How much does it cost to install Best Car Insurance for New Drivers [Cheap Rates for 2024]?

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Best Car Insurance for New Drivers [Cheap Rates for 2024]

The best car insurance policy for new drivers provides the most comprehensive coverage combined with the best applicable discounts. While your coverage can vary based on individual circumstances, finding the best car insurance for new drivers is a breeze.

In this article, we outline some of the cheapest average insurance premiums, potential discounts for new drivers, and some of the best car insurance companies out there. Let’s get started.

Key takeaways

• New drivers will have higher rates for auto insurance than more experienced drivers.
• The best car insurance rate may not be the cheapest one.
• Coverage, reputation, and financial stability are essential auto insurance carrier considerations.
• Discounts can significantly impact new driver auto insurance rates.
• New drivers can expect charges for inexperienced driving to decrease over time.

Can new drivers get cheap car insurance?

New driver rates can be expensive, and for good reasons. New and inexperienced drivers are statistically more prone to accidents simply due to less experience behind the wheel. Rather than pass the majority of that added inexperienced driver risk over the population as a whole, the additional risk for new drivers is passed to those drivers through additional premium costs.

While new drivers will have higher insurance premiums than more inexperienced drivers, those rates will vary by insurance company, demographics, applicable discounts, whether they are bundled with their parent’s policies or have their own policy, and many other factors. All of that combined means new drivers can find lower rates if they do their research.

Below is a table of average annual full-coverage auto insurance rates for ages 16 to 25, according to Car and Driver.

How to save money on car insurance for new drivers

When looking to save money on new driver auto insurance, discounts have a considerable impact on the total insurance premium. Understanding which discounts are available to you in advance can prepare you to qualify for the cheapest car insurance for new drivers. Some of the discounts commonly provided by insurers include:

• Safe Driving
• B Average, Good Student, Good Grades
• Bundling, Multi-policy
• Clean Driving Record
• Safety Features
• College Student
• Defensive Driving Course
• Credit Score
• New Car

When looking for car insurance quotes for new drivers, the focus is usually on car insurance premiums. However, there are many other factors to consider before simply choosing the cheapest new driver car insurance rates.

The purpose of auto insurance is to be a trusted resource if you have a car accident or other claim. The cheapest auto insurance for new drivers may not be the best one. You’ll want an insurance company with financial stability that you can rest assured will be able to fulfill its financial obligation if needed, has a strong reputation in both claims and customer service, and meets you where you are by providing 24/7 service and mobile app access.

A good auto insurance company for new drivers will also provide a wide range of discount opportunities and display a willingness to help you understand your coverage, deductible, discount, and other car insurance cost options. A great young driver insurer is there for you before, during, and after a claim.

Best auto insurance companies for new drivers

The best auto insurance company for a new driver is one that provides the most comprehensive combination of the best rates, great discounts, and fantastic service. Below are the average rates for the cheapest car insurance companies for new drivers and the car insurance discounts they offer new drivers with less-than-average driving experience.

Erie Insurance

Discounts: Rate Lock, Multi-policy, First Accident Forgiveness, Diminishing Deductible, Vehicle Storage, Pay-In-Full, Youthful Driver, College Student

Auto-Owners Insurance

Discounts: Multi-Policy Discount, Payment History, Green Discount, Multi-Car, Paid-In-Full Discount, Advance Quote, Safety Features Discount, Good Student Discount, Student-Away-At-School Discount, Teen Driver Monitoring Discount

USAA Insurance

Discounts: Safe Driver, Multi-Policy, Multi-Vehicle, Military On-Base, Annual Mileage, Storage Discounts, Automatic Payments, Legacy, Good Student

Geico Insurance

Discounts: Air Bag, Anti-Lock Brakes, Anti-Theft System, Daytime Running Lights, New Vehicle, Five-Year-Accident-free, Seat Belt Use, Defensive Driving, Driver’s Education, Good Student, Emergency Deployment, Federal Employee, Membership and Employee, Military, Mult-vehicle, Multi-policy

The most important coverages for new drivers

While looking for the cheapest auto insurance for new drivers, whether with Allstate, Progressive, Nationwide, State Farm, or one of the insurers listed above, the premium you pay is for car insurance coverage - and precisely what that coverage is for matters.

The single most important coverage for new drivers is liability insurance, which is composed of bodily injury liability and property damage liability. Not only does liability coverage protect against injury and property damage for which a new driver may be held liable, but it also provides financial protection against assets that may arise from a lawsuit related to the accident. The coverage limits provided by the liability coverage are equally important. While state law for minimum coverage may provide the cheapest auto insurance coverage for new drivers, it is often inadequate in the event of a loss.

Additionally, it may be tempting to only carry liability coverage for a new driver to keep costs down. If there is a loan on the vehicle, your lender will likely require you to also carry comprehensive and collision coverage to cover damage to your car. Even when not required, a vehicle can be a significant investment. With first-time drivers more likely to have an accident, comprehensive and collision coverage can prevent a financial loss in the event of an accident.

Additional coverage options, such as medical payments, uninsured or underinsured motorists, roadside assistance, and car rental coverage should be considered based on your individual needs. There is no such thing as a standardized full-coverage or liability policy. Each policy should be customized to include the types of coverage, limits of coverage, and discounts that best match their risk tolerance.

FAQ: Best cheap car insurance for new drivers

How long are drivers considered a “new driver”?

The definition of a new driver varies by insurer. If a driver is both new and youthful, increased rates may last until age 25, with rates gradually reducing based on age until age 25. However, if younger drivers become married during this time, it could result in reduced premiums for young adults. Discuss any major life changes with your insurance agent to determine how they may affect your rates.

For new drivers over age 25, an inexperienced driver charge could last anywhere from as little as three years to as long as nine years, based on the insurer. Moving violations, accidents, and other driving history occurring during that time could affect the longevity of the additional inexperienced driver premium.

What discounts are available for new drivers?

Auto insurance discounts are a great way to reduce auto insurance premiums for new drivers. The discounts that are specific to teenage drivers and typically available through most insurers include Good Student Discount, Defensive Driving, College Student, and Drivers Training discount. Additional discounts may be offered for maintaining good driving habits.

Each insurance provider determines what discounts they will offer and there are many other discounts available to new drivers that are also available to all drivers. One example is a multi-line discount, which provides a discount for bundling your car with homeowners or renters insurance. Other discounts may apply based on how you choose to pay your auto insurance premium. It’s important to review all of the options available for your situation with your car insurance agent.

When should I add my teen driver to my insurance policy?

When to add your teen driver to your auto insurance policy also varies by insurer. Some insurers require teens be added as soon as they receive their driver’s permit. Other insurance companies do not require the addition of teen drivers until they get their driver’s license.

Verifying your new driver auto insurance company’s requirements to add a teen or new driver to your policy can prevent a costly uncovered loss. If you are unsure of your insurance company's new driver requirements, check your policy documents or contact your insurance agent.

Talking to your agent well in advance of the need to add a new driver to your policy can help you prepare.This may include understanding available discounts that you can be working towards in advance, as well as considering cars that my be more premium-friendly for new drivers if you are looking to purchase a new car for your new driver.

Article written by Shawnette Good.

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.