Best Car Insurance for Teens and Young Drivers for May 2022

Content of the material

  1. Good student discounts
  2. Video
  3. Getting car insurance after moving to the U.S
  4. Cheap Car Insurance for Drivers with a DUI
  5. New York Car Insurance Rates by Driving and Accident History
  6. Cheap Car Insurance for Good Drivers in New York
  7. Cheap Car Insurance for Drivers with DUI in New York
  8. SR-22 Insurance in New York
  9. Cheap Car Insurance for Drivers with an At-Fault Accident in New York
  10. Cheap Car Insurance for Drivers with Speeding Tickets in New York
  11. How much is insurance for a new driver?
  12. How does experience affect car insurance rates?
  13. How does age affect car insurance rates?
  14. Our recommendations for car insurance for new drivers
  15. How to Find the Cheapest Car Insurance Coverage for You
  16. Get quotes from multiple car insurance companies
  17. Review your auto insurance coverage
  18. Reconsider your deductible
  19. Compare the Best Car Insurance for Teens and Young Drivers
  20. Cheapest Car Insurance in New York
  21. Cheapest Liability Auto Insurance in New York
  22. Cheapest Full-Coverage Auto Insurance in New York
  23. Money-saving tips for young drivers
  24. What Are Car Insurance Rates by Age for Young Drivers
  25. Defensive driving class discount
  26. Do first-time drivers need full coverage insurance?
  27. What Are the Different Types of Car Insurance for Teens?
  28. How do you save money on auto insurance for teens?
  29. Cheap Car Insurance for First-Time Drivers
  30. Frequently asked questions
  31. Can I save money if I add a young driver to my auto insurance policy?
  32. Should I buy my teenager a new or used car?
  33. How much will my car insurance increase when I add a teenager to my policy?
  34. Which is the best auto insurance discount for a teenager?
  35. Life Events That Affect Auto Insurance Rates for Young Drivers
  36. Having a Roommate
  37. Getting Married
  38. Renting or Buying a Home

Good student discounts

Students with higher grade point averages are usually more responsible and better drivers. If your young driver earns a B average or better at school, you may qualify for a good student discount on Nationwide teen car insurance.

Video

Getting car insurance after moving to the U.S

Immigrants and foreign nationals can be classified as new drivers when they first enter the U.S. This is because auto insurance companies usually check domestic driving records, so you can have a clean driving record in another country and still be considered an inexperienced driver after moving to the States.

Being an immigrant can make it harder to purchase car insurance. Many car insurance companies will reject applicants who don’t have valid driver’s licenses. Depending on where you live, you may still be able to get a license if you don’t have the proper government paperwork.

According to the National Conference of State Legislatures, the District of Columbia and the 16 states below allow undocumented immigrants to obtain a driver’s licenses if they can produce items like a foreign birth certificate, valid foreign passport or proof of residency in the state.

Cheap Car Insurance for Drivers with a DUI

Company Average annual rates for a driver with one DUISavings compared to average
State Farm$1,942$681 cheaper
Travelers$2,150$473 cheaper
USAA$2,195$428 cheaper
Erie$2,358$265 cheaper
Average$2,623
Averages are based on rates nationwide from 10 large auto insurance companies.

Among the likely consequences after a DUI conviction is a higher auto insurance rate. Car insurance companies usually pull motor vehicle records before your policy renewal time to check for tickets and convictions, and then apply increases based on your record.

A DUI conviction leads to an average increase of more than $1,000 a year. Even with a DUI conviction, you can shop around for cheap car insurance. State Farm, Travelers and Erie had the best rates in our analysis, with USAA another possible good option for military members and veterans who qualify.

New York Car Insurance Rates by Driving and Accident History

Your premium is partially determined by information on your driving record. If you have accidents on your record, you’ll pay higher car insurance rates. And even a speeding ticket can raise your rates significantly. Here’s what you can expect on average with each type of infraction.

Infraction Average Monthly Quote Clean Driving Record$273At-Fault Accident$303Speeding Ticket$327DUI$338

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

See More: High-Risk Car Insurance New York

Cheap Car Insurance for Good Drivers in New York

Average rates for insurance coverage are generally cheaper for New York drivers with a clean driving record. Below are the average monthly auto insurance rates you can expect from each of the cheapest car insurance companies, assuming you don’t have any infractions on your record.

Car Insurance Company Average Monthly Quote TSC Direct$127Kemper Preferred$153Travelers$193Plymouth Rock$229Safeco$274

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

Cheap Car Insurance for Drivers with DUI in New York

Driving while intoxicated is a serious offense that results in license suspension for New York drivers. When you get back on the road again after a DWI, you’ll pay high rates for your auto insurance policy since insurers will view you as a greater risk. Here are the cheapest rates you can expect from New York insurance providers for drivers with a DWI on their record.

Car Insurance Company Average Monthly Quote Plymouth Rock$184Travelers$217Progressive$256Safeco$262Midvale Home & Auto$350

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

SR-22 Insurance in New York

New York is one of the few states that does not have an SR-22 insurance requirement. In many states, if your driver’s license is suspended, an SR-22 is required for reinstatement. It’s a form filed with the DMV by your insurance company on your behalf, and it comes with higher average premiums for drivers. But SR-22 insurance isn’t required or available in New York.

Cheap Car Insurance for Drivers with an At-Fault Accident in New York

If you cause an accident, insurance companies will perceive you as a higher risk to insure. That will raise your rates significantly. However, it’s still possible to find affordable car insurance after an accident, especially if you ask about insurance discounts. The following are the cheapest New York car insurance companies for drivers with at-fault accidents.

Car Insurance Company Average Monthly Quote TSC Direct$153Kemper Preferred$162Plymouth Rock$196Travelers$213Progressive$314

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

Cheap Car Insurance for Drivers with Speeding Tickets in New York

Safe driving is important to maintaining the best rates for car insurance. Even a speeding ticket shows you’re not taking every precaution on the road and will cause insurers to raise your premiums. The following are the companies offering the cheapest rates to drivers with speeding tickets on their records in New York.

Car Insurance Company Average Monthly Quote TSC Direct$153Kemper Preferred$190Plymouth Rock$216Travelers$252Midvale Home & Auto$365

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

How much is insurance for a new driver?

Who is considered a new driver?

Newly licensed teens Older drivers who have never had a license People with a gap in driving or insurance coverage Immigrants and foreign nationals

On average, new drivers can expect to pay $1,582 per year for minimum-coverage and $3,867 per year for full-coverage insurance. However, car insurance rates vary greatly depending on your age, where you live and other factors such as your credit score.

How does experience affect car insurance rates?

Auto insurance companies consider a broad range of factors to determine rates, including driving experience. People with little to no driving history tend to be significantly riskier to insure, so they’ll have to pay higher premiums during the first few years of their driving careers. However, as you spend more time behind the wheel, you’ll see your insurance rates begin to fall.

Years licensed Average annual premium Percentage increase $1,10543%1$88415%2$85511%3$8328%4$8277%5$7720% Percentage increase shows the difference in premium from a driver with five years of experience, which is when experience no longer affects rates, on average.

In Texas, a 30-year-old man with no driving experience can expect to pay $1,105 per year for a minimum-coverage policy. After one year of driving, his rates go down by $131. After having his license for five years, his rates are $333 cheaper.

Insurance companies only consider driving experience within the U.S., so immigrants and foreign nationals pay higher premiums as well, even with foreign driving experience.

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How does age affect car insurance rates?

One of the biggest factors that raises new-driver rates is age. Teens, who tend to have a higher risk tolerance, cause more accidents on average than middle-aged drivers. However, some people do begin driving later in life. If you’re a new-but-not-young driver, you’ll still pay higher rates than other drivers your age. However, you’ll see less of an increase than your younger counterparts.

Age Minimum coverage Full coverage 16$3,097$7,22917$3,021$7,07918$3,107$7,45021$1,747$4,35125$1,198$2,984Show All Rows

In Texas, a 16-year-old driver pays more than twice what a 25-year-old new driver pays for a full-coverage policy, despite the fact that they have the same level of driving experience. Rates decrease even more for first-time drivers in their 30s, 40s and 50s.

Our recommendations for car insurance for new drivers

Whether you’re a new driver or have been driving for decades, researching and comparing quotes from several providers is a great way to find the best rate. Our insurance experts have found that Geico and State Farm are excellent options for car insurance for new drivers. Read on to learn more about these providers.

How to Find the Cheapest Car Insurance Coverage for You

The easiest and best way to find the cheapest car insurance coverage is to shop around. Determine your coverage needs and then comparison shop for those exact coverages, limits and deductibles so you’ll find prices for comparable policies.

It’s no good to find a cheap auto insurance policy only to realize the price is low because it contains minimum coverage levels or high deductibles.

Cutting coverage is one way to get cheaper auto insurance, but it can leave you open to repair bills and lawsuits against you. Instead, try these tips for getting cheap car insurance.

Get quotes from multiple car insurance companies

Comparison shopping is the best way to potentially save hundreds of dollars a year. Even if you have strikes against you, such as an accident or moving violation, you can still shop around for cheap auto insurance rates. Because of the wide variation in pricing, the company that offered you a good rate for a clean record may not be the cheapest when your driving record changes. That’s why it’s key to compare car insurance quotes from different insurers.

Review your auto insurance coverage

It’s good to review your policy regularly to make sure your current coverage, limits and deductibles still are best for your current situation.

Do you have optional coverages on your vehicle you don’t use or want, such as roadside assistance or rental reimbursement insurance? If so, take them off to get cheaper car insurance.

Reconsider your deductible

Your deductible is what’s subtracted from a settlement check if you make a collision or comprehensive insurance claim. If you can afford a higher deductible in the event of a claim, raise it so your collision and comprehensive coverages are cheaper. For example, if you have a $250 deductible, you can raise it to $500 or $1,000 and save.

Compare the Best Car Insurance for Teens and Young Drivers

Company Average Price for 17-Year-Old Purchasing Options Discounts Other Coverage State Farm Best Overall $3,055 Online, phone, local agent 13 Home, renters, life, health, pet, disability, liability, small business Allstate Best Student Discounts $4,716 Online, phone, local agent 14 Homeowners, renters, motorcycle, marine, classic car, RV/ATV, business, life, pet, identity theft, tuition Amica Best Accident Forgiveness Policy $6,156 Online, phone, live chat 18 Home, life, condo, renters, flood, retirement, marine, motorcycle, umbrella, small business USAA Best for Military Families $2,662 Online, phone, agent 12 Motorcycle, ATV/RV, classic car, marine, aviation, renters, landlord, umbrella, flood, farm, mobile phone, life, health, business Erie Insurance Best on a Budget $2,248 Online, phone, local agent 8 Motorcycle, ATV/RV, classic car, marine, renters, flood, life, snow mobiles, golf carts, condo, mobile home, personal valuables, business

Cheapest Car Insurance in New York

The average cost of car insurance in New York is $349 per month. However, keep in mind that what you pay for car insurance will depend on your age, gender, driving record, credit score, and other factors in your unique driving profile.

The best way to find the cheapest premiums for you is to compare car insurance quotes in New York on Insurify, but if you’re curious about what insurance providers are charging on average, you’ll find the cheapest New York insurance providers below. Quotes are based on Insurify proprietary data for over 40 million car insurance premiums.

Car Insurance Company Average Monthly Quote TSC Direct$141Kemper Preferred$157Travelers$202Plymouth Rock$221Safeco$290Midvale Home & Auto$313Progressive$375Nationwide$386Liberty Mutual$441

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

See More: Car Insurance Quotes

Cheapest Liability Auto Insurance in New York

The cheapest auto insurance you’ll be able to find in the state of New York is state minimum liability insurance, which covers injuries and death as well as property damage after an accident, no matter who is at fault. New York’s no-fault insurance laws are designed to ensure the quick processing of claims.

New York law requires that you carry personal injury protection along with bodily injury liability coverage and $10,000 in property damage liability insurance. Note that opting for only the state minimum insurance may leave you financially vulnerable. Here’s what you can expect to pay, on average, at the cheapest car insurance companies for liability car insurance.

Car Insurance Company Average Monthly Quote Kemper Preferred$87TSC Direct$98Travelers$177Plymouth Rock$186Safeco$207Midvale Home & Auto$253Progressive$338Liberty Mutual$403Nationwide$437

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

Cheapest Full-Coverage Auto Insurance in New York

Full-coverage car insurance typically includes both comprehensive coverage, which covers things like theft and vandalism, and collision coverage, which covers car accidents. It may also include underinsured or uninsured motorist coverage. Some people also add other coverages to their policies, like roadside assistance and medical payments.

Full-coverage car insurance can easily double your premiums, but it’s usually worth it. It covers the repair or replacement of your vehicle, even if you’re the one at fault in an accident. And some insurers can offer cheaper coverage than others. Here are the cheapest companies in New York for full-coverage insurance.

Car Insurance Company Average Monthly Quote TSC Direct$159Kemper Preferred$171Travelers$210Plymouth Rock$242Safeco$317Midvale Home & Auto$330Nationwide$372Progressive$407Liberty Mutual$468

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.

Money-saving tips for young drivers

We've compiled a list of discounts available for teens and young drivers. These are easy discounts that most people can qualify for.

Be sure to take advantage of any discounts you can to lower your rates as much as possible!

       
  • Good Student Discounts– By having good grades, a teen demonstrates understanding responsibility. This qualifies them for a discount with most insurance companies. 
  •    
  • Defensive Driving Class– Look into discounts offered to teens and young drivers who take part in ""Driver's Ed"" or similar courses. 
  •    
  • Occasional Operator– A teen driver who only drives limited hours such as to and from school can save. They can be added to their parent's policy as an ""Occasional Operator"" to receive a discount.
  •    
  • Student Away– For students who are ""away at school"", some companies will lower the parent's rates when they are not home.
  •    
  • Low-Mileage– If you know you won't be driving often, ask your insurer about a low-mileage discount. This is something almost anyone can take advantage of, not just teens.
  •    
  • Anti-Theft Devices– Some insurers offer a discount when you install an anti-theft device in your vehicle. The discount will vary on your state and the type of anti-theft device.
  •    
  • Safe Driving– With today's technology, you can download apps that monitor your driving habits. Some insurers give discounts for good driving while using these apps.
  •    
  • Type of Car– Buying a cheaper, older car will cost you less with insurance than buying a new sports car. Since the car is worth less, your insurance is less. You can save further by dropping comprehensive and collision coverage.
  •    
  • Adding Another Driver to Your Policy– You can lower your rate by adding a more experienced driver to your policy. Especially if you are a first-time driver, this can be very beneficial. Just make sure they have no previous claims or convictions.

What Are Car Insurance Rates by Age for Young Drivers

Drivers under 25 will pay more for their auto insurance in general, but as you get older, you’ll see the rate change.

Age Insurance Premium
18 $227/mo
19 $196/mo
20 $189/mo
21 $161/mo
22 $151/mo
23 $145/mo
24 $136/mo
25 $131/mo

Defensive driving class discount

A Nationwide discount is applied when your teen successfully completes an approved defensive driving class. This may help you get more affordable car insurance.

Do first-time drivers need full coverage insurance?

As you’ve learned, there are several different types of coverage offered by all of the leading insurers. What is required will depend upon the state that you live in.

Now that you’ve taken the time to learn about the state requirements and other additional policy offerings, you are ready to determine the right coverage level for your needs.

If budget is your primary concern as a first-time driver, a basic liability-only policy might work well for you, especially if you drive an older, used car that you can easily replace in the event of an accident.

This is also useful for new drivers who are having difficulty finding insurance that you can afford on your income.

However, if you drive a new vehicle or lease or finance your car, you might need to purchase a full coverage policy, which will include the collision and comprehensive coverages previously mentioned.

You may want to consider having a higher deductible in exchange for a lower premium.

Usually, car dealerships and banks insist upon full coverage car insurance when you lease or finance a vehicle, regardless of your state’s minimum requirements.

Depending on your circumstances, you may have to purchase a full coverage policy. Otherwise, buying a cheaper and older model car for cash will allow you to drop the extra coverage.

If you live in a state with a high rate of uninsured motorists, opting in for uninsured or underinsured motorist protection might be the right choice.

According to the Insurance Information Institute, as many as one in eight drivers are uninsured. That means around 13 percent of drivers in the nation are uninsured motorists.

These drivers put you and your family at risk because they do not have the coverage that will help pay for any damages if an accident occurs.

Ultimately, the type of coverage you purchase is entirely up to you. You’re now armed with the knowledge you need to build your perfect policy for the right price.

What Are the Different Types of Car Insurance for Teens?

Although there are some exceptions, most car insurance companies offer:

  • Bodily Injury and Property Damage Liability to cover the other party's medical care and damages when you are the at-fault driver
  • Collision Coverage to cover your own vehicle’s damage regardless of fault
  • Comprehensive Coverage to pay for non-accident related damages
  • Personal Injury Protection/Medical Payments to cover your medical expenses in case of an accident
  • Uninsured Motorist Coverage to cover your damages and medical expenses when the at-fault driver doesn’t have accurate coverage
  • Guaranteed Asset Protection (GAP) Coverage to cover the gap between your car's lease or loan and the determined value in the case of a total loss

How do you save money on auto insurance for teens?

There are ways to cut down on insurance premium policy costs. For instance, being a safe driver and using more efficient vehicles (such as Honda Civics, Toyota Priuses and Nissan Rogues) tends to cut costs, even for teen drivers, according to Giusti. There are also discounts based on how often you use your car: “Some companies offer discounts to motorists who drive less than the average number of miles per year,” says Janet Ruiz, director of strategic communication at the Insurance Information Institute.

Teens may also qualify for “good student” discounts, or discounts based on learning safe driving habits from a defensive driving course or graduated driver licensing programs.

You may also be able to save money if the younger driver on your policy isn’t using their car because they’re away at college. “If there is a young driver on your policy who is … away at college without a car you may also qualify for a lower rate,” according to Ruiz. Every insurance carrier offers different discounts depending on your coverage option and other factors, so it pays to check which ones apply to you before signing up.

Cheap Car Insurance for First-Time Drivers

You are now an expert on finding cheaper car insurance for first-time drivers. Refer back to this guide as much as needed while you comparison shop for the most affordable rates.

Which car insurance company is the best for first-time drivers and who has the cheapest car insurance for under 25-drivers? Search for quotes below.

References:

Frequently asked questions

Can I save money if I add a young driver to my auto insurance policy?

It is typically less expensive to add a young driver to your existing auto insurance policy rather than purchasing a standalone policy for them. In addition, your teen will be unable to hold their own auto insurance policy until they turn 18. If you have a young driver to add to your policy, you may want to search for companies with student or young-driver discounts, like good student, student at school, driver training or teen driver savings.

Should I buy my teenager a new or used car?

Several factors go into the price of insurance for various car models, including the value of the vehicle, the statistical likelihood that it will be in an accident and the cost of repairs. Generally, an older vehicle is going to be cheaper to insure with a teen driver than a newer vehicle, usually because parts are more readily available and cheaper.

With an older vehicle, you may also feel comfortable buying liability-only coverage rather than full coverage, meaning that the insurer will not cover damage to the vehicle. That can help keep your auto insurance cost lower, although you should be aware that you’ll have to pay for damage to your vehicle out of pocket.

How much will my car insurance increase when I add a teenager to my policy?

On average, you will spend an average of $1,200 to $1,900 more per year after adding a teenager to your existing auto insurance policy.

Which is the best auto insurance discount for a teenager?

The best discount for your teen is whichever one applies to them. For instance, if your teen is a safe driver, they may benefit from enrolling in a telematics program that tracks their driving in real time. If they are away at college, they may want to benefit from a distant student deal.

Life Events That Affect Auto Insurance Rates for Young Drivers

Along with age and gender, several life events and choices can impact your auto insurance rates as a young driver. Here are a few to consider. 

Having a Roommate

Insurance companies often have rules related to roommates using shared vehicles. Companies will assume roommates are sharing cars since they share a home and other responsibilities. The company might raise your rate to account for the potential risk associated with having a roommate.

To reduce the chance of this happening, exclude your roommate from your auto insurance policy or get a joint policy together.

Getting Married

There are many benefits to getting married – one being that your auto insurance rate is likely to decrease almost immediately. You’ll also be able to take advantage of a multi-car discount if you both have your own vehicle. 

Simply let your insurance company know you’re married and get on the same policy with your spouse.

Otherwise, if you choose not to be on the same insurance policy as your spouse, you’ll want to exclude them from your policy, meaning if they drive your vehicle, they’d essentially be driving without insurance and vice versa. 

The average monthly car insurance premium for married drivers under 25 years old is $130.

The average monthly car insurance premium for non-married drivers under 25 years old is $160.

Renting or Buying a Home

Finally, a significant life event that can impact auto insurance rates for young drivers is the decision to rent or buy a home. 

Once you purchase a home, you’ll likely save on auto insurance since you can bundle a home and auto insurance policy and receive a multi-policy discount

Also, insurance companies tend to view homeowners as more stable and responsible than renters and offer cheaper auto insurance rates in return. 

The average monthly car insurance rate for a homeowner is $93/mo

The average monthly car insurance rate for a renter is $110/mo

Essentially, when you’re a homeowner, you can save around 20% on your monthly auto insurance premium. 

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