Car insurance for new drivers: how to buy your first policy at any age

Who counts as a new driver?

Insurers treat you as new, or "inexperienced", when they cannot see a record of you driving and being insured. That covers more people than teenagers:

• Teens with a first license. Adding them to a parent's policy is usually cheaper than a separate one; see car insurance for teen drivers.
• Adults licensed later in life. People who learn to drive in their twenties, thirties or later often have no insurance history at all.
• People new to the US. A foreign license and years of driving abroad may not count the same way as a US record. Each insurer sets its own rules, so ask how it treats experience from another country. If you have just moved to a new state, see car insurance for new residents.
• People who never had their own policy. If you were listed as a driver on a parent's or partner's policy, you do have history. Ask that insurer for proof of the dates you were covered.
• Drivers returning after years without a car. A long gap without insurance can be priced much like having no history.

Graduated licensing rules mostly target teens, but not always. IIHS notes that New Jersey applies its full graduated licensing system to new drivers under 21.

Why no driving history costs more

An insurer predicts how likely you are to file a claim and how much it might cost. For an experienced driver, it can look at years of evidence. For a new driver, it has very little, so it prices for the uncertainty.

The NAIC lists the main things insurers look at:

• Driving record. Tickets and accidents over the last 3 to 5 years, for you and anyone else on the policy. A blank record is better than a bad one, but less useful than a long clean one.
• Prior insurance. Most insurers charge more if you have no auto insurance when you apply, and some charge more if you have only carried the state minimum.
• Claims history. Insurers check databases of past claims. The Texas Department of Insurance says most companies use the Comprehensive Loss Underwriting Exchange (CLUE) to see your claims history.
• Age. Drivers under 25 tend to pay more; see car insurance for young drivers.
• Credit-based insurance score. Where state law allows, insurers use one, which can hurt people with thin credit files. See credit score and car insurance.
• Where the car is kept, what car it is and how you use it. See our guides to ZIP code, vehicle and mileage.

What insurers ask when you apply

Have these answers ready so every quote is built on the same details. The NAIC stresses giving each company the same information and asking for the same coverage.

Answer honestly. An insurer that finds a missing driver or wrong information can deny a claim, cancel the policy or refuse to renew it.

How to buy your first car insurance policy

1. Check your state's legal minimum. Look up the required liability limits and any required PIP or uninsured motorist coverage with our state minimums tool.
2. Decide how much coverage you want. The minimum is only the legal floor. Consider higher liability limits, and add collision and comprehensive if the car is valuable or financed. Our coverage checklist can help.
3. Choose your deductibles. A higher deductible lowers the premium but raises what you pay after a claim. Try the deductible chooser.
4. Gather your documents. Have your license, the car's VIN, the address where it will be kept, and proof of any earlier coverage, such as dates you were listed on someone else's policy.
5. Get quotes from several insurers. Ask each one for exactly the same coverage, limits and deductibles, and get quotes and coverage details in writing, as the NAIC advises.
6. Ask about discounts. Ask about discounts for driver education or defensive driving courses, good grades, safety features, paying in full, bundling with renters insurance and telematics. See our discounts guide.
7. Check the company and the agent. Confirm with your state insurance department that the insurer and agent are licensed in your state.
8. Start the policy before you drive. Set the start date for the day you take the car, keep proof of insurance in the car or on your phone, and set up payments so the policy never lapses.

Choosing coverage as a new driver

New drivers are more likely to make mistakes, so the coverage you pick matters. A serious crash can cost far more than the minimum limits pay.

Some new drivers choose liability only on an older car they own outright to keep costs down. That meets the legal requirement as long as the limits meet your state minimum, but it means you pay for your own repairs after a crash you cause. Read is full coverage worth it to weigh the trade-off.

Example: if a new driver causes a crash that injures another driver and the medical bills come to $60,000, a policy with a $25,000 per-person bodily injury limit pays up to $25,000. The driver could be personally responsible for the other $35,000.

How new drivers can lower the price

• Build a clean record. This usually matters most. Each year without tickets or claims helps.
• Keep continuous coverage. The Texas Department of Insurance warns that insurers may charge more after a gap in coverage longer than 30 days. If you sell your car but still drive sometimes, a non-owner policy can keep your history going.
• Try telematics. A usage-based program can let a careful driver show good habits sooner. See telematics.
• Take a course. Driver education and defensive driving courses can earn a discount with many insurers; see defensive driving courses.
• Choose an inexpensive, safe car. Cars that are cheap to repair and score well in crash tests usually cost less to insure.
• Shop again at renewal. Once you have built some clean history, prices from other insurers may be lower; see shopping at renewal.

If no insurer will cover you

Many new drivers can find coverage in the regular market, even if it is expensive. If you have shopped around and still cannot get a policy, the NAIC suggests contacting your state insurance department and asking whether your state has a program for high-risk drivers. States run "residual market" plans for drivers that insurers turn down; AIPSO, the nonprofit that services many of these plans, works in 49 states and the District of Columbia. In Texas, for example, you can apply to the Texas Automobile Insurance Plan Association once 2 insurers have turned you down. Read about high risk auto insurance on our driver situations page.