If you’ve recently received your driver’s license—or you’re getting ready to—you might be wondering what it means to be considered a “new driver” for insurance. Learn how long drivers are typically considered new, how it affects your insurance costs, and more.
Key takeaways
- New drivers include teens and adults getting their first license, as well as drivers with foreign licenses. They’re typically considered new for up to three years by many insurers.
- Insurance premiums are often higher for new drivers because limited driving history and younger age increase perceived risk.
- New drivers may be able to lower insurance costs by driving safely, choosing modest vehicles, joining family policies, and taking advantage of discounts like good grades or defensive driving courses.
In this article
- What does “new driver” mean in insurance terms?
- Why new drivers pay higher premiums
- Which matters more to insurance companies: Age or driving experience?
- Tips for lowering insurance costs as a new driver
- Choosing car insurance as a new driver
What does “new driver” mean in insurance terms?
Generally, a new driver is someone who has just received their very first driver’s license. That includes:
- Teenagers: If you’re a teenager who recently got a driver’s license, you’re considered a new driver.
Why do new drivers pay higher premiums?
Car insurance is often more expensive for new drivers. That’s because younger or less experienced drivers may have a higher risk of accidents. They also don’t have an established driving history, which makes it harder for insurers to assess their individual risk.
According to MarketWatch, a first-year new driver can expect to spend an average of $487 a month for full coverage car insurance. Here’s a year-by-year average insurance cost breakdown for new drivers:
| Years of driving experience | Average monthly full-coverage rate* |
| 1st Year | $487 |
| 2nd Year | $457 |
| 3rd Year | $429 |
| 4th Year | $389 |
| 5th Year | $365 |
| 6th Year | $312 |
| 7th Year | $292 |
| 9th Year | $235 |
*Reflects data from July 2025
Your insurance premium can vary based on many factors, like your location, accident history, and car model. Get a car insurance quote from The General® today to see how much you’ll pay each month as a new driver.
Which matters more to insurance companies: Age or driving experience?
Age matters more for car insurance companies. Here’s why:
- Risk assessment: Car insurance companies use age as a strong predictor of risk. Accident statistics from the National Safety Council show that younger drivers—especially those under 25—are involved in crashes at higher rates than older drivers.
Tips for lowering insurance costs as a new driver
If you’re a new driver, there are steps you can take that may help lower your car insurance costs:
- Drive safely: Following safe driving practices like avoiding distracted driving, obeying traffic laws, and not driving in severe weather can help you build a clean driving record, which can lower insurance costs over time.
- Stay on a parent’s policy: If you’re a younger driver, joining an existing family policy is often more affordable than purchasing a separate policy.
- Consider a safe, modest vehicle: Luxury cars or sports cars typically have higher premiums. Choosing a vehicle with high safety ratings and lower repair costs may help reduce your insurance costs.
- Get good grades: In some states, teenagers may be able to get discounted insurance rates by maintaining a 3.0 GPA or higher.
- Take a defensive driving course: For cheaper car insurance, you can complete a defensive driving course, but this discount isn’t available in all states.
Choosing car insurance as a new driver
If you’re a new driver, it’s important to choose a car insurance company you can trust. The General offers car insurance for new and seasoned drivers. Customers choose The General because we:
- Offer affordable options
- Make the claims process simple and easy
- Earn positive ratings on Trustpilot, with 4.7 out of 5 stars and over 100,000 reviews
The General® brand products are underwritten by a member of the Sentry Insurance Group. Sentry has an AM Best Financial Strength Rating (FSR) of A+ (superior), current as of June 2025. See ambest.com/ratings/guide.pdf for rating information.
Get a quote today to see how much new drivers can save on car insurance with The General.
