How to Get Car Insurance for a First-Time Driver

Car insurance for new drivers can be cost-effective with careful planning. Factors that could also influence the cost of your insurance include the area you live in and your credit history, as well as what you do for a living. Driving experience and a clean driving record go a long way toward bringing costs down.

UPDATED: Mar 25, 2022Fact Checked

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Written by Leslie Kasperowicz
Farmers CSR for 4 Years

Benjamin Carr was a licensed insurance agent in Georgia and has experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. Benji is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Mar 25, 2022

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UPDATED: Mar 25, 2022

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It’s all about veterans. We want to help you make the right coverage choices.

New drivers are not just teens, but also drivers without a driving record and people who have immigrated to the U.S.
Age and driving experience are two of the main factors when underwriters calculate insurance risk
Cheap insurance for first-time drivers is available, however, it’s important to compare as many companies as possible

Car insurance for new drivers is notoriously expensive, and this is because underwriters don’t have much history to go on to assess your risk. Insurance rates tend to drop for those over the age of 25.

However, those age 25 and over might still pay higher-than-normal insurance rates if they’re new to driving. This is also because the underwriter doesn’t have access to any driving history.

But that doesn’t mean your insurance needs to cost the price of a small island in the Caribbean. New driver insurance can be affordable, comprehensive, and meet your needs.

Table of Contents

Why does car insurance for new drivers cost more?

Car insurance for new drivers can get pricey because the underwriter has to base the premium on the perceived risk of the policyholder.

Younger drivers are involved in more accidents. Likely the result of inexperience, those between the ages of 16 and 19 are three times more likely to be in a fatal accident than those aged 20 and over.
Distractions and risky driving practices. Young drivers are far more likely to drive at night or become distracted by items such as the radio or mobile devices.

For young drivers, it’s important to keep to the rules of the road and avoid unnecessary incidents. This will go a long way in bringing down insurance costs.

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Best Insurance for Older New Drivers

While age accompanied by a good insurance record and driving experience can bring the insurance premiums down, it can also be a detractor. Older drivers may experience age-based rate increases just as young drivers do. Quote comparisons will shed some light on what is offered:

A quote comparison between Geico and Allstate shows that on average, you’ll pay $300 per month for full coverage with Geico With Allstate, however, the minimum policy has a premium of $222 per month and excludes comprehensive coverage, the economy package costs $554, and for full coverage, you’re looking at $757 per month. The quotes were based on a single female born in 2003, who rents a property in Colorado, studies full time, and drives and owns a 2019 Volkswagen Passat.
Military veterans and their families should take advantage of veteran insurance coverage for new drivers from USAA. Their minimum coverage averages around $1,400 and full coverage around $3,500

It’s important to compare all the options to ensure the type of insurance matches your needs. Going for the cheapest option doesn’t always mean you’ll enjoy all the coverage you might need. Opt for the insurance type that suits your needs.

What factors affect the cost of car insurance?

Insurance underwriters use the information provided by you to determine your insurance risk. Age is just one of the components, and the others include :

Location. Some areas carry more risk than others, not only in terms of theft but also natural conditions such as adverse weather. Car theft is also more prevalent in some areas.
Driving history. Previous accidents and DUIs are biggies when it comes to calculating insurance risk, which negatively affects your premium. No history is also worrisome to underwriters, which results in higher premiums.
Your credit score. This may seem like the odd one on the list, but if you have a good credit score you might enjoy cheaper insurance rates.
Your occupation. An office worker that never has to travel for work will be considered less of a risk than a door-to-door salesperson.
Marital status. Married couples are statistically involved in fewer accidents, which makes them a lower risk.
Your car. While it might pick up your status points, a flashy sports car will also pick up those premiums. Some cars are also deemed to be more reliable and have less of a theft risk.

When you’re providing your information to the agent, it’s important to be as honest as possible. Non-disclosure could result in claims getting rejected or future insurance coverage being refused.

Auto Insurance Rates by Age and Gender

Age, relationship status, and gender all have their part to play in determining your risk. Young males are identified as more risky drivers and a single 17-year-old can expect to pay an average rate of around $752 compared to a married 60-year-old female who will pay roughly $187 under the same conditions.

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Choosing the Best Insurance for New Drivers

Car insurance for new drivers starts off at a higher rate until drivers are able to build up a driving record and gain experience. In time and with a clean driving record, these rates can drop. Other factors that may influence your insurance premium include the area you live in, your job, and your credit record.