How Much Is New Driver Insurance?
Written by Team Clearcover
Looking for affordable car insurance for a new driver? Typically, new drivers will pay a higher rate in insurance premiums than experienced drivers. Luckily, there are a few ways you may be able to save money on a policy for a new driver—so read on!
The cost for new driver insurance depends on factors unique to the driver. The best way to estimate your costs as a new driver—or for a teen driver that you’d like to add to your policy—is to get a few car insurance quotes and compare them.
You’ll need to provide a few details to get an accurate quote to see how much your new driver's insurance would be, including your driver’s license number, your Vehicle Identification Number (VIN), vehicle make and model, and more.
The 3 Types of New Drivers
How do you know if your insurance company would classify you as a new or inexperienced driver? Generally, you’re considered a new driver if you have no driving history or don’t have a previous record of car insurance.
Let’s look at three of the most common new-driver situations.
1) Teen Drivers
Ready, set, drive! Getting your license for the first time as a teen is often an exciting milestone for the whole family. While some teens are thrilled to finally get on the road on their own, others can be more cautious.
No matter how you or your teen feel about this transition, make sure to follow your state’s regulations and requirements to obtain a first-time driver’s license. Each state is a bit different, so do your research ahead of time to ensure you’re following the requirements in your state.
2) Adults Acquiring Their License for the First Time
If you’re an adult who hasn’t driven previously—for example, if you’ve recently moved from an urban area with a robust public transportation system to a suburban or rural setting and you now need to drive—you’ll need to go through your state’s licensing requirements for first-time drivers and acquire a driver’s license to build a driving and insurance history.
3) People Who Immigrate to the US From Another Country
New to the US—but not new to driving? Usually, even if you have a squeaky-clean driving record in your home country, you’ll be considered a new driver until you build up your driving history in the US.
The Department of Motor Vehicles or Department of Transportation for the state you live in will determine the steps you need to take and what paperwork you need to provide to obtain a US driver’s license. You’ll need to follow those steps before obtaining car insurance. If you need assistance with understanding the process or with translating instructions, visit your local citizenship and immigration office for help.
If you don’t have the proper immigration paperwork needed, there are a few states that may issue a driver’s license in these circumstances. See the National Conference of State Legislatures for more details.
What Impacts the Price of Auto Insurance?
We hear this question a lot: What influences my car insurance costs?
When you're shopping for new driver insurance, it’s important to know what information is factored into the price of your auto insurance policy. Knowing some of these factors can help you understand why the cost to insure a new driver may be a bit higher and give you insight into how to find an affordable policy.
Here are a few things that can influence your car insurance costs:*
Your age
Your vehicle, including its make and model
Your driving habits (commute distance, annual mileage, etc.)
Your driving history (or in the case of brand-new drivers, the lack thereof!)
The coverages you select for your policy, including the types and amounts of coverage
*This list isn’t comprehensive and these factors can vary by state. Check with a licensed insurance agent or your insurance company to learn more.
Let’s talk about coverage limits for a second.
A coverage limit is a maximum amount your car insurance company will pay for a covered incident. You select your coverage types for your policy—like bodily injury liability coverage or comprehensive coverage—and the amounts of coverage you’d like for each coverage type.
Whatever financial losses or damages fall outside of the coverage limits you select will be your responsibility to pay out of pocket.
Here’s another important thing to keep in mind when selecting your coverage limits: Your state sets the minimum amount of coverage you’re required to have to drive, along with the coverage types you must carry. But it’s important to know that—depending on your specific situation—you might need additional coverage types or amounts that aren’t necessarily required by your state.
The sweet spot between having too much coverage and not enough is going to be unique to you and your individual needs. (We’ll cover ways to save on new driver insurance later on in this guide.) You can also check with an insurance agent to learn more about what insurance coverages are right for you.
How to Get Affordable Insurance for Teenage Drivers
Ready to purchase car insurance for a teen driver? Even though new driver insurance can be more expensive than insurance for experienced drivers(1), there are still ways to save money on auto coverage for teens.
Adding a new driver to your Clearcover policy? Learn how here.
So, let’s take a look at ways to save money on car insurance for teens.
1.) Stay on a Parent’s Car Insurance Policy
If you’re able to keep your teen on your car insurance policy under a multi-driver or multi-car policy, you may be able to save on their premiums.
2.) Keep a Clean Driving Record by Driving Safely
One obvious way to continue to keep your premiums affordable is to drive safely. Stay attentive and practice, practice, practice safe driving habits from the start. A safe driving record can save you money on your premiums over your lifetime!
3.) Ask About Discounts That Might Apply to You or Your Teen
Ask your insurance company about discounts that may apply to younger drivers. In some states, there may be additional discounts available if you take driver education classes.
However, it’s important to know that each state has different rules around car insurance discounts, so not all discounts may be available where you live. (We’ll cover discounts later in this article!)
How to Get Affordable Insurance for First-Time Drivers
A first-time driver can still get affordable insurance with discounted car insurance rates in some circumstances, even without a driving history.
When you’re insured with Clearcover, we automatically apply most discounts that you may be eligible for to your insurance quote with just a few clicks. (We make getting a car insurance quote super fast and easy!)
Depending on what state you’re in, new drivers can still secure discounts through things like a multi-car policy, a commitment to wearing your seatbelt at all times, or your vehicle’s safety features.
How to Get Affordable Insurance After Moving From Another Country to the US
Earlier we mentioned that if you’ve moved to the US from a foreign country, you’ll likely be considered a new driver—even if you have a previous driving record where you used to live.
However, depending on your circumstances, you may still be eligible for car insurance discounts that are based on the safety features of your vehicle, defensive driving classes, and more.
Remember, each US state has different regulations around insurance, and not all car insurance discounts are available in every state.
How Long Are You Considered a New Driver?
In most cases, a new driver is anyone who has been driving for less than three years in the U.S.
Remember, it takes some time to build your driving history and car insurance record. But as your (or your new teen driver’s) experience grows and you consistently practice safe driving habits, you can build up a strong driving record that could help you land a more affordable rate in the future.
Best Practices for Saving Money as a New Driver
Everyone loves saving money on car insurance, new drivers included, so what are ways that you can save some cash on new driver insurance premiums?
1) Shop Around and Compare Quotes From a Few Car Insurance Providers
One of the best ways to make sure you’re getting an affordable price on car insurance is to get a few quotes from multiple car insurance companies and compare them.
When comparing quotes, there are a few things to think through:
What coverages—and how much coverage—are you getting from each company for the estimated cost?
Is this price just for the state-required minimum coverages? Or do you need additional coverage for your situation? (Remember, everyone’s situation is unique, so talk to an insurance agent if you have questions about what coverages are right for you).
What discounts are available from this insurance company to new drivers?
Looking for insurance for a new driver? Use Matic to compare top-rated carriers for the best rates and coverage.
This last question leads us directly to another best practice for saving on car insurance for new drivers: Find out what discounts are available.
2) Look for Discounts
Car insurance discounts are a win-win for both you and your insurance company. Discounts are based on certain eligibility requirements and are often markers of reduced risk or increased safety practices. These can help reduce the cost of your insurance premiums.
When you get a quote with Clearcover, we automatically apply most discounts that you’re eligible for the right to your initial quote. But make sure to check with your agent or insurance company for any additional discounts available in your state that might be based on grades, additional driving classes taken, and more.
Learn more about car insurance discounts and how they work.
3) Adjust Your Current Coverages
Another way you may be able to lower your car insurance costs as a new driver is to take a closer look at your coverages and adjust them if needed.
For example, if you’re insuring your teen driver, you might gift or loan them an older vehicle as their first-time car. One way many people choose to save on the cost of coverage is to adjust their coverages to better suit the needs and value of the vehicle, while still keeping the required liability car insurance coverages in place.
Just remember, if you’re in an accident, whatever is outside of your coverage limits is your responsibility to pay out of pocket.
4) Consider Switching Your Insurance Provider
If you’re an experienced driver who is looking to add a brand-new driver to your existing insurance policy, you may be able to save on your premiums by switching your insurance company.
Experiencing a life change—like a new marriage or teen who has started driving—is a smart time to shop around. In fact, WalletHub reports drivers can often save 10–20% on their policy by switching companies (and sometimes even more). (2)
And guess what? You can switch your car insurance at any time—you don’t have to wait until your policy’s renewal period. Clearcover makes it really easy to switch over to us, whenever you’re ready. Learn more about how to switch car insurance companies.
Check Out Clearcover’s Rates for New Drivers Today
Whether you’re a new driver yourself, or you simply need to add one to your policy, there are ways to get amazing car insurance coverage at an affordable cost.
At Clearcover, we use the power of smart technology to reduce our overhead costs and simplify the car insurance process—and we pass those savings on to you.
With lightning-fast claims, an incredibly easy-to-use app, and some of the best service in the industry, you’ll get a fast, hassle-free car insurance experience that you can feel confident in.
Take control of your coverage and see what you can save with Clearcover today!
