Best Cheap Car Insurance for New Drivers
Summary: Best Cheap Car Insurance for New Drivers
Who Needs New Driver Car Insurance?
Anyone who is newly licensed and will be driving needs new driver car insurance. New driver car insurance isn’t a type of insurance but refers to an auto policy covering someone who has recently received a U.S. driver’s license and is considered an inexperienced driver. That can include:
- Teens and young adults starting to drive while living with their parents.
- Adults on their own and driving for the first time.
- Immigrants and foreign nationals new to driving in the U.S.
- Drivers who are licensed after being unlicensed and uninsured for a period.
Teens and Young Drivers
If you recently received a learner’s permit as a teen or young adult living at home, your parents can likely add you to their policy at no additional cost. Once you have a driver’s license, be prepared for rates to rise as you’re added as a full driver on the policy. Rules about putting a teen driver on a policy can vary from state to state and from one insurer to another.
Be sure to ask how much it’ll cost to add the new driver to the policy. Car insurance for teens is expensive due to their immaturity and inexperience. Going on a parent’s policy is normally much cheaper than buying a separate policy.
Adults Driving for the First Time
Waiting to get a driver’s license for the first time can help lower your car insurance rates when you’re starting out. Drivers in their teens see pricey rates in part because of immaturity. If you get licensed at age 25 or older, you’ll pay less for an auto policy than a 16-year-old because you’re assumed to be more mature and likely to make smarter choices behind the wheel.
Immigrants and Foreign Nationals
If you’re an immigrant or foreign national who was licensed in another country and just received your U.S. driver’s license, expect higher car insurance rates at first. Car insurance companies cannot normally validate a driving record from another company, so they will treat you like a new driver in terms of rates.
Drivers With a Gap in Driving Experience and Insurance Coverage
Perhaps you haven’t driven or insured a car for years if you haven’t owned a vehicle or for other reasons, but now you need an auto policy again. We found that that gap in car insurance coverage will raise your rates by about 17% on average.
Time off from driving shouldn’t affect you because insurers ask when you were first licensed to determine your driving experience. If you feel uncomfortable when driving again, try taking a defensive driving class. It can help sharpen your skills, which may keep you out of accidents, and some insurers will give you a discount for taking an approved course.
Essential Car Insurance for New Drivers
Essential car insurance for new drivers will include at least state minimum coverage, but inexperienced drivers are more likely to get into accidents, so it’s wise to buy full coverage car insurance.
Even the cheapest full coverage car insurance will provide more protection than a policy with only the state-required minimum of insurance. The core parts of a full coverage auto insurance policy are:
Car Insurance Types to Consider for New Drivers
New drivers are more likely to crash due to inexperience. For this reason, it’s smart to consider buying additional coverage that can help ease the financial sting if you’re in an accident.
Here are three types of car insurance that provide an extra layer of protection for accidents.
Tips for Lowering the Cost of Car Insurance for New Drivers
Jason Metz
Insurance Lead Editor
Penny Gusner
Insurance Senior Writer
Amy Danise
Insurance Managing Editor
Ashlee Valentine
Insurance Editor
Michelle Megna
Insurance Lead Editor
Les Masterson
Insurance Editor
Shop Around
Whether you’re a new driver buying your own policy or the parents of a newly licensed teen driver, it’s important to compare car insurance quotes from multiple companies. Each insurer has a unique way to calculate rates, so shopping around will help you find who offers the cheapest car insurance rates.
Insurance Lead Editor
Add the New Driver to a Household Policy
Parents looking for the best cheap car insurance for teens should consider adding the teenage driver to the household policy. It’s normally cheaper than a teen buying their own policy.
Insurance Senior Writer
Ask About Discounts
It never hurts to ask what car insurance discounts you qualify for. For instance, if you’re in school ask about a good student discount. If you’re a parent of a new driver at college over 100 miles away, ask about a “student away at school” discount.
Insurance Managing Editor
Choose a Higher Deductible
If you buy collision and comprehensive insurance, you’ll choose a car insurance deductible. Picking a higher deductible will get you lower rates. Our research found that you can save nearly $440 a year on average by choosing a deductible of $1,000 instead of $250.
Insurance Editor
Take a Defensive Driving Course
Some car insurance companies will give drivers of all ages a discount for taking an approved defensive driving class. Even if you don’t get a discount, sharpening your driving skills may help you avoid accidents, which will ultimately keep your rates lower.
Insurance Lead Editor
Choose an Affordable Vehicle
It normally costs much less to insure a safe car that’s relatively cheap to repair than one that is sporty and expensive to fix. Insurers consider a car’s value, repair costs, theft rate and past claims and payouts for the make and model.
Insurance Editor
Methodology
To identify the best cheap car insurance for new drivers we evaluated each company based on its average rates for a variety of drivers, coverage options offered, collision repair grades from auto body professionals and our surveys of customer service, pricing and claims satisfaction.
Auto insurance rates (60% of score): We analyzed average rates from each company for teens ages 16 to 19 added to a parent’s policy and young adult drivers ages 16 to 25 buying their own policies.
Unless otherwise noted, rates are based on a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Source: Quadrant Information Services.
Accident forgiveness (5% of score): Car insurance companies earned points for having an accident forgiveness program.
Source: Forbes Advisor research.
New car replacement (5% of score): Car insurance companies earned points for offering new car replacement coverage.
Source: Forbes Advisor research.
Collision repair score (10% of score): We incorporated insurance company grades from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments.
Source: CRASH Network’s Insurer Report Card provides grades from more than 1,100 collision repair professionals to gauge auto insurers on the quality of their collision claims service.
Auto Insurance Collision Repair Grades
Satisfaction with customer service and price; satisfaction with claims process (20% of score): For customer satisfaction, we surveyed 3,000 American drivers with car insurance who purchased a new policy or renewed their policy within the last 12 months, 200 per company. This online survey was commissioned by Forbes Advisor and conducted by market research company Talker Research, in accordance with the Market Research Society’s code of conduct. Data was collected from October 11-29, 2024. The margin of error is ± 1.5 point with 95% confidence. This survey was overseen by Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
For satisfaction with the claims process, we surveyed 3,000 American drivers who had filed a car insurance claim within the past 12 months. This online survey was commissioned by Forbes Advisor and conducted by market research company Talker Research, in accordance with the Market Research Society’s code of conduct. Data was collected from October 11 to November 12, 2024. The margin of error is ± 1.8 point with 95% confidence. This survey was overseen by Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
Read more: How Forbes Advisor rates car insurance companies
Best Car Insurance Companies 2025
With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to.
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Via Forbes Advisor's Partner
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Best Cheap Car Insurance for New Drivers FAQs
Why is car insurance for new drivers so expensive?
Car insurance for new drivers is expensive because new drivers are inexperienced behind the wheel and cause more accidents and claims. Even the best car insurance companies charge significantly higher rates for new drivers than for more experienced drivers.
Which insurance is cheapest for new drivers?
Our analysis found that Nationwide offers the cheapest average cost ($993 a year) for insuring a driver age 16 when added to a parent’s policy. It’s much cheaper to add a new driver to a parent policy than for them to get coverage on their own. The average cost of car insurance for 16-year-old drivers with their own policy is $8,608 a year.
If you’re a young adult and new driver buying your own policy, Erie, Nationwide, Travelers and USAA offer cheap rates. For instance, Erie’s average cost for a 20-year-old is $2,859 per year.
How do I get my first car insurance cheaper?
Getting your own insurance policy will be far more expensive than being added to a parent’s policy. But if that isn’t an option, shop around and compare quotes from the best cheap car insurance companies for teens. When comparing quotes, be sure you’re getting all discounts available.
