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Newly Licensed Car Insurance Discount

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Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: Mar 26, 2021

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Key Takeaways

  • Newly licensed car insurance discounts benefit new drivers added onto an existing policy
  • Not many car insurance companies apart from Liberty Mutual offer a newly licensed car insurance discount
  • There are many other options newly licensed drivers can qualify for instead of a newly licensed car insurance discount

Finding cheap car insurance that meets your needs is complicated. Fortunately, almost every car insurance company provides various discounts that reduce your monthly car insurance rates.

Newly licensed car insurance discounts are rarer than other discounts and are offered to drivers freshly added to an existing policy. Keep reading to find out what you need to know about these car insurance discounts.

Before you learn more about newly licensed car insurance discounts, enter your ZIP code into our free online tool for instant, affordable car insurance quotes in your area.

What is a newly licensed car insurance discount?

Newly licensed car insurance discounts are given to new drivers that are added to an existing plan. These discounts are great for families that need to insure a teen driver or a newly licensed driver of any age.

Unlike other discounts for new drivers, a newly licensed car insurance discount is not standard for most providers. As far as we know, only Liberty Mutual offers a discount on premiums for newly licensed drivers.

Although newly licensed car insurance discounts are rare, there are plenty of other options available to reduce your monthly premiums for brand new drivers added to your plan.

The Insurance Information Institute explains that insuring a teen or new driver onto your policy is generally less expensive than it is for them to buy a brand new policy on their own. Paired with additional discounts, adding a new driver to your policy may not be as expensive as you think.

If you think you qualify for a newly licensed car insurance discount, we highly recommend discussing your options with an agent. With so many discounts available, you may not know you are eligible for one until you look at or discuss your options with an insurance agent.

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What other car insurance discount options are available to newly licensed drivers?

Because not all insurance companies offer a newly licensed car insurance discount, we want to list a few more common options available to new drivers.

Most insurance companies offer the following discounts for new drivers:

  • Driver’s Ed
  • Good Student
  • Young Driver
  • Multi-Car
  • Multiple Driver
  • Good Driver
  • Profession/Occupation

Almost all car insurance companies provide a good student discount to help student drivers and their families pay for their car insurance. For example, State Farm good student discounts save students up to 25 percent on their premiums until they graduate college or turn 25-years-old.

Buying car insurance for teens is expensive, so these additional discounts may help reduce your rates if your provider does not offer a newly licensed car insurance discount.

So, if you decide that basic or liability insurance by itself is not enough to cover you adequately, discounts serve to reduce the increased cost of adding more coverage to your policy.

Ready to see if you can get a newly licensed car insurance discount? Enter your ZIP code into our free online tool for instant, affordable car insurance rates in your area.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

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