Car insurance coverage for first-time drivers often comes with high premiums — especially for teenagers — due to statistics that show riskier driving behaviors and accident outcomes. However, by comparing quotes, exploring available discounts and selecting the right provider, you can uncover the most affordable insurance options.
How much is car insurance for a new driver?
The average cost of car insurance is $2,679 per year, or $223 per month, for full coverage. Minimum coverage averages $808 per year, or $67 per month. New drivers can expect to pay higher-than-average premiums, though, since experience typically plays a large role in how much insurance is for a new driver. In most states, insurance companies consider new drivers to be riskier to insure due to limited time behind the wheel.
To note, if you live in Hawaii or Massachusetts, insurance companies are not allowed to consider your age as a rating factor for auto insurance premiums, but carriers in Massachusetts are allowed to consider the number of years you have been licensed. If you are a new driver but not a young driver, your rates will likely still be higher than the state average — but perhaps not as high as a newly-licensed teen.
How to choose new driver car insurance
Even if you are a new driver with natural driving abilities, you are still likely to make some mistakes. The more experience you gain behind the wheel, the more you may see your rates come down (as long as you maintain a clean driving record). To find more affordable insurance rates for first-time drivers, experts recommend comparing quotes from different carriers and asking about discount opportunities.
Here are some ways to narrow down the best company for you.
Consider your budget
Before you begin requesting quotes, it can help to figure out what you’re looking for. Although car insurance companies offer similar insurance products, each company calculates new driver insurance costs differently based on various factors specific to you and your vehicle. The make and model of your car, your location, your driving history and (in most states) your credit history, age and gender can all play a role in how much you pay. For this reason, it’s helpful to compare quotes from several insurers for the same types of coverage, policy limits and deductible amounts.
Consider your individual priorities
Price shouldn’t be the only factor to consider when choosing a carrier, though. It’s also helpful to look into:
- Customer service: You might read customer reviews or third-party analyses of insurance providers if you’re looking for a company with top-notch service and claims handling.
- Digital tools: Digital tools can make managing your policy more convenient. Many companies offer claims filing, customer service and insurance card access through a website or mobile app.
- Bundling options: If you have other insurance policies, like renters or homeowners insurance, you might want to look for a carrier that offers bundling discounts. This can help you save money and simplify your policy management.
- Local offices: New drivers may appreciate the extra support working with a local agent can provide. Some carriers have numerous offices in large cities while others operate exclusively online and over the phone.
Learn more: Guide to car insurance
Consider additional coverage options
Most states have a minimum level of required car insurance, but most insurance experts recommend carrying additional coverage if you can afford to do so. This usually includes collision and comprehensive coverage, also known as full coverage, which covers damage to your own vehicle in the event of an accident or other covered incident, like theft or vandalism. Most carriers also offer a handful of endorsements that may be useful if you have more unique coverage needs, like rideshare coverage if you drive for a rideshare company. Other common endorsements include:
- Uninsured and underinsured coverage: Required in some states, these types of insurance cover you if you are hit by a motorist that is uninsured or does not have enough coverage to pay for all resulting damage or injuries.
- Medical payments coverage: Also required by some states, this covers the medical expenses you or your passengers incur in the event of an accident or other covered incident.
- Personal injury protection (PIP) coverage: Required in no-fault states, this also covers medical expenses after an accident. It can help with things like loss of income and childcare, as well. PIP is not available in all states.
- Gap insurance: If you’re financing a vehicle that is stolen or totaled, you’re still expected to pay off your remaining loan balance. Gap insurance helps pay the difference between your insurance payout and your loan balance, which may not match due to your car depreciating since you purchased it.
- Roadside assistance coverage: If you find yourself suddenly unable to drive your car, roadside assistance may come in handy. While exactly when it applies varies across providers, roadside assistance can usually help if you’ve run out of fuel, have a dead battery, locked yourself out, popped a tire or need a tow.
- Accident forgiveness coverage: This supplementary coverage may help keep your rates low following your first at-fault accident. You may need to remain accident-free for a certain period of time to be eligible for this coverage. Some insurers may offer this as a perk if you’ve been a customer for a certain number of years; others may not offer it at all.
How to find cheap car insurance for first-time drivers
New drivers often face higher insurance rates, which can make it tempting to pick the cheapest carrier and the minimum required coverage. However, many insurance experts warn that this approach could leave you without adequate financial protection if you’re involved in an accident or another covered event. The steps below can help you find a balance between keeping costs down and getting the coverage you need.
Shop around and compare quotes
Comparing quotes from various companies can be a tedious task, though it’s often worth the trouble. Different carriers use different rating algorithms to calculate rates, so getting quotes may be the only way to know for sure which carrier offers you the lowest rates for your circumstances. When comparing quotes, request the same coverage options and policy limits so you can be sure you’re making an accurate comparison.
Stay on your parents’ policy
One of the biggest ways young drivers can potentially save on insurance premiums is to stay on a parent’s insurance policy. In order to do this, you’ll have to meet the insurance company’s eligibility criteria. You’re usually eligible as long as your parents’ home is your primary residence.
Look for discounts
Most car insurance companies offer at least a handful of discounts that may help drivers save on their premiums. It may be worthwhile to ask about potential discounts during the quoting process to see if one carrier may be cheaper than another after the addition of discounts.
Discounts you might qualify for include:
- Defensive driving discounts: Car insurance companies may offer discounts for drivers who take a defensive driving course.
- Good student discounts: Many carriers offer discounts for full-time students who maintain a high grade point average.
- Multi-policy discounts: Almost every insurance company rewards you for combining policies, like insuring multiple cars or combining your homeowners, renters or boat insurance with your car insurance company. You’ll typically get a discount on each policy you combine.
- Vehicle discounts: You may earn discounts if your car is equipped with safety features like anti-lock brakes, airbags, and anti-theft devices.
- Payment discounts: Many companies offer discounts for policyholders who pay their premium in full or choose paperless billing.
- Telematics discounts: Telematics programs track your driving habits using either a small device installed in your vehicle or an app on your phone. Safe habits behind the wheel may earn you a reduced premium. Keep in mind that some insurers reserve the right to raise rates if unsafe driving habits are detected.
Maintain a clean driving record
Maintaining a clean driving record may be one of the biggest factors that could save you money on car insurance. Car insurance companies generally see drivers who avoid tickets and accidents as less risky to insure and may reward them with lower premiums. Discounts may also be available for drivers who go a set period of time without filing a claim.
The best car insurance for new drivers
The best car insurance company for new drivers likely depends on your personal circumstances and priorities, but Bankrate analyzed dozens of auto insurers to narrow down five that may offer the best coverage for new drivers. Our selections were made based on coverage options, discount availability, customer satisfaction scores, financial strength ratings, digital tools and more.
| Company | Best for… | Pros | Cons |
|---|---|---|---|
| Amica | Great customer service | Extensive list of coverage options and discounts
High customer satisfaction scores from J.D. Power |
Rideshare coverage only available in some states
Online quotes not available in all states |
| Geico | Robust digital tools | Long list of potential discounts
Low average rates Robust digital tools |
Endorsement options are not as extensive as some competitors
Few in-person agencies available |
| Progressive | Teen driver and student discounts | Multiple young driver and student discounts available
Name Your Price tool may help new drivers find low rates |
Mixed customer satisfaction scores from J.D. Power
Endorsement options are not available in all states |
| State Farm | High-risk drivers | Above-average customer satisfaction in most regions
Telematics program designed for young drivers |
Gap insurance is not available
Coverage is not available in MA or RI |
| USAA | Military-focused coverage options and discounts | High customer satisfaction scores from J.D. Power
Low average rates |
Strict eligibility restrictions
No in-person agents available |
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