How much is car insurance for new drivers in 2024

For new drivers, the thrill of getting their license can turn to agony quickly when they see how much they’re paying for car insurance. That’s because many new drivers are in their teens or early 20s and pay the most on average for coverage – teen drivers pay more than $5,600 a year while those aged 20 to 24 pay almost $3,000.

Lack of driving experience – and the associated risk – is one big reason insurers charge more. However, not every new driver will pay the top rates. If a teen behind the wheel can maintain a clean record, their rates will decrease as they get older. And there are steps new drivers can take to save money on auto insurance.

Key highlights

• Teen drivers pay the most of any age group for car insurance, $5,613 per year on average.
• Drivers aged 20 to 24 pay the next-highest rates on average, $2,976 annually.
• Travelers has the cheapest average rates for new drivers, while Farmers is the most expensive.

Average cost of car insurance for new drivers

When it comes to car insurance premiums, fortune does not favor the young. Teen drivers, those 16 to 19 years old, pay an average of $5,613 per year for car insurance, based on our data. Young adult drivers, those aged 20 to 24, pay significantly less per year, $2,976 on average, but that is still higher than what older drivers can expect to pay.

“Younger drivers are classified as higher risk due to lack of experience and no or minimal insurance history,” says Henson Robinson, insurance expert and risk management consultant at the Marsh McLennan Agency in suburban Chicago. “Because of this, those drivers can expect to pay more for auto insurance.”

After age 25, drivers who don’t have any significant incidents on their records will likely continue to experience decreasing premiums.

Cheapest car insurance companies for new drivers

New and younger drivers pay the most for car insurance on average. But annual rates vary widely among insurers, according to our analysis. For most people, Travelers has the lowest sample premiums in all three rate categories we looked at. At the other end of the price spectrum, Farmers has the most expensive sample rates for new, teen and young adult drivers.

The rates below were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible. 

Rates for new drivers vs. older drivers

Once you turn 25, you should start to see significant savings on your car insurance premium. Adults, those aged 25 to 64, pay an average of $1,903. Senior drivers, ages 65 to 75, pay even less per year, $1,864 on average.

Drivers older than 75 may see an increase in their rates, due to a greater likelihood of accidents and claims.

It’s important to remember that age isn’t the only factor that determines how much you pay for auto insurance. Your average rates should go down as you age, but don’t expect them to decline dramatically if you’ve got a history of accidents or claims (even one can negatively affect how much you pay).

Rates also depend on factors like where you live and what you drive and can vary from provider to provider. Your rates are specific to you and your situation, so will likely vary from the national average in some way.

How to estimate car insurance rates for new drivers

You can get a free online quote for car insurance from any number of insurers and related companies, or do so by phone. But if you don’t want to do the legwork yourself, you may want to consider an independent insurance agent for a car insurance estimate. Unlike a company representative or agent, independent agents and brokers represent multiple insurers and may be able to find a better deal than you can on your own.

Factors influencing car insurance rates for new drivers

Age is just one of the contributing factors to how much you pay for car insurance. Other attributes insurers take into account include:

• Driving record. Outside of age, this is the largest determinant in how much you’ll pay for car insurance. Maintaining a clean, incident-free driving history is the easiest way to help guarantee that you’re not overpaying for your insurance policy. With every incident – whether it’s a speeding ticket, DUI/DWI, or a collision – your premium could go up significantly.
• Where you live can play a big part in how much you pay for an auto insurance policy. If you’re in a large city, you might pay more than someone who lives in a rural area due to greater traffic or crime, for example. Further, each state has its own insurance regulatory body and laws, which can also affect rates.
• What you drive. Some cars are far more expensive to insure than others, due to statistical likelihood of incidents, theft or dangerous driving. Cars that are more costly to repair will carry with them heftier premiums, so consider your vehicle when you’re comparing insurance policies, and the potential insurance rate hikes when you’re looking for a new car.
• Nationwide, men file more claims than women do, and as such pay slightly more for car insurance on average. That said, this is one of the smaller contributing factors to what you’ll pay for car insurance, and depending on where you live, your state may not be allowed to take your gender into account at all.
• Credit history. Insurers look at things like your track record of making payments on time, whether you have missed payments, and how much debt you have to determine your credit history. It’s been found that drivers with lower credit histories are more likely to file claims, thus making them riskier to insure. Note that your credit history is different from your credit score, which is used by lenders.

Why is car insurance for teen drivers so expensive?

Let’s look at why car insurance is so expensive for young or new drivers. Historically, this group files more claims and has more accidents than older or more experienced drivers. This, in turn, makes them more costly to insure – and affects how much they pay for their policies. According to the National Highway Traffic Safety Administration (NHTSA), 2,514 people were killed in accidents involving a teen driver (aged 15 to 18) in 2022.

Teenagers are one of the likeliest demographic groups to disobey posted speed limits; according to the NHTSA, speeding was a contributing factor in 30% of the fatal crashes involving teen drivers in 2022. These drivers may also be more likely to speed in unsafe driving conditions and may lack the driving experience to understand which safety precautions to take in bad weather.

Seatbelt use is lower than average among new drivers; per NHTSA data, half of teen drivers who died in traffic fatalities in 2022 were not wearing seatbelts. Again, this factors into the cost of insuring these drivers, but it’s also a serious reminder to this group that seatbelts can and do save lives.

How can new drivers save money on car insurance?

The price tag on a car insurance policy for a new driver is rarely ever small, but there are still ways to save.

• Look for discounts geared toward young drivers. Many insurance companies offer savings for high school and college students who maintain a certain grade point average, and some also will discount your premium if you leave your car at home while away at school. You can also save by taking a defensive driving course and maintaining a clean record.
• Bundle your policies. Nearly every company that offers car insurance will give you a discount if you also insure your home, apartment, condo or motorcycle, or if you have some other kind of policy as well. Depending on the insurance company, you could see savings of 10% or more.
• Maintain continuous coverage. If your insurance policy lapses due to nonpayment or nonrenewal, your rates could go up significantly – even if you’re uninsured for only a day or two. Be sure you’re current on your payments. If you switch insurance companies, activate the new policy before canceling your old one.
• Drive safely. This should go without saying, but being a safe driver is one of the best ways to guarantee the lowest possible rates for car insurance. Every incident on your record – from a speeding ticket to a collision – can cause your insurance rates to go up, and usually by a significant amount.
• Consider usage-based insurance (UBI). If you only plan on driving short distances, like to work or school, you may want to look into policies based on your day-to-day driving habits. By tracking your driving using a smartphone app or an in-vehicle telematics device, you may be able to lower your insurance premium significantly. But bear in mind, if you drive recklessly, your rates may rise.
• Drive a practical car. A young driver behind the wheel of an expensive sports car will likely be more difficult to affordably insure than one who’s navigating the reliable family minivan. If you’re shopping for a car, research which are the more cost-effective models to own.

Related: Car insurance discounts in 2024

What’s the best insurance coverage for new drivers?

In most states that require insurance, the legal minimum policy you’ll need to carry as a young driver is liability coverage, which covers damages or injuries you cause in an accident.

If you’re responsible for an accident, collision coverage will be responsible for the damages to both your car and any others involved. And, if your vehicle is stolen or damaged in another way (like by a weather event), it’ll be covered by a comprehensive coverage policy, if you’ve chosen one.

The “best” coverage for new drivers is highly personal, and only you can determine what is the best mix of price, coverage and peace of mind.

“First-time drivers should take some time to educate themselves on auto insurance, what it covers, the basic components of an auto insurance policy and what to expect when purchasing their first policy,” says Robinson of the Marsh McLennan Agency. “I recommend shopping around and obtaining at least three quotes before making a decision.”

Frequently asked questions

Why is car insurance crucial for new drivers?

New drivers are more likely than any other group to get in accidents and file claims – which is why they’re the most expensive group to insure. That said, it’s legally required in almost every state to carry liability coverage, at the very least – and being responsible for an accident as an uninsured young driver could have very long-lasting financial damage.

What is car insurance?

In simple terms, car insurance is designed to protect you financially if you’re ever in an accident, and helps you to recover damages to your person, property or other involved parties. You are responsible for paying your insurance company at regular intervals to guarantee this protection exists for you should you ever need it; these payments are commonly known as “rates” or “premiums.”

What are the different types of car insurance coverage?

Insurance policies can be customized quite specifically to individuals and their situations or habits, but the most common policy types include:

• Liability coverage. This is usually the minimum level of insurance that most states require and covers damages to vehicles involved in accidents. Usually, the at-fault driver’s insurance company will be responsible for these damages.
• Collision coverage. This type of insurance, a step up from minimum-required liability insurance, covers property or vehicles damaged when you are responsible for an incident. Collision coverage pricing varies due to a number of factors but can be largely dependent on how much your deductible is.
• Comprehensive coverage. A step up from collision coverage, comprehensive insurance policies help drivers to pay for damages related to incidents outside of traffic accidents – like a weather event or a theft. This type of insurance is not required by law.
• Personal injury protection (PIP). This type of insurance will help to cover any medical expenses related to vehicular incidents.
• Uninsured motorist coverage. Despite it being illegal to drive uninsured in most states, accidents in which drivers without insurance are at fault still happen. Uninsured motorist coverage protects you in case you are a victim of damage done by a driver without insurance.

What factors affect auto insurance premiums?

There are a few key factors that determine how much you’ll pay for car insurance, age being among the most significant. Insurers also take into account:

• Driving record. Drivers who have been in even one accident can expect to pay more for insurance than those who have clean records. Drive as safely as possible to try to keep your rates low.
• Where you live can affect how much you pay for insurance. Rates in urban areas tend to be higher than those in rural areas, for example.
• Car make, model and age. Expensive or high-performance cars are frequently more costly to insure than more common vehicles like sedans.
• Additional personal details. Men pay more for car insurance than women on average, and things like your credit history and level of education may also be factored in.

What are common driving mistakes to avoid?

• Don’t drive distracted. This is something all drivers can fall prey to, regardless of age, but teens in particular need to be vigilant about keeping their eyes on the road at all times -- and not on their phones -- as they become accustomed to being behind the wheel.
• Don’t drive without insurance. Lapses in coverage can make already-high rates go up even more, even if you’re only without insurance for as little as a day. And driving uninsured is illegal nearly everywhere – and can prove to be incredibly expensive if you’re responsible for an accident while driving without coverage.
• Don’t drive under the influence. Not only is this illegal for all drivers, but doubly so for those under the age of legal consumption of controlled, legal substances. Drugs and alcohol are frequently present in fatal car accidents, and the combination of those with new drivers can be deadly.

Our recommendations: Tips for new drivers getting car insurance

Yes, car insurance for teen and young adult drivers is expensive – teen drivers can pay more than $5,600 a year while those aged 20 to 24 can pay almost $3,000 – but it’s required. A few items to keep in mind as you search for the policy that best fits your needs:

• Compare policies. Experts suggest getting quotes from at least three insurance companies. Check out the large providers, but it may also make sense to explore smaller, local insurers, as well.
• Drive safely, always. If you maintain a clean driving record, you’ll be better positioned for more affordable rates as you age out of higher-risk groups.
• Don’t go without insurance. Even a small lapse in coverage can cause your rates to go up.
• Shop around every year. As you age, your risk factors and insurability will change – and different providers might take these factors into account differently. There is no penalty for changing insurance companies if you find a better rate elsewhere, and experts suggest reviewing your coverage annually to make sure it still fits your needs.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide. 

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.