Best Car Insurance for New Drivers

Generally, young drivers are riskier to insure because they are more likely to be involved in a car accident and have yet to build out a driving record, meaning they tend to pay higher premiums. Keep reading to learn about how to get the cheapest insurance rates for new drivers and the best auto insurance for young drivers.

The best car insurance for young or new drivers is a plan with robust coverage and low premiums. When looking at the types of coverage for young drivers, you will see two options: full coverage and liability coverage.

The main difference between full coverage and liability coverage is who’s covered in an accident. If the driver has liability coverage, only the other party in an at-fault accident is covered up to your policy amount. This means your insurance will help pay for damages to the other driver’s vehicle and any medical expenses they or their passengers may face due to the accident. In short, you and your expenses are not covered by your insurance when you only have liability coverage.

In most states, you’re legally required to at least have liability coverage.

In contrast, full coverage covers you and the other party involved in a car accident. Even in an accident where you’re at fault, your insurance will help to pay your vehicle repairs and medical expenses and those of the other party or parties involved in the accident, up to your policy amount.

Full coverage is a more comprehensive coverage option; therefore, the premiums on a full coverage plan are higher than those on a plan with just liability coverage. The average car insurance premium for a first-time driver with liability coverage is about $530 annually. In contrast, the average car insurance premium for a first-time driver with full coverage is about $1,950 annually.

It is important to note the best car insurance for young drivers may not be the most affordable option. Since young drivers are more likely to be involved in auto accidents, your best option will likely be a plan with full coverage until you get a few years of driving under your belt.

In general, a new driver’s car insurance costs between $500 and $5,000, depending on what coverage you opt for and some of your characteristics as a driver, such as your age, gender, where you live, and several other factors. This range of premiums is a bit drastic, but it encompasses the lowest, and the highest amounts new driver policyholders may be paying in premiums.

On average, car insurance for a first-time driver costs between $530 and $1,950, depending on your coverage option. Liability coverage will always be less expensive than full coverage, but it may not be the best choice for young drivers as they are the most accident-prone population.

Age causes a significant increase in the amount you pay in premiums as a new driver because young drivers are risky, and therefore expensive, to insure. Typically, first-time drivers under 21 pay more in premiums than new drivers over 21. Then, insurance rates drop each accident-free year significantly until young drivers turn 25, when insurance rates typically plateau.

Geico car insurance is the cheapest car insurance for new drivers, especially young ones. The average premium for a new driver with their own policy from Geico is about $1,700 annually. Progressive is also a leader in cheap car insurance for new drivers, with premiums costing, on average, about $2,300 annually. If you or your new driver are interested in getting a quote, try our free quote form. 

If your focus is to get the cheapest instead of the best insurance for young adults, you will want to get a policy with only liability coverage. In most states, liability coverage will cost about half of the cost of full coverage insurance. Keep in mind, though, that liability coverage is half the amount of coverage you would get with full coverage.

While the best car insurance for young adults may be a plan with full coverage, that plan will not be the cheapest. However, many auto insurance providers offer deals or discounts specifically tailored to new or young drivers.

For example, many major car insurance providers have a student discount for which young drivers with a GPA of 3.0 or higher may be eligible. These good student discounts may deduct anywhere from 10% to 25% off your premiums, so be sure to check with your insurance provider to see if they offer a good student discount or make the switch to a provider that does.

Many insurance providers offer other, non-merit-based discounts geared toward students, so be sure to ask your provider what types of discounts you may qualify for. Several providers have training programs for new drivers that reward safe driving with discounts on premiums.

Some providers even offer discounts for members of participating sororities, fraternities, or student organizations. If you’re adding your new, young driver to your plan, your provider may even offer a discount just for taking out an additional policy.

In some cases, the combination of discounts can get you up to 50% off your insurance premiums. This can be especially crucial for young drivers who are looking to save money but do not want to cut back on their amount of coverage. It is always a good idea to shop around for car insurance and get quotes from an agent to ensure you’re maximizing your savings.

As a new driver, It is important to shop around for car insurance quotes to find the best coverage for you. Auto insurance coverages and costs vary for each policyholder, so to find out how to get the best coverage for the lowest cost, contact an agent online at Clovered.

You can submit your information online with this form to get a quote, then one of our licensed agents will reach out to you directly to discuss which policy will be best for you. You can call us at 833-255-4117 or email us at [email protected] any time with questions about car insurance for new drivers.