Auto Insurance for New Drivers (Tips to Save)

Auto insurance is expensive, especially for drivers with no experience. New drivers usually see much higher auto insurance rates than more experienced drivers. Those rates can be scary when you first see a new driver auto insurance quote.

However, there are some great ways to save on new driver insurance. Qualifying for discounts is a great way to lower rates on car insurance for beginners. We’ll cover that and more right here.

One of the best things you can do is to shop around and compare multiple companies. That way, you’ll find the best insurance for new drivers with great coverage.

Enter your ZIP code now to compare free auto insurance quotes for new drivers in your area.

What are the best auto insurance companies for new drivers?

Many factors affect your auto insurance rates, and your age and driving record are the biggest ones. Unfotrtunately, even the best car insurance for teens and other new drivers is still based on those factors. That means higher rates.

Auto insurance companies calculate your rates based on risk. New drivers are usually very young and have no driving history. Car insurance companies make up for for the lack of experience by charging much higher rates.

Auto insurance for teenagers has some of the highest rates, but companies have a good reason for charging more for teen car insurance. According to the Centers for Disease Control, teens are three times as likely to be in a fatal car accident.

This table shows you average rates from some of the top auto insurance companies. You can see just how much higher teenage car insurance is than coverage for older drivers.

Auto Insurance Monthly Rates Based on Age, Gender, & Marital Status

Although auto insurance rates are higher for new drivers, they can save money by taking advantage of discounts, choosing a cheaper vehicle, and shopping around.

The best auto insurance companies for new drivers that offer some of the cheapest insurance for young drivers are USAA, Geico, and Nationwide. However, the best young driver car insurance will vary by driver.

How can new drivers save on auto insurance?

When do auto insurance rates go down? Unfortunately, car insurance rates don’t go down until age 25. However, there are things you can do to get lower rates.

One of the best ways to get cheap car insurance for teens and other new drivers is to take advantage of discounts. Most companies offer a lot of different discounts.

This table shows you some of the most common discounts offered by the top auto insurance companies:

Car Insurance Discounts Offered by Top Companies

Discount Name
Adaptive Cruise Control	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Adaptive Headlights	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Anti-lock Brakes	10%	✓	✓	5%	5%	5%	✓	5%
Anti-Theft	10%	✓		23%	20%	25%	✓	15%
Claim Free	35%	✓	✓	26%	✓	10%	✓	15%	23%	12%
Continuous Coverage		✓	✓		✓	✓	✓	✓	15%	✓
Daytime Running Lights	2%		✓	3%	5%	5%	✓	✓
Defensive Driver	10%	10%	✓	✓	10%	5%	10%	5%	10%	3%
Distant Student	35%	✓	✓	✓	✓	10%	✓		7%
Driver's Ed	10%	✓	✓	✓	10%	✓	10%	15%	8%	3%
Driving Device/App	20%	40%	✓	✓	30%	40%	20%	50%	30%	5%
Early Signing	10%	✓	✓	✓	✓	8%	✓	✓	10%	12%
Electronic Stability Control	2%	✓	✓	✓	5%		✓	✓	✓	✓
Emergency Deployment	✓	✓	✓	25%	✓	✓		✓	✓	✓
Engaged Couple	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Family Legacy	✓	✓	✓	✓	✓	✓	✓	✓	✓	10%
Family Plan	✓	✓	✓	✓	✓	25%	✓	✓	✓	✓
Farm Vehicle	10%	✓	✓		✓	✓		✓	✓	✓
Fast 5	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Federal Employee	✓	✓		12%	10%	✓		✓	✓	✓
Forward Collision Warning	✓	✓	✓	✓	5%		✓	✓	✓	✓
Full Payment	10%	✓	✓		$50	✓	✓	✓	8%	✓
Further Education	✓	✓			10%	15%		✓		✓
Garaging/Storing	✓	✓	✓		✓	✓	✓	✓		90%
Good Credit			✓	✓	✓		✓		✓	✓
Good Student	20%	✓		15%	23%	10%	✓	25%	8%	3%
Green Vehicle	10%	✓	5%	✓	10%	✓	✓	✓	10%	✓
Homeowner	✓	✓	✓		✓	5%	✓	3%	5%	✓
Lane Departure Warning	✓	✓	✓	✓		✓	✓	✓	✓	✓
Life Insurance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Low Mileage		✓		✓			✓	30%
Loyalty	✓	✓	✓	✓	✓	5%	✓	✓	✓
Married	✓	✓	✓	✓			✓		✓
Membership/Group	✓	✓	✓		10%	7%		✓		✓
Military		✓	✓	15%	4%	✓			✓
Military Garaging	✓	✓	✓	✓	✓	✓	✓	✓	✓	15%
Multiple Drivers	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Multiple Policies	10%	29%	✓	10%	20%	10%	12%	17%	13%
Multiple Vehicles		✓	✓	25%	10%	20%	10%	20%	8%
New Address	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Customer/New Plan	✓	✓	✓	✓		✓	✓	✓	✓	✓
New Graduate	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Vehicle	30%	✓	✓	15%	✓			40%	10%	12%
Newly Licensed	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Newlyweds	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Non-Smoker/Non-Drinker	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occasional Operator	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occupation		✓			10%	15%	✓	✓		✓
On-Time Payments	5%	✓		✓	✓	✓	✓	✓	15%	✓
Online Shopper	✓	✓	✓	✓	✓	✓	7%	✓	✓	✓
Paperless Documents	10%	✓		✓	✓	5%	$50	✓	✓	✓
Paperless/Auto Billing	5%	✓		✓	✓	$30	✓	$20	3%	3%
Passive Restraint	30%	30%		40%		20%	✓	40%
Recent Retirees	✓	✓	✓	✓	4%	✓	✓	✓	✓	✓
Renter	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Roadside Assistance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Safe Driver	45%	✓		15%	✓	35%	31%	15%	23%	12%
Seat Belt Use	✓	✓	✓	15%	✓	✓		✓	✓	✓
Senior Driver	10%	✓		✓	✓	✓	✓	✓	✓
Stable Residence	✓	✓	✓	✓	✓		✓	✓	✓	✓
Students & Alumni	✓	✓	✓		10%	7%		✓	✓	✓
Switching Provider	✓			✓	10%	✓		✓	✓	✓
Utility Vehicle	15%	✓	✓		✓	✓		✓	✓	✓
Vehicle Recovery	10%	✓	✓	15%	35%	25%	✓	5%
VIN Etching	✓	✓	✓	✓	5%		✓	✓
Volunteer	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Young Driver	✓	✓	✓	✓		✓	✓	✓	✓	$75

Another way to save on auto insurance for teens and other new drivers is to consider your vehicle. Expensive cars are more costly to repair or replace, leading to higher insurance rates.

Young drivers can also stay on their parent or guardian’s auto insurance policy to help keep rates low. Lowering deductibles and shopping around can also help you get cheaper auto insurance.

Getting multiple quotes on car insurance from multiple companies is the only way to avoid overpaying for car insurance.

Who do auto insurance companies consider a new driver?

Teen drivers aren’t the only ones considered new drivers. Any driver with little experience or driving history can be labeled as a new driver.

Drivers who are immigrants or foreign nationals are also considered new drivers since they don’t have a driving record in the U.S.

Anyone without a driving history in the U.S. can expect to pay new driver rates.

Case Studies: Saving on Auto Insurance for New Drivers

Case Study 1: Max’s Discount Bonanza

Max, a new driver aged 18, was determined to find affordable auto insurance rates. He diligently researched various insurance companies and discovered that many of them offer discounts for young drivers. By taking advantage of a good student discount and completing a defensive driving course, Max was able to reduce his insurance premium by 20%. Max saved over $1,000 annually on his car insurance.

Case Study 2: Sarah’s Family Advantage

Sarah, a 17-year-old new driver, found a smart way to save on auto insurance. She decided to stay on her parent’s insurance policy rather than getting her own. By doing so, Sarah benefited from her parent’s established driving history, which resulted in significantly lower insurance rates. This decision allowed Sarah to save approximately $600 per year compared to getting her own policy.

Case Study 3: Alex’s Safe Choice

Alex, an 19-year-old new driver, understood the impact of vehicle choice on insurance premiums. Instead of opting for a flashy sports car with high insurance rates, Alex selected a safe and reliable sedan. By choosing a vehicle with a good safety rating and fewer theft incidents, Alex qualified for lower insurance premiums. As a result, Alex saved approximately $800 per year on auto insurance compared to more expensive car models.

Case Study 4: Olivia’s Comparison Success

Olivia, a 20-year-old new driver, recognized the importance of shopping around for insurance quotes. She utilized online comparison tools to receive quotes from multiple insurance companies. Olivia discovered that rates can vary significantly between providers. By comparing quotes and selecting the most competitive offer, Olivia saved around $900 per year on her auto insurance.

Auto insurance for new drivers: What’s the bottom line?

Car insurance for new drivers can be expensive because they don’t have the driving experience needed to avoid accidents.

It’s possible to find cheap car insurance for new drivers, but it can take some searching. Discounts, type of vehicle, and staying on a parent or guardian’s auto insurance policy can all help you get the lowest rates out there.

Before you buy auto insurance for new drivers, shop around. Compare quotes for car insurance from multiple companies to find cheap insurance for teens and other new drivers.

Enter your ZIP code to compare auto insurance rates for new drivers for free near you.