How Can a New Driver Lower Insurance Costs
You lower the cost by building a clean driving record fast and choosing the right policy and car while you do it.
Five choices that bring your rate down faster
- Join a policy, don't start one Getting added to a spouse's, parent's, or roommate's existing policy is usually cheaper than buying your own as a first-time driver. Ask the people you live with if this is possible before you shop alone.
- Pick a plain, modest car An older, common model with good safety ratings costs far less to insure than something fast, flashy, or rare. Choose the car after you know the insurance cost, not before.
- Take a driving course Many insurers lower rates for adults who complete an approved driving course, even outside of school programs. Check if your state or insurer recognizes one before you enroll.
- Raise your deductible carefully A higher deductible lowers your monthly cost but means more out of pocket if you crash. Only raise it to an amount you could actually pay right now without strain.
- Recheck your rate every renewal Your price should drop as your clean record grows, but insurers don't always apply this automatically. Compare quotes again at each renewal instead of assuming you're getting the better rate.
Should I buy my own policy or stay on someone else's?
Staying on someone else's policy, if you live with them and they're willing, is almost always cheaper while you're new. Insurers price you as part of a household with other drivers who already have a history, which softens the effect of your blank record.
Buying your own policy makes sense once you don't live with anyone who'll add you, or once your record is strong enough that joining someone else's policy would actually raise their cost more than it lowers yours. That trade runs both ways, so ask before assuming you're the cheaper option to add.
If you do get your own policy, treat the first year as the expensive one. Your cost should fall at the next renewal if you keep a clean record, so don't lock into a long-term choice based on this year's price alone.
Now that you know how to build your record and pick your policy, compare quotes to see what that costs.
Whether you get added to an existing policy
If you do
You skip paying the full first-time-driver rate on a brand new policy. Your household's existing record works in your favor right away. You'll need to ask the policyholder first, since adding you may raise their premium a little, and you should offer to cover that difference.
If you don't
You start a policy with no driving history behind you at all, which usually means the highest price you'll ever pay for coverage. You can still lower it over time with a clean record, a modest car, and a driving course, but the first year or two will cost more than it has to.
A new driver who just needed a car for a new job
Maria had lived in a city her whole adult life and never needed to drive. A new job outside the city meant she suddenly had to get licensed and buy a car. She moved in with her partner, who already had a policy and a long clean record, so she asked to be added instead of starting her own. The insurer treated her as part of an established household, and her addition raised the policy's cost by far less than a new policy in her name alone would have cost.
She also picked a used, well-rated sedan instead of the newer car she'd been eyeing, since the insurance quote on the sedan came in much lower. She took a driving course in her first few months, mostly to feel more confident behind the wheel, and found out afterward it also qualified for a small discount. After keeping a clean record for a while and finishing the course, she checked quotes again and found she could get her own policy for close to what she was paying as an addition to her partner's. She switched, because it meant her own claims history would start building from a lower, already-earned rate.
Does my age affect my insurance rate as a brand new driver?
Yes, but less than you'd expect, and in your favor. Insurers price mainly on driving experience, not age alone, so an older new driver is usually priced better than a teenager with the same blank record, since life experience and judgment still count. Check how your insurer weighs age versus experience, since this varies by company.
Will my insurance go up if I get a ticket or accident in my first year?
Yes, more than it would for an experienced driver, because you don't yet have a long clean record to offset it. One incident carries more weight against a short history. Check your insurer's accident forgiveness options, since some apply even to first-time policyholders and can prevent as steep an increase.
Can I get insurance before I have my full license?
Usually yes, since most states let you get coverage while holding a permit or restricted license, and you'll often need it to practice driving legally in a car you or your household owns. Check your state's specific rule on permit coverage, since requirements and what counts as proof of insurance differ by state.
