Here's what you need to know, whether you just got your license or are returning to the road after a long absence.

Who needs new-driver car insurance?

Although there is no such thing as "new-driver car insurance," insurers generally classify new drivers as follows:

• Teenagers who just got a driver’s license.
• Adults who are driving for the first time.
• Foreign nationals and immigrants
• Drivers of any age with a gap in driving or insurance coverage.

New driver insurance rates are typically higher than those for more experienced drivers.

Teenagers

Teenage drivers face higher auto insurance rates because they are more likely than any other age group to be involved in an accident. The best way to get cheap car insurance for a teen driver is to add them to the policy of their parent or guardian (as long as they share the same permanent address).

Keep in mind that "cheap" is relative; adding a teen to a married couple's policy may raise the couple's rate as well. A teen driving alone, on the other hand, is likely to be much more expensive because they will miss out on potential savings, such as a discount for having multiple drivers insured under one policy. To be sure, compare multiple new-driver insurance quotes online.

Some good news: Insurance companies provide numerous discounts to students and young drivers, and rates will improve with safe driving over time. Insurance rates typically decrease around the age of 25, provided the driver has a few years of experience.

Foreign nationals and immigrants

Even if you have a long history of safe driving in another country, insurance companies will treat you as a new driver if you have no driving history in the United States. When setting rates, they only look at domestic driving records, so your driving history in the United States is all that matters. This also applies to your credit history, which is used in many states to calculate auto insurance rates. (Insurers cannot use credit to determine car insurance rates in California, Hawaii, Massachusetts, or Michigan.)

Even if you have an international driver's permit, you may have difficulty obtaining an insurance policy if you do not have a valid U.S. driver's license. When renting a car, the most convenient option may be to use the rental car company's coverage.

If you intend to stay and drive in the United States, you must first obtain a driver's license in the state where you intend to live. California, for example, will issue a driver's license regardless of immigration status. Get at least three car insurance quotes once you have your license so you can choose the best rate and coverage.

People with a driving or coverage gap

Your license may have expired because you spent time abroad, or your lifestyle does not necessitate driving. Insurers may consider you a new driver if you do not have a driving history to check. And if you do not have continuous auto coverage, they may consider you a high-risk driver, which may result in higher rates.

Even if you have some driving experience, if you've had any gaps in coverage, you'll likely pay more for insurance, so shop around for the best rates. Check with your insurer to see if your company makes an exception for military deployment.

Because continuous coverage is one of the most important factors insurers consider, if you've had gaps between policies, some may refuse your application. If this is the case, you can look for high-risk insurance companies that specialize in coverage for people who are having difficulty getting insured.

Pricing factors in a car insurance quote

New drivers have some of the highest car insurance rates, but age isn't the only factor insurance companies take into account when setting rates. The following factors influence car insurance quotes:

• Personal characteristics. This includes your age, gender and marital status.
• The coverage you select. The more coverage you have, the more expensive your insurance will be.
• Your vehicle. Your rate is affected by the make and model of your car, its safety features, and the likelihood that it will be stolen.
• Your location. Every state has its own minimum car insurance requirements; factors such as the crime rate and population density in your neighborhood will also affect your insurance price.
• Your credit score. In states where credit-based pricing is permitted, drivers with poor credit typically face higher car insurance rates. California, Hawaii, Massachusetts, and Michigan prohibit insurers from using credit to determine car insurance rates.

How to save as a new driver

While new drivers typically pay more for coverage than those with more driving experience, there are still ways to save money on a policy.

Shop around. Rates can vary greatly depending on the insurer you use. Compare quotes from at least three insurance companies to ensure you get the best deal. And shop around every year — just because you had the best deal a year ago doesn't mean you still have it.

Maintain your family's auto insurance policy. If you share the same permanent address as your parents or guardians, compare rates for a standalone policy to the cost of remaining on your family's insurance. It may be less expensive to remain on your family's policy.

Look for discounts. Many car insurance companies provide new drivers with discounts, such as:

• Excellent student discount.
• Young drivers who complete a defensive driving course receive a discount.
• Student away-from-home discount (if you are covered by your parents' insurance).
• Multipolicy discount if you have renters or homeowners insurance.
• Military or occupation discount.
• Safety equipment discount.