Car insurance for new drivers: Do new drivers pay more for insurance?

Is car insurance more expensive for new drivers?

New drivers pay more for insurance than those with more experience. It’s no secret that teens pay substantially higher car insurance rates than adults because they lack experience behind the wheel.

"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 is car insurance for a new driver?

Car insurance rates for new drivers depend on many factors. Although car insurance rates tend to decrease with age, new drivers of various ages pay higher premiums than experienced drivers of the same age.

For example, teen drivers, who are new drivers by default, pay an average of $5,985 annually for full coverage. Drivers over age 25 spend an average of $2,216, and 30-year-old new driver car insurance rates average $2,004. However, if you are a new driver at either of these ages, you will see higher rates.

How much is insurance for new drivers over 25?

Most drivers look forward to turning 25 since car insurance rates start to decrease. However, new drivers who are 25 years old may pay higher than average insurance rates.

The table below shows average car insurance rates for 25-year-old drivers. USAA and Nationwide offer cheap insurance for drivers over 25. However, USAA car insurance is only available to military members and their families.

These rates reflect a 25-year-old driver licensed since 16. Expect your rates to be higher as a new driver, but not as high as those for a 16-year-old.

How much is car insurance for a 30-year-old new driver?

Car insurance for a 30-year-old driver is typically much cheaper than for younger drivers. However, a 30-year-old new driver pays higher rates than a driver with years of experience.

This table shows average car insurance rates from top insurers for 30-year-old drivers. According to our data, USAA and Geico offer the cheapest car insurance for drivers over 30. 

While your rates at age 30 will be much lower than a 16-year-old, as a new driver, you’ll pay a little more than what’s listed here.

How much is car insurance per month for a new driver?

Although car insurance for new drivers is costly, they can get much lower rates on a parent's policy. When added to a policy, new drivers aren’t the primary drivers and can take advantage of policy discounts they wouldn’t receive on their own.

The table below shows average car insurance rates for teen drivers on their own versus being added to a parent's policy.

Why is insurance so expensive for new drivers?

New drivers lack experience behind the wheel and are likelier to be in an accident. As a result, insurers charge higher rates to new drivers, who may incur more claims costs.

How to get cheaper car insurance for new drivers

Although car insurance is more expensive for new drivers, there are ways to reduce costs and obtain more affordable rates.

First, 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 bring down new driver rates.

Next, consider carefully before purchasing a vehicle. Luxury or sports cars have higher insurance rates regardless of driver, but rates increase significantly for new drivers. To lower rates, consider more modestly priced vehicles with excellent safety features.

Also, ask for car insurance discounts. Most insurers allow you to bundle savings, such as multi-policy, good student, and vehicle safety feature discounts, to get the lowest rates.

"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.

Then, take a look at your car insurance policy. Consider raising deductibles or adjusting coverage to get lower rates.

Finally, shop around for new driver coverage. Insurers create their own formula for calculating rates, so compare quotes from multiple companies to see which offers the best deal.

Factors that affect car insurance for new drivers

Many factors affect car insurance rates, regardless of how long you’ve had your driver’s license.

While the time you’ve had a license affects rates, it’s not the only thing.

Factors affecting car insurance rates include:

• Age
• Driving record
• Location
• Vehicle 
• Gender
• Marital status
• Credit score

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