Who Needs New-Driver Car Insurance?

Susan Kelly

Dec 29, 2022

Even though there is no such thing as "new-driver car insurance," the following are the types of drivers that insurers often consider to be new:

  • Teenagers who have just recently obtained their driver's license.
  • Adults who are just getting their driver's license for the first time.
  • Immigrants and those with citizenship in another country.
  • Drivers of any age have had a lapse in either their driving history or their insurance coverage.

The cost of auto insurance for new drivers is often greater than the rates charged to more seasoned drivers.


Because teenage drivers are statistically more likely to be involved in an accident than drivers of any other age group, auto insurance firms charge them higher premiums. Adding the adolescent driver to their parent's or guardian's auto insurance policy is the most effective strategy for lowering the premiums paid for the teen driver's auto insurance.

Be aware that "cheap" is a relative term and that adding an adolescent to the policy of a married couple may result in a rise in both rates. However, a kid who drives alone is likely to incur considerably higher savings since they cannot take advantage of opportunities to save money, such as a discount for having numerous drivers covered under the same insurance. You may compare various new-driver insurance rates online to be sure.

Immigrants and Foreign Nationals

If you have no previous driving experience in the United States, insurance companies will consider you a new driver even if you have a lengthy and spotless record of driving in another nation. They do not access foreign driving records for determining rates; thus, your driving history in the United States is the only one that matters. This also applies to your credit history, which, in many states, is a factor considered when determining your auto insurance cost.

People with A Driving or Coverage Gap

Your driver's license may no longer be valid because you spent some time living in another country or because your lifestyle doesn't need you to drive. Insurers may classify you as a new driver if they need to verify your previous driving experiences. If you do not maintain continuous auto coverage, the insurance company may see you as a high-risk driver, increasing your premiums.

Pricing Factors in a Car Insurance Quote

Although young drivers have some of the highest auto insurance premiums, other factors are considered by insurance companies when determining rates. A variety of factors, including the following, impacts quotes for auto insurance:

  • Characteristics of the individual this includes your age, gender, and whether or not you are married.
  • The kind of protection that you choose. Your insurance premiums are likely to increase according to the amount of coverage you purchase.
  • That which you drive. Your cost is determined by several factors, including the make and model of your vehicle, the number of safety features it has, and the probability that it will be stolen.
  • Your geographic location. Your state likely has its own minimum standards for auto insurance, and other variables, such as the number of people living in your community and the prevalence of crime there, will also influence the cost of your policy.
  • The score of your credit. In jurisdictions where it is legal to base insurance premiums on a driver's credit score, drivers with bad credit often pay higher premiums for their vehicle insurance. When setting auto insurance premiums, insurers in California, Hawaii, Massachusetts, and Michigan are not permitted to take credit history into account.

How to Save As a New Driver

There are still methods to save costs on auto insurance, even though a new driver's premium would normally be higher than that of a driver with more years of experience behind the wheel.

Compare your options. The insurance that you choose to utilize might have a significant impact on your premiums. Compare the prices offered by at least three different insurance providers to ensure you get the best deal on your policy. And remember to keep looking for better deals every year; just because you got the best deal a year ago does not ensure you will continue to have it now.

Continue to be covered under the family's auto insurance coverage. Compare the premiums for a stand-alone policy with the premiums that it would cost you to remain on your family's insurance plan if you share the same permanent address as your parents or guardians. This is something you should do if you still live at home. Staying on your family's insurance plan might be cheaper for you.

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