Auto Insurance for New Drivers (Tips to Save)

Auto insurance for new drivers can be very expensive since they don't have the experience needed to avoid accidents. In fact, car insurance rates for new drivers can average $700 a month. Although auto insurance rates for new drivers are high, there are ways to save. Get cheaper new driver insurance by taking advantage of all discounts available, keeping a young driver on a parent or guardian's auto insurance, and choosing a safe vehicle.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Nov 17, 2021

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Overview

  • USAA, GEICO, and Nationwide offer the cheapest auto insurance for teens
  • Auto insurance discounts are the best way for new drivers to save money
  • New drivers are often either young or recent immigrants

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.

Average Annual Auto Insurance Rates Based on Age, Marital Status, and Gender
CompanyAverage Annual Rates Single 17-Year-Old FemaleAverage Annual Rates Single 17-Year-Old MaleAverage Annual Rates Single 25-Year-Old FemaleAverage Annual Rates Single 25-Year-Old MaleAverage Annual Rates Married 35-Year-Old FemaleAverage Annual Rates Married 35-Year-Old MaleAverage Annual Rates Married 60-Year-Old FemaleAverage Annual Rates Married 60-Year-Old Male
Allstate$9,282.19$10,642.53$3,424.87$3,570.93$3,156.09$3,123.01$2,913.37$2,990.64
American Family$5,996.50$8,130.50$2,288.65$2,694.72$2,202.70$2,224.31$1,992.92$2,014.38
Farmers$8,521.97$9,144.04$2,946.80$3,041.44$2,556.98$2,557.75$2,336.80$2,448.39
GEICO$5,653.55$6,278.96$2,378.89$2,262.87$2,302.89$2,312.38$2,240.60$2,283.45
Liberty Mutual$11,621.01$13,718.69$3,959.67$4,503.13$3,802.77$3,856.84$3,445.00$3,680.53
Nationwide$5,756.37$7,175.31$2,686.48$2,889.04$2,360.49$2,387.43$2,130.26$2,214.62
Progressive$8,689.95$9,625.49$2,697.73$2,758.66$2,296.90$2,175.27$1,991.49$2,048.63
State Farm$5,953.88$7,324.34$2,335.96$2,554.56$2,081.72$2,081.72$1,873.89$1,873.89
Travelers$9,307.32$12,850.91$2,325.25$2,491.21$2,178.66$2,199.51$2,051.98$2,074.41
USAA$4,807.54$5,385.61$1,988.52$2,126.14$1,551.43$1,540.32$1,449.85$1,448.98
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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.

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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:

Auto Insurance Discounts from Top Companies
Auto Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5N/AN/AN/A
Adaptive HeadlightsN/AN/AN/A5N/AN/AN/A
Anti-lock Brakes5555
Anti-Theft25202515
Claim Free2610152312
Continuous CoverageN/AN/AN/A15N/A
Daytime Running Lights155N/A
Defensive Driver105105103
Distant StudentN/A107
Driver's Ed10N/A101583
Driving Device/AppN/A30402050305
Early SigningN/A8N/A1012
Electronic Stability ControlN/A5N/AN/AN/A
Emergency DeploymentN/AN/AN/A25N/AN/AN/AN/AN/AN/A
Engaged CoupleN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Family LegacyN/AN/AN/AN/AN/AN/A10
Family PlanN/AN/AN/A25N/AN/AN/AN/A
Farm VehicleN/AN/AN/AN/AN/AN/AN/A
Fast 5N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/A810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5N/AN/AN/A
Full PaymentN/A$5N/AN/A7.5N/A
Further EducationN/AN/AN/A1015N/AN/AN/A
Garaging/StoringN/AN/AN/AN/AN/AN/AN/A90
Good CreditN/AN/AN/AN/AN/A
Good Student1522.5102583
Green VehicleN/A5N/A10N/AN/AN/A10N/A
HomeownerN/AN/A535N/A
Lane Departure WarningN/AN/AN/AN/AN/AN/AN/A
Life InsuranceN/AN/AN/AN/AN/AN/AN/AN/A
Low Mileage30
LoyaltyN/AN/AN/A5N/AN/A
MarriedN/AN/AN/AN/AN/A
Membership/GroupN/AN/AN/A107N/AN/AN/A
MilitaryN/A154N/AN/AN/A
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple DriversN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Multiple Policies1029102010121713
Multiple Vehicles25102010208
New AddressN/AN/AN/AN/A5N/AN/AN/AN/AN/A
New Customer/New PlanN/AN/AN/AN/AN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehicleN/AN/A401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
NewlywedsN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Non-Smoker/Non-DrinkerN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/A
OccupationN/A1015N/AN/AN/A
On-Time PaymentsN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless DocumentsN/AN/A5$50N/AN/AN/A
Paperless/Auto BillingN/A$30$233
Passive Restraint402040
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
RenterN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Roadside AssistanceN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Safe DriverN/AN/A15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverN/AN/AN/AN/AN/AN/AN/A
Stable ResidenceN/AN/AN/AN/AN/AN/AN/AN/A
Students & AlumniN/AN/A107N/AN/AN/AN/A
Switching ProviderN/AN/A10N/AN/AN/AN/A
Utility VehicleN/AN/AN/AN/AN/AN/AN/A
Vehicle Recovery1535255
VIN EtchingN/AN/AN/A5N/A
VolunteerN/AN/AN/AN/AN/AN/AN/AN/AN/A
Young DriverN/AN/AN/AN/AN/AN/AN/A$75
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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.

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.

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