Best and Cheapest Car Insurance for New Drivers (2024)

Auto-Owners is the cheapest nationally available insurer for young drivers, while regional carriers COUNTRY Financial and NJM offer cheap rates in a limited number of states.

Aly J. Yale
Written byAly J. Yale
Aly J. Yale
Aly J. Yale
  • National Association of Real Estate Editors member

  • Bylines include Forbes, Bankrate, and CBS News

Aly is a reporter specializing in real estate, mortgages, and personal finance. You can find her work in Hearst newspapers and numerous financial publications.

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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Updated June 12, 2024

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Cheapest recent rates

Drivers using Insurify have found quotes as cheap as $35/mo for liability only and $41/mo for full coverage.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

New drivers often pay more for car insurance due to their inexperience on the road. But premiums vary by insurer, so it’s a good idea to shop around to find a rate that works for you. The best options for inexperienced drivers include Allstate, GEICO, and State Farm, to name a few.

Across all insurers, the average rate for new drivers is $183 per month for liability coverage. But new drivers may be able to save on car insurance rates by following a few key strategies.

Quick Facts
  • Insurance companies may view new drivers as high risk.

  • Discounts may be available for safe driving, students, and more.

  • You’ll need three to six years of driving experience for insurers to no longer consider you as newly licensed.

Best car insurance for new drivers

A number of factors can affect the cost of your insurance premium, including how long you’ve been behind the wheel. Due to a lack of experience and high accident risk, car insurance premiums are higher for newly licensed drivers — especially teens.[1]

But if you just got your license and need to find a car insurance policy, comparing quotes from different insurance companies can help you save. Here’s a closer look at some of the best car insurance companies for new drivers, along with their average monthly liability quotes.

Insurance CompanyCost to Insure a New Driver IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
Allstate$1054.4
GEICO$744.4
State Farm$864.6
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. We update ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: We use data from AM Best, S&P, Moody's, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 20,000 customer reviews across 155 car insurance companies. We also considered third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the United States, as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify identified the number of states in which insurers offer coverage and company size by market share to score availability and reach.

Allstate: Best for discounts

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
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.
$62/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.
$137/mo

Many insurers offer some premium discounts, but Allstate has a wide range of available discounts — particularly for new drivers.

You can get premium discounts for having a new car, anti-lock brakes, or anti-theft devices; signing your policy at least seven days before it goes into effect; and even getting good grades (a B- average or 2.7 GPA or higher for high school and college students).

Pros
  • Many available discounts

  • Savings possible via Drivewise safe driving program

  • Wide range of coverage options

Cons
  • Not available in all 50 U.S. states

  • Many complaints about Allstate’s Android app

  • High number of complaints on the National Association of Insurance Commissioners (NAIC) consumer complaint index

Read our Allstate review
Bruce - June 11, 2024
Verified

Rates have steadily increased without any claims

I had Allstate for 2 years with no claims, yet the premium increased by 40%. It was too expensive. I got the same coverage from Travelers for much less.

Joe - June 11, 2024
Verified

Comments on Allstate

The coverage is good, but it's pricey.

Sergio - June 10, 2024
Verified

Disappointed

They increased the rates without any reason. It started at 145 and a year later it was 240, with no tickets or accidents.

GEICO: Best all around

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
835
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.
$55/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.
$119/mo

GEICO offers new drivers a little bit of everything, including affordable rates, a solid customer service reputation, and plenty of discounts and coverage options. It also has highly rated mobile apps that allow you to buy and manage your policy digitally. The company operates in all 50 states, too.

Pros
  • Many discounts

  • High rating for consumer satisfaction and mobile apps

  • Policy purchasing and management available online

Cons
  • Gap insurance not available

  • No safe driving program

  • Few in-person agents

Read our GEICO review
Jacqueline - June 11, 2024
Verified

Horrible

I am very upset that my policy increased from 242 to 329. I am 62 years old and I believe I should not be paying that much for a car that will be paid off next month.

Frank - June 11, 2024
Verified

Geico is My Winner

So far, Geico has offered the best price for insurance.

Addis - June 11, 2024
Verified

High Premium

High premium.

State Farm: Best for customer satisfaction

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.6
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
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.
$54/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.
$117/mo

State Farm is ranked as one of the best car insurance companies in the country for customer satisfaction, according to J.D. Power. The insurer ranked at or near the top in the Central U.S., Florida, the Mid-Atlantic region, New England, New York, the North Central and North West regions, Texas, and the Southwest. The company also offers a wide range of discounts and a young-driver safe driving program.

Pros
  • Many discounts 

  • Savings possible via Steer Clear safe driving program

  • High rating for consumer satisfaction and mobile apps

Cons
  • Coverage not available in Massachusetts or Rhode Island

  • No gap insurance

  • Must purchase a policy through an agent

Read our State Farm review
Ray - June 11, 2024
Verified

Took months to get an adjuster for my water leak in the house

Find someone else.

George - June 11, 2024
Verified

Thinking about Switching

Shop around, the prices could be better.

Lawrence - June 11, 2024
Verified

Feels Like Someone's Watching Me, I'm Not Switching

Where did you get the idea that I was switching? That's untrue. I'm in good standing with my current insurance company.

Who is considered a new driver?

While no official definition exists for what insurance companies consider a “new” driver, it generally includes first-time drivers, like teens, recent immigrants, and drivers with long lapses in auto insurance coverage. Essentially, anyone with little to no recent history driving on U.S. roads can be considered a new driver.

Important Information

Your age is one of the most important factors in setting your car insurance rates. Generally speaking, more mature drivers — drivers likely to have more experience on the road — have fewer accidents and receive lower premiums. Teenage and young adult drivers — drivers younger than 25 — usually get higher premiums.[2]

Cheapest car insurance for teen drivers

Insurance companies often charge young, newly licensed drivers more for car insurance due to their inexperience on the road and a higher likelihood of getting into an accident (and subsequently filing a claim).

Teenagers have nearly four times the chance of a car crash compared to drivers 20 and older, according to the Insurance Institute for Highway Safety and Highway Loss Data Institute.[1]

The following table shows the cheapest car insurance for teen drivers, according to Insurify data.

The below rates are estimated rates current as of: Saturday, June 1 at 12:00 PM PDT
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial4822
NJM6439
Hugo10386
Auto-Owners13161
Erie14486
USAA15170
GEICO16074
Root161110
Metromile181115
State Farm18686
CSAA194130
Allstate233105
Mile Auto236124
Progressive243143
Elephant276150
Mercury290153
American Family293129
Clearcover298181
Nationwide299136
Safeco310170
National General315151
Shelter327176
State Auto330164
Travelers351160
The General351164
Amica352212
Dairyland356130
The Hartford358227
Direct Auto359183
21st Century401184
Liberty Mutual416196
AssuranceAmerica417239
Farmers427191
Bristol West453206
Chubb462215
Infinity482346
Anchor483175
Foremost489239
GAINSCO491220
Commonwealth Casualty544207
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Find Cheap Car Insurance for Teens

Liability rates for teen drivers start at $22 per month

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How new drivers can save on car insurance

If you’re a new driver, you may be able to reduce your auto insurance premium in many ways. The exact strategy will depend on what type of new driver you are.

Here’s a closer look at how different types of new drivers can save.

Teens and young drivers

If you’re a young driver, you have many ways to reduce your premium, including:

  • Have your parents add you to their policy. You can get on your parent or guardian’s auto insurance policy rather than getting your own separate auto policy. This will generally qualify you for a lower rate than your own.

  • Ask about discounts. You can also look for discounts, like good student discounts or pay-in-full discounts, or enroll in a safe driving program. These allow a mobile app to monitor your driving habits. If you drive safely for a certain period of time, it can lead to reduced premiums.

  • Take a defensive driving course. You may also be able to get lower premiums as a teen driver by taking a defensive driving course, driving a new car, installing anti-theft devices on your car, and shopping around for your car insurer. Premiums can vary quite a bit from one company to the next.[3]

Immigrants

Immigrants often have no experience driving in the U.S. Taking a defensive driving course can be a smart way to become a safer driver while also reducing your premiums, as many insurers offer discounts for completing these programs.

You can also increase your deductible, take advantage of discounts, and comparison shop among several companies. If you already have an existing insurance policy, such as home or renters insurance, you may be able to save by bundling. Most insurance companies have discounts for multi-policyholders.

People with a lapse in coverage or driving

If you have a lapse in insurance coverage or just driving in general, consider enrolling in a defensive driving or driver’s education course. This will help you brush up on your driving skills and potentially qualify you for a lower premium.

Choosing a new car with a high safety rating is also a good idea. You can further your savings if the car has certain safety features, like anti-lock brakes and airbags. You can also improve your credit score (this often plays a role in premiums) or choose a higher-deductible policy, if you have enough savings on hand to cover it.

How car insurance works for new drivers

Car insurance is a type of protection for both you and your vehicle. Every state except New Hampshire requires some amount of liability coverage.

If you get in a car accident, your vehicle is stolen, or you injure yourself in the car, your insurance policy will pay for some or all of the damages involved. Car insurance covers the costs to repair your car, go to the doctor for treatment, and even replace your car if it’s totaled. It also covers damage to other cars, drivers, and passengers.

When you get into an accident or another covered event occurs, you’ll need to file a claim. Then, your insurance company will investigate the insurance claim, send an adjuster to assess the damage to your car, and offer you a claim settlement. Once you pay your deductible — the portion of the claim you’re responsible for before insurance kicks in — your insurer will send you a check.[4]

Recent quotes for other Insurify users

Drivers have found policies from Mile Auto, Direct Auto, CSAA, and more, for rates as low as $41/mo. through Insurify

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

How long you’re considered a new driver

Insurance companies generally consider you a new driver until you have at least three to six years of experience on the road. Once you reach this point in your driving history, your insurance premiums could start to drop.

To speed up the process and prove your safe habits on the road, taking a defensive driving or driver’s education course may help. Enrolling in your insurer’s safe driving program (if it has one) may be an option, too.

How to buy first-time car insurance

Getting your first car insurance policy can be overwhelming. To ensure you get the lowest rates possible, it’s a good idea to:

  • Shop around for your insurance company. Premiums can vary quite a bit among insurers, so compare a few options before deciding which one to go with. Be sure to ask about available discounts when comparing companies.

  • Know how much coverage you need. Most states require certain minimum amounts of liability insurance coverage. Sticking to these minimums can help reduce your premiums (though you may owe more if you get into a wreck later on).

  • Consider bundling policies. If you can get your car insurance policy from the same company that holds your home or renters insurance policy, you might get a discount. Insurers often refer to this as “bundling.”

  • Brush up your credit first. Your credit history and score will likely play a role in your car insurance costs. Coming in with a high credit score will give you the best chances at lower rates.

  • Check with your employer. Some companies offer group plans or discounts for their employees. Ask your work’s HR department if any insurance benefits exist for your company.

Talking to an independent insurance agent or financial advisor may also help you save. They can give you more information about your options, shop around on your behalf, and help you choose the best insurer and policy for your budget.

New-driver car insurance FAQs

When considering car insurance as a new driver, this additional information may help as you research your coverage options.

  • How much is car insurance for new drivers?

    Compared to experienced drivers, new drivers pay more for auto insurance because they pose a greater risk on the road. But you can still find affordable rates as a new driver if you compare quotes, lock in discounts, and drive safely.

    On average, new drivers in the U.S. pay $183 per month for a liability policy and $375 for a full-coverage policy, according to Insurify data.

  • What is the best car insurance for new drivers?

    The best car insurance for new drivers comes with affordable rates and discounts from insurers with a great reputation and excellent industry ratings. You might want to consider an auto policy from Allstate, GEICO, or State Farm.

    Their monthly liability rates for teens average $105, $74, and $86, respectively.

  • Do new drivers need car insurance?

    In almost every state, all drivers, including new drivers, must purchase car insurance. States generally require liability coverage, but if you lease or finance your car, the leasing company or lender will mandate full coverage.

    If you do choose liability-only car insurance, note that it may not provide all the protection you need. It may be worth the extra cost to spend a bit more on a full-coverage policy.

  • Should you add your teen driver to your car insurance policy?

    It depends. Adding your teen to your car insurance policy can help teen drivers get lower rates. But it’s important to keep in mind that if your teen gets into an accident, it could affect your insurance, especially if it’s serious.

  • What car insurance is cheapest for new drivers?

    You can find the cheapest liability rates for new drivers from COUNTRY Financial, NJM, and Auto-Owners. They have monthly rates starting at $22, $39, and $61.

Methodology

Insurify data scientists analyzed more than 90 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 50+ 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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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.

Sources

  1. Insurance Institute for Highway Safety. "Teenagers."
  2. Insurance Information Institute. "What determines the price of an auto insurance policy?."
  3. Insurance Information Institute. "Auto insurance for teen drivers."
  4. Insurance Information Institute. "Auto Insurance Basics."
Aly J. Yale
Aly J. Yale

Aly J. Yale is a freelance writer and reporter covering real estate, mortgages, and personal finance. Her work has been published in Forbes, Business Insider, Money, CBS News, US News & World Report, and The Miami Herald. She has a bachelor’s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at TCU and is a member of the National Association of Real Estate Editors.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

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