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How to get car insurance with no insurance history

Obtaining a car insurance quote if you haven't previously had an auto insurance policy is possible — but your rates might be more expensive than average. The typical difference in premium between an auto insurance policy for a previously uninsured driver and a currently insured driver is 6%, or $51, per six-month policy period.

We tracked down the cheapest providers for a previously uninsured (and often new) driver and found the best methods to lowering your premiums. We'll review detailed rate information and ways to save below. 


The best car insurance companies for a previously uninsured driver

Car Insurance Provider6-Month Premium
Allstate$1,077
GEICO$752
Liberty Mutual$1,050
Nationwide$728
Progressive$989
State Farm$664
USAA$532

USAA and State Farm

USAA and State Farm offer the most affordable rates for a previously uninsured 30-year-old male. For those who qualify, USAA’s average premium is an affordable $532 for a six-month policy. For drivers who aren't military members — or related to one — State Farm's policies cost $132 per month more than USAA's.

Although drivers without insurance history pay more up front, their rates may decrease every six months as long as they avoid a lapse in coverage. The difference in premiums between a driver with no insurance history and three years of prior insurance coverage is $86 per six-month period. 

Time insuredAverage 6-Month Premium
None$828
6 months$778
1 year$760
3 years$742
5 years$726


This data is based on a composite driver profile.


Why insurance history is used as a rating factor

A few rating factors are used to calculate car insurance rates, some of which aren't tied directly to a driver's history of tickets or accidents. Credit score, age, homeownership, and insurance history are not tied directly to driving history. Car insurance companies see these characteristics as reliable predictors of risk.

In the opinion of an insurance company, a driver who has been licensed without insurance may have been driving uninsured — a potential signifier of risk. Similar to a bad credit score or poor driving history, a spotty insurance history may lead to more expensive insurance premiums.


How to save on car insurance if you're currently uninsured

There’s not much you can do to change your insurance history. However, there are ways to reduce the cost of your insurance policy. Let’s break down some cost-cutting solutions.

 

Method 1: Compare insurance rates

There are a few reasons this will be the best way to save on auto insurance. As soon as you have been insured for six months, you should expect your premium to decrease. But your current provider might not lower your rate by as much as another provider would. Considerable variance exists between insurance companies' premiums. Compare car insurance options carefully to find the one best suited to your price and coverage needs.


Weigh your options and get the best value from your next insurance policy.


Method 2: Bundle your insurance policies

In order to earn a multi-policy discount, bundle any insurance policy you have with your auto policy (or vice-versa). A multi-policy discount will allow you to save on your home or renters policy, in addition to your auto insurance. 

If you don't have a renters or home insurance policy, consider acquiring one. They're relatively inexpensive and offer protection for your assets in the event of a major loss, or if you are found legally responsible for damages that occur on your property.

Method 3: Carry the correct coverage

Vehicles depreciate rapidly. If you own a vehicle worth less than $4,000, you might not need collision and comprehensive coverage. These coverage options are designed to protect your vehicle from property damage. However, if your vehicle isn’t worth much, you might be paying for coverage you do not need.

Use Kelley Blue Book and NADA online as resources to determine the value of your vehicle. If you determine you still need comprehensive and collision, consider raising your deductible. By raising your deductible, you can lower your premium.

 

Method 4:  Be smart with your claims

Unless you have accident forgiveness, every car insurance company will raise your rates after you file a claim. Most insurance companies will keep upcharging your premium for three years following an accident. This will cause the overall rate increase for one at-fault accident to equal well over your original premium.

If you’re involved in a collision-type accident, follow our steps to see if it is cheaper to pay out-of-pocket.

  1. Get an estimate of the damage prior to speaking with your insurance company. This is what you would pay out of pocket.
  2. Consult our State of Insurance to see how much at-fault accidents increased rates in your state.
  3. Multiply the rate of increase by three (for the years during which you will be charged). Add this to your deductible.
  4. Compare the costs and choose the least expensive option.

For more information on the claims process, check out our article on when and how to file a claim.

Method 5: Consider telematics

Telematics embodies an insurance premium based on your actual driving habits. While some non-driving attributes are still utilized, such as your age and credit history, it’s much more reflective of how you drive. Below are some average savings you could expect from popular providers in the U.S. 

Company

Estimated Savings

Progressive SnapShot

Average of $130

Allstate Drivewise

Average of 10-25%

State Farm Drive Safe and Save

Up to 15%

Esurance DriveSense

Varies

Nationwide SmartRide

Up to 40%

Liberty Mutual RightTrack

Average of 5 to 30%

Root Car Insurance

Varies

Metromile

Varies

GEICO DriveEasy

Varies

 

telematics

What are telematics?

Telematics are in-car devices that monitor the way you drive to price your insurance policy. In theory, the safer of a driver you are, the lower your car insurance rates will be.

Safe driving habits include:

  • Slow braking
  • Slow acceleration
  • Daylight driving
  • Slow overall speeds

Method 6: Check for available discounts

Although discounts can be helpful for lowering your premium, they will not drastically affect your rate.

You should not stay with your company simply because they offer you a discount. Make sure you consider the overall rate. However, these discounts can be helpful.

 

Method 7: Avoid lapses in coverage with a non-owners policy

non-owners car insurance policy only provides liability coverage for drivers who do not own a car but want to maintain their insurance coverage. If you’re going to sell your vehicle, you should consider buying a non-owners policy. Because they offer no collision or comprehensive coverage, they tend to be fairly affordable. This will not only keep you continuously insured but offer you additional liability insurance when you’re driving.


Bottom line: the best way to find cheap car insurance while uninsured is to shop around.


Compare car insurance options and find the right policy for you.

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Ava Lynch
Ava LynchSenior Analyst

Ava worked in the insurance industry as an agent for four-plus years.

Ava currently provides insights and data analysis as one of The Zebra's property and casualty insurance experts. Her work has been featured in publications such as U.S. News & World Report, GasBuddy, Car and Driver, and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.

  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.

  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.

  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.