Best and Cheapest Car Insurance for New Drivers (2024)

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 $196 per month for liability coverage. But new drivers may be able to save on car insurance rates by following a few key strategies.

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.

Allstate: Best for discounts

discounts

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User Reviews	4.0 3,131 reviews
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.	8.9 /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.	$61/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.	$133/mo

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Driver Reviews

4.0

Best choiceBased on 5,747 verified guest reviews and ratings

How drivers feel about Allstate

Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.

AI-generated from the text of verified reviews collected by Insurify

Best For

Accident forgiveness

Wide availability

Cheap rates

How drivers feel about Allstate

Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.

AI-generated from the text of verified reviews collected by Insurify

Best For

Accident forgiveness

Wide availability

Cheap rates

Reviews (3,131)

Edward

December 19, 2024

Verified Review

A Company with Many Years of Experience

Allstate has been good for me for many years with mediocre pricing.

Barbara

December 18, 2024

Verified Review

Allstate? Ugh!

Clearly, it's not good, or else why would I be shopping for a new policy.

Steven

December 18, 2024

Verified Review

Overpriced

Expensive.

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Our Advice

JD Power

J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.

833

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

0.94

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

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

GEICO: Best all around

all around

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User Reviews	4.0 5,755 reviews
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.	9.0 /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.	$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.	$118/mo

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Driver Reviews

4.0

Best choiceBased on 10,464 verified guest reviews and ratings

How drivers feel about GEICO

Drivers appreciate the excellent customer service and initial low prices but dislike the frequent price increases.

AI-generated from the text of verified reviews collected by Insurify

Best For

Teen drivers

Cheap rates

Accident forgiveness

How drivers feel about GEICO

Drivers appreciate the excellent customer service and initial low prices but dislike the frequent price increases.

AI-generated from the text of verified reviews collected by Insurify

Best For

Teen drivers

Cheap rates

Accident forgiveness

Reviews (5,755)

Dianna

December 19, 2024

Verified Review

Roadside Assistance

When I needed emergency services on the road, they wanted me to go online. That was not possible at the time and they were not helpful.

Alan

December 18, 2024

Verified Review

Satisfied but too expensive

My experience with GEICO was good. They offer great coverage for the price and I'd recommend them to a friend. However, they are a bit more pricey but provide great services all the way around.

Samol

December 18, 2024

Verified Review

Geico is Good Insurance

It's excellent, but after a few accidents, the rates are creeping upwards.

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JD Power

J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.

835

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

0.74

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 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

State Farm: Best for customer satisfaction

customer satisfaction

Compare Quotes

User Reviews	4.2 5,080 reviews
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.	$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.	$119/mo

Show Details

Driver Reviews

4.2

Best choiceBased on 9,243 verified guest reviews and ratings

How drivers feel about State Farm

Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.

AI-generated from the text of verified reviews collected by Insurify

Best For

Customer service

Competitive rates

Discounts for safe drivers

How drivers feel about State Farm

Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.

AI-generated from the text of verified reviews collected by Insurify

Best For

Customer service

Competitive rates

Discounts for safe drivers

Reviews (5,080)

Al

December 19, 2024

Verified Review

My Opinion

Way too high premium.

Agnes

December 19, 2024

Verified Review

Best Insurance Company

I have been with them for a long time. Claims are handled quickly. I never had a problem, even when I had three teenagers driving.

Gabriel

December 18, 2024

Verified Review

My Experience with State Farm

Beware, some companies are more interested in making money than meeting the customers' needs. My wife had a medical issue while driving, and they covered it. A year later, there was a fender bender involving two moving vehicles. To me, it was no fault, but they considered it a second incident. We also had hail damage to our roof. They said there wasn't enough damage, yet my next-door neighbors received a new one. Now, they're canceling me for too much.

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Our Advice

JD Power

J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.

842

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

0.78

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 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

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.

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.

Find Cheap Car Insurance for Teens

Liability rates for teen drivers start at $19 per month

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4.8/5

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]

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