Car Insurance For New Drivers Made Affordable With Best Tips

TLTR:  In this article, we discuss the reasons why car insurance can be expensive for new drivers. We also cover some tips on how to get discounts and some risk factors you should avoid.  Companies consider a lot of factors before calculating the price for your insurance premium: your credit score, gender, age, health, the product you are trying to insure, etc. But rates can be especially high when it comes to car insurance for new drivers. According to Nerd Wallet, it’s estimated that drivers as young as 16 may have to pay $6,000 to $7,000 a year for full-coverage car insurance. Drivers in their early 20s have to pay around $2,000 to $3,000, while older drivers pay around $1,400 to $1,800 annually. If you are a new driver, there’s a good chance that you may be paying more for the same coverage than someone older than you.

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Why Is Car Insurance for New Drivers So Expensive?

Insurance companies believe drivers younger than 25 are more likely to get into accidents. New drivers are generally categorized like this:
  • Teenagers or young adults who just got their driver’s license.
  • Adults who learned to drive later in life.
  • Adults who have had a long gap in driving.
  • People who immigrate from other countries and aren’t familiar with U.S. laws.
While expensive rates are applicable to teenagers and young adults, that may not be the case if you are an adult in the above-mentioned categories. It’s important to remember that car insurance for new drivers won’t become automatically cheaper when they turn 25. They need to develop and maintain a good driving record—and a good credit score helps as well.
affordable car insurance for new drivers

What Are Some Other Things That Help Determine the Cost of Car Insurance for New Drivers?

Besides your age and status as a driver, here are some other important factors:
  • Make and model of the car
  • The car’s age
  • Materials used to make the car
  • State the car is being used in
  • Purpose of using the car
  • The car’s brand.
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What Are Some Things to Keep in Mind When Buying Car Insurance for New Drivers?

These policies must be included in car insurance for new drivers:
  • Property and Casualty insurance
  • Liability Insurance
  • Risk Insurance
Also, keep in mind that that sometimes it takes a while to get the auto insurance claim process started. If you get into an accident in the meantime, make sure to immediately call your insurance company.

How Can You Reduce Costs of Car Insurance for New Drivers?

Stay on Your Parents’ plan

If you are a teen driver or a college student, it’s possible for you to stay on your parents’ insurance plan. Your parents’ insurance history and credit score are likely to help you get a cheaper quote on coverage. By staying on their plan, you can save thousands of dollars yearly. If you’re a college student, the only stipulation for staying on your parents’ plan is to not drive another car if/when you’re away from home.

Your Choice in Cars

To get cheaper car insurance as a new driver, you should pick a moderately priced car. For example, it will be much cheaper for you to cover a Honda Accord than a Mercedes Benz. We recommend starting your driving experience with a second-hand car, as long as it’s in decent condition. A junker will be expensive to insure, as well.

Look for Discounts  

New drivers may not have the right car insurance from the get-go. The following tips can help get you significant discounts:
  • Try for a multi-policy coverage. That means getting all your insurance from one company.
  • If you’ve got more than one car, insure them under the same coverage.
  • Many insurance companies give discounts based on referrals. Find out if that’s true for your carrier, and, if so, refer away.
  • Try paying your insurance premiums in full. It makes you more likely to get a discount.
  • Green vehicles such as hybrids and electric cars get a discount in coverage from many insurers.
  • If you’re a student, you may be eligible for student discounts.
  • You may be able to get a discount based on your job. Many insurance companies see teachers, police officers, and scientists, among other professions, as being low-risk drivers.
cheap car insurance for new drivers


According to the CDC, the most common factors that put new drivers, especially teens, at risk, are:

  • Inexperience
  • Nighttime driving
  • Not using seat belts
  • Distracted driving (using phones)
  • Speeding
  • Substance abuse (like alcohol)

When getting first-time car insurance for new drivers, it’s natural to have a lot of questions.  Find an agent near you to get answers to all your questions.

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