Why is car insurance so expensive for new drivers?
Asked by: Elnora Wunsch | Last update: December 27, 2025Score: 4.6/5 (52 votes)
Why is it hard for new drivers to get insurance?
Many insurance companies consider new drivers riskier to insure due to their lack of experience, so they may see higher rates. However, comparing quotes and exploring coverage options may help new drivers find the coverage they need at a price they can afford.
Why is my insurance so high for my first car?
If you've just gotten your driver's license for the first time, you can expect to pay more than the average rate for auto insurance. Car insurance companies will think that you're more likely to get into an accident due to your lack of driving experience.
What car is cheapest to insure for new drivers?
- Hyundai i10.
- Volkswagen Polo.
- Skoda Fabia.
- Kia Picanto.
- Toyota Aygo X.
- VW Caddy.
- Fiat 500.
- Dacia Sandero.
How long does it take for insurance to go down for new drivers?
The biggest drop is typically from 18 to 19, when the average rate drops by around $1,595. Car insurance typically drops as you grow older, when you drive safely for three to five years following an accident or citation, and when you switch to a cheaper company.
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At what age is car insurance the cheapest?
Experienced drivers are less likely to have accident claims, which means they cost less to insure. At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.
What is the best car insurance for a new driver?
Progressive, Geico, Auto-Owners, State Farm and Nationwide tend to offer low average premiums and robust coverage options for young drivers. If you're a young adult, searching for carriers that offer discounts you qualify for can potentially help lower your rate.
What insurance group is best for new drivers?
If you're a young driver, your age and inexperience usually means paying high insurance premiums, so choosing a group 1 car can help keep your costs down. Plus there are many other ways to help cut the cost of your cover – see our tips for getting cheaper car insurance.
Which car is least expensive to insure?
The Honda CR-V, Mazda CX-5, Jeep Wrangler and Subaru Outback are the cheapest cars to insure. All three have full coverage rates under $250 per month, on average.
Does credit score affect car insurance?
How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.
What age is car insurance most expensive?
18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18. On average, 18-year-old males cost 9 percent less to insure than their female counterparts.
Why is my car insurance 140 a month?
Auto insurance premiums are determined by factors you can control — such as where you live, the type of car you drive and how much coverage you buy — and those you can't, such as your age or inflation. Poor credit can significantly raise your rates in many states, as can accidents or DUI violations.
How to get insurance for first time driver?
- Go online. Customize your policy's coverages, limits, and deductibles. Quote car insurance online.
- Call us. Talk to a licensed representative who will guide you through every step of the process.
- Ask an agent. Get expert advice from an independent agent near you.
Why did my insurance go down when I added a driver?
In some cases, adding an older driver with a clean driving record could actually reduce your premium, especially if you're a driver under 25 or someone with infractions on their license.
What is the cheapest car insurance for an 18 year old?
State Farm is the cheapest major car insurance company for 18-year-olds. Midsize companies — like Erie, NJM, Farm Bureau, Auto-Owners and Shelter — typically have even cheaper rates. However, they're not an option in many states.
What happens if I don't add my teenager to my car insurance?
Failing to add your teenager to your auto insurance can lead to coverage denial, legal penalties and policy cancellation. Lack of driving experience and perceived higher risk contribute to higher car premiums for teen drivers.
Does insurance go up if you add a driver?
Typically, adding drivers to your policy can increase your premium. For example, there is a reason adding a teenage or newly licensed driver to an auto policy can result in an increase in insurance premiums.
Which car is cheapest to insure for new drivers?
- Volkswagen Polo.
- Hyundai i10.
- SEAT Arona.
- SEAT Ibiza.
- Skoda Fabia.
- Toyota Yaris.
- Ford Fiesta.
- Volkswagen Up.
Why is insurance so much for new drivers?
The lack of experience and driving history plays a major role in determining insurance rates. Young drivers are seen as more prone to accidents due to inexperience, making them riskier clients for insurers. This can result in higher premiums and even difficulty obtaining insurance coverage.
Which gender pays more for car insurance?
On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates.
What car insurance is best for new drivers?
Allstate has the best cheap insurance for young drivers.
It offers the most affordable liability-only car insurance rates for first-time drivers under 25 years old. On average, new drivers can expect to pay $100 per month for minimum coverage from Allstate. That's less than half the average cost for new drivers.
Why didn't my insurance go down when I turned 25?
A clean driving record will get you the best car insurance rates. Young drivers with a traffic violation, driving under influence, or car accident on their record can expect even higher rates. Depending on your driving history, your rates may also not drop at 25 years if you have a lot of violations.