Cheap Car Insurance For New Drivers – Andrew Hurst Editor-in-Chief and Certified Auto Insurance Expert Andrew Hurst is Editor-in-Chief and Certified Auto Insurance Expert. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin and Property Casualty 360.
Anna Swartz Anna Swartz Senior Editor and Auto Insurance Expert Anna Swartz is an Executive Editor and Auto Insurance Expert overseeing auto insurance coverage. Previously, he was a senior writer at Mic.com and a contributing writer at The Dodo.
Cheap Car Insurance For New Drivers
Fabio Faschi, PLCS, SBCS, CLCS Fabio Faschi, PLCS, SBCS, CLCS Certified Property & Casualty Insurance Specialist Fabio Faschi is a licensed Property & Casualty Insurance Agent. His home and auto insurance expertise has been featured in Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.
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The cheapest car insurance for new drivers depends on whether you add it to an existing policy or buy your own coverage. On average, GEICO is the cheapest company for new drivers to add family insurance. State Farm is the best choice for new drivers who decide to purchase their own coverage.
Car insurance for a new driver can cost thousands of dollars more per year than insurance for an experienced driver. However, new drivers can still get affordable insurance by comparing rates from multiple companies and considering per-mile or usage-based coverage.
Best Cheap Car Insurance For Teens In 2023
There is no absolute definition of what insurance companies consider a new driver. For insurance purposes, teenage drivers are not the only members of this group. Instead, a “new driver” might be someone who:
Despite their inexperience, newly licensed drivers do not need to purchase separate new driver auto insurance to meet state insurance requirements. The only difference for new drivers is that their insurance premiums are higher because they have no driving experience yet.
If your insurance company is considering choosing a new driver, the car insurance process is the same as for an experienced driver. You can still buy insurance from reputable companies.
New teen drivers may have the best chance if it’s added to existing family insurance, but newly licensed adults should purchase coverage on their own.
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However, some new drivers may struggle to find insurance for their car. It costs more, and insurance companies don’t always allow newly licensed drivers to fill out online quote forms to sign up for their insurance. Additionally, if you want to sign up for car insurance as a minor, you must get permission from your parent or guardian.
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GEICO has the best rates of any company available nationwide for adding new drivers to existing auto insurance. In addition to affordable rates, GEICO offers coverage guarantees like rental reimbursement and roadside assistance.
GEICO is the best and cheapest car insurance for families adding a new driver to their existing car insurance. GEICO isn’t the cheapest overall, but it’s still a reasonable option available in every state. We found that GEICO’s monthly payment of $240 is $907 less per year than the average rate for new drivers.
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NJM is the cheapest car insurance for new drivers, but is only available in Connecticut, Maryland, New Jersey, Ohio, or Pennsylvania. However, NJM’s new driver insurance is slightly cheaper than GEICO ($6 a year on average).
Both active duty military and retired vets (and their families) can get affordable car insurance for new drivers from USAA. New driver insurance costs $141 per month ($1,076 less per year on average). However, unlike GEICO and NJM, USAA is not available to the general public.
Most insurance companies require that every licensed driver in your family be included in your auto insurance policy. Fortunately, adding new drivers to an existing policy is easy.
You can usually add a new driver to your existing policy by phone, online, or through the insurance company’s website or mobile app.
How To Find Cheap Car Insurance For New Drivers
To add a driver to your car insurance, you’ll need some basic information, including:
New drivers who want to buy their own insurance can buy insurance from the State Farm at a reasonable price. State Farm rates remain low after accidents or speeding tickets, so new drivers may not have to pay higher rates after an initial mistake.
State Farm has the best and most affordable auto insurance for new drivers on their own. On average, new driver insurance from State Farm costs $380 per month, which is $1,632 less than the average annual cost for a new driver.
State Farm auto insurance is available in every state except Massachusetts and Rhode Island, but depending on where you live, smaller companies may be a cheaper option. We found that COUNTRY, Erie and Car Owners all have cheap car insurance for new drivers.
Car Insurance For New Drivers: All You Need To Know
Here are the cheapest car insurance companies for new drivers in each state. Whether you’re adding a newly licensed driver to your family’s insurance policy or a new driver shopping on their own.
Anyone who moves to the United States is considered a new driver, regardless of age or driving experience. Because these drivers do not have insurance history with US companies, it is difficult to estimate the likelihood of their future claims.
Newly licensed international drivers are more expensive to insure, but regardless of your experience in your home country, premiums will continue to decrease over time as long as you avoid accidents and tickets.
Meanwhile, foreign drivers moving to the US can get the best rates from the same companies that are the cheapest for new drivers, including GEICO and State Farm.
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If the new driver is an undocumented immigrant, they can still get car insurance, but it depends on where they live. Not all states allow new, undocumented drivers to get a license. This is required to purchase car insurance.
However, the following states allow new undocumented drivers to obtain a license and car insurance without proof of citizenship. These states are:
Car insurance for new drivers always costs more than average rates for older, more experienced drivers. But finding affordable car insurance is more difficult for new drivers who buy their own policy instead of adding it to their existing policy.
On average, independent new driver insurance costs $380 per month or $4,562 per year. That’s almost $2,000 more per year than adding a new driver to your existing policy ($230 per month or $2,763 per year).
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Among major companies, car insurance for a new driver costs $280 more per month than most older drivers (ages 30-45) with a similar policy.
There are several reasons why car insurance pays more for new drivers than older drivers. Because of their lack of experience, newly licensed drivers are more likely to have serious accidents than experienced drivers.
The company also looks at your driving record to predict your likelihood of getting into an accident. But since new drivers don’t have a record yet, the company charges them higher rates until they prove they are safe drivers.
The best way to find inexpensive new driver insurance is to shop around and compare prices, but you can also:
Pay Less For Car Insurance For Teens & New Drivers
Car insurance for a new driver with existing insurance costs $2,763 a year. However, independent insurance for a new driver costs an average of $4,562 per year.
New driver rates are the lowest at GEICO among the major companies. However, you can get cheaper coverage with NJM, a local company with presence in five states. State Farm offers the best rates for most new self-insured drivers. Smaller companies like COUNTRY and Erie also have lower rates.
New drivers should shop around for car insurance and compare quotes from multiple companies. You should also be prepared to switch companies if rates become more expensive over time. New drivers can also get cheaper car insurance by taking full advantage of discounts or saving money by switching to per-mile or usage-based insurance.