Margaret Huntley Last Updated On: June 27, 2023

What You Need to Know About Getting Car Insurance for New Drivers?

It doesn’t matter how old you are when you first get your license: Being a new driver is an exciting time. It’s also a time that can be eye-opening in terms of the sheer volume of responsibility that comes with the privilege of driving—a responsibility that starts with getting new driver car insurance. 

Who Needs New Driver Insurance?

Technically, there isn’t a specific kind of car insurance called “new driver insurance”, rather, it’s a term used to refer to drivers who don’t have any driving experience. This includes:
  • Teen drivers
  • Older drivers who have not driven before
  • Foreign nationals and immigrants
  • Drivers who have had a lapse in car insurance coverage or who have had a lapse in their licensing, for whatever reason.

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The Cost of New Driver Insurance

New driver insurance is more expensive than insurance for regular drivers for one simple reason: New drivers are inexperienced drivers and inexperienced drivers are more likely to get into accidents—accidents that will cost insurance companies more money to cover. 

However, even the cost of new driver insurance will vary among new drivers. Let’s look at some of the pricing differences below.

New Car Insurance for Individuals Who Are Newly Licensed

Teen drivers and older drivers who have never driven before are statistically more likely to get into accidents than any other age group and, as a result, they are the most expensive new drivers to insure. 

In fact, a teen with their own car registered in their own name can expect to pay upwards of $4,000 annually for car insurance. A teen driver on a parent’s policy, on the other hand, may only cost around $621 a year to insure.

Another way to reduce the cost of car insurance for teen drivers is to have your teen take a safe driving course and maintain good grades: Many insurance providers offer discounts for a commitment to safe driving and getting a good education.

Older drivers can also take safe driving courses and take advantage of multi-car insurance discounts for vehicles at the same address, as well as bundling discounts. (More on this later!)

New Car Insurance for Foreign Nationals and Immigrants

It doesn’t matter if you had a spotless driving record in the country where you previously lived: The US only looks at domestic driving records, so you have to spend some time building a good reputation on the roads, state-side before insurance providers will reduce your rates. 

Immigrants and foreign nationals can expect to pay less than teen drivers for their car insurance, however: Around $2,000 annually. 

Drivers Who’ve Had a Lapse in Licencing or Insurance

Insurance companies like it when drivers have continuous insurance. This shows a level of responsibility that isn’t always reflected in drivers who allow their license or insurance to lapse. For this reason, insurance providers consider drivers with gaps in insurance or their licenses to be new drivers.

Of course, there are many completely understandable reasons your car insurance or licensing may have gaps: maybe you lived abroad for a time or are in the military. Maybe you moved to a new area and no longer needed a vehicle. If this is the case, and if you have some sort of driving history in the states, insurance companies may overlook the gap and give you more affordable rates, but others may not.

It’s always worth your while to shop around for the best quote for new driver insurance. 

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How To Get the Best New Drivers Insurance?

The easiest way to get the best insurance for new drivers is to get a quote from a provider that specializes in new driver insurance—and not all insurance companies do this, but we can help you find the ones that do.

We’ve curated a list of the best providers that offer the most affordable car insurance for new drivers with the best service, and we’ll match you with the one that’s ideal for your needs and your budget.

How To Save Money On New Driver Car Insurance?

Yes, new driver car insurance is more expensive than regular car insurance but that doesn’t mean it has to be cost-prohibitive. Here are some easy ways to save money on car insurance for new drivers:
  • Take a safe driving course. 
  • For teens, maintain a B+ average and earn a good student discount.
  • Choose your vehicle wisely; sporty, high-performance vehicles will cost more to insure.
  • Buy vehicles with safety features or install them on your existing car (e.g. anti-theft system, rear cameras).
  • Bundle your auto insurance with your home, health, and/or life insurance.
  • Take advantage of military or occupation insurance.
  • Insure multiple cars from the same address with one provider. 
  • Maintain a good driving record and, over time, your insurance provider will reduce your premiums.
It’s unlikely you’ll be able to enjoy all of these car insurance discounts, but chances are, at least one will apply to you. And remember: getting a quote from us can save you money and a whole lot of hassle. Request your fast and free new driver car insurance quote now. 

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Yes, it does, but over time and with a good driving record, the cost will decrease. You can also take advantage of good student discounts, safe driving course discounts and safety feature discounts to reduce your rates right away.

Usually, within three to five years of maintaining a good driving record.

A teen driver, an older driver who has not previously held a license, a driver who is new to driving in the US, or a driver who has, for whatever reason, allowed their insurance or licence to lapse.


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