What Factors Influence Car Insurance Cost for a New Driver?

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Car insurance is a necessity for any driver on the road today, but it doesn’t always come cheap.

Several factors will affect how expensive a car insurance premium is, especially so if you have a teenage driver you wish to ensure. 

Even something as simple as how educated you are will affect your insurance cost. For example, there is a difference of about $500 annually between people who have a doctorate and those that dropped out of high school.

The cost of car insurance is difficult to predict, but understanding some important factors that tend to affect the cost will help give you a general idea. We’ll go over some common influencers below so you know what to expect.

Many Factors Will Inevitably Raise Teen Rates

Insuring a young, new driver is going to be expensive no matter what you do. Several factors are already placing them in a category that comes with a higher cost.

If your child is still a teenager, they will be extremely expensive to insure (upwards of $300/month). This lasts until they’re around the age of 25, gradually decreasing with each year of good driving.

Another thing working against them is their lack of a solid driving record. In actuality, they don’t have a driving record at all.

For insurance companies, this makes insuring them very risky because they have no idea how good of a driver they are. All they can do is look at what most drivers at that age tend to do, which means a higher premium for you.


Along with a lack of a driving record, a new driver typically won’t have a credit history to back them up. When it comes to insurance, the only real proof of how dependable a driver is their driving record and credit history.

Without either of these records created yet, insurance premiums are priced with the worst-case scenario in mind. Honestly, many young drivers do tend to be fairly reckless, but they also lack the experience needed to help them make wise driving choices.

Rates for young drivers will always be expensive with many factors out of their control.


Gender is another common influencer that can make insurance rates higher or lower. 

In general, male drivers tend to be more expensive to insure than female drivers. This doesn’t mean that young men are always more dangerous than young women, but as a whole, they tend to be more prone to recklessness.

Testosterone is what comes into play here, as young men tend to be quite impulsive and vulnerable to dangerous masculine behavior. Males are more likely to speed and get tickets for it, which inherently makes them riskier and more expensive to insure.

This difference only really applies between the ages of 16-24, as 25 is usually the age when drivers now have enough experience and time to stop bad driving habits.

Type of Vehicle

One factor you can control is the type of vehicle they drive

It’s never a good idea to give a first-time driver a fast, powerful car. Not only is this downright dangerous, but it will make the cost of insuring them skyrocket. 

Comparatively, providing them with a car that has a great vehicle safety rating will make the price go down. Picture something like a relatively slow truck or SUV.

This is also important to consider because insurance companies will look at whether or not a car is at high risk for being stolen.

Insurance is based off making sure premiums stay profitable for the company. Unsafe and theft-likely vehicles will always be more expensive because they open the door for claims.


A final factor to consider is where you are located.

Again, this relates to how much of a risk you pose to needing to file a claim. If you are located in neighborhoods with a high rate of car accidents, theft, or vandalism, then insurance will be more expensive.

Conversely, safe zip codes that are far away from major cities tend to be much safer and will result in cheaper insurance rates. Major cities have high crime rates and therefore make car insurance more expensive.

This also varies depending on what state you live in. Unfortunate as it is, some states are significantly more expensive than others due to differing laws and regulations.

As a silver lining, you may be located in a driver-friendly state, which means you’ll enjoy cheaper rates. 

Closing Thoughts

No matter what you do, insuring a new driver (especially a teenager) is going to be quite costly. 

Several factors are already working against them and they don’t have much to prove that they won’t be an insurance liability. Age and driving records are two of the biggest determiners and they’re starting at the bottom.

Gender is another factor, with males being more expensive than females. 

Vehicle type also matters, concerning safety levels and risk of theft.

Location is also important, as state laws differ and some neighborhoods pose a greater risk.

Car insurance is ultimately determined by how risky a driver is for an insurance company. Young drivers will always be a high risk, but you should do your best to mitigate this by ensuring they always exhibit good driving behavior.

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