How to get insurance for first-time drivers

Car insurance may be an intimidating topic for first-time drivers. Many insurance companies consider new drivers riskier to insure due to their lack of experience, so they may see higher rates. However, comparing quotes and exploring coverage options may help new drivers find the coverage they need at a price they can afford. Bankrate’s insurance editorial team evaluated dozens of auto insurance companies to guide new drivers buying car insurance for the first time.

How much is car insurance for a new driver?

The average cost of car insurance is $2,329 per year, or $194 per month, for full coverage in August 2024. Minimum coverage averages $633 per year or $53 per month. In many states, new drivers can typically expect to pay higher-than-average insurance premiums. Experience plays a large role in how much insurance is for a new driver; insurance companies usually consider new drivers to be riskier to insure due to their lack of know-how behind the wheel.

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 for. 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 as you gain experience driving. The longer you practice driving, you may see your rates come down, as long as you maintain a clean driving record. The good news is that you may be able to find more affordable insurance rates for first-time drivers by comparing quotes from different carriers and exploring discount opportunities. The following steps may help you narrow down the best company for your coverage needs and budget.

Consider your individual priorities

Before you begin requesting quotes, it can help to figure out what you’re looking for from an insurance provider. Although car insurance companies offer similar insurance products, each company weighs unique rating factors differently to come up with personalized insurance rates. Your new driver insurance costs depend on these factors, including vehicle type, location, driving history and, in most states, credit history, age and gender. 

Price shouldn’t be the only factor to consider when choosing a carrier. Other quality metrics to consider include: 

• 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 coverage types cover you if you are hit by a motorist that is uninsured or does not have enough coverage to cover the damage to you and your vehicle.
• Medical payments coverage: Also required by some states, this covers the medical expenses of both you and your passengers in the event of an accident or other covered incident.
• Personal injury protection coverage: Required in no-fault states, this also covers medical expenses after an accident, but it may also help with things like loss of income and childcare. Personal injury protection is not available in all states.
• Gap insurance: If you have an auto loan, this optional coverage may cover the difference between the amount you owe on your vehicle and its actual cash value (ACV) in the event it is totaled or stolen and nonrecoverable.
• Roadside assistance coverage: If you find yourself suddenly unable to drive your car, roadside assistance coverage may come in handy. While exactly when it applies varies across providers, roadside assistance can usually help if you’ve run out of fuel, 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 type.

How to find cheap car insurance for first-time drivers

As new drivers typically see high rates, it may be tempting to choose a minimum coverage policy from the cheapest carrier you can find, but many insurance experts caution against this as it may leave you without the necessary financial protection in the event of an accident or other covered incident. The following steps may help you strike a balance between your budget and your coverage needs.

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 quotes may be the only way to know for sure which carrier offers you the lowest rates for your circumstances. When comparing quotes, it may be helpful to request the same coverage options and limits so you can be sure you’re getting an accurate comparison between carriers.

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 parent’s 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.
• 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.

Discount types and amounts vary by company, so you may want to ask about potential discounts during the quoting process. When stacked together, you might be able to save a significant amount.

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.

Frequently asked questions

• Why do first-time drivers pay more for insurance?
  

  First-time drivers typically pay higher rates for car insurance because of their lack of experience behind the wheel. This may cause them to be more likely to be involved in accidents, therefore making them riskier to insure. Additionally, many first-time drivers are also young, which may increase their risk for accidents and tickets.

• When do new drivers see their rates go down?
  

  For new drivers who are also young, rates tend to drop steadily as a driver ages into their 20s. If you’re a new driver but not a young driver, you may see your rates decrease after three to five years, provided you maintain a clean driving record. Not all states allow the use of age as a rating factor, and many other personal characteristics play a role in your rates, so if your rates remain high, you may want to evaluate your credit score, vehicle type or driving record.

• What car should I buy if I want to pay less for auto insurance?
  

  Your vehicle type plays a role in your insurance premiums, and some makes and models are generally less expensive to insure than others. Luxury or sports cars may cost more to insure as they generally are more expensive and their drivers may be seen as more likely to engage in risky driving behavior. Cars with high repair costs, high theft rates and poor safety ratings may also see higher average premiums.

• Can I save money as a first-time driver by staying on my parents’ car insurance policy?
  

  Yes, you’ll typically pay significantly less, which is why experts often recommend staying on your parents’ car insurance policy for as long as you’re eligible. According to rate data from Quadrant Information Services, auto insurance for an 18-year-old driver and their parents costs an average of $4,365 per year for full coverage, while purchasing a policy as a standalone 18-year-old costs an average of $6,517 per year. Keep in mind that insurance policy rules vary by provider, but you can usually remain on your parents’ policy as long as your primary residence is their home.