Best Car Insurance for New and Young Drivers

The best car insurance for new drivers applies every discount you qualify for and keeps solid liability limits. Joining a parent's policy, good student discounts and telematics can cut the price, so compare quotes by ZIP.

Compare car insurance quotes for young drivers

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Join a parent's policy or buy your own?

Young drivers holding an auto insurance sign

For most families, adding a teen or young adult to a parent's policy is the cheaper option. The Insurance Information Institute (Triple-I) notes that it is generally less expensive for parents to add a teenager to their policy than for the teen to buy one alone, and that insuring the teen's car with the same company may also earn a multi-vehicle discount. All licensed drivers in the household are normally expected to be listed on the policy, and many insurers ask you to report a learner's permit as well.

A separate policy can make sense when a young driver owns the car, lives at a different address, or the parents want to keep claims on the teen's record away from their own policy. Ask for quotes both ways before deciding.

Discounts that matter most for young drivers

Good student discount. Many insurers give a discount to full-time students with good grades, often a B average (3.0 GPA) or better.
Driver training. Completing a recognized driver education or defensive driving course can lower the premium.
Distant student. College students who live far from home (often 100 miles or more) and do not take a car to campus may qualify for a lower rate.
Telematics and young-driver programs. App-based programs that score braking, speed and phone use can reward careful drivers. Some insurers have programs designed for drivers under 25, such as State Farm's Steer Clear.
Bundling and multi-vehicle. Keeping auto, home or renters policies and all family cars with one insurer often earns a discount.

Discount names, rules and amounts differ by insurer and state, so ask each company for its full list when you compare. See also our auto insurance discounts guide.

Choose the car carefully

The vehicle has a big effect on the price. A midsize car with good crash-test results and modest power is usually much cheaper to insure than a sports car or a large, expensive SUV. Safety features such as automatic emergency braking also make the car safer for an inexperienced driver. Before you buy, get insurance quotes for the specific models you are considering.

Coverage to keep, and where you can save

Liability: buy at least your state's minimum, and consider higher limits. A serious crash caused by a young driver can lead to claims against the family that exceed the minimum.
Collision and comprehensive: usually required for a financed or leased car and worth it for a newer car. For an older, low-value car, liability only may be enough.
Deductible: a higher deductible lowers the premium, but choose an amount you could pay after an accident.
Uninsured motorist coverage: protects you if the other driver has no insurance or too little.

For a side-by-side look at coverage levels, see full coverage vs liability insurance.

Keep the record clean

Tickets and at-fault accidents raise rates for several years, and they cost young drivers the most. Graduated driver licensing rules, which limit night driving and passengers for new drivers, have been linked by IIHS research to lower crash rates and lower insurance claim rates. Parents can reinforce the same rules at home: no phone while driving, limited passengers at first, and extra supervised practice at night and in bad weather.

Step by step: getting the best price

Decide whether the young driver joins a parent's policy or buys their own, and get quotes both ways.
List every discount you may qualify for: grades, driver training, distance from home, telematics, bundling.
Get quotes from several insurers with the same limits and deductibles.
Re-check prices every year, and after a birthday, a move, a new car or a clean year of driving.

Frequently asked questions

Is it cheaper to add a teen to a parent's policy?
Usually, yes. According to the Insurance Information Institute, it is generally less expensive to add a teenager to a parent's policy than for the teen to buy a separate policy, and a teen's car may qualify for a multi-vehicle discount.

What discounts can young drivers get?
Common discounts include good student discounts (often for at least a B average), driver training course discounts, distant student discounts for college students who live far from home without a car, and safe-driving programs that use an app or device.

When do car insurance rates go down for young drivers?
Rates usually fall as a driver gains experience and keeps a clean record, with noticeable drops for many drivers in their early to mid twenties. Tickets and at-fault accidents slow that down.

What coverage should a new driver have?
Every driver needs at least the liability coverage their state requires. Higher liability limits protect the family's assets, and collision and comprehensive are worth considering for a newer or financed car.