Because car insurance companies base their premiums on perceived risk, teen drivers and others who are newly behind the wheel see higher average car insurance rates for comparable coverage than experienced drivers. The main ways to reduce new driver insurance rates over time are to maintain a clean driving record, build credit, and look out for discounts. Keep reading to learn what you need to know to find good car insurance for new drivers.
Finding first time driver insurance
Most individuals seeking car insurance for a new driver fall into a handful of categories, and each faces unique challenges.
- Teens: New teenage drivers have some of the highest rates of collisions and violations in the country, making them extremely high-risk driver to insure. That’s why young drivers under 25 pay the highest average insurance rates of any age group. Drivers who fit into this category benefit from remaining on a parent’s policy for as long as possible—even college students and 18-year-olds looking for more financial freedom.
- Older adults: Maybe you just moved out of the city into a more rural area, or maybe you just never got around to getting your license. Regardless, newly licensed adults — even those who get a driver’s license after the age of 25 — typically pay a higher insurance premium than adult drivers with more experience. These drivers should get an individual policy and maintain a clean record to see a drop in rates over time.
- Immigrants and foreign nationals: Even if you have lots of driving experience in another country, only your time as a licensed U.S. driver will count when calculating your insurance premiums. Drivers who fit into this category might have better luck with non-standard insurance companies since these providers are more likely to work with drivers who carry foreign licenses, but these providers certainly aren’t your only option.
All new drivers will benefit from comparing insurance rates from over 55 top providers via the Jerry app to better understand their options.
Should first-time drivers get bare minimum car insurance?
Our expert insurance agents recommend that new drivers carry at least 100/300/100 liability insurance and full coverage (comprehensive and collision). That means purchasing:
- $100,000 of bodily injury liability coverage per person
- $300,000 of bodily injury liability coverage per accident
- $100,000 of property damage liability coverage
- Any other state-mandated insurance coverage like personal injury protection (PIP), MedPay, or uninsured/underinsured motorist coverage (UM/UIM)
- Comprehensive insurance up to the actual cash value (ACV) of your vehicle
- Collision insurance up to the actual cash value (ACV) of your vehicle
- Gap insurance, if you have a financed or leased vehicle
While this might seem like a lot of coverage, it ensures that you and your vehicle are financially protected in the event of an accident.
Remember: First-time drivers are more likely to get into an accident, so more insurance coverage is usually the right choice.
Where to find cheap car insurance for new drivers
Many people in this situation ask, “What is the best car insurance for new drivers?” But in reality, there’s no single auto insurance provider, car or discount that will give new drivers the best rates every time. Auto insurance providers each use their own algorithms to determine their rates, so companies that care less about factors like age or ZIP code might offer more affordable car insurance for young drivers.
So how much is insurance for a new driver? Below you can see actual Jerry customer quotes to get an idea of how much more that coverage costs than the national average for minimum liability coverage — around $50-90 a month across all age groups.
|
Monthly Quote
|
Insurance Company
|
Age
|
Date of Policy
|
|---|---|---|---|
| $516 | Root | 19 | March 5, 2025 |
| $143 | Progressive | 19 | March 5, 2025 |
| $176 | The General | 18 | March 5, 2025 |
| $559 | Progressive | 19 | March 5, 2025 |
| $352 | Bristol West | 19 | March 5, 2025 |
| $227 | Progressive | 19 | March 5, 2025 |
| $155 | Bristol West | 19 | March 5, 2025 |
| $197 | Trexis | 19 | March 5, 2025 |
| $268 | Trexis | 19 | March 5, 2025 |
| $247 | Progressive | 19 | March 5, 2025 |
Car insurance discounts for new drivers
A great base rate is one thing, but sometimes finding the best car insurance for new drivers is a matter of choosing the right discounts.
Here’s an overview of common car insurance discounts, including several that new drivers may qualify for.
| Discount | How to qualify |
| Usage-based safe driver discount | Allow your insurer to track your driving habits through an app or device and avoid unsafe driving behaviors like speeding and harsh braking. |
| Good student discount | Earn a B average or higher as a full-time student under 25. |
| Anti-theft discount | Install an anti-theft device in your vehicle. |
| Multi-policy discounts (bundling) | Purchase homeowners or renters insurance from the same company as your auto insurance. |
| Driver education/defensive driving discount | Take an approved driver education or defensive driving course to promote safe driving habits. |
| Online quote discount | Get a quote for car insurance online instead of by phone or in person. |
| Electronic billing discount | Pay your bill using an electronic funds transfer (EFT) rather than a paper check and opt to receive policy documents electronically. |
Considerations for new car and insurance for new drivers
New drivers benefit from purchasing safe, reliable and affordable vehicles with good crash test ratings and safety features.
To help avoid accidents and the insurance hikes that come with them, consider choosing a vehicle with a great safety rating from the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA).
You may also save by choosing a car with a lower MSRP. These vehicles tend to be low insurance cars for new drivers since they cost less to repair or replace after an accident. This is especially true if you carry full coverage car insurance including collision and comprehensive coverage.
Jerry tip
Used cars are usually cheaper to insure than newer vehicles due to slower depreciation and lower repair and replacement costs.
When will car insurance go down?
As you gain more experience driving, auto insurance companies will start to see you as a lower risk and offer you lower rates.
This graph shows the difference in the average cost of car insurance coverage based on your age — which generally correlates to driving experience:
Other ways to save on car insurance as a new driver
There are several other ways to save on your auto insurance policy, whether you’re a first-time driver or not. Some of the best ways to lower the cost of your car insurance include:
- Keep your driving record clean: Good drivers have some of the cheapest rates, so your driving history can have a big impact on your car insurance quotes in the future. Things like at-fault accidents, speeding tickets, and other traffic infractions frequently committed by inexperienced drivers can all lead to higher rates.
- Consider your coverage options: State minimum insurance will always be the cheapest option, but new drivers and experienced drivers alike benefit from a full coverage policy. You can lower your deductible for better rates, but make sure you’re still able to pay it out-of-pocket in the event of an accident.
- Improve your credit: Drivers with a low credit score will pay up to 115% more for car insurance than drivers with excellent credit. Work to build your credit, particularly if you’re a young adult driver without much credit history.
Shop for the best rates: Use the Jerry mobile app to make the shopping process quick and easy. Compare rates from several auto insurance companies to ensure you’re getting the best deal for the coverage you need.
FAQ
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What is the cheapest car insurance for an 18-year-old driver?
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What are the best ways to lower insurance premiums for new drivers?
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At what age does car insurance go down?
Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.
Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.
