Is car insurance more expensive for new drivers?
New drivers pay more because they have less driving experience. Teen drivers are the most expensive to insure due to their age and limited driving experience. Adult new drivers also pay more than experienced drivers of the same age, though the increase varies by insurer.
"Teen drivers are charged higher premiums because they have higher crash rates compared to older drivers and are more likely to be at fault due to their lack of driving experience. Teenagers are also more likely to drive without wearing a seatbelt, speed, and run red lights," says Deputy Commissioner John Ford of the Louisiana Department of Insurance Public Affairs Division.
However, new drivers of any age also face more expensive rates. New drivers include:
- Teens
- Adults getting a driver's license for the first time
- Adults who haven’t had car insurance in a long time
- Immigrants from most countries
- Foreign nationals
Even though drivers in these groups may be older or have been licensed in another country, car insurance companies consider them new drivers and charge them higher rates. There are some exceptions; immigrants from Canada, for example, may be able to carry over their years of experience.
How much does car insurance cost for new drivers?
Car insurance costs for new drivers vary widely depending on age and insurer. On average, teen drivers are the most expensive, paying about $8,408 a year, while 25-year-old drivers pay about $2,926 a year and 30-year-old drivers average about $2,654 a year. These rates are based on a driver who has been licensed since age 16.
However, if you are a new driver, regardless of age, you will see higher rates.
How much is insurance for new drivers over 25?
Travelers offers the lowest rates for 25-year-old drivers among the companies shown, with an average annual premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. of $2,241. USAA is as low as $2,012 for eligible military members and their families. However, new drivers over 25 will pay higher-than-average insurance rates.
The table below shows average car insurance rates for 25-year-old drivers. USAA car insurance is only available to military members and their families.
These rates reflect a 25-year-old driver licensed since age 16. Expect your rates to be higher as a new driver, but not as high as those for a 16-year-old.
| Company | Average Annual Premium | Average Monthly Premium |
|---|---|---|
| Travelers | $2,241 | $187 |
| GEICO | $2,436 | $203 |
| Progressive | $3,015 | $251 |
| Nationwide | $3,113 | $259 |
| State Farm | $3,392 | $283 |
| Allstate | $3,558 | $297 |
| Farmers | $3,644 | $304 |
| USAA | $2,012 | $168 |
How much is car insurance for a 30-year-old new driver?
Travelers offers the lowest average annual premium for a 30-year-old driver at $2,139. GEICO is close behind at $2,217 annually. On the higher end, Farmers has the highest rate at $3,347 a year, according to Insurance.com data for drivers licensed since age 16.
USAA offers the lowest price at $1,780. However, USAA car insurance is only available to military members and their families.
This table shows average car insurance rates from top insurers for 30-year-old drivers.
While your rates at age 30 will be much lower than those of a 16-year-old, as a new driver, you’ll pay a little more than what’s listed here.
| Company | Average Annual Premium | Average Monthly Premium |
|---|---|---|
| Travelers | $2,139 | $178 |
| GEICO | $2,217 | $185 |
| Nationwide | $2,708 | $226 |
| Progressive | $2,805 | $234 |
| State Farm | $2,975 | $248 |
| Allstate | $3,261 | $272 |
| Farmers | $3,347 | $279 |
| USAA | $1,780 | $148 |
People ask
If I add a new driver to my car insurance, will it go up?
Yes. Adding a new driver usually increases your premium, especially if the driver is a teen. The exact increase depends on the insurer, the driver’s age, experience, vehicle, and coverage level.
New teen drivers: Rates on a solo policy vs. on a parent's policy
Adding a teen to a family policy is cheaper than buying a separate policy. Solo teen policies average $8,408 a year, while the average cost to add a teen to an existing family policy is about $3,859 a year. Travelers offers the lowest cost to add a teen among other insurers at $2,898 a year.
With Nationwide, for example, a solo teen would pay an average of $8,661 a year, while the same teen on a policy with two adults would pay $6,032 a year, saving you $2,629 a year.
The table below shows average car insurance rates for teen drivers on their own versus being added to a parent’s policy.
| Company Group | Teen policy premium, solo | Average premium, two adults | Average premium, two adults + teen | Cost of adding teen |
|---|---|---|---|---|
| Allstate | $9,659 | $4,271 | $9,065 | $4,795 |
| Farmers | $12,511 | $4,090 | $8,700 | $4,610 |
| GEICO | $6,507 | $2,748 | $6,233 | $3,485 |
| Nationwide | $8,661 | $2,932 | $6,032 | $3,099 |
| Progressive | $9,823 | $2,566 | $7,203 | $4,636 |
| State Farm | $7,981 | $3,047 | $7,034 | $3,987 |
| Travelers | $6,597 | $2,164 | $5,062 | $2,898 |
| USAA | $5,528 | $1,574 | $4,933 | $3,360 |
People ask
How long are you considered a new driver for insurance?
Insurers like to see at least three years of continuous car insurance coverage and driving records before lowering rates. However, each insurer decides how much driving experience is needed to no longer be considered a new driver.
How to get cheaper car insurance for new drivers
New drivers can lower costs by comparing quotes from different insurers, as prices vary widely for the same driver. Drivers can also save by joining a family policy and choosing a cheaper-to-insure vehicle.
Ways to lower car insurance rates as a new driver:
- Start by comparing quotes from different insurers to see where the biggest savings are.
- Consider adding a new driver to a family policy. Since the new driver isn’t the primary driver, adding them to the policy is cheaper than getting coverage on their own. Policy discounts also help lower new-driver rates.
- Carefully consider the vehicle you purchase. Luxury or sports cars have higher insurance rates regardless of the driver, but rates increase significantly for new drivers. To lower rates, consider more modestly priced vehicles with excellent safety features.
- Ask about car insurance discounts, including multi-policy, good student, and vehicle safety feature discounts, which can often be combined.
- Review your car insurance policy and consider raising your deductibles or adjusting your coverage to help lower your premiums.
"Many insurers offer discounts for teen drivers who make good grades, so policyholders should check with their company or agent to see if their teen driver qualifies for this or other discounts," Ford says.
Key factors that drive car insurance premiums for new drivers
Age, driving record, and where you live have the biggest impact on what you pay. Credit history and the type of vehicle you drive also play a major role, while gender and marital status have a smaller effect on your overall rate.
The table below shows the factors affecting car insurance rates and their estimated impact.
| Factor | Impact on rates |
|---|---|
| Age | High until age 25, then low |
| Driving record | High |
| Location | High |
| Gender | Low, moderate for teens |
| Marital status | Low |
| Credit history | High (no impact in some states) |
| Vehicle type | Moderate |
People ask
How long do you have to add a new driver to your insurance policy?
You should add a new driver to your policy as soon as possible. While your insurance company will generally cover a new driver in your household automatically, it may deny coverage for a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. if you fail to notify them in a timely manner.
FAQ: Car insurance for new drivers
When do you add a new driver to your insurance?
Add any newly licensed driver in your household to your insurance policy as soon as they are licensed. Even if the driver only has a permit, it’s best to add them to your coverage.
What type of car insurance is best for new drivers?
The best car insurance for new drivers depends on their financial situation. While minimum coverage is all that is legally necessary, it does not cover your vehicle damage or medical costs. Full coverage is often the better choice for new drivers because it includes collision and comprehensive coverageComprehensive coverage helps pay for damage to your car caused by events other than a collision, such as theft, fire, vandalism, or natural disasters. It is subject to a deductible. for your own vehicle.
Can a new driver lower their rate quickly?
No, not immediately. A new driver cannot quickly lower their rate in a meaningful way because insurers need time to see a clean driving record and build their driving history. However, they can start improving their chances of lower premiums right away by avoiding violations, maintaining continuous coverage, and taking advantage of available discounts.
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