Car Insurance for New Drivers

You are considered a new driver until age 25, in most cases, as teens and young adults are the groups most commonly considered new drivers. Young drivers pay an average of $998 to $3,343 per year, depending on their exact age, and that drops to an average of $862 at age 25 for those who maintain a clean driving record.

For new drivers who are over the age of 25, it may take several years to build a track record of safe driving and to see lower insurance rates. Those who got their license later in life, immigrants who recently moved to the U.S., or drivers who have a long gap in their driving or insurance history may experience slightly higher rates than the overall national average of $716 per year for minimum coverage.

That said, insurance companies usually don't have a specific definition of what a new driver is, so drivers of any age can still get affordable car insurance rates by building safe driving habits, capitalizing on available discounts, and shopping around for the best policy. To learn more, check out WalletHub's guide to car insurance for new drivers.

Car insurance is likely to cost more than $5,500 annually for a new driver who is 17 years old to get a stand-alone policy. On the other hand, auto insurance will cost about $2,750 extra per year when adding a 17-year-old new driver to a parent's policy. But insurance costs for new drivers vary widely.

Age is a major factor in how much insurance costs for a new driver. Not everyone gets their first license at 16 or 17 years old. A new driver could be 25 or 40 or even 60 years old. Insurance companies set different prices for insuring a newly licensed teenager and someone getting their driver's license later in life. They also factor in gender, state of residence and coverage amounts. Insuring any new driver, however, is more expensive than covering an experienced driver with good driving and insurance records.

Statistics show that new drivers tend to be high-risk drivers who are more likely to get into accidents and file claims. That's why insurance companies charge more to insure them. You can't fight statistics, but sometimes, you can make them work for you in order to get the best possible price. A look at car insurance statistics yields the following findings.

• Adding a teen to a parent's policy is cheaper. If you are a teen driver living at home or in a dorm, ask your parents to add you to their policy. It will be about half as costly as having your own policy.

• Luxury cars are expensive to repair, and sports cars are likely to be driven too fast. Driving a cheaper, practical car with good safety and anti-theft features will lower your rates.

• Students with good grades are better drivers. Insurance companies give discounts to students with a B average or better.

• Driving courses improve drivers' skills. Many insurance companies offer discounts for attending driver's ed or online defensive driving schools.

• Teachers, physicians, police officers, and other well-educated professionals file fewer claims. Some insurance companies offer discounts based on occupation.

If you are a new driver of any age, it's worthwhile to comparison shop rates and discounts carefully. The cheapest way to do this is by getting free online quotes from multiple auto insurance companies.

Car insurance for a new driver in California costs an average of $981 per year to $2,534 per year. Auto insurance premiums for new drivers in California vary widely depending on a driver's age and whether they are being added to an existing policy or purchasing their own. For example, the premium increase from adding a teenager to a parent's policy is significantly less than the cost of a teenager getting their own policy.

Average Cost of Car Insurance for New Drivers in California

Note: Premiums are representative of a 16-year-old good driver with a minimum coverage policy; individual premiums will vary. 

New drivers aren't only teens and those in their early 20's. A new driver could be an adult who got their license later in life, a recent immigrant, or anyone who has a long gap in their driving or insurance history. For these types of new drivers in California, insurance rates will still likely be higher than the average of $60 per month for an experienced adult.

A new driver's lack of experience can classify them as high risk. Once new drivers get a bit more practice and have a proven track record of safe driving, however, they'll begin to see their rates decrease. To learn more about minimizing the cost of car insurance in California, check out WalletHub's picks for the cheapest California car insurance companies.

Car insurance for a new driver in Texas costs an average of $1,139 per year to $3,930 per year. Auto insurance premiums for new drivers in Texas vary widely depending on a driver's age and whether they are being added to an existing policy or purchasing their own. For example, the premium increase from adding a teenager to a parent's policy is significantly less than the cost of a teenager getting their own policy.

Average Cost of Car Insurance for New Drivers by Age

Note: Premiums are representative of a good driver with a minimum coverage policy; individual premiums will vary. 

New drivers aren't only teens and those in their early 20's. A new driver could be an adult who got their license later in life, a recent immigrant, or anyone who has a long gap in their driving or insurance history. For these types of new drivers in Texas, insurance rates will still likely be higher than the average of $64 per month for an experienced adult.

A new driver's lack of experience can classify them as high risk. Once new drivers get a bit more practice and have a proven track record of safe driving, however, they'll begin to see their rates decrease. To learn more about minimizing the cost of car insurance in Texas, check out WalletHub's picks for the cheapest Texas car insurance companies. 

Car insurance for a new driver in New York state costs about $4,200 to $5,500 per year, assuming an individual policy for a 17-year-old. New York teens driving on a learner's permit with a licensed adult in the car do not need their own auto insurance. The high cost of being a new driver kicks in when they get their standard license at age 17 or 18. Drivers in New York City, especially in the boroughs of Brooklyn and Queens, typically pay more than drivers in other parts of the state.

Not all new drivers are teenagers and age affects how much you pay for your first auto policy. Typically, car insurance for new drivers over 25 years old costs less than insurance for teenage drivers. However, it will cost more than insurance for someone the same age but with years of driving experience. Without a driving record to show an insurer what kind of driver you are, they have to assume the worst. And statistics indicate that inexperienced drivers are more likely to cause accidents. Don't worry, though; your status as a high-risk new driver only lasts for three years, and your rates will drop after that if you keep a clean record.

In New York, the state provides a way to offset some of the extra cost of being a new driver. You can reduce your insurance premiums right away by completing a state-approved six-hour driver's education course online or in a classroom. New York's insurance rules state that once the course is completed, your insurer must give you a minimum 10% reduction in the base rate (your premium before special discounts are applied) for your vehicle liability and collision insurance. This reduction lasts for three years, the same as your new-driver designation.

New drivers of any age should comparison shop rates and discounts carefully. Insurance companies don't all charge new drivers the same. And even though you may have to pay more than experienced drivers who've proven themselves to be responsible on the road, you don't want to spend more than you have to.

Car insurance for a new driver in Florida costs an average of $1,613 per year to $5,301 per year. Auto insurance premiums for new drivers in Florida vary widely depending on a driver's age and whether they are being added to an existing policy or purchasing their own. For example, the premium increase from adding a teenager to a parent's policy is significantly less than the cost of a teenager getting their own policy.

Average Cost of Car Insurance for New Drivers in Florida

Note: Premiums are representative of a 16-year-old good driver with a minimum coverage policy; individual premiums will vary. 

New drivers aren't only teens and those in their early 20's. A new driver could be an adult who got their license later in life, a recent immigrant, or anyone who has a long gap in their driving or insurance history. For these types of new drivers in Florida, insurance rates will still likely be higher than the average of $103 per month for an experienced adult.

A new driver's lack of experience can classify them as high risk. Once new drivers get a bit more practice and have a proven track record of safe driving, however, they'll begin to see their rates decrease. To learn more about minimizing the cost of car insurance in Florida, check out WalletHub's picks for the cheapest Florida car insurance companies. 

The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 25% on average. Car insurance premiums generally continue to go down each year until age 25, when rates begin to level off for the next few decades. When drivers turn 25 years old, they can expect a discount of about 14%.

When Car Insurance Rates Go Down the Most

Note: The table above shows average annual rates for minimum coverage across all 50 states.

Around middle age, rates may begin to creep back up. This is because middle-aged drivers tend to insure newer, nicer cars and begin to add their children to the policy, increasing the average rate for this age range overall. Individual rates also start to go up again between the ages of 65 and 75 because senior drivers have a higher risk of accidents than middle-aged drivers.

Why Age Affects Car Insurance

Age affects car insurance rates because it's an indicator of a driver's risk to an insurance company. Young drivers are statistically more likely to get into a car accident than older, more experienced drivers. As a result, they're considered high-risk and are more expensive to insure.

The risk for the insurer and the cost for the insured then generally decline as drivers age and gain experience. Once drivers pass the age of 65, however, their risk starts to go up again. Not only are senior drivers more likely to get into an accident than middle-aged drivers, but they're also more likely to be injured as a result.

States Where Age Does Not Affect Rates

Although most people in the U.S. will find their prices change according to this timeline, there are a few states in which insurers can't use age to determine your rate. In California, Hawaii, and Massachusetts, age won't have a direct effect on how much you pay for car insurance. Other factors will still have an impact, though. Your driving record, credit score, and marital status can all affect your final premium.

Car insurance for a new driver in Alabama costs an average of $852 per year to $3,012 per year. Auto insurance premiums for new drivers in Alabama vary widely depending on a driver's age and whether they are being added to an existing policy or purchasing their own. For example, the premium increase from adding a teenager to a parent's policy is significantly less than the cost of a teenager getting their own policy.

Average Cost of Car Insurance for New Drivers in Alabama

Note: Premiums are representative of a 16-year-old good driver with a minimum coverage policy; individual premiums will vary. 

New drivers aren't only teens and those in their early 20's. A new driver could be an adult who got their license later in life, a recent immigrant, or anyone who has a long gap in their driving or insurance history. For these types of new drivers in Alabama, insurance rates will still likely be higher than the average of $48 per month for an experienced adult.

A new driver's lack of experience can classify them as high risk. Once new drivers get a bit more practice and have a proven track record of safe driving, however, they'll begin to see their rates decrease. To learn more about minimizing the cost of car insurance in Alabama, check out WalletHub's picks for the cheapest Alabama car insurance companies. 

Car insurance for a new driver in Wisconsin costs an average of $621 per year to $2,265 per year. Auto insurance premiums for new drivers in Wisconsin vary widely depending on a driver's age and whether they are being added to an existing policy or purchasing their own. For example, the premium increase from adding a teenager to a parent's policy is significantly less than the cost of a teenager getting their own policy.

Average Cost of Car Insurance for New Drivers in Wisconsin

Note: Premiums are representative of a 16-year-old good driver with a minimum coverage policy; individual premiums will vary. 

New drivers aren't only teens and those in their early 20's. A new driver could be an adult who got their license later in life, a recent immigrant, or anyone who has a long gap in their driving or insurance history. For these types of new drivers in Wisconsin, insurance rates will still likely be higher than the average of $34 per month for an experienced adult.

A new driver's lack of experience can classify them as high risk. Once new drivers get a bit more practice and have a proven track record of safe driving, however, they'll begin to see their rates decrease. To learn more about minimizing the cost of car insurance in Wisconsin, check out WalletHub's picks for the cheapest Wisconsin car insurance companies. 

Yes, you can get insurance on a learner's permit in most situations, such as if you own your own car or are an emancipated minor. New drivers are generally considered high-risk due to their lack of experience, however, so getting your own policy while you're still on a learner's permit can be pricey.

Adding a driver with a learner's permit to an existing policy, such as a parent's or guardian's car insurance, is a much cheaper choice. Plus, permissive use allows new drivers to drive someone else's insured vehicle without having their own insurance. This may be a good option for those who don't own a car.

When Drivers With Permits Must Get Their Own Car Insurance

• They are an adult new to driving.
• The vehicle they drive is in their own name.
• The driver's parents or guardians do not have auto insurance.
• They live at a different address than their parent or guardian and are not attending school.

Drivers who have a vehicle in their own name or who live at a different address than their parents are generally considered to be financially independent, so insurers require them to purchase their own policies.

To learn more, check out WalletHub's guide to car insurance for new drivers.