process. A newly licensed teen or adult driver or an individual who has never had a U.S. license before can easily shop for insurance online. Rates for new drivers tend to be quite high but steps can be taken to reduce your insurance payments. New drivers should compare quotes from multiple insurance companies, not buy an excessive amount of unnecessary coverage, and take advantage of every qualifying discount.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
UPDATED: May 21, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page 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: May 21, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Young or new inexperienced drivers tend to face higher rates than older drivers
- Most major insurance companies offer discounts aimed at teen drivers
- You can shop online to find cheaper insurance coverage
Car insurance for new drivers is relatively easy to obtain, but be aware that freshly licensed drivers, no matter their age, can expect to pay quite high insurance rates when they first purchase a policy. Insurance companies generally view more experienced drivers as less of a risk to insure because these drivers are usually more at ease behind the wheel and have had years of practice when it comes to avoiding accidents and staying safe on the road.
Insuring a new driver who still has not had much of a chance to prove their ability to follow traffic laws and learn how to reduce the chances of getting into an accident is a much more risky affair. Now it needs to be stated that new drivers can still find great coverage and decent rates. You just need to know where to look.
Keep reading to learn where you can get cheap car insurance for new drivers and discover the best insurance companies for young drivers.
If you are looking for car insurance for new drivers, you can enter your ZIP code to get free insurance quotes and start comparing policies right away.
Who is considered a new driver?
Anyone who does not have a driving history in the United States is considered to be a new driver. This can include a teenager, high school and adult who waited to get their license, or drivers who have never had a U.S. license even if they were licensed in their country of origin.
Read more: Affordable Auto Insurance Quotes for High School Students
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How can a new driver get an auto insurance policy?
If you passed your driver’s test and have obtained a shiny, new driver’s license — congratulations, the hard part is over. All you need to do next to get out on the road is to obtain an insurance policy. New driver insurance is available through almost every one of the best auto insurance companies, but when you begin shopping online, you will need to share the following information on your quotes:
- Your date of birth
- The age you got your license
- Your car’s make and model
- The amount of coverage you want
- Your driver’s license number
- Your full name
- Your address
- Your occupation
Now, how do insurers calculate your car insurance rate?
Well, all of the above and then some. Insurance companies use information captured on quotes to learn more about you as a driver in order to appropriately assign you a risk level and a rate to match.
Your risk level is determined through a number of factors. For example, if you live in a bustling city that has a high rate of car theft and accidents, you could pay more for your insurance than a driver who lives out in the countryside. Even your credit score plays a role in the calculation of your rates. If you have poor credit, an insurance company may assume that you would have a habit of missing payments on your policy and raise your rates because of it. Learn more about your credit score and auto insurance quotes here.
Now, you must be aware that even if you live in an area with very little traffic and have excellent credit, car insurance for first-time drivers can be quite expensive.
How much is auto insurance for a new driver?
You already know that there is a difference between the rates of a new and experienced driver, but just how important is driving experience for insurance rates? As it turns out, very important. If you were to get your license when you turned 16 years old, you can see just how much more you could pay rather than someone in their 60s who would have been driving for years:
Average Annual Liability Auto Insurance Rates by Age| Driver Age Groups | Average Annual Liability Rates |
|---|---|
| 16-19 years old | $2,999.00 |
| 20-24 years old | $2,040.00 |
| 25-29 years old | $1,707.00 |
| 30-34 years old | $1,591.00 |
| 35-39 years old | $1,610.00 |
| 40-44 years old | $1,603.00 |
| 45-49 years old | $1,478.00 |
| 50-54 years old | $1,284.00 |
| 55-59 years old | $1,214.00 |
| 60-64 years old | $1,169.00 |
| 65-69 years old | $1,244.00 |
| 70-74 years old | $1,187.00 |
| 75 years old and up | $1,203.00 |
Now, it is not just auto insurance for teenagers that can be expensive. If you had previously been living in an area that had a lot of public transit, you may have never needed car insurance. This inexperience behind the wheel could force you to pay close to the same rates a teenager is typically offered if you were to get your license and purchase a policy for the first time.
How to Find Cheap Insurance for New Drivers
If you have succeeded in passing your driver’s test, just gotten your license, and are concerned that your insurance rates may be too expensive, there are steps you can take to try and lower your auto insurance rates.
When you start your search for the best insurance policy for you, be sure to collect at least five insurance quotes from different insurance companies. Doing so will enable you to compare the amounts of coverage available through each policy, and more importantly, discover which one can get you the most coverage at the lowest rate.
Now, you should also make sure that you are not buying too much coverage as that will result in an unnecessarily high monthly payment. How much insurance coverage do you need? In order to get an adequate amount of coverage, you will need to consider a few things. First, how much is your car worth? You will need to be sure that you have enough coverage to replace it if you suffered a total loss.
Here is a good tip for shopping for insurance if you drive an older car: If you own a vehicle that is more than 10 years old, you may not need to purchase full coverage car insurance. For a car that old, it is typically advisable to only purchase liability auto insurance, unless it is a high-quality vintage car.
Another strategy you can employ in order to reduce your rates is to raise your auto insurance deductibles. Raising your deductibles can actually lower your insurance rates, although you should avoid raising your deductibles to an amount that you can not afford. If you need to file a comprehensive or collision coverage insurance claim, you will need to pay your deductible before you can access your insurance coverage.
How much liability insurance coverage does a new driver need?
It is vital to remember that even if your rates are high, you should never skimp on your liability coverage. This coverage protects you from being sued if you were to damage another driver’s car or hurt someone in an accident. It is a good rule of thumb to set your liability limits at 100/300/100.
The Best Auto Insurance for New Drivers Younger than 25
If you are a new driver who is still in high school, the best auto insurance for high school students will be one that not only offers great coverage, but excellent auto insurance discount opportunities as well. Below you can see which insurance companies offer discounts for young drivers and how much each discount could help you potentially save on your insurance rates:
Auto Insurance Discounts Tailored for Teen Drivers by Provider| Insurance Company | Defensive Driver Discount | Driver’s Ed Discount | Good Student Discount | Newly Licensed Discount | On-Time Payment Discount | Safe Driver Discount | Seat Belt Use Discount | Young Driver Discount |
|---|---|---|---|---|---|---|---|---|
| 21st Century | 5% | 5% | 10% | NA | NA | 15% | NA | 15% |
| AAA | 5% | 5% | 10% | NA | NA | 15% | NA | NA |
| Allstate | 10% | 10% | 20% | NA | 5% | 45% | NA | NA |
| American Family | 10% | 5% | 15% | NA | NA | 20% | NA | NA |
| Ameriprise | 5% | NA | 10% | NA | NA | 15% | NA | NA |
| Amica | 5% | 5% | 10% | NA | NA | 15% | NA | NA |
| Country Financial | 5% | 10% | 25% | NA | NA | NA | NA | 10% |
| Esurance | 10% | 5% | 10% | NA | NA | 40% | NA | NA |
| Farmers | 5% | 5% | 10% | NA | NA | 20% | NA | NA |
| Geico | 5% | 5% | 15% | NA | NA | 15% | 15% | NA |
| Liberty Mutual | 10% | 10% | 23% | 5% | NA | NA | NA | 15% |
| MetLife | 7% | 10% | 15% | NA | NA | 12% | NA | NA |
| Nationwide | 5% | NA | 10% | NA | NA | 35% | NA | NA |
| Progressive | 10% | 10% | 10% | NA | NA | 31% | NA | 20% |
| Safe Auto | 10% | 10% | 10% | NA | 5% | 10% | NA | NA |
| Safeco | 5% | 5% | 15% | NA | NA | 20% | NA | 10% |
| State Farm | 5% | 15% | 25% | NA | NA | 15% | NA | NA |
| The General | 8% | 8% | 8% | NA | NA | 15% | NA | NA |
| The Hanover | 5% | 5% | 5% | NA | NA | NA | NA | NA |
| The Hartford | 10% | 3% | 3% | NA | 5% | 20% | NA | NA |
| Travelers | 10% | 8% | 8% | NA | 15% | 23% | NA | NA |
| USAA | 3% | 3% | 3% | NA | NA | 12% | NA | 75% |
Taking advantage of insurance company discounts is also a smart strategy that older drivers who just procured their license can utilize as well. If you are not older than 25 years old, you may have a high chance of finding an insurance company that offers discounts like a multi-policy discount, a VIN-etching discount, an anti-theft discount, and more.
What You Need to Know About Getting Auto Insurance for the First Time
There are quite a few factors that can influence your rates as a first-time driver like your age and length of time driving. If you have just gotten your license or have just obtained a United State driver’s license, you can expect to pay quite a lot for your first policy.
Now, you can reduce your rates by shopping around for insurance, purchasing no more coverage than you need, and taking defensive driving courses.
Enter your ZIP code to get free insurance quotes and discover the best car insurance for new drivers today.
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Frequently Asked Questions
Who is considered a new driver?
Anyone without a driving history in the United States, including teens, adults with new licenses, or those without a U.S. license.
How can a new driver get auto insurance?
Shop online, provide personal and vehicle information, and compare quotes from multiple insurance companies.
How much is auto insurance for new drivers?
Rates vary, but new drivers, especially teenagers, often face higher insurance costs due to factors like age and experience.
How to find cheap insurance for new drivers?
Compare quotes, avoid excessive coverage, consider the vehicle’s value, raise deductibles (if affordable), and maintain good credit.
What are the best insurance companies for new drivers under 25?
Look for insurance companies offering discounts for young drivers, such as multi-policy, VIN-etching, and anti-theft discounts.
Compare over 200 auto insurance companies at once!
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
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.