- New drivers pay more at any age because insurers have no driving or insurance history to go on.
- Every state except New Hampshire requires liability insurance or proof of financial responsibility; most set minimum limits that many experts consider too low.
- Joining a household policy, safe-driving programs and choosing an affordable car keep first-year costs down.
- Avoid gaps in coverage. Continuous insurance history lowers future premiums.
Whether you’re 17 or 47, buying your first car insurance policy can be confusing. This guide explains what the coverages mean, what you’ll need to get quotes, and how to avoid overpaying while you build a track record.
Why new drivers pay more
Insurers use your driving record and your history of continuous coverage to predict claims. A new driver has neither. Teen drivers also face higher crash risk; see car insurance for young drivers. Adults who are newly licensed, such as people who recently moved to the U.S. or never needed a car, also start without history, though they may not pay as much as teens.
The coverages, in plain English
| Coverage | What it pays for | Required? |
|---|---|---|
| Bodily injury liability | Others’ injuries when you’re at fault | Required in nearly all states |
| Property damage liability | Damage you cause to others’ cars or property | Required in nearly all states |
| Uninsured/underinsured motorist | Your injuries (and sometimes damage) when the at-fault driver has too little or no insurance | Required in some states |
| Personal injury protection / MedPay | Your and your passengers’ medical bills regardless of fault | Required in no-fault states |
| Collision | Damage to your car from a crash | Optional by law; required by lenders |
| Comprehensive | Theft, fire, hail, flood, vandalism, hitting an animal | Optional by law; required by lenders |
Liability limits are often written like 25/50/25: $25,000 per person for injuries, $50,000 per accident for injuries, and $25,000 for property damage. See how much car insurance you need and full coverage vs liability.
What you’ll need for a quote
- Driver’s license number and date licensed for each driver
- Vehicle year, make, model and VIN
- Address where the car is kept
- Expected annual mileage and how you’ll use the car (commuting, pleasure, business)
- Any prior insurance, even from another country, if you have proof
How to lower your first premium
- Join a household policy if you live with family who are insured.
- Choose an affordable-to-insure car. Get quotes on specific models before you buy.
- Complete a driver education or defensive driving course and ask about the discount.
- Try usage-based insurance to earn discounts for safe driving.
- Ask about every discount: good student, paid-in-full, paperless, autopay, safety features.
- Choose a deductible you can afford; higher deductibles lower premiums.
- Compare at least three quotes for identical coverage. See how to find the cheapest car insurance.
Buying a car? Insure it first
You’ll generally need proof of insurance to register a car, and dealers often require it before you drive off. Get quotes while you’re shopping, then start the policy on your purchase date. If you finance or lease, your lender will require collision and comprehensive and may set a maximum deductible. Ask about gap insurance for a new car with a small down payment.
Build a good insurance history
- Never let coverage lapse. Even a short gap can raise future rates.
- Drive carefully: tickets and at-fault accidents stay on your insurance record for years.
- Re-shop after your first six to twelve months and each year after, as your history improves.
Frequently asked questions
Why is car insurance expensive for new drivers?
Insurers have little or no driving or insurance history to judge your risk, and newly licensed drivers have higher crash rates on average.
Can I get car insurance with a learner’s permit?
Usually permit holders are covered under a parent’s or household policy; rules vary by insurer and state, so tell your insurer when someone in the household gets a permit.
Do I need insurance before buying a car?
Yes. You generally need proof of insurance to register a car and drive it off the lot. Arrange a policy that starts on the purchase date.