Car Insurance for New Drivers

Whether you just turned 16 or recently moved to the United States and are planning to drive while living here, buying first-time car insurance can feel daunting, but it doesn’t have to be complicated.

From making sure your insurance coverage meets the minimum legal requirements to find the best monthly rates available to new drivers, there’s a lot to consider when buying a first-time auto insurance policy. But by shopping around for the best rates and making sure you’re aware of local insurance requirements, you can make the process less stressful — and potentially less expensive — while building a safe driving record over time.

In this article, we’ll discuss the process of buying car insurance for a new driver, including who needs first-time car insurance, how to buy a car insurance policy for the first time, and ways to save money and ensure you’re getting the lowest rates available.

Who needs first-time car insurance?

Drivers needing first-time auto insurance come from various backgrounds, but they all have one thing in common: They’re about to get behind the wheel for the first time. As a result, insurance providers typically classify first-time drivers as those belonging to the following categories:

Teenage Drivers

Because new drivers — especially younger ones — are viewed as riskier than more experienced drivers, insurance companies tend to charge higher rates to insure them. Because of that, adding a teen driver to an existing family policy is often the least expensive way to ensure a new teenage driver is insured. With the right guidance, however, those rates should go down as teens grow older and continue to establish a safe driving history over time.

Comparing car insurance rates for teen drivers can help you get the best deal when adding new drivers to your policy.

Adults Driving for the First Time

For new drivers who are getting behind the wheel for the first time as adults, insurance rates can sometimes be higher than for drivers with extensive histories of accident-free driving. This is because new drivers that lack a safe driving history are perceived by insurers as being riskier to insure, regardless of age. However, it’s important to remember that rates should decrease over time as you establish a safe driving record.

Vehicle Owners with a Driving or Coverage Gap

Vehicle owners with an expired driver’s license and a gap in their driving or insurance coverage history typically fall into the same category as first-time drivers. In some cases, these gaps were created by lifestyle changes that left them in a position where they no longer needed to drive — for example, moving abroad or to a city where walking or public transportation were the main methods of getting around.

Even with some driving history, drivers with long driving or coverage gaps should expect to pay more for insurance coverage than drivers with consistent driving or insurance histories. Because of that, shop around for the best rates before choosing a policy.

Foreign Nationals and Immigrants

Even though someone might have a long and safe driving history in their home country, insurance companies still consider foreign nationals and immigrants to be new drivers in the U.S. until they’ve established a safe domestic driving history here.

Driving requirements vary between states in the U.S., including for immigrants and foreign nationals. For example, some states require international drivers to obtain a U.S. driver’s license to drive legally, while others may have different laws and regulations. Because getting car insurance might be difficult without having a driver’s license, check with the Department of Motor Vehicles in the state where you’ll be driving to determine the state’s legal requirements for driving as an immigrant or foreign national.

Anyone driving a vehicle in the U.S. must have a minimum amount of car insurance, regardless of citizenship or how long they’ve had a license. Although the minimum level of coverage required by law varies between states, it’s important to ensure your auto insurance coverage meets the required minimums where you live. In addition, new drivers should generally expect to pay more for insurance coverage than older, more experienced drivers.

If you are a new driver in the U.S., you can compare car insurance rates for foreigners to get the best deal. And if you are an American citizen with foreign visitors, check with your insurance company to see if your car insurance will cover relatives with international driving permits.

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How to Get Car Insurance for the First Time

The process can feel overwhelming when shopping for first-time auto insurance. However, buying a car insurance policy is relatively straightforward, and after you’ve done it once, you’ll be familiar with the process for the rest of your time behind the wheel. You should be on the road in no time by following the steps below.

1. Get your documents in order. Follow state and local requirements to obtain your driver’s license.
2. Compare quotes. Shop around and compare quotes for auto insurance policies. Make sure to ask about any discounts that the insurer might offer.
3. Contact the insurance agent or company of your choice. Once you’ve found the best coverage and rates available, get in touch with your insurance agent or provider and start the process of obtaining insurance.
4. Provide the requested information. Your insurance agent or provider will walk you through the process of applying for coverage. Usually, you’ll need to provide your personal identification information and information about your vehicle and driving history.
5. Pay your premium and receive your insurance documents. Most insurance companies will allow you to choose between paying monthly installments toward your premium or paying in a lump sum.
6. Print out (or download) your proof of insurance and keep it on hand. Make sure to keep your proof of insurance to provide it to the necessary people if you’re ever pulled over or involved in an accident.

How much does new driver insurance cost?

Insurance companies generally view new drivers (especially those from younger demographics) as risky to insure. Those concerns aren’t without reason. According to the Centers for Disease Control and Prevention, auto collisions are the leading cause of death for teenagers in the U.S. In fact, drivers between the ages of 16-19 are three times more likely to be involved in a fatal car accident than drivers over the age of 20, according to a 2020 analysis from the Insurance Institute for Highway Safety using data from the U.S. Department of Transportation’s Fatality Analysis Reporting System.

Because of those risks, car insurance rates for new and young drivers tend to be higher than for more experienced drivers. Although rates vary between companies, the tables below can help you understand new drivers’ average monthly insurance rates.

Best Car Insurance for New Drivers Under 25

Buying insurance can be expensive when you’re a new driver under 25. For example, the average monthly insurance cost for a 16-year-old male with a clean driving record is $618.49. However, by conducting thorough research and choosing a reputable auto insurance company that offers competitive rates, you can save money while establishing a driving history.

Although it’s unlikely that a young new driver will find rates lower than more experienced drivers, consider shopping around when looking for first-time car insurance. By comparing quotes, you can get the lowest rates available as a new driver.

Best Car Insurance for New Drivers Over 25

On average, a 30-year-old female driver with a clean driving record pays around $128.44 per month for auto insurance in the U.S. Insurance rates could be higher for a new driver without a driving history. Still, some insurance companies offer competitive pricing that can potentially help new drivers save on coverage. 

Because insurance rates vary between providers based on various factors, make sure to shop around and compare quotes before purchasing an auto insurance policy. Some insurance providers offer competitive rates that can potentially save you money over the long run.

Best Car Insurance for New Drivers Added to a Family Policy

If you’re a parent, finding affordable auto insurance coverage for your new teen driver can feel tricky. Although adding a teenage driver to your family’s car insurance policy can increase your rates significantly, it’s likely to be a less expensive solution than purchasing a separate policy.

Make sure to shop around before adding your teen to your family policy. By comparing insurance quotes, you can ensure your family gets affordable coverage while protecting your new teen driver.

Tips for Getting Cheaper First-Time Auto Insurance

If you’re a first-time driver looking for ways to save on your first auto insurance policy, you can potentially take steps to lower your rates. New drivers should consider the following when looking for their first car insurance policy:

Shop Around

Many insurance companies offer competitive rates that can save you money as a new driver, but you’ll never know what’s out there unless you compare quotes. Make sure to compare quotes every 6-12 months for the best chance at saving money.

Join a Family Policy 

While adding a teen driver to an existing auto insurance policy can result in a significant increase in an older driver’s rates, it can be more cost-effective than purchasing a separate policy for a new driver.

Consider Bundling Your Coverage

Many insurance companies offer discounts for bundled insurance policies. So if you need renters or homeowners insurance along with auto insurance, ask your insurer if you can bundle the policies and save.

Buy Less Coverage 

It’s important to buy as much auto insurance coverage as possible to stay protected in a serious accident. Still, if you decide you don’t need some optional coverage, purchasing less coverage — or even the state minimum — can result in lower rates. Despite the potential for savings, new drivers should know that buying less insurance can be risky. 

Drive Safely 

By establishing a history of violation- and accident-free driving, new drivers can prove to insurers that they don’t pose a high risk to others on the road and are, therefore, worthy of lower rates.

Ask Your Insurer About Discounts 

Most insurance companies offer a variety of discounts for policyholders. You can save money on your monthly premiums by taking advantage of the discounts you’re eligible for. Other savings methods include paying your premium upfront and selecting a higher deductible. 

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Common Car Insurance Discounts for New Drivers

Discounts can be a great way to save money on car insurance. When shopping for auto insurance for the first time, remember to ask about the discounts offered by the insurer you’re considering buying a policy. Common discounts offered by many insurance companies include the following:

• Good/safe driver discount. Many insurers offer discounts for drivers with a history of being violation- and accident-free.
• Honor roll discount. For students enrolled in school, some insurers offer discounts for maintaining a grade point average above a specific range. This is also known as a good student discount.
• Anti-theft discount. Some insurers offer discounts for drivers with anti-theft devices or equipment installed on their vehicle or using a vehicle recovery service like Lojack.
• Multi-policy discount. For policyholders that have multiple policies through the same insurer, some insurance companies offer discounts for “bundles.”
• Multi-car discount. You can get cheaper car insurance coverage for a second car if you have multiple vehicles insured under the same insurance provider, you might be eligible for a multi-car discount if your insurer offers one.
• Occupational discount. Some insurance providers offer occupation-based discounts for those in professions such as education, medicine, or public safety. Insurers that offer these discounts will typically require proof of employment in the required field.
• Defensive driver discount. Some insurers offer discounts for policyholders that provide proof of attending a defensive driving course, which can teach you safer driving skills.

Before buying your first auto insurance policy, ask your insurance agent or provider about the discounts available. Then, check the eligibility requirements associated with each discount before requesting to add it to your policy. Even if you aren’t eligible for all the discounts available, every little bit can reduce your monthly insurance payment.

Case Studies: Car Insurance for New Drivers

Case Study 1: Teenage Driver

Emma just turned 16 and is excited to get her driver’s license. However, her parents are concerned about the cost of adding her to their car insurance policy. They decide to shop around and compare quotes from different insurance companies.

After reviewing several options, they find a policy that offers affordable rates for teenage drivers. By adding Emma to their family plan, they can ensure she has the necessary coverage while keeping costs manageable.

Case Study 2: Adult First-Time Driver

Michael recently moved to the United States and needs to get car insurance for the first time. As an adult without a driving history in the country, he faces higher insurance rates. Michael decides to research different insurance companies and policies to find the best options.

After comparing quotes and coverage options, he chooses a policy that offers competitive rates for new drivers. By being proactive and shopping around, Michael finds affordable car insurance despite being a first-time driver.

Case Study 3: Expired License and Coverage Gap

Sarah had a gap in her driving and insurance coverage due to living abroad for a few years. Now that she’s back in the United States and wants to start driving again, she needs car insurance. Sarah contacts various insurance providers and explains her situation.

After considering her driving history before the gap and demonstrating her commitment to safe driving, she finds an insurance company that offers reasonable rates for drivers with coverage gaps. Sarah successfully obtains car insurance and can now drive legally.

Case Study 4: Foreign National With Driving Experience

Juan recently immigrated to the United States and needs to obtain car insurance. Although he had a clean driving record in his home country, insurance companies consider him a new driver in the U.S. Juan researches insurance providers that cater to foreign nationals and compares their rates and coverage options.

He finds a company that specializes in serving immigrants and offers competitive rates for drivers like him. By choosing the right insurance provider, Juan gets the coverage he needs at an affordable price.

Car Insurance for First-Time Drivers: The Lowdown

First-time drivers — especially those of younger age groups — are often perceived as riskier to insure than older and more experienced drivers. Because of that, new drivers should expect to pay higher rates for car insurance than drivers with extensive safe driving records. However, by shopping around and asking your insurer about the discounts you might be eligible for, you can reduce your rates while building up an accident-free driving record over time.

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