Ready to hit the road? One thing’s for sure—you need car insurance before you get behind the wheel. In fact, it’s legally required in most states.
New drivers, with little to no driving history, often face higher premiums. But don’t worry! The more years you spend on the road, the less your premium will be.
Let’s zoom through all there is to know about new driver car insurance.
TL;DR
- New drivers often face higher insurance premiums because they have little to no driving history, which can make them a higher risk on the road.
- The longer you have your license, you can build your driving record which can decrease your premium if you are a safe driver.
- New drivers should look for discounts and opportunities for saving when purchasing car insurance for the first time—like bundle discounts, low-mileage discounts, and savings for safe driving habits, depending on their state.
- At Lemonade, new drivers have the opportunity to lower their premiums by practicing safe driving habits, depending on their state.
How much is car insurance for a new driver?
The average annual cost of a minimum coverage car insurance policy for a brand new driver is approximately $1,104, and roughly $2,745 annually for “full coverage” (meaning a combo of liability, comprehensive, and collision coverages), according to Insurance Business Magazine.
Check out the average annual cost of minimum coverage car insurance and “full coverage” car insurance below, based on the years a driver has been licensed:
| Years licensed | Average annual cost for minimum coverage |
|---|---|
| 0 | $1,104 |
| 1 | $888 |
| 2 | $852 |
| 3 | $840 |
| 4 | $828 |
| 5 | $768 |
| Years licensed | Average annual cost for full coverage |
|---|---|
| 0 | $2,745 |
| 1 | $2,552 |
| 2 | $2,365 |
| 3 | $2,267 |
| 4 | $2,215 |
| 5 | $1,920 |
But there are lots of factors beyond how many years you’ve been licensed that impact how much you pay for car insurance, including:
- Your vehicle type
- Your location
- Your driving habits
- Your credit score
- Your annual mileage
- Opting for extra coverage
For example, living in areas with high traffic or crime rates can cause your insurance costs to rise due to the greater likelihood of accidents and claims.
How can I get car insurance for the first time?
Getting car insurance for the first time is simpler than you might think. Here are some general steps you can follow to assess your options and get set up with the right coverage for you and your wallet:
1. Determine your coverage needs
Take the time to review important factors such as:
- Your car’s value
- Your driving habits
- Your budget for car insurance premiums
- Your budget for how much you can pay out of pocket to repair or replace your car if it gets damaged
- Your state’s minimum insurance requirements
2. Research insurance companies
Look for reputable companies with good reviews from trustworthy sources such as Trustpilot or the Better Business Bureau.
3. Gather personal information
Prepare to provide the following personal information:
- Your driver’s license
- Your car’s make and model
- Your car’s VIN number
- Your driving history (if you have one)
4. Compare rates
Get quotes from multiple providers, focusing on cost, coverage limits, and policy features to find the best value that fits your needs.
Pro tip: When comparing quotes, be sure to use the same coverage limits for each to get an accurate comparison of the coverage you need.
5. Look for the extras
While most insurance companies offer similar coverages, some provide extras that can enhance your experience with your insurer.
For instance, Lemonade Car offers bundle discounts. That means that you could save money by pairing your Lemonade Car policy with another Lemonade offering—like renters, homeowners, or pet insurance.
Lemonade also harnesses the power of tech to provide a stellar user experience. From changing your coverage limits to filing a claim, it can all be accomplished literally in the palm of your hand on the Lemonade App.
6. Buy a policy
Once you’ve found the perfect car insurance company and policy, you can go ahead and make your purchase. After purchase, make sure to confirm important information such as the right coverage limits were selected, and when your policy will go into effect.
While purchasing car insurance as a first-time driver may seem daunting, following these simple steps will make the process much easier, giving you more time to hit the road. Always review your policy carefully, and remember that maintaining a clean driving record and taking advantage of available discounts can help you save on premiums in the long run.
Why can car insurance for new drivers be so expensive?
Buying car insurance for the first time as a new driver usually leads to higher car insurance rates, as insurers may deem a new driver a greater risk than more seasoned drivers. But this can feel unfair when you may be a good driver (or even the best driver in town). What gives?
Unfortunately, as a new driver, you don’t have a long enough driving history yet to prove to auto insurance providers what an awesomely considerate and cautious driver you are. An insurer generally sees new drivers as being riskier, until they prove otherwise over time.
Luckily, by driving with Lemonade Car’s mobile app, new drivers immediately begin building an internal record of their driving habits, depending on your state, which could positively impact the price you pay for insurance in the future (if you’re a safe driver).
Let’s say you just passed your road test and got a driver’s license for the first time. As a new driver, you don’t have enough years behind the wheel to have established a clean driving record yet.
But once you get more experience under your (seat)belt as an insured driver using the Lemonade app, you could become eligible for car insurance discounts based on your driving record and driving history. Once this takes effect, it can reduce the average cost of your car insurance.
Who’s considered a new driver?
A new driver refers to someone getting their driver’s license for the first time. They have limited driving experience, or perhaps none at all. Because new drivers are just getting their driver’s license, they typically don’t have an official driving record or history.
A new driver may fall into one of the following groups:
- Teenagers getting a driver’s license after reaching legal driving age
- Adults who learn or start driving later in life— like city residents who relocate to the suburbs
- International drivers who might not be new to driving in general, but are new to being US drivers
So, what’s the best car insurance company for new drivers?
We might be biased, but when your family drives with Lemonade Car, there are lots of ways that you can score lower rates and feel safe behind the wheel.
As a new driver, you could start working to lower your premium almost immediately. Wondering how? When our drivers use the Lemonade app, it helps provide a clear picture of how they actually drive (not just how people like them tend to drive, based on statistics).
This helps us calculate your Lemonade Safety Score—a rating from 0 to 10 that we calculate based on your driving habits over six-month periods, via the Lemonade app. Habits like harsh braking and phone usage while driving will, unsurprisingly, ding your score. Responsible road behavior will get you closer to that perfect 10.
Here are a few other reasons why a Lemonade auto insurance policy could be the right fit for you.
Low-mileage savings
If you are mainly taking your car out to run quick errands around town, like grabbing groceries, and not driving an hour-long commute to the office, you probably aren’t driving very far, or very often.
Your premium is based on a lot of factors—including how much and how well everybody on your policy drives. So having low-mileage drivers on your policy (especially new ones) may help you lower your auto insurance rates.
Later down the road, you could become eligible for driver discounts based on your driving behavior, like we mentioned before. But for now, you could save money simply if you’re driving less.
Multi-car discount
If you are not the only person in your household who’s driving, you could be added as a new driver to your family’s policy. You may also have your own car that you also need to add. Once your family member adds a second car or more to their policy, they become eligible for a multi-car discount on the premium.
With a Lemonade Car policy, the discount will be automatically applied to each car, including the first one, once that second car is included on the policy.
One thing to note: All the cars that are covered on your policy must be registered under your or your spouse’s name and all vehicles need to be garaged in the state where you hold the policy.
Discounts for bundling policies
When you bundle a Lemonade Car policy with one or more other Lemonade policies—like renters, homeowners, or pet—you could save on each of your premiums.
Looking to cover both your family’s Maine Coon kitty and your 2015 Mazda3? Bundle discounts at Lemonade could help take the edge off the higher rates that you may be facing as a new driver.
More ways to save
We get it—buying car insurance as a new driver without a driving history could make cheap car insurance seem like a distant dream. Luckily, there are even more ways to help lower the cost of car insurance.
For example, it’s easy to customize your coverages, limits, and deductibles on your Lemonade Car policy.
You can see how different types and amounts of coverage impact the amount of money you’ll spend on premiums, so you can find the right balance between coverage that gives you confidence on the road while also being budget-friendly.
Just don’t forget that even though lowering your limits or raising your deductible might save you some money on your premiums, it could mean paying more if you’re in a car accident and need to file a claim.
Caring about the environment
One of the things we’re extra proud about is an environmental initiative that’s built into Lemonade Car. When you enable location services on the Lemonade app, we’re able to calculate how many trees to plant based on the miles everyone on your policy drives. It’s our small way of making the world a little bit greener, and helping us all breathe a little bit easier.
Also, if someone on your policy drives a hybrid or electric car, you’ll get a discount on your Lemonade Car policy. These types of vehicles reduce your CO2 emissions, which helps fight climate change. Not to mention the money you save on gas.
When there’s the option to help make the planet a little better for the future just by which car insurance you choose, then why not?
Roadside assistance, on us
When you drive with the Lemonade app and enable permissions and location services, you’ll be eligible for roadside assistance free of charge for each car on your policy.
Lemonade’s Roadside Assistance is available anywhere in the United States or Canada.
This service can give you peace of mind for situations when you might require… some assistance. We’ll send help when you need it—to jump-start a dead battery in the winter when you’re running late for work, or to unlock the doors if you accidentally lock the keys inside.
Keep in mind: You’re eligible for up to 3 services, without charge, for each car listed on your Lemonade Car policy during a 6-month term. After that, you can still request help, but it’ll be at your own expense.
Ready to ride…
As you begin your driver education, taking Lemonade Car along for the ride could lead you to discounts, a greener future for our planet—and great coverage, of course.
You can also rest assured that you won’t be considered a new driver forever. The more experienced driver you become, the better it could be for your premium (if you maintain a clean driving history—so be sure to keep those hands at 10 and 2!).
Get your free quote started below and see how Lemonade Car may be the best car insurance for a new driver.
FAQs
What's the best insurance for a new driver?
The best insurance for a new driver often offers features like usage-based discounts, flexible coverage options, and good customer support. For example, Lemonade uses apps to track driving habits for potential discounts, which can be particularly beneficial.
What are some common mistakes new drivers make when getting insurance?
Common mistakes include underestimating coverage needs, not comparing quotes from multiple providers, and neglecting discounts for safe driving or bundling your car insurance with another insurance product you already have, such as renters insurance. The good news? If you’re reading this you can avoid these common mistakes!
Can a 17-year-old get their own car insurance?
Generally, yes, a 17-year-old can get their own car insurance, but it usually requires a parent or guardian to co-sign the policy. Some providers may have higher premiums for solo teen drivers, so it’s often more cost-effective to be added to a parent’s policy
How can I prove I'm a safe driver to lower my premiums?
Building your driving history will help to prove you are a safe driver over time. At Lemonade, you can use the app to track your driving habits, such as speed, braking, and phone usage.
What documentation do I need to get car insurance as a new driver?
You’ll generally need your driver’s license or learner’s permit, vehicle registration, and personal identification, along with details about your driving history (even if it is limited) and the vehicle you plan to insure.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
