Car Insurance for New Drivers — What to Know
New drivers pay $3,000-$6,000/year for car insurance. The cheapest options are being added to a parent's policy (saves 50%+), taking a defensive driving course, and choosing a safe, affordable car.
Cost Breakdown
| Service | Low | High | Notes |
|---|---|---|---|
| Own policy (16-19) | $300 | $550 | Per month |
| On parent's policy | $125 | $250 | Per month extra |
| Own policy (20-25) | $170 | $300 | Per month |
| Defensive driving discount | 5% | 15% | Off premium |
Car Insurance for New Drivers
New and young drivers face the highest insurance rates. Here's how to minimize the damage.
Average Costs
- Own policy (age 16-19): $4,000-$6,500/year
- Added to parent's policy: $1,500-$3,000/year
- Own policy (age 20-25): $2,000-$3,500/year
How to Get the Lowest Rate
- Stay on parent's policy — 50-60% cheaper than your own
- Good student discount — B average saves 5-15%
- Defensive driving course — saves 5-15%, takes ~6 hours
- Choose the right car — older sedans (Honda Civic, Toyota Corolla) are cheapest to insure
- Higher deductible — $1,000 deductible saves 15-30%
When Rates Drop
Rates decrease significantly at age 25, again at 30, and reach their lowest between 35-55. Each year of clean driving helps more than anything else.
Related Questions
When should I get my own policy?
Stay on your parent's policy as long as possible. Get your own when you move out, buy your own car, or your parent asks you to. It's almost always cheaper to stay on theirs.
What's the cheapest car to insure for a new driver?
Older model Honda Civic, Toyota Corolla, Subaru Outback, and Honda CR-V consistently have the lowest insurance rates for young drivers.
Does a learner's permit affect insurance?
Some insurers require you to be listed once you have a permit. Others wait until you're licensed. Ask your parent's insurer — some don't charge extra for permit holders.