Getting Car Insurance as a New Driver

What newly licensed drivers pay and why it costs more

Insurance companies charge new drivers significantly more than experienced ones because you have no driving record. The insurer cannot see whether you cause accidents, get tickets, or file claims — so they assume you are riskier. A 16-year-old with a learner's permit or a 25-year-old who just passed their test both fall into this category, even though the 25-year-old may pay less because age itself is a separate rating factor.

How much more you pay depends on your age, the car you drive, the coverage limits you choose, and where you live. A new 18-year-old driver in South Carolina might pay $150 to $250 per month for basic liability coverage on an older sedan, while a 25-year-old new driver might pay $80 to $140 for the same car and coverage. These are not fixed numbers — each company rates differently, and your actual quote will depend on the specific vehicle, your zip code, and the insurer's own data.

Key Takeaways

• New drivers pay more because insurers have no record of your driving history, so they treat all new drivers as higher risk regardless of age.
• You must carry at least the state minimum liability coverage in South Carolina: 25/50/25 (meaning $25,000 per person, $50,000 per accident, $25,000 property damage).
• Staying on a parent's policy as a named driver is usually cheaper than buying your own policy, but only if the parent's insurer allows it.
• Choosing a higher deductible ($1,000 instead of $500) lowers your monthly premium, but you pay more out of pocket if you cause an accident.
• Discounts for good grades, driver's education courses, and bundling with home or renters insurance can reduce your rate by 10 to 30 percent.

Whether to get your own policy or stay on a parent's

If your parent has an active auto insurance policy, the cheapest route is usually to ask the insurer to add you as a named driver on their existing policy. This costs less than a separate policy because you share the parent's discount history and the insurer does not have to underwrite you from scratch. The parent's rate will go up — sometimes $50 to $150 per month depending on the insurer and your age — but it is still cheaper than you buying your own policy.

You need your own policy only if your parent does not have one, if their insurer will not add you, or if you own the car yourself. Some insurers have age limits for adding drivers (usually 16 or older) or will not add someone who lives in a separate household. Call your parent's insurer and ask directly: "Can you add my child as a named driver, and what will the rate increase be?" That answer tells you whether staying on their policy makes financial sense.

If you do get your own policy, you will need to provide your driver's license number, the vehicle identification number (VIN) of the car you will drive, and information about where you park it overnight. Have these details ready before you call or go online to get a quote.

Choosing coverage that meets the law and protects you

South Carolina requires every driver to carry liability insurance with minimum limits of 25/50/25. This means $25,000 in bodily injury coverage per person, $50,000 per accident, and $25,000 in property damage coverage. If you cause an accident and your liability coverage is not enough to pay the other person's medical bills or repair costs, you are personally responsible for the rest — which can mean wage garnishment or a judgment against you for years.

Many new drivers buy only the state minimum because it is the cheapest option. That is legal, but it leaves you exposed. If you hit someone and cause $40,000 in medical bills, your $25,000 per-person limit covers only part of it. A better approach is to buy 50/100/50 coverage (or higher) if you can afford it. The monthly difference is often $10 to $20, but it protects you much more.

You should also consider collision and comprehensive coverage if you are financing or leasing the car. Collision pays for damage you cause in an accident; comprehensive covers theft, weather, and hitting an animal. If you own the car outright and it is worth less than $3,000, these coverages may not be worth the cost. If it is worth more, they usually are.

How deductibles affect your monthly payment and out-of-pocket costs

A deductible is the amount you pay out of pocket before insurance kicks in. If you choose a $500 deductible and cause a $3,000 accident, you pay $500 and insurance pays $2,500. If you choose a $1,000 deductible, you pay $1,000 and insurance pays $2,000.

Higher deductibles lower your monthly premium — sometimes by 20 to 40 percent. A new driver might pay $120 per month with a $500 deductible and $75 per month with a $1,000 deductible on the same car and coverage. Over a year, that is $540 in savings. But if you cause an accident in month three, you suddenly owe $1,000 instead of $500. Choose a deductible you could actually pay if you had to, not just the one with the lowest monthly cost.

Discounts that reduce what you pay

Most insurers offer discounts for new drivers that can lower your rate by 10 to 30 percent. The most common are a good-student discount (usually a 3.0 GPA or higher), a defensive-driving course discount, and a bundling discount if your parent adds you to their home or renters policy. Some insurers also discount if you let them monitor your driving through a mobile app or plug-in device — these programs track your speed, braking, and time of day you drive, and can lower your rate if you drive safely.

Ask your insurer which discounts you may have access to for before you buy. If you are in school, ask about the good-student discount even if your GPA is borderline — some insurers have different thresholds. If you have not taken a defensive-driving course, many insurers will discount the cost of one, so the course pays for itself in lower premiums.

What happens to your rate as you gain driving experience

Your rate will drop as you build a clean driving record. Most insurers lower rates after three to five years without accidents or tickets. Some offer a discount after one year of safe driving. At age 25, your rate drops again because insurers consider drivers 25 and older to be lower risk than younger drivers, even if they are new to driving.

One accident or ticket can raise your rate for three to five years, so the cost of driving unsafely is not just the accident itself — it is the higher premiums you pay for years afterward. This is why many new drivers choose higher deductibles and lower coverage limits: they are betting they will not cause an accident. If you do, that bet costs you.

Comparing quotes from different insurers

Insurance rates vary widely between companies for the same driver and car. One insurer might quote you $100 per month and another $160 for identical coverage. The only way to know is to get quotes from at least three insurers. You can do this online, by phone, or through an independent agent who represents multiple companies.

When you get quotes, use the same coverage limits and deductibles for each one so you are comparing apples to apples. Write down the monthly premium, the annual cost, and any discounts the insurer mentioned. After you have three quotes, you can decide whether the cheapest option is worth it or whether you prefer a more expensive insurer because of their reputation or customer service.

Rates change, so get new quotes every six months or when something changes (a move, a new car, a birthday). Staying with the same insurer for years can mean you are paying more than new customers pay for the same coverage.

Frequently Asked Questions

Can I drive my parent's car if I am not on their insurance?

No. In South Carolina, the car owner's insurance is responsible for covering you when you drive it, but only if the insurer knows you live in the household or regularly drive the car. If you cause an accident and the insurer finds out you were not disclosed, they may deny the claim. Always tell your parent's insurer that you will be driving the car, even occasionally.

What if I cause an accident in my first month of driving?

Your insurer will pay the claim (up to your coverage limits) and your rate will go up when you renew your policy. The increase depends on the insurer and the severity of the accident, but expect 20 to 50 percent higher premiums for three to five years. This is why having enough liability coverage matters — if you cause a serious accident with only the state minimum, you could owe thousands out of pocket.

Do I need to tell my insurer if I move to a different city?

Yes. Your zip code affects your rate because some areas have more accidents and theft than others. If you move, call your insurer and update your address. Your rate may go up or down depending on where you move to. Not telling them could give them a reason to deny a claim.

What is the difference between liability and collision coverage?

Liability covers damage you cause to someone else's car or property. Collision covers damage to your own car when you cause an accident. You must have liability by law; collision is optional but recommended if your car is worth more than a few thousand dollars.

Will my rate go down if I do not cause an accident?

Yes, but slowly. Most insurers lower rates after three to five years of clean driving. Some offer a small discount after one year. The bigger rate drop comes at age 25, when insurers consider you lower risk regardless of how long you have been driving.