Affordable Auto Insurance Quotes for New Drivers (2024)

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, an 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.

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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:

16-Year-Old Auto Insurance Discounts Offered by Company

Companies	Defensive Driver Discount Offered	Driver's Ed Discount Offered	Good Student Discount Offered	Newly Licensed Discount Offered	On Time Payments Discount Offered	Safe Driver Discount Offered	Seat Belt Use Discount Offered	Young Driver Discount Offered
21st Century	Yes- 5%	Yes	Yes	No	No	Yes	No	Yes
AAA	Yes	Yes	Yes	No	No	Yes	No	No
Allstate	Yes - 10%	Yes - 10%	Yes - 20%	No	Yes - 5%	Yes - 45%	No	No
American Family	Yes - 10%	Yes	Yes	No	No	Yes	No	No
Ameriprise	Yes	No	Yes	No	No	Yes	No	No
Amica	Yes - 5%	Yes - 5%	Yes - 10%	No	No	Yes	No	No
Country Financial	Yes - 5%	Yes - 10%	Yes - 25%	No	No	No	No	Yes - 10%
Esurance	Yes - 10%	Yes	Yes - 10%	No	No	Yes - 40%	No	No
Farmers	Yes	Yes	Yes	No	No	Yes	No	No
Geico	Yes	Yes	Yes - 15%	No	No	Yes - 15%	Yes - 15%	No
Liberty Mutual	Yes - 10%	Yes - 10%	Yes - 23%	Yes - 5%	No	No	No	Yes
MetLife	Yes - 7%	Yes - 10%	Yes - 15%	No	No	Yes - 12%	No	No
Nationwide	Yes - 5%	No	Yes - 10%	No	No	Yes - 35%	No	No
Progressive	Yes - 10%	Yes - 10%	Yes	No	No	Yes - 31%	No	Yes
Safe Auto	Yes - 10%	Yes - 10%	Yes - 10%	No	Yes	Yes - 10%	No	No
Safeco	Yes - 5%	Yes - 5%	Yes - 15%	No	No	Yes - 20%	No	Yes
State Farm	Yes - 5%	Yes - 15%	Yes - 25%	No	No	Yes - 15%	No	No
The General	Yes - 8%	Yes - 8%	Yes - 8%	No	No	Yes	No	No
The Hanover	Yes - 5%	Yes - 5%	Yes - 5%	No	No	No	No	No
The Hartford	Yes - 10%	Yes - 3%	Yes - 3%	No	Yes	Yes	No	No
Travelers	Yes - 10%	Yes - 8%	Yes - 8%	No	Yes - 15%	Yes - 23%	No	No
USAA	Yes - 3%	Yes - 3%	Yes - 3%	No	No	Yes - 12%	No	Yes - 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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