How much is insurance for a new driver?
Car insurance for a new driver can vary widely depending on several individual factors and the type of vehicle to be insured. We’ll cover what you should do if you’re new to the world of insurance.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
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UPDATED: Jan 8, 2024
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one 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 life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Jan 8, 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 insurance decisions. Comparison shopping should be easy. We are not affiliated with any one 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
New Driver Car Insurance Summary Data
| New Driver Insurance Details | From the Experts |
|---|---|
| USAA and Geico typically offer the most affordable rates for new drivers | Quadrant Information Services |
| New drivers can pay up to 300% more for coverage than more experienced drivers | Quadrant Information Services |
| The leading cause of death for teenagers in the U.S. is motor vehicle crashes | Centers for Disease Control and Prevention |
Insurance Q&A: How much is car insurance for a new driver?
Auto insurance rates for a new driver can vary widely depending on several individual factors which include the type of vehicle to be insured, to the types of insurance you’re looking into. If you’re new to this country or have a newly licensed teen, you may be wondering how much the average car insurance rate is going to be for you.
Average car insurance costs for first-time drivers are going to be quite a bit higher than for drivers who have been on the road for a while. The reason being experienced drivers are less likely to get into an accident or cause any damage or injuries while on the road. Your auto insurance company is going to see you as a bit of a risk, and will want to charge you accordingly. A quick review of how car insurance rates are determined may help you understand the basics of how your car insurance rate is calculated.
But whether you’re a new or old driver, there are a few of the same factors which are taken into account when an insurer decides how much you should pay for coverage. In this article, we will explore and explain insurance topics like those factors and prepare you as best as possible to seek out the best auto insurance policy for you.
Looking to compare car insurance quotes for a new driver? Enter your ZIP code in our comparison tool to get great car insurance rates for a new driver now, and see how much new driver insurance costs.
How much is car insurance for new drivers?
Generally speaking, if you are new to the world of coverage, you can expect to pay more for coverage than someone who has had consistent, uninterrupted car insurance coverage. There are even discounts for drivers who have been consistently insured. Insurance prices for new drivers are generally higher than average. The answer to the question, “How much is insurance for new drivers?” goes a little bit beyond the fact that a person is a new driver. Plenty of other factors go into determining rates.
How are car insurance rates determined? Rates are based on the person (or persons) driving the car and the car itself. New drivers are usually more of a risk for an insurer because they have no previous driving history to judge you on. Insurers look at your driving history, specifically your motor vehicle record and C.L.U.E. report, to determine your rate.
You are automatically considered a higher risk if you don’t have a driving history for the insurer to review. It’s kind of like getting a mortgage with no credit; your rate will be higher — if you’re approved at all.
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How long are you considered a new driver?
Generally, people who have been driving less than three years are considered new drivers. However it’s up to each company to make that decision themselves, and so the cost of auto insurance can vary depending on what auto insurance providers you’re looking into. The bright side being, if you’re not happy with the prices you’re being given, you can always look elsewhere.
Additionally, there is often a surcharge for people with an ‘unverifiable driving history’. It can vary widely but may be in the 10-20% range. All other things being equal, you’ll likely pay more as a new driver. How much should car insurance cost for a new driver? There’s not one specific, easy answer to that question. Keep reading to learn more.
What is the cheapest car insurance for a new driver?
When looking for the cheapest car insurance for a new driver, you’ll need to shop around and find the best new driver coverage for your needs. As we’ll discuss later, there are a number of factors that can affect your rates, and how much those factors affect your rates varies from company to company.
To give you a baseline, we’ve collected first-time driver insurance average costs at age 17 compared to more experienced drivers at ages 25 and 35. Take a look to get an idea of the average cost of insurance for a new driver.
Average Annual Car Insurance Rates by Age
| Insurance Companies | Average Annual Rates for a Single 17-Year-Old Female | Average Annual Rates for a Single 17-Year-Old Male | Average Annual Rates for a Single 25-Year-Old Female | Average Annual Rates for a Single 25-Year-Old Male | Average Annual Rates for a Married 35-Year-Old Female | Average Annual Rates for a Married 35-Year-Old Male |
|---|---|---|---|---|---|---|
| USAA | $4,807.54 | $5,385.61 | $1,988.52 | $2,126.14 | $1,551.43 | $1,540.32 |
| Geico | $5,653.55 | $6,278.96 | $2,378.89 | $2,262.87 | $2,302.89 | $2,312.38 |
| Nationwide | $5,756.37 | $7,175.31 | $2,686.48 | $2,889.04 | $2,360.49 | $2,387.43 |
| State Farm | $5,953.88 | $7,324.34 | $2,335.96 | $2,554.56 | $2,081.72 | $2,081.72 |
| American Family | $5,996.50 | $8,130.50 | $2,288.65 | $2,694.72 | $2,202.70 | $2,224.31 |
| Farmers | $8,521.97 | $9,144.04 | $2,946.80 | $3,041.44 | $2,556.98 | $2,557.75 |
| Progressive | $8,689.95 | $9,625.49 | $2,697.73 | $2,758.66 | $2,296.90 | $2,175.27 |
| Allstate | $9,282.19 | $10,642.53 | $3,424.87 | $3,570.93 | $3,156.09 | $3,123.01 |
| Travelers | $9,307.32 | $12,850.91 | $2,325.25 | $2,491.21 | $2,178.66 | $2,199.51 |
| Liberty Mutual | $11,621.01 | $13,718.69 | $3,959.67 | $4,503.13 | $3,802.77 | $3,856.84 |
You can see that average insurance costs for new drivers are much higher than that of more experienced drivers.
If you’re looking for cheap car insurance for new drivers under 21, your best bet may be Geico or USAA, based on the data in the table.
Car insurance for new drivers over 21 will vary, but the same rate information suggests both USAA and Geico are good options. This also holds true when looking to insure drivers under the age of 25.
If you’re looking for coverage for new drivers over 25, you may want to consider USAA, American Family, or Geico, based on available rate data.
However, keep in mind that this data is not specifically focused on new drivers but, as we already noted, includes rates for more experienced drivers.
How do I find the best insurance for a new driver?
Once again, there’s not an easy, specific answer to this question. It’s a little more complicated than just looking at rates, which we did above. There are a lot of factors that affect coverage and rates for you specifically, which we’ll discuss later, but there are some actions you can take to save when looking for an affordable auto policy.
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Should you shop around for first time driver insurance rates?
As a new driver, it’s in your best interest to shop around extensively. There are companies that have more of a risk appetite for new drivers. Be sure to look at online quotes; you’ll be able to see the most competitive insurance rates for new drivers if you compare them. It’s the best way to end up with a first time drivers insurance cost for your auto coverage that you’ll be able to afford.
You may also want to stay away from insurance companies that spend hundreds of millions of dollars advertising their products on TV. Ultimately in cases like these, your dollars are spent on attracting new clients rather than providing less expensive coverage to existing clients. (For more information, read our “Which insurer spends the most on advertising?“).
Is it possible to get some kind of insurance discount?
With most things that a consumer can purchase, there is a variety of discounts one can find when getting auto insurance quotes, depending on what coverage options you’re looking into. You can also look for discounts you can take advantage of as a new driver. These can include:
New Driver Discounts Offered by Car Insurance Companies
| Insurance Companies | Distant Student | Driver's Ed | Further Education | Good Credit | Good Student | New Graduate | Newly Licensed | Students | Young Driver |
|---|---|---|---|---|---|---|---|---|---|
| 21st Century | x | x | Alumni | x | |||||
| AAA | x | x | x | ||||||
| Allstate | x | x | x | ||||||
| American Family | x | x | x | ||||||
| Ameriprise | x | x | x | x | |||||
| Amica | x | x | x | ||||||
| Country Financial | x | x | x | x | |||||
| Esurance | x | x | x | ||||||
| Farmers | x | x | x | x | |||||
| Geico | x | x | x | x | |||||
| Liberty Mutual | x | x | x | x | x | x | x | ||
| MetLife | x | x | x | ||||||
| Nationwide | x | x | x | x | x | ||||
| Progressive | x | x | x | x | x | x | |||
| Safe Auto | x | x | |||||||
| Safeco | x | x | x | x | x | x | |||
| State Farm | x | x | x | x | |||||
| The General | x | x | |||||||
| The Hanover | x | x | x | x | |||||
| The Hartford | x | x | x | ||||||
| Travelers | x | x | x | x | |||||
| USAA | x | x | x | x |
If you stay on your parent’s car insurance policy, you can get added discounts like multi-car or multi-policy discounts.
Speak to a licensed insurance agent to find out which discounts are available (what we’ve included in the table is not a complete list; not every discount is available in every state, etc.) and what you qualify for.
Factors That Affect First Time Driver Insurance Cost
Now let’s look at the factors that make up the rate you can expect to pay as a new driver. The possible combination of these factors is almost infinite, so we can’t give you an exact number, but we can tell you what insurers will be looking at.
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Why are you considered a new driver?
This is the first question we need to answer. Why are you new? If you’re newly licensed as a teenager, especially a male, you can expect to pay quite a bit for a new policy. Teen drivers are notoriously expensive to insure, and males are statistically shown to be riskier drivers.
Recall the table we looked at earlier that showed rate data for 17-year-old drivers compared to drivers at ages 25 and 35.
Average car insurance for a new driver rate for a 17-year-old male is generally 196% higher than a more experienced 25-year-old male driver, and rates for a 17-year-old female are about 103% higher than for 25-year-old female drivers.
The cost to insure a first time driver who is at least 25 years old is much less expensive, as a 25-year-old is considered to be a less risky driver than a teenager with the same level of experience. However, it will still be more than what it would cost if you had previous insurance history. Insurance claims can become expensive, and this is one way an insurer can turn a profit.
What kind of coverage do you plan to purchase?
There is a wide range of options out there so you need to figure out what particular type of coverage you want. Are you shopping for liability-only car insurance or full coverage, including comprehensive and collision? The type of coverage you’re looking into is going to affect what you pay.
As expected, the more additional coverages you ask for, the more expensive the policy. Take a look at this table to see average rates for various types of coverage to get an idea of costs.
Average Annual Car Insurance Rates by Coverage Type
| States | Average Annual Liability Insurance Rates | Average Annual Collision Insurance Rates | Average Annual Comprehensive Insurance Rates | Average Annual Full Coverage Insurance Rates |
|---|---|---|---|---|
| Alabama | $372.57 | $317.96 | $156.31 | $868.48 |
| Alaska | $547.34 | $350.81 | $137.26 | $1,027.75 |
| Arizona | $488.59 | $277.96 | $186.12 | $972.85 |
| Arkansas | $381.14 | $321.80 | $190.41 | $906.34 |
| California | $462.95 | $396.55 | $100.54 | $986.75 |
| Colorado | $477.10 | $287.00 | $174.61 | $981.64 |
| Connecticut | $633.95 | $368.51 | $131.62 | $1,151.07 |
| District of Columbia | $628.09 | $468.67 | $233.24 | $1,330.73 |
| Delaware | $776.50 | $318.77 | $122.49 | $1,240.57 |
| Florida | $845.05 | $331.83 | $159.18 | $1,048.40 |
| Georgia | $490.64 | $313.17 | $101.56 | $873.28 |
| Hawaii | $458.49 | $219.05 | $116.55 | $679.89 |
| Idaho | $337.17 | $309.71 | $128.13 | $884.56 |
| Illinois | $430.54 | $250.29 | $122.06 | $755.03 |
| Indiana | $372.44 | $219.75 | $183.53 | $702.46 |
| Iowa | $293.34 | $263.33 | $267.91 | $862.93 |
| Kansas | $342.33 | $267.91 | $141.39 | $938.51 |
| Kentucky | $518.91 | $414.36 | $215.17 | $1,405.36 |
| Louisiana | $727.15 | $259.98 | $104.98 | $703.82 |
| Maine | $333.92 | $353.99 | $152.72 | $1,116.45 |
| Maryland | $599.48 | $388.28 | $134.96 | $1,129.29 |
| Massachusetts | $587.75 | $413.83 | $154.85 | $1,364.00 |
| Michigan | $722.04 | $234.40 | $184.27 | $875.49 |
| Minnesota | $439.58 | $323.22 | $210.33 | $994.05 |
| Mississippi | $437.38 | $275.28 | $181.27 | $872.43 |
| Missouri | $399.41 | $265.32 | $211.91 | $863.52 |
| Montana | $387.77 | $237.13 | $229.25 | $831.02 |
| Nebraska | $349.07 | $303.86 | $117.63 | $1,103.05 |
| Nevada | $647.07 | $307.42 | $110.77 | $818.75 |
| New Hampshire | $393.24 | $381.86 | $131.35 | $1,382.79 |
| New Jersey | $865.55 | $276.98 | $172.57 | $937.59 |
| New Mexico | $462.21 | $385.02 | $171.12 | $1,360.66 |
| New York | $784.98 | $293.59 | $136.08 | $789.09 |
| North Carolina | $357.59 | $244.09 | $231.04 | $773.30 |
| North Dakota | $282.55 | $269.84 | $121.61 | $788.56 |
| Ohio | $376.16 | $318.47 | $225.84 | $1,005.32 |
| Oklahoma | $441.57 | $226.83 | $93.87 | $904.83 |
| Oregon | $553.43 | $327.24 | $144.21 | $970.51 |
| Pennsylvania | $495.02 | $411.51 | $132.19 | $1,303.50 |
| Rhode Island | $720.06 | $265.07 | $180.94 | $973.10 |
| South Carolina | $497.50 | $208.58 | $258.11 | $766.91 |
| South Dakota | $289.04 | $282.96 | $116.53 | $1,257.13 |
| Tennessee | $397.73 | $309.07 | $148.45 | $871.43 |
| Texas | $498.44 | $374.49 | $206.42 | $1,109.66 |
| Utah | $471.26 | $265.90 | $109.50 | $872.93 |
| Vermont | $340.98 | $295.42 | $125.48 | $764.02 |
| Virginia | $413.12 | $280.52 | $136.54 | $842.67 |
| Washington | $568.92 | $265.74 | $106.38 | $968.80 |
| West Virginia | $501.44 | $329.67 | $204.28 | $1,025.78 |
| Wisconsin | $359.84 | $226.00 | $136.81 | $737.18 |
| Wyoming | $323.38 | $278.83 | $247.57 | $847.44 |
The more coverage you have, the higher your insurance rates will be. However, the more coverage you have, the less you will have to pay out of pocket in the event of an accident.
What kind of vehicle do you drive?
What type of car are you insuring? Not surprisingly, depending on the car you have, you may end up having a coverage minimum set in place by your provider. For example, the cost to insure a 1990 Honda Civic will cost substantially less than coverage for a 2012 Ford Mustang GT convertible. We have a few examples of how what you drive can affect your rates in this table.
Average Annual Car Insurance Rates by Vehicle Type
| Insurance Companies | 2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6 | 2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT | 2015 Toyota RAV4: XLE | 2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6 | 2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT | 2018 Toyota RAV4: XLE |
|---|---|---|---|---|---|---|
| USAA | $2,551.56 | $2,409.67 | $2,454.58 | $2,855.69 | $2,422.66 | $2,529.63 |
| Geico | $3,092.11 | $3,092.58 | $3,090.89 | $3,338.40 | $3,338.87 | $3,337.18 |
| State Farm | $3,204.23 | $3,024.24 | $3,226.02 | $3,497.17 | $3,189.99 | $3,418.33 |
| American Family | $3,447.30 | $3,178.82 | $3,326.18 | $3,487.91 | $3,721.32 | $3,496.99 |
| Nationwide | $3,571.01 | $3,547.84 | $3,517.03 | $3,373.64 | $3,361.93 | $3,328.57 |
| Progressive | $3,914.05 | $4,429.56 | $3,647.22 | $3,962.58 | $4,528.90 | $3,730.78 |
| Farmers | $4,093.50 | $4,405.21 | $3,728.22 | $4,390.19 | $4,779.51 | $3,769.00 |
| Travelers | $4,023.47 | $4,420.37 | $4,383.78 | $4,412.42 | $4,661.22 | $4,708.19 |
| Allstate | $4,429.74 | $4,753.69 | $4,324.99 | $5,491.12 | $5,380.28 | $4,947.90 |
| Liberty Mutual | $5,830.16 | $5,869.32 | $5,825.33 | $5,988.85 | $6,682.63 | $6,244.44 |
The newer and more expensive your vehicle, the more money it’s going to take to insure it. Most new vehicles are suggested by providers to have both comprehensive coverage and collision coverage, though you can typically decline.
If you’re looking to lower your rates, you do not legally need to purchase full coverage unless you have a loan or lease on your new ride. Physical damage coverage is not mandatory by law, but your lender or leasing agency will certainly require this coverage. Remember, you don’t technically own the car until it’s paid off.
You’ll also want to look into whether or not your insurer has a minimum coverage policy; sometimes an insurer will have a bare minimum that a client needs to purchase. Just keep in mind that the lowest rates come with the lowest amount of coverage, and if your car is new, you may want to consider protecting it a bit more. If you’re looking for new driver car insurance rates, please keep this in mind as well, since new drivers often should have more than the minimum coverage.
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Does your credit score affect what you pay for auto insurance?
How is your credit? Nowadays, most insurers rely on your insurance score to determine how much to charge you. If you’re a new driver with a perfect credit history your rate can be as much as 35% less than a new driver with a less-than-perfect credit history.
For example, an 800 credit score ‘new driver’ will likely pay less than a 500 credit score seasoned driver with a speeding ticket, but not if the 800 credit score driver is a 19-year-old male (though it should be noted that in states like California and others, gender-based rates adjustments are prohibited).
Regardless, the better your credit score is, the better off you’ll be. According to Experian, the average American has a credit score of 703, which is good news for your insurance rates.
Take a look at this table to see average rates based on good, fair, and poor credit scores as a baseline (these rates include new and experienced drivers).
Average Annual Insurance Car Rates Based on Credit Score
| Insurance Companies | Average Insurance Rates with Good Credit | Average Insurance Rates with Fair | Average Insurance Drivers with Poor Credit |
|---|---|---|---|
| USAA | $1,821.20 | $2,219.83 | $3,690.73 |
| State Farm | $2,174.26 | $2,853.00 | $4,951.20 |
| Geico | $2,434.82 | $2,986.79 | $4,259.50 |
| American Family | $2,691.74 | $3,169.53 | $4,467.98 |
| Nationwide | $2,925.94 | $3,254.83 | $4,083.29 |
| Grand Total | $3,104.15 | $3,649.15 | $5,170.97 |
| Progressive | $3,628.85 | $3,956.31 | $4,737.64 |
| Farmers | $3,677.12 | $3,899.41 | $4,864.14 |
| Allstate | $3,859.66 | $4,581.16 | $6,490.65 |
| Travelers | $4,058.97 | $4,344.10 | $5,160.22 |
| Liberty Mutual | $4,388.18 | $5,604.24 | $8,802.22 |
Be sure to stay on top of your credit. It’s one of the few things you can control, even if you’ve never driven a car in your life.
What other factors affect your car insurance rates?
There are so many factors that affect your car insurance, whether you are a new driver or an older driver. As you continue your driving experience, keep these factors in mind:
- Your driving record affects your rates: If you rack up speeding tickets, accidents, or DUIs, your annual rate will skyrocket no matter where you look. In addition to fines, these tickets can stay on your driving record for three to five years, so you will be paying for these mistakes for a long time. Avoiding traffic tickets and having a clean record can save you thousands of dollars.
- The cost of car insurance in your state and ZIP affect your rates: Car insurance is partially based on where you live. Just moving across town can drastically influence your rates. For example, if you live in an area with a high theft rate, your car insurance will increase to offset those costs. The same is true if you live in an area with a lot of traffic that can lead to an increase in accidents.
What’s the bottom line when it comes to new drivers?
New drivers pay more for coverage because they have less experience and driving history than more seasoned drivers. The less driving history you have, the higher your rates will be. Additionally, the younger you are, the more you’ll likely pay. However you still want to play it safe. Don’t just look at the cheapest companies – compare prices across the board in order to find coverage and annual premiums that would fit into your budget.
Ready to buy car insurance for a new driver? Enter your ZIP code to get free car insurance quotes for new drivers so you can start your car insurance comparison today.
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Frequently Asked Questions: Cost of Car Insurance for a New Driver
Do you still have questions about the cost of car insurance for new drivers? Read through these frequently asked questions to learn more.
#1 – What is the best car insurance for teenage drivers?
As you saw in the data we looked at earlier, USAA and Geico offer the most affordable car insurance rates for teenage drivers.
Regardless of who you purchase insurance from, car insurance for high school students (and teenagers as a whole) will likely be high, due to age, but shopping around and finding available discounts may help offset the cost. Speak to your insurance agent to learn more.
#2 – How can I save money as a new driver?
The number-one way to save money on your rates is by shopping around and comparing rates. As we’ve already discussed, you should also look for discounts, and make sure you drive safely. Follow all posted traffic laws, manage your credit, drive an affordable vehicle, and for comparative purposes look into various providers instead of just one.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.