Best Car Insurance for New Drivers (2026)
Country Financial, USAA, and Auto-Owners offer the most affordable rates for new drivers.
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Written byDoug Bailey
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Doug BaileySenior Content Writer
15 years at the Boston Globe
5+ years covering insurance industry
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Edited byKatie Powers
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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Reviewed byMark Friedlander
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Mark FriedlanderSenior Director, Media Relations, Insurance Information Institute
Media relations director for Insurance Information Institute
20+ years in insurance and communications
Impartial, independent expert
Updated
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Car insurance for new adult or teen drivers is consistently more expensive than coverage for experienced motorists. Insurers consider newly licensed drivers a higher risk because they have little or no driving history. This makes it more likely they’ll get into an accident as they gain driving experience.[1]
But while starting rates are expensive, new drivers still have several ways to lower their car insurance premiums. Discounts for safe driving courses, getting good grades, using telematics programs to monitor driving behavior, and staying on a family car insurance policy can all significantly reduce costs.
This guide will show you how much car insurance costs for new drivers, which insurers offer the best rates, and how first-time drivers can reduce their rates over time.
Quick Facts
Teen drivers often pay two to three times as much for car insurance as experienced drivers.
Staying on a parent’s or family member’s policy is often cheaper than buying your own policy as a new driver.
Many insurers offer discounts of 5% to 15% for completing an approved defensive driving course.
How much does car insurance cost for new drivers?
New-driver car insurance rates are typically higher, averaging $182 per month for liability coverage and $347 per month for full coverage. These higher rates are due to the fact that insurers rely, in part, on driving history when pricing policies. People without an established driving record present an unknown and greater risk for insurers.
Teen drivers generally pay the highest premiums, but adults who obtain a license later in life can also initially face elevated rates.
Below are typical estimates of new-driver insurance costs. These averages reflect drivers with clean records purchasing liability-only coverage and full coverage.
Age Range | Average Monthly Liability-Only Quote for New Drivers | Average Monthly Full-Coverage Quote for New Drivers |
|---|---|---|
| 16–17 | $184 | $374 |
| 18–19 | $187 | $351 |
| 20–24 | $137 | $279 |
| 25–29 | $127 | $258 |
| 30+ | $116 | 203 |
Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
Why do new drivers pay more for car insurance?
Insurance companies price policies based on risk. Newly licensed drivers have limited driving history, so insurers can’t easily evaluate their driving habits or accident likelihood. They’re also statistically more likely to be involved in an accident as they gain driving experience.
This applies to all first-time drivers, not just teenage drivers. Even adults in their 30s or 40s who receive their first license typically pay higher car insurance rates until they build a safe driving history.[2]
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Cheapest car insurance for new drivers
COUNTRY Financial, USAA, Auto-Owners, State Farm, and NJM are all known for offering cheap car insurance to new drivers, especially those with clean records.
The table below shows typical monthly estimates for liability-only and full-coverage policies. These rates assume the policyholder is a newly licensed driver with no accidents or violations. Actual quotes may be lower if you qualify for car insurance discounts.
You can compare these estimates with the average cost of car insurance to see how different insurers price policies for new drivers.
The below national rates are estimated rates current as of: Monday, August 10 at 5:00 PM PDT.
Insurance Company | Average Monthly Liability-Only Quote for New Drivers | Average Monthly Full-Coverage Quote for New Drivers |
|---|---|---|
| USAA | $94 | $185 |
| Auto-Owners | $101 | $191 |
| State Farm | $106 | $212 |
| Erie | $122 | $219 |
| Root | $131 | $213 |
| GEICO | $141 | $258 |
| The General | $153 | $380 |
| American Family | $157 | $309 |
| Commonwealth Casualty | $159 | $348 |
| Dairyland | $162 | $401 |
| Mile Auto | $169 | $312 |
| Bristol West | $181 | $353 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Best car insurance companies for new drivers
Insurers differentiate themselves in the marketplace through a variety of offerings, including strong discounts, flexible payment options, and tools designed for young drivers and other newly licensed motorists.
Below are three companies often considered among the best car insurance companies for first-time drivers.
GEICO: Best for affordable coverage
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.2 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $79/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $144/mo |
4.0
Best choiceBased on 20,334 verified driver reviews and ratings
GEICO's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.8 | 2.9 |
How drivers feel about GEICO
Customers appreciate the reliability and customer service but find the rates to be high and increase frequently, even without claims or accidents. The app has improved, but some find the claims process lacking.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 8,098 GEICO reviews
Verified Purchase
Reviewed in New York on August 25, 2026
Very easy to work with online.
Verified Purchase
Reviewed in Arizona on August 25, 2026
It was too hard to get into the Good Driver app.
Verified Review
Reviewed in California on August 24, 2026
They will increase your rates significantly (e.g., 50%) if you get a moving violation (a minor speeding ticket, like 5 mph over the limit), even after being incident-free for nearly 10 years. It seems egregious.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
637
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.59
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
GEICO is widely known for offering cheaper car insurance for new drivers, especially those with clean driving records. The company offers multiple discounts, including good student and driver training discounts. GEICO also offers an easy online quoting process, making it simple for newly licensed drivers to purchase their first policy.
Pros
Competitive rates for first-time drivers
Numerous discounts for student drivers
Easy online policy management
Cons
Limited network of local agents
Discounts vary by state
Telematics savings may vary
State Farm: Best for student drivers
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $52/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $104/mo |
4.1
Best choiceBased on 20,681 verified driver reviews and ratings
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.3 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.7 | 2.9 |
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 8,025 State Farm reviews
Verified Review
Reviewed in Alabama on August 25, 2026
I haven’t filed a claim in 26 years, but they took care of me when I did years ago.
Verified Review
Reviewed in Georgia on August 25, 2026
Bad customer service. They never answer their phone and don’t return calls. When they do call back, it’s 2–3 days after you leave a message. They won’t check whether you’re eligible for any discounts or help lower the cost of your insurance, and they don’t communicate with you.
Verified Review
Reviewed in Delaware on August 25, 2026
State Farm is my current insurance company. They are wonderful!
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
State Farm is one of the largest auto insurers in the United States and offers several programs tailored to young drivers. Its good student discount rewards students who maintain strong grades, and the company’s Steer Clear program encourages safe driving habits for newly licensed drivers.
Pros
Strong student discounts
Extensive agent network
Safe-driver education programs
Cons
Doesn‘t offer accident forgiveness coverage
Gap coverage only available to State Farm Bank customers with an auto loan
Doesn't offer new coverage in Massachusetts or Rhode Island
Progressive: Best for usage-based savings
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 622 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.7 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $78/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $132/mo |
How drivers feel about Progressive
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 8,984 Progressive reviews
Verified Review
Reviewed in New Jersey on August 25, 2026
Not good—it's too expensive. I need lower insurance rates, and I'm a veteran.
Verified Review
Reviewed in Indiana on August 25, 2026
Snapshot isn’t worth it—don’t bother. The company benefits much more from your data than you ever will.
Verified Review
Reviewed in South Dakota on August 25, 2026
I had Progressive until the end of the month. I did an online quote, and when I called about it, they told me they couldn’t give me that price. So I canceled.
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.97
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company
Progressive’s Snapshot telematics program allows drivers to lower their car insurance premiums by demonstrating safe driving behavior. New drivers with careful habits may see substantial savings after a few months of monitored driving.
Pros
Snapshot telematics savings
Flexible policy customization
Strong online quoting tools
Cons
Snapshot may increase rates for risky driving
Discounts vary by region
Mixed customer service ratings
How to save on car insurance as a new driver
New drivers often pay higher rates at first, but several strategies can significantly reduce insurance costs over time. Here are a few you can employ quickly.
Stay on a parent’s insurance or a family member’s policy
Adding a newly licensed driver to an existing family car insurance policy is usually much cheaper than buying a separate policy for your teenager. Families benefit from shared coverage limits and multi-vehicle discounts.
But buying your own policy may make more sense if you live independently or own your vehicle outright.
Enroll in a telematics or usage-based program
Telematics programs monitor driving habits such as speed, braking, and mileage. Programs like Progressive Snapshot, State Farm Drive Safe & Save, and Nationwide SmartRide reward safe driving with lower rates.
But some usage-based programs may raise premiums if the data shows risky driving. You could also consider pay-as-you-go car insurance, which could save you money if your teen seldom drives.
Take a defensive driving or driver’s education course
Many insurers offer discounts when drivers complete approved defensive driving courses. Companies such as GEICO, State Farm, and Travelers commonly provide these discounts.
In states where driver’s education is required for licensing, new drivers may automatically qualify.
Choose an affordable, safe vehicle
Insurance companies consider your vehicle type when calculating premiums. Cars with strong safety ratings, moderate horsepower, and low theft rates are usually among the cheapest cars to insure.
Assigning a new driver to the least expensive vehicle on a multi-car policy can also reduce premiums.
Increase your deductible
Choosing a higher deductible can reduce your monthly premiums because you agree to pay more out of pocket if you file a claim. This means you’re taking on more of the up-front risk.
But make sure you can comfortably afford to pay the deductible before opting for the increase.
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Car insurance discounts available to new drivers
Many insurers offer discounts designed specifically for new drivers and young drivers. Combining multiple discounts can significantly reduce car insurance premiums.
Common options include good student discounts, driver training discounts, telematics savings, and multi-vehicle or bundling discounts. Stacking several discounts can significantly lower new-driver insurance costs, especially for students with good grades and safe driving habits.
Discount Name | Typical Savings | Eligibility | Example Insurers |
|---|---|---|---|
| Good student discount | 10%–25% | Full-time students with a B average (3.0 GPA) or higher, or in the top 20% of their class | State Farm, GEICO, Allstate |
| Driver’s education discount | 5%–15% | Completion of an approved driver’s education course | Travelers, GEICO, Progressive |
| Defensive driving course discount | 5%–10% | Completion of an approved defensive driving program | Allstate, Farmers, Nationwide |
| Telematics / usage-based discount | Up to 30% | Enroll in a program tracking driving behavior through an app or plug-in device | Progressive, State Farm, Nationwide |
| Safe driver discount | 10%–20% | No accidents or violations over a set period (often 3–5 years) | GEICO, State Farm, Travelers |
| Multi-policy bundling discount | 5%–20% | Bundle auto with homeowners, renters, or condo insurance | Nationwide, Liberty Mutual |
| Away-at-school discount | 5%–10% | Student attends school more than 100 miles away without vehicle | State Farm, Travelers |
| Low-mileage discount | 5%–15% | Driver logs fewer annual miles than average | Nationwide, Liberty Mutual |
| Vehicle safety feature discount | 3%–10% | Vehicle equipped with airbags, anti-lock brakes, or other safety features | GEICO, Progressive |
| Anti-theft device discount | 5%–15% | Car equipped with alarm system, immobilizer, or tracking system | Allstate, Travelers |
What types of coverage do new drivers need?
Most states require drivers to carry liability coverage, which pays for injuries and property damage you cause to others in an accident. Liability insurance meets legal requirements but doesn’t cover damage to your own vehicle.
Many drivers instead choose full-coverage car insurance, which typically includes higher liability limits, collision, and comprehensive coverage. Lenders often require full coverage if you finance or lease your vehicle.
Drivers with older vehicles sometimes choose liability-only car insurance to reduce costs. But doing so means paying out of pocket if your vehicle is damaged.
Drivers with auto loans should also consider gap insurance. Gap coverage helps pay the difference between the loan balance and the vehicle’s value if your car is totaled.[3]
Ultimately, the best coverage for you depends on your vehicle value, financial situation, and risk tolerance.
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New driver car insurance rates by state
Insurance rates vary widely by location. State laws, accident frequency, weather risks, and repair costs all influence premiums.
The table below shows typical estimates for new drivers with clean records broken down by state.
The below national rates are estimated rates current as of: Monday, August 10 at 5:00 PM PDT.
State | Average Liability-Only Quote for New Drivers | Average Full-Coverage Quote for New Drivers |
|---|---|---|
| Hawaii | $75 | $152 |
| New Hampshire | $94 | $149 |
| Montana | $97 | $215 |
| Wyoming | $102 | $192 |
| Wisconsin | $103 | $228 |
| Iowa | $106 | $211 |
| South Dakota | $116 | $286 |
| North Dakota | $117 | $204 |
| Tennessee | $119 | $261 |
| North Carolina | $125 | $206 |
| New Mexico | $129 | $269 |
| Alabama | $130 | $279 |
| Indiana | $132 | $262 |
| Nebraska | $133 | $263 |
| Arkansas | $134 | $276 |
| Vermont | $135 | $338 |
| Ohio | $137 | $250 |
| Idaho | $138 | $233 |
| Kansas | $145 | $287 |
| Alaska | $150 | $249 |
| Oklahoma | $155 | $316 |
| Pennsylvania | $156 | $279 |
| Missouri | $157 | $308 |
| West Virginia | $160 | $301 |
| Mississippi | $161 | $334 |
| Illinois | $165 | $323 |
| Oregon | $172 | $295 |
| California | $173 | $358 |
| Colorado | $176 | $398 |
| Maine | $177 | $329 |
| Massachusetts | $178 | $239 |
| Utah | $179 | $283 |
| Minnesota | $183 | $360 |
| Arizona | $189 | $342 |
| Louisiana | $193 | $381 |
| Washington | $199 | $383 |
| Kentucky | $202 | $325 |
| Michigan | $205 | $362 |
| New York | $214 | $327 |
| Texas | $215 | $401 |
| Virginia | $220 | $387 |
| Florida | $234 | $394 |
| Washington D.C. | $250 | $433 |
| Connecticut | $268 | $369 |
| Georgia | $272 | $452 |
| Nevada | $273 | $431 |
| Delaware | $281 | $443 |
| South Carolina | $286 | $458 |
| Maryland | $287 | $452 |
| New Jersey | $303 | $426 |
| Rhode Island | $347 | $588 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
New driver car insurance FAQs
If you’re a new driver and have questions about coverage options and costs, here are some quick answers to get you started.
How long are you considered a new driver?
Most insurers consider you a new driver for three to five years after you receive your license, but this can also depend on your driving record and claims history. Young drivers typically don‘t see lower rates until around age 25, even if they have years of experience.
Is it cheaper to stay on a parent’s car insurance as a new driver?
Yes. Adding a new driver to a family insurance policy is usually cheaper because the risk is spread across multiple drivers and vehicles.
How much is car insurance for a new driver per month?
The cost of a new driver’s insurance policy often ranges from $150 to $500 per month, depending on their age, vehicle, coverage level, and location.
What is the cheapest car to insure as a new driver?
Vehicles with strong safety ratings and moderate value — such as compact sedans — typically carry the cheapest car insurance for new drivers.
Do new drivers have to get their own policy?
No. Many first-time drivers remain on a family policy, though drivers who own their vehicle or live independently may need their own policy.
How much does a defensive driving course lower insurance for new drivers?
Many insurers offer discounts of 5% to 15% for completing an approved defensive driving course or a driver‘s education program.
At what age does car insurance go down for new drivers?
Car insurance rates for new drivers generally start to drop around age 25. They can also begin declining gradually a few years earlier if the driver maintains a clean record.
Sources
- Insurance Information Institute. "Car Insurance for New Drivers."
- NAIC. "Car Insurance for New Drivers."
- Consumer Financial Protection Bureau. "What is credit insurance for an auto loan?."
Methodology
Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Doug BaileySenior Content Writer
15 years at the Boston Globe
5+ years covering insurance industry
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Mark FriedlanderSenior Director, Media Relations, Insurance Information Institute
Media relations director for Insurance Information Institute
20+ years in insurance and communications
Impartial, independent expert