Entry in How Much Car Insurance Costs for New Drivers
New Driver Insurance Cost by Age
How much new drivers pay at 16, 17, 18, 21, 25 and beyond, and how the age and inexperience components separate.
By Priya Raman · Editor
Published · Updated
Answer in brief
A new driver's premium has two parts: an age component that is largest at 16 and fades by 25, and an inexperience component that lasts about three years from licensing at any age. At 16 both are at their maximum; at 30 only inexperience applies. That is why a 16-year-old's premium can be three times a newly licensed 30-year-old's for the same car and coverage.
| Age at licensing | Typical range | Dominant factor |
|---|---|---|
| 16 | $4,500–$7,000 | Age + inexperience |
| 17 | $4,000–$6,200 | Age + inexperience |
| 18 | $3,500–$5,500 | Age + inexperience |
| 21 | $2,400–$3,800 | Age + inexperience |
| 25 | $1,900–$2,900 | Inexperience |
| 30+ | $1,600–$2,400 | Inexperience |
On a parent's policy the teen rows fall by roughly half. For the mechanics, see how much it costs and own policy vs parents'.
Terms: Age band, Inexperienced operator
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- Teenagers — Insurance Institute for Highway SafetyIndependent researchTeen crash risk, graduated driver licensing research and vehicle recommendations for young drivers.
- Graduated licensing laws by state — Insurance Institute for Highway SafetyIndependent researchState-by-state learner, intermediate and full-licence ages, night-driving and passenger restrictions.
- Facts + Statistics: Teen drivers — Insurance Information InstituteStatistical dataCrash and fatality statistics for drivers 16–19 and graduated licensing context.
- Fatality facts: Teenagers — Insurance Institute for Highway Safety (2024)Statistical dataFatal crash rate per mile driven for 16–19-year-olds is just over 3 times the rate for drivers 20 and older (2022 travel data); all-severity crash rate is over 4 times; risk is highest at 16–17.
- Drivers in fatal motor vehicle crashes by age, 2023 — Insurance Information Institute (2025)Statistical dataFatal-crash involvement per 100,000 licensed drivers: 42.40 (16–20), 35.34 (21–24), 28.97 (25–34), 24.18 (35–44), 21.70 (45–54), 19.45 (55–64), 15.44 (65–74), 16.63 (75+).
- 2019–2023 Auto Insurance Database: average premium supplement — National Association of Insurance Commissioners (2025)Statistical dataCountrywide average expenditure $1,281 in 2023 (+13.98%); combined average premium $1,438; state tables for liability, collision and comprehensive.
- What determines the price of an auto insurance policy? — Insurance Information InstituteConsumer guidanceRating factors: driving record, mileage, location, age, gender, vehicle, credit-based insurance score, coverage choices. Notes ZIP-code rating is prohibited in California and Michigan and gender rating is prohibited in seven states.
- Auto insurance for teen drivers — Insurance Information InstituteConsumer guidanceAdding a teen to a parent's policy versus a separate policy; good-student and driver-training discounts; vehicle choice.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.