What Do Car Insurance Rates Look Like for New Drivers?

Last Updated on February 5, 2026

Getting car insurance as a new driver can feel overwhelming—mostly because the price can be shockingly high. Insurance companies don’t have much personal driving data on you yet, so they lean heavily on statistics and “risk signals” (age, location, vehicle, mileage, and more) to set your rate.

That’s why insurers usually charge more for brand-new drivers. They still need to make money, and inexperienced drivers (as a group) file more frequent and more expensive claims than experienced drivers—so “new driver” pricing tends to start higher than the average.

• New drivers pay more because insurers have less proof of low risk, so they price uncertainty higher—especially for teens and drivers under 25.
• Teen drivers are usually cheapest to insure when added to a parent/household policy rather than buying a separate policy.
• The fastest ways to cut costs are comparing multiple quotes, choosing a cheaper-to-insure vehicle, and adjusting deductibles/coverage to match the car’s value.
• Discounts for driver education, good student status, and telematics can help, but savings vary by insurer and state—always confirm what applies to your policy.

Who Counts as a “New Driver” to Insurance Companies?

When insurers say “new driver,” they usually mean one of these:

• Newly licensed drivers: Teens getting a first license or adults learning to drive later in life.
• Newly insured drivers: You may have had a license for years but have no history of insuring a vehicle in your name (for example, you only drove a parent’s or friend’s car).

Either way, insurers see fewer “proof points” that you’re low-risk—so your starting rate is often higher, even if you’re a careful driver.

What Do Car Insurance Rates Look Like for New Drivers?

There isn’t one universal number because “new driver” pricing depends on your age, where you live, what you drive, and what coverage you choose. But here’s the pattern most drivers see:

• Teens and young drivers typically pay the most. A separate policy for a teen can be extremely expensive, while adding a teen to a parent’s policy is usually cheaper.
• Newly licensed adults often pay less than teens, but still more than an experienced driver with continuous coverage.
• New drivers can pay anywhere from “moderately higher” to “multiple times higher” than a middle-aged driver, especially if you want full coverage on a newer car.

Also, keep in mind that overall insurance costs have risen in recent years due to higher repair costs, pricier car parts, more expensive medical claims, and bigger losses industry-wide. So “new driver” premiums today can look even steeper than what older articles (or your parents’ memories) suggest.

Average Rates for New Drivers by Company

The table below shows sample average yearly rates from major insurers for drivers without prior insurance history. Your actual quote may be higher or lower depending on your state, vehicle, age, coverage, and driving record.

Note: These are sample averages for drivers with no prior insurance history (6-month premiums shown; annual estimate is 2× the 6-month figure). Your actual rate depends on state, age, vehicle, coverage, and driving record.

If the numbers look painful, you’re not alone. The good news: you can often cut the cost significantly by choosing the right coverage, stacking discounts, and shopping multiple carriers—especially in your first year.

What Makes New Driver Insurance So Expensive?

Insurers don’t just price based on “accidents vs. no accidents.” They’re pricing the probability and cost of future claims. As a new driver, the big factors include:

• Limited driving history: Less data means more uncertainty, and insurers price uncertainty higher.
• Age and experience: Younger drivers are statistically involved in more crashes, so rates tend to be highest under 25.
• Vehicle choice: A newer or more expensive car costs more to repair and replace—raising full coverage premiums.
• Coverage level: Full coverage (liability + comprehensive + collision) costs more than minimum liability.
• Early mistakes: Even one speeding ticket can be extra costly as a new driver because you don’t have years of clean history to offset it.

How to Get Cheap Car Insurance as a New Driver

New drivers usually can’t get “experienced driver” pricing overnight—but you can avoid paying more than necessary.

1) Compare quotes from multiple insurance companies

Some insurers simply price new drivers better than others. This is especially true if you’re buying car insurance for the first time. Compare at least 3–5 quotes (and re-shop when your policy renews) to see who treats your profile most favorably.

2) If you can, join a parent/household policy (often cheapest for teens)

For teen drivers, getting added to a parent’s policy is often much cheaper than buying a separate policy. It won’t be cheap—but it can be a major savings compared to a standalone plan.

3) Customize your insurance policy (don’t overbuy coverage)

Many new drivers are teenagers, and many teenagers can’t afford high premiums on top of car payments. If you drive an older car, you may be able to lower costs by adjusting coverage—sometimes even dropping collision and comprehensive coverage when it makes financial sense.

For example, if you own an older vehicle outright, you might consider dropping collision coverage and keeping basic liability coverage to stay legal while reducing premiums. (Just make sure you understand what you’re giving up before you cut coverage.)

4) Raise your deductible (if you have an emergency fund)

A higher deductible typically means a lower premium. The tradeoff is that you’ll pay more out of pocket if you file a claim—so only raise deductibles if you can comfortably cover them. And if you’re trying to build better habits behind the wheel, these NHTSA tips are a solid refresher: 10 Tips for Safe Driving.

5) Take driver education or an approved defensive driving course (ask about discounts)

Some insurers offer discounts for approved driver education, defensive driving, or “mature driver” programs—especially for teens, students, and older drivers. The savings vary by company and state, so treat it as a “nice bonus” instead of a guarantee. Here’s a helpful breakdown of how these discounts work: defensive driving course discounts explained.

If you want examples of what insurers advertise, GEICO lists both driver training and defensive driving discounts here: GEICO auto insurance discounts. AAA also summarizes common discounts (including defensive driver programs) here: AAA guide to car insurance discounts.

6) Stack the “easy wins” most new drivers overlook

• Choose a cheaper-to-insure car: Older, safer, lower-horsepower vehicles often cost less to insure than sports cars and luxury models.
• Ask about telematics: Some insurers offer apps or plug-in devices that can lower your price if you drive smoothly and don’t rack up miles.
• Maintain continuous coverage: Avoid lapses. Even a short gap can make you look riskier and increase future premiums.
• Re-shop after 6–12 months: Once you’ve built a little insured history (with no claims or tickets), you may qualify for better pricing elsewhere.

Bottom line: new driver insurance can be expensive, but with smart coverage choices and careful shopping, you can usually bring the cost down—and you’ll often see better pricing as you build a longer track record.

FAQs on Car Insurance Rates for New Drivers