How your driving experience affects your car insurance

Insurance companies view any new driver as an increased risk because of less experience behind the wheel. To compensate for that, you can expect higher rates based on how long you’ve been driving. However, you can still save on your premium.

How long you’ve had your license affects your car insurance rates

Similar to your personal age, how long you’ve held a license shows your experience level to insurance companies. That means those that wait longer to get a license may pay higher rates than other drivers their age.

Also, drivers who wait past a specific age in their state may not have to take driver safety training, which could factor into higher insurance rates.

However, your license age will only be a big factor for the first few years of driving. By the time you hit your late 20s, you shouldn’t see much of a difference whether you got your license at 16 or 17.

How much license age affects your car insurance rates

Insurers may increase your premium until you’ve held your license for several years, but how long depends on the insurance company and possibly the state you live in.

The average car insurance rate across all drivers is about $1,300 per year. However, teenage drivers with little to no experience could pay over $6,000 for insurance. Those who hit age 21 with several years of driving experience could pay between $2,700 to $2,900, a huge decrease due to perceived experience level.

Another factor that may play into that rate is the requirements your state has to get a license, such as minimum licensing age. According to the Insurance Institute for Highway Safety (IIHS), studies show that strict requirements and higher licensing age do lead to fewer collision claims. That means states with high standards may also offer lower rates for inexperienced drivers.

Why insurers look at license age to decide your car insurance rates

The age of your license may help companies determine risk based on your driving experience. Age and driving experience have a huge influence because young, less experienced drivers have statistically been shown to get into more accidents.

Are there any exclusions?

No. Insurance companies can rightfully use your license age to determine driving risk. However, pay-as-you-go insurance can help companies track your driving habits and rate you more individually. This could work in your favor if you’re a safe driver but can’t get good rates due to your age.

How to get cheap insurance regardless of when you got your license

Even though your driving abilities are just now budding, you don’t have to settle for high insurance rates. You can look into several simple ways to save.

• Share a policy. Consider joining policies with a more experienced driver, such as your parent or roommate.
• Take driver training. Even if it’s not required, you could complete safety training for an insurance discount.
• Use telematics. A policy that uses telematics uses an app or black box device to track your personal driving habits, helping your provider base your rate on your driving rather than experience.
• Stay claims-free. Nothing says safe driver quite like a sparkling driving record.

Our top pick: Progressive

Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.

• Broad coverage, including for custom car parts or ridesharing
• Transparent pricing tools that help you buy within budget
• Accident forgiveness on small claims or for staying claim-free
• Stack a variety of discounts for multiple cars, autopay or homeownership

Get a quote
Read review

Compare car insurance for drivers under 21

Sort by:

Name	Product	Roadside assistance	New car protection	Accident forgiveness	Safe driver discount	Available states
Progressive		Optional			30%	All 50 states	Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.	Get quotes More Info	Compare	loading Fetching your data...
The AARP Auto Insurance Program from The Hartford		Optional			Yes	All 50 states	Enjoy low rates for mature drivers, plus perks like new car replacement and lifetime repair guarantees. Only for drivers over age 50.	Get quotes More Info	Compare	loading Fetching your data...
USAA		Optional			Yes	All 50 states	Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.	Get quotes More Info	Compare	loading Fetching your data...
Savvy		Optional	Optional		Yes	All states & DC	Enter your current policy and get quotes in 30-seconds from 100+ companies, then get help to switch insurers for free. Requires online login to your existing insurance.	Get quotes	Compare	loading Fetching your data...
Root					52%	Available in 30 states	Track your driving to receive a low rate that reflects your driving skills, and enjoy a fully app-based policy experience.	Get quotes More Info	Compare	loading Fetching your data...
Gabi		Optional	Optional		Yes	All 50 states	Upload your current policy info and get quotes from 40+ companies. Switch and save an average of $961 a year.	Get quotes More Info	Compare	loading Fetching your data...
Allstate		Optional			13%	All 50 states	Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.	Get quotes More Info	Compare	loading Fetching your data...
Motion Auto		Optional			No	AZ	Reap a myriad of rewards based on how safe you drive and car safety features, plus free accident forgiveness and diminishing deductible.	Get quotes More Info	Compare	loading Fetching your data...
Branch		Optional			No	AZ, CO, IL, IN, MO, OH and TX	Benefit from this online-based startup’s steep savings and convenient online quotes and claims.	Get quotes More Info	Compare	loading Fetching your data...
Liberty Mutual		Optional			30%	All 50 states	Earn free accident forgiveness after five years claims-free and customize your policy anytime online at the tap of a button.	Get quotes More Info	Compare	loading Fetching your data...
AAA					Yes	AK, AZ, CA, MT, NV, UT and WY	Member benefits extend beyond car insurance to offer discounts, bike coverage and more. For drivers in AK, AZ, CA, MT, NV, UT and WY.	Get quotes More Info	Compare	loading Fetching your data...
Metromile		Optional			49%	AZ, CA, IL, NJ, OR, PA, VA, WA	Pay only for the miles you drive, plus enjoy app services you won’t find everywhere like claims and car health updates.	Get quotes More Info	Compare	loading Fetching your data...

loading

Load More

Compare up to 4 providers

Clear selection

Compare

Bottom line

Similar to your personal age, license age tells an insurance company how much driving experience you have. That’s why you may see an above-average premium for your age if you got your license later than other drivers.

However, the exact premium can differ a lot as you shop multiple providers.

Frequently asked questions about car insurance and license age

• Do you need car insurance if you have a learners permit?

  Yes, a learning driver needs coverage. But because learning drivers must have a licensed driver with them, you can typically add them to that person’s policy instead. You can check with your insurance company to understand the best way to handle this situation.

• Do I need car insurance if I don’t have a license yet?

  While there might be situations where you would need insurance without a license, you’re not legally required to get it if you don’t drive or own a car.

• How long do I have to get car insurance after receiving my license?

  You should make sure you have your own policy or get added to another person’s policy before driving at all. That’s because driving without a license is illegal and could leave you paying for damage out of pocket if an accident happens.