Cheap Car Insurance for New Drivers

Whether you're a teen or a late bloomer to the world of driving, we've got you covered.

What is cheap car insurance for new drivers?


Overall, new drivers are some of the most expensive insurance clients. Because of their lack of driving experience, they tend to file more claims and receive more citations. Since your insurance company uses your driving record as a determining factor for how much you pay, being a risky driver will cause you to have a higher premium. Still, there are some ways to save when it comes to getting car insurance as a new driver. Let’s break it down!


In this article, we will discuss…


  1. What do we mean by “new” driver?
  2. How much do new drivers pay?
  3. What are some ways to save?
  4. Your takeaway




Defining New Drivers


When we talk about new drivers, we are referring to people with no driving or insurance records. This can mean newly licensed teenagers, people who simply got their licenses later in life, or new drivers in the US. Either way, these types of drivers face similar challenges when it comes to insurance companies.





How much do you pay as a new driver?


As we stated, we're thinking about new drivers are people who are either very young or are brand new to driving for whatever reason. If you're a new driver between the ages of 16-19-year-olds old, you can expect your premium to be over three times as high as the national average. If, however, you're new on your own terms, we can look at your lack of an insurance history as a determining factor for your premium. All other characteristics constant, the longer you have car insurance (and with higher limits), the cheaper your premium will be.

So, in this sense, you can see why needing cheap car insurance as a new driver is so necessary.

  • Average premium for a driver without an insurance record: $1,460
  • Average premium for drivers between the ages of 16-19: $4,957

On average, not having an insurance record will cost you $137 per year versus the staggering $3,274 more a young new driver would face. Because of this, a new driver should expect to pay quite a bit more than a more experienced driver.





What are some ways to save?


Stay on your parent’s plan


If you’re a new driver because you’re a teenager, the absolute best way to save money is to stay on your parent’s car insurance plan. More than likely, your parent's insurance and driving history will help decrease the risk you present to your company. By staying on your parent's policy as long as possible, you can save you thousands of dollars a year.


Look for other discounts


Multi-policy

This discount refers to having two types of insurance policies under one insurance company. Common policies are home/auto or renters/auto. The discounts can affect both your policies, typically. The amount of discount on your auto insurance will differ on what you're combining. For example, you'll receive more of a discount for a homeowners/auto policy than a renters policy. The logic is simple. A homeowners policy brings in much more revenue for an insurance company than a renters policy.

Savings for Renters Savings for Homeowners
$73 $142


Multi-car discount

Like a multi-policy discount, a multi-car discount refers to have more than one car with a single insurance company. Typically, the discount is automatically added either at the policy inception (if two cars were originally added) or when you add the second vehicle to the policy.



Defensive Driver Discount

Be careful: this is not exactly what it sounds like. This discount entails taking an actual defensive driving course and then presenting your insurance company with proof (sometimes a receipt or transcript) of it. The logic behind this discount is clear: a safer driver makes you a cheaper client because you’re less likely to have a claim. Pretty straightforward!



Equipment Discount

If your car comes with anti-theft devices or if you have services like LoJack, your insurance company usually provides you with a discount. The discount tends to be smaller than a multi-policy or defensive driver discount, but can still help with making premium payments. Plus, a lot of these are already built into the vehicle. Just make sure they are pulled into your policy when you're quoted.

Safety/Anti-Theft Device Avg Annual Premium Discount
None $1,323
Passive Disabling Device $1,312 $10
Tracking Device $1,314 $9
Audible Alarm $1,317 $6
Electronic Stability Control $1,318 $5

Good Driver Discount

Naturally, this discount is offered to you if you have a clean driving record, meaning no accidents or citations. This is typically a higher paying discount and a lot of times it is automatically added to your policy when your Motor Vehicle Report is pulled at the inception of your auto policy. Still, if you are sure you have a clean driving record and are not receiving any discount, speak with your insurance company and ask if they offer a discount for good drivers.



Preferred Payment Discount

This discount refers to the manner in which you make your insurance payments and has tiers, typically. For example, if you pay your entire premium up front, you are often given a discount which is usually the highest preferred payment discount. Moreover, if you set up for automatic payments from a bank account, you can often receive an “EFT discount.” EFT stands for electronic funds transfer. If you are able to pay upfront or through automatic payments, this is a discount worth considering.


Savings for Preferred Payment Discount

EFT payment Pay in Full payment
$27 $61



Profession Discount

This discount goes by many names but the idea is the same. Some insurance companies will give you a discount based on your occupation. Statistically, some occupations like teachers, physicians, or police officers are less likely to file a claim. Because of this, some insurance companies return the savings back to you. Usually, they will require you to submit some type of proof of your profession — a photocopy of your degree is common.



Good Student Discount

If you're still under 25 and have the grades (typically above a 3.0 GPA), speak with your insurance company about a good student discount. Normally, they’ll ask for a transcript every policy period (6-12 months) as proof.



Chose a moderate vehicle


Your vehicle is part of your insurance premium just like you are. So, picking a vehicle of a high value will cause you to have a higher premium. This is especially true for less experienced drivers — A.K.A new drivers. A new driver with a big pick up truck or a Mercedes is a huge liability to an insurance company. If you're a new driver and looking to save money, you're better off with a moderate older vehicle to get your feet wet with driving.


Average Premium based on vehicle type

Van SUV Car Truck Hybrid Luxury Car
$1,224 $1,259 $1,369 $1,361 $1,454 $1,618


Pick the right company

At the end of the day, all the discounts in the world won’t matter if you simply have the wrong company. Some insurance companies will see your age and driving background as too great of a liability and charge you well above the reasonable limits you can expect. Shop around every 6 months to make sure you’re getting the best rate for your driving profile. Use our app here to shop hundreds of different companies.





What to keep in mind as a new driver


Being a new driver isn't a death sentence when it comes to getting car insurance. Yes, it can be fairly expensive and sometimes you might struggle to find an insurance company that will cover you without charging an arm and a leg, but take comfort in the wide range of options we discussed. Consider all of your possible discounts thoroughly, and, most importantly, shop around for car insurance every 6 months to ensure you're getting the best rate.




Compare over 200 insurance companies at once!





Recent Questions:

Cheap Car Insurance for New Drivers

Can I go to jail for driving without insurance?

Apr 27, 2018

Would you go to jail from driving without insurance? I’m 17 and just got my license, but I don’t really ...

At what age does car insurance decrease?

Mar 12, 2018

When does car insurance get lower? I’m a newly licensed driver. I’ve only had my license for 4 months and ...

I’ve had 3 accidents and am paying too much for auto insurance

Dec 26, 2017

I’ve had 3 accidents this year and the last quote I received was for $400/month. I live in a no-fault ...

If I’m a new driver in the US, how will that impact my rate?

Mar 03, 2017

I’m a new driver in the US but have 5 years of driving experience outside of the US, will that ...

Additional Resources:

Cheap Car Insurance for New Drivers

How Long Does a Ticket Stay on Your Driving Record?
How Long Does a Ticket Stay on Your Driving Record?
Nov 17, 2016

We’ll start with the bad news: your driving record is forever. Any conviction for a speeding ticket or other moving...

What’s the Most Expensive Traffic Ticket in Your State?
What’s the Most Expensive Traffic Ticket in Your State?
Nov 08, 2016

If a cop hands you a ticket for speeding, swerving in and out of lanes, or causing a crash, you’re...

6 Myths About Speeding Tickets Debunked
6 Myths About Speeding Tickets Debunked
Oct 17, 2016

Speeding tickets: the source of stress and financial setbacks (fines, points, insurance increases), occasional bragging rights (ever gotten out of...

When Traffic Tickets Cause Insurance Premiums to Rise
When Traffic Tickets Cause Insurance Premiums to Rise
Jun 30, 2015

A traffic ticket of any kind is bad enough—the extra money, the time spent in traffic court or diversion, the...

Do More Tickets Equal Fewer Accidents?
Do More Tickets Equal Fewer Accidents?
Apr 17, 2015

There are these very distinct stages upon being pulled over by a police officer. Once those colorful, bright (blinding, even)...

Why You Never Have to Worry About Speed Limits Again
Why You Never Have to Worry About Speed Limits Again
Apr 13, 2015

Kind readers of Quoted, I have a confession to make. In my short six years as a driver, I have...

Speeding Ticket Facts
Speeding Ticket Facts
Jul 08, 2014

The very first speeding ticket was awarded to a lead-footed New York City taxi driver on May 20, 1899, just...

Does a Speeding Ticket Increase Insurance? A Zebra Original Data Report
Does a Speeding Ticket Increase Insurance? A Zebra Original Data Report
Jun 13, 2014

It’s a nightmare shared by every driver: You’re cruising along, maybe in a bit of a hurry. You glance down...

12 Ways to Avoid a Speeding Ticket: A Lesson in GIFs
12 Ways to Avoid a Speeding Ticket: A Lesson in GIFs
May 29, 2014

It can be tough out there on the road. That’s why we’re bringing you 12 ways to avoid a speeding...