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Cheap Auto Insurance for New Drivers

Updated on January 20, 2010

Why is Auto Insurance for teenage new drivers so high?


Auto insurance premiums for new drivers like teenage drivers and drivers with no driving record are usually very expensive. This is because, statistically, they get into accidents six times more than others according to the Insurance Institute for Highway Safety ( In other words, 6% of this driver population cause about 13% of all total acidents. So, the chances of claims from these drivers are very high that the insurance companies charge more for their coverage. Diferent insurance companies treat young and new drivers differently and there are all kinds of discounts available if you ask. Some well known auto insurance companies are beginning to offer significant discounts for young drivers and their family. So, it pays to shop around to get the cheapest and best car insurance.

Auto insurance for new drivers
Auto insurance for new drivers

Tips to get cheap auto insurance for young and new drivers

1. Call many car insurance companies to get rates for your new driver as premiums vary significantly between insurance companies for the same coverage.

All State Teen insurance

State farm teen insurance

AAA teen insurance

2. Find out about all kinds of discounts that are available and your driver may be eligible for many of them. I have listed some popular discounts below that you should ask your dealer about.

3. Sports cars, flashy cars, fast cars have higher insurance premiums. So, if you want to reduce your insurance premium, choose a safe inexpensive car.

4. Good students discount. There usually is a 10% discount for teens with good grades (GPA of 3.0 or higher).

5. Encorage new drivers to enroll in driver safety and driver education courses.

6. If the driver gets a traffic violation, encourage the driver to take a safety course in a traffic school to reduce the points.

7. Take online safety course. For example, Nationwide auto insurance launched a program recently called "SmartRide" that offers teenage drivers a discount of additional 5% on their insurance premium.

8. Do not forget to get quotes from online auto insurance providers like esurance teen program

progressive teen insurance program

Insweb Teen insurance

geico teen insurance, etc.


Auto Insurance for teens more info:


Auto Insurance for new drivers
Auto Insurance for new drivers

Some new auto insurance programs:

Safeco ( has a "Teensurance" insurance scheme for young drivers, which offers a 15% discount for young drivers who pay a monthly fee of $15 for a satellite-tracking system that tracks all the movements of young drivers.

State farm auto insurance ( has a "Steer Clear" program that offers 15% discount to young drivers who keep a continuous log of their driving habits.

American Family Mutual ( has a "Teen Safe Driver" program that uses a "DriveCam" which gives the parents and the company a live video feed of the driver in vehicle.

Additional tips for buying cheap auto insurance:

1. Maintain a clean driving record. Teach responsibility. Educate your teens about the laws and how insurance works and why premiums get higher.

2. If you want to keep your insurance premiums low, educate your teens to Drive safe. No alcohol or drugs during driving. No speeding tickets. Do not be a reckless driver.

3. Ride with your new driver and point out any mistakes they make in a polite way. Do not forget to give compliments if they are being a good driver.

Educational video on buying auto insurance for new teen drivers

Car insurance helps financially
Car insurance helps financially


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