What is the average cost of new driver car insurance?

The average cost of car insurance for new drivers is between $430-$450 per month, which is much higher than their parents’ current premiums. The Center for Disease Control and Prevention stated that car collision is the number one way teenagers die in this country, which means their rates are going to be higher to mitigate this level of risk. Enter your ZIP code below to compare your quotes against the average cost of auto insurance for new drivers.

Compare Cheap Car Insurance Quotes

 Secured with SHA-256 Encryption

Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

Full Bio →

Written by

Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

Full Bio →

Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 31, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right cheap car insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare cheap car insurance quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

The average cost of new drivers’ car insurance is going to be much higher than their parents’ current premiums. Find cheap car insurance in your area. Car insurance companies determine how much each particular person needs to pay for his or her premiums based upon what is going on in the community in which that person lives.

Get started now by entering in your ZIP code and receive a FREE car insurance comparison! The car insurance company will also look into the larger community, and that would be the demographics people belong to and the types of vehicles they drive.

Who Is Most Likely to Be Involved in a Collision?

The group of people that is most likely to cause a car collision or be the victim of another driver belongs to the new driver’s demographic. Of the highest speed collisions that occurred on the roads, 40 percent of these crashed involved a male driver between the ages of 15 and 20. Car insurance companies are well aware of these statistics, and they are wary of insuring young males.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

The Difference between Young Males and Females

Teenage males are twice as likely to die in a collision as teen girls. A significant portion of the males who were involved in car crashes were speeding and they admitted to having had alcoholic drinks before they drove. Although both girls and boys wear their seat belts less than older generations, more males are likely to engage in this behavior than females.

The Impact of Inexperienced Drivers

Females in this age group are less likely to be involved in a car crash, but they are inexperienced drivers. Car insurance companies place all inexperienced drivers in the high-risk category, so females will need to expect to be asked to pay high premiums as well.

The Center for Disease Control and Prevention stated that the car collision is the number one way in which teenagers die in this country. Specifically, inexperienced teen drivers from ages 16 to 19 die in car crashes four times as often as drivers with more experience.

The Cost of Inexperience

The numbers are even larger for those who suffer injuries in car crashes. A total of 350,000 teens were treated in emergencies rooms across the country for injuries due to car collisions. Car insurance companies paid $19 billion in 2009 for the costs due to bodily injuries for males and seven billion dollars for the females.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

The Most Common Reasons for Crashes amongst the Inexperienced

Inexperience leads to car collisions for several reasons. Included among these are:

  • The inability to discern when a situation is perilous
  • The propensity to speed and follow too closely behind the vehicle in front of them
  • The inclination to not wear seat belts
  • The increased likelihood of crashing after having ingested alcohol

Why Car Insurance Companies Charge More for the Inexperienced

The statistics listed above do not bode well for new drivers and the car insurance companies that need to insure them. The more likely that an applicant is to require payment from the car insurance company due to bodily injuries, the more money these car insurance companies will pay if they have a large number of these high risks.

The Average Increases in Car Insurance Premiums

As parents seek to add their teens to their car insurance policies, they will notice that their premiums will be significantly higher:

  • A one-car household that adds a teen to the policy sees an increase in premiums of 44 percent
  • A two-car household will see a 58 percent increase in the car insurance rates
  • A three-car household will have a 62 percent increase in the policy’s premiums

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

The Average Rate for Teen Drivers

Parents who add their teens to their policies can expect an increase of around $621 for the year. Although this is a steep increase, paying this amount will be less costly than paying the average rate that will be quoted for their teens for their own policies. This rate could be as much as $2,999 for the year!

How to Lower a New Driver’s Premiums

Before parents will need to add their teens to their policies, they will need to look into all the ways that they can qualify for a lower rate for their teens’ coverage. Luckily, car insurance companies are willing to lower the premiums for teen drivers in several different situations.

In the event that the teen earns a B average in high school, parents may be able to receive a discount off of their rates by as much as 25 percent. Because the lack of experience is a definite negative for new drivers, those who can demonstrate that they have taken driver’s training courses will be entitled to an additional 10 percent off with some car insurance companies.

The Vehicle Not to Purchase for a New Driver

When parents are deciding what type of car to purchase for their teens, they can go out of their way to find one that will ease the representatives at their car insurance companies’ minds. These types of vehicles will not be:

  • High-performance sports cars
  • Vehicles that are very expensive to repair or replace
  • Cars high on the most stolen vehicles list

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Car Insurance-Friendly Vehicles for New Drivers

Before parents begin shopping for a vehicle, a good tactic is to contact their car insurance agents and ask them which would be the most insurance-friendly vehicle for their teens. Among the candidates would be a vehicle that performs very well on its crash tests and those that have the latest technology that makes operating these vehicles much safer for the driver.

Seek Several Quotes for the Best Rates for New Drivers

Before parents do anything, it just may be their best bet to compare quotes from several car insurance companies for new drivers. If their current car insurance companies refuse to lower the rates for their teens, they will have ammunition that will help them encourage their companies to change their minds.

They can mention that they are thinking of purchasing a new policy elsewhere from a company that offered them lower quotes. Check out our FREE car insurance search tool by entering in your ZIP code!

Compare Cheap Car Insurance Quotes

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption