Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...

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Reviewed by Melanie Musson
Published Insurance Expert Melanie Musson

UPDATED: Mar 21, 2022

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Just What's Essential

  • Major factors can influence your car insurance rates including your driving record, where you live, and how much you drive
  • Because young drivers are inexperienced, insurance companies consider them a greater risk
  • Comparison shopping, safe drivings habits, and taking advantage of available discounts will help new drivers find the best car insurance rates

While it’s true that insurance for new drivers will cost more than insurance for seasoned ones, there are still ways to save money. We’ll show you more about what factors influence car insurance rates for young drivers and the best ways to get cheaper rates. Read on to find the best cheap car insurance for new drivers.

Best Auto Insurance for New Drivers

Whether you are a brand new driver or if you have waited until later in life to obtain your driver’s license for the first time, new driver insurance may be costly. We’ve compiled a list of the best auto insurance companies for new drivers with discounts to help you keep down costs for car insurance rates. 

Insurance CompanyAverage Monthly PremiumDiscounts
State Farm$577Good student discount
Student away at college discount
Defensive driving discount
Erie Insurance$311Youthful driver discount
Driving training discount
Multi-car discount
Multi-policy discount
Nationwide$539SmartRide Program discount for safe drivers
Good student discount
Multi-car and multi-policy discount
Progressive$772Teen student discount
Good student discount
Distant student discount
Pay in full discount
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At any age, finding strategies to save money is essential. On average, a teen driver can pay anywhere from $300 to over $1,000 per month for auto insurance. Make sure to shop around to get quotes from several different car insurance companies to find the most affordable coverage to fit your needs.

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What factors affect the cost of car insurance?

Three main factors influence the cost of auto insurance rates. These factors include your driving record, where you live, and how much you drive. Here is more info about each of these elements.

Your Driving Record

Insurance companies feel you’re more likely to get into an accident if you’ve had previous traffic violations. As a result, drivers with the best driving histories receive the best auto insurance rates. You are considered a “good driver” and will qualify for the best car insurance rates if you haven’t had any minor traffic violations (like speeding tickets) in the last three years or severe violations in the previous five to seven years.

Where You Live

If you’ve ever requested a car insurance quote, you’ll note that one of the first questions on the form is your address. This is because your location has a significant impact on the cost of auto insurance. Insurance companies consider the frequency of claims, crime rates, road conditions, climate and weather, and other location characteristics when setting auto insurance prices.

How Much You Drive

Auto insurers also consider how you utilize your vehicle when determining your rates. For instance, if you commute to work or school, you will most likely travel during peak traffic hours and your car will be more expensive to insure. Your predicted yearly mileage indicates how much time you spend on the road and, as a result, how likely you are to be involved in an accident.

Why does auto insurance cost more for young drivers?

Insurance companies know that more experienced drivers are less likely to get into an accident on the road. Statistics show that young drivers get into more accidents, so they pay more for insurance. First-time drivers can expect to pay more for car insurance than other drivers.

Here are the major contributing factors for high insurance rates for new drivers:

  • Young drivers have an unreliable record.
  • Young drivers lack experience.
  • Young drivers are more reckless. 
  • Young drivers engage in more distracted driving.

Young drivers face higher insurance premiums than their older counterparts for the reasons listed above. Still, by comparing policies, you can save money and find the best cheap car insurance for new drivers.

Auto Insurance Rates by Age and Gender

Here’s what you can expect to pay on average for car insurance based on age and gender:

  • Married 60-year-old female average rate is $187/month.
  • Married 60-year-old male average rate is $192/month.
  • Married 35-year-old male average rate is $204/month.
  • Married 35-year-old female average rate is $204/month.
  • Single 25-year-old female average rate is $225/month.
  • Single 25-year-old male average rate is $241/month.
  • Single 17-year-old female average rate is $630/month.
  • Single 17-year-old male average rate is $752/month.

The average monthly automobile insurance payment in the United States is $86, although it varies depending on your driving record, credit, and other criteria. You can work on improving your driving record, credit reports, and type of car purchased to ensure you get the cheapest car insurance rates for new drivers available.

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Finding the Best Insurance Rates for New Drivers

For first-time drivers, the cost of auto insurance can be twice or even more than the typical rate. If you need auto insurance for a new driver in your family, you can find the best insurance rates by comparison shopping from top insurance companies in your area.