How Much Will It Cost to Insure that New Driver?

When speaking about car insurance rates for new drivers, it is important to separate the older new drivers from the younger ones. It is also necessary to segregate the new drivers who are purchasing their own independent policies from those who are added as less than a full-time driver to someone's policy that is already in force. These factors can greatly influence the cost of car insurance for new drivers.

New drivers need to expect to face excessively high insurance premiums for their driving privilege.

All new drivers will face extra charges on their car insurance. Younger drivers will be charged extra for a much longer period of time than most older drivers. Car insurers do not like to insure people with no driving history to draw from when computing insurance rates. Because of this, they feel that they must protect themselves with more expensive insurance premiums.

Once an older driver has a year or so of experience, that driver will often be placed in the same category as more experienced drivers in that age range.

A new driver who is thirty will be treated just like most other thirty-year-old drivers when the policy renews on the anniversary date. If the rate does not decrease significantly, that driver should change insurance companies. A new driver who is older will have to suffer through the high first year premiums, but should get relief after that if the driving record stays clean.

Teen drivers will always be quoted higher rates when they insure their own car.

Because teen drivers are several times more likely to have an accident than drivers over thirty years of age, they have to be charged for car insurance amounts that reflect this greater degree of risk. A teen driver who is not a part-time driver on a family policy can expect to pay in the range of $200 per month for insurance. In some rural areas, this rate might be as much as 25% lower for a young driver with a couple of years of experience. It can be much higher if the teen lives in a high crime area and drives a sports car. The monthly cost can rise to above $400 per month.

A new young driver that is included as a part-time driver on their parents policy will get savings on car insurance.

Many families do not allow teen drivers to start driving everywhere immediately after being licensed. Some states make this difficult by imposing curfews and other restrictions during the teens' first few driving years. The part-time new driver will raise the cost of the policy by somewhere between $75 and $125 per month on average in good neighborhoods with a reasonable car.