Why new drivers pay more
Carriers set prices based on risk, and they lean heavily on driving history. A new driver, at any age, has little record to show. Younger drivers also tend to be priced higher as a group.
The good news is that rates often come down as a driver builds a clean record. Each year without accidents or tickets helps.
Getting covered
There are two common paths. A new driver who lives at home can usually be added to a parent's or household policy. A driver who lives on their own, or owns their own car, may need a separate policy.
Adding a driver to an existing policy is often less expensive, because the household may already have multi-car or multi-policy discounts. But it also means the household's policy carries the risk of any claim the new driver has.
Learner's permits
Permit holders are often covered under the policy on the car they're learning in, but carriers handle this differently. Some ask you to list the permit holder, and others wait until a full license is issued. Call your agent when a permit is issued so you know what your policy requires.
Ways to save
Discounts vary by carrier and state, so ask which ones you qualify for.
- Good-student discount for students with strong grades
- Completing an approved driver training course
- A telematics program that tracks safe driving habits
- Choosing a modest, safe car that costs less to insure and repair
- Bundling auto with home or renters insurance
- Raising deductibles, if you can afford the out-of-pocket cost after a claim
Coverage tips
It can be tempting to buy only what your state requires. State minimum liability limits are often low compared with the cost of a serious accident. If a new driver causes a crash, the costs above your limits can come back to you.
Liability is usually the last place to cut. If you need to lower the premium, look at deductibles and discounts first. For an older car with low value, you might weigh whether collision coverage is still worth it.
Keeping rates down over time
A clean record is the biggest long-term saver. Review the policy each year, update the carrier on good grades or completed courses, and compare quotes at renewal. Rates can change as a driver gains experience.
