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The Best Car Insurance for New Drivers (Discounts & More)

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

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: Dec 28, 2021

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Key Takeaways

  • Farmers and GEICO have the lowest rates for new drivers
  • Rates decrease when a driver reaches 21 years old
  • Bundling discounts will lower your rates

New drivers usually experience higher rates due to their inexperience and lack of insurance record. However, there are ways that you can obtain affordable car insurance as a new driver. It starts with finding the best auto insurance companies for new drivers in your area. Which auto insurance companies are truly competing for your business as a new driver?

When comparing car insurance for new drivers, you’ll find that USAA has the lowest rates for teenagers, and GEICO has the most affordable rates for new adult drivers. You’ll also find that rates decrease as drivers age, regardless of their driving history.

Learning more about the best car insurance companies for new drivers will help you find affordable coverage.

Before discovering the best car insurance companies for new drivers, enter your ZIP code to get free auto insurance quotes in your area.

What are the best car insurance companies for new drivers?

A new driver is someone with no previous driving history or auto insurance record. These drivers include newly-licensed teenagers, young adults, and people who obtained their driver’s licenses later in life.

First-time driver insurance fees are higher than that of those with an established driving and auto insurance record. This fact might lead you to ask, “What is the monthly cost of car insurance for a new driver?”

Comparing the best car insurance companies’ rates for new drivers will help you find the most affordable coverage. To find the lowest rates, use the following chart that displays the average monthly fees per company for a 16-year-old male listed on his parents’ policy.

Average Monthly 16-Year-Old Male Rates from the Best Car Insurance Companies for New Drivers by Company
Car Insurance CompanyAverage Annual Rates for 16-Year-Old Males
Allstate$1,141
Farmers$415
GEICO$479
Nationwide$539
Progressive$772
State Farm$577
USAA$423
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As you can see, Farmers has the lowest rates for new teenage drivers. USAA is a close second but is only available for military members and their immediate families.

While teenagers are usually the newest drivers, some people decide to wait to get their license until they’re older. This delay could be because they live in a city where driving isn’t necessary or they don’t want to drive for other reasons.

Adult drivers will typically experience lower rates than teenagers but higher rates than experienced drivers. To find affordable rates for adults, review the following chart that reveals the average monthly rates per company for a 30-year-old male with no auto insurance history.

Average Monthly Rates for a 30-Year-Old Previously-Uninsured Male from the Best Car Insurance Companies for New Drivers by Company
Car Insurance CompanyAverage Annual Rates for 30-Year-Old Males
Allstate$189
Farmers$154
GEICO$106
Nationwide$110
Progressive$145
State Farm$108
USAA$111
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As you can see, GEICO provides adults with the best affordable car insurance for new drivers regardless of military service.

When comparing rates, you’ll find that males typically pay more than females, as statistics show that males are riskier drivers. However, other factors can impact your car insurance rates, so you’ll need to receive quotes from several companies to determine the most affordable coverage.

Why is car insurance higher for new drivers?

The Insurance Information Institute states that various factors impact car insurance rates, including your driving record.

In most cases, the rates for a new driver will be higher than those for an experienced driver, regardless of other factors like age. These higher rates reflect a new driver’s lack of a driving and auto insurance history.

Insurance companies use a driver’s history to determine risk. Those without a driving or auto insurance history lack this information, making them riskier to insure.

Additionally, rates are higher for younger drivers than adult drivers. The difference is because younger drivers are more likely to engage in distracting driving behaviors, like texting and driving. As a result, they’re statistically more likely to get into accidents than adult drivers.

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How can new drivers get lower rates from the best car insurance companies?

There are various things that you can do to obtain the most affordable auto insurance for new drivers. The following are some ways to find economical rates from the best car insurance companies for drivers under 25.

Stay on Your Parents’ Auto Insurance Policy

Young drivers are usually better off staying on their parents’ car insurance policy. When you join an existing policy, your parents’ driving record, insurance background, and credit score can help to lower your rates.

College students can usually remain on their parents’ policy while in school. However, the company might require that the student’s permanent address be the same as the policyholder.

Shop Around

Car insurance companies weigh factors differently when determining rates. While one company might quote a high price based on your lifestyle and history, another might quote lower rates using the same factors. Shopping around will help you find the most affordable rates.

Choose a Moderately-Priced Vehicle

Car insurance companies consider the value of a car when determining rates. Drivers are more likely to go faster in high-performance cars, making them riskier to insure. As a result, they’ll receive higher rates. Driving an older car can help you obtain more affordable coverage.

Choose a High Deductible

The deductible is the amount that a driver pays out of pocket when they file a claim. A higher deductible means that the insurance company will pay less, decreasing the risk of insuring the driver.

While increasing your deductible will cause you to pay more if you get into an accident, your insurance company will lower your rates.

Carry Minimum Liability Coverage

States require that drivers carry a minimum amount of liability coverage. These requirements differ depending on where your car is registered. The following table shows the minimum amount of coverage required by each state.

Minimum Liability Car Insurance Requirements by State
StatesMinimum Liability Limit Requirements
Alabama25/50/25
Alaska50/100/25
Arizona15/30/10
Arkansas25/50/25
California15/30/5
Colorado25/50/15
Connecticut25/50/20
Delaware25/50/10
District of Columbia25/50/10
Florida10/20/10
Georgia25/50/25
Hawaii20/40/10
Idaho25/50/15
Illinois25/50/20
Indiana25/50/25
Iowa20/40/15
Kansas25/50/25
Kentucky25/50/25
Louisiana15/30/25
Maine50/100/25
Maryland30/60/15
Massachusetts20/40/5
Michigan20/40/10
Minnesota30/60/10
Mississippi25/50/25
Missouri25/50/25
Montana25/50/20
Nebraska25/50/25
Nevada25/50/20
New Hampshire25/50/25
New Jersey15/30/5
New Mexico25/50/10
New York25/50/10
North Carolina30/60/25
North Dakota25/50/25
Ohio25/50/25
Oklahoma25/50/25
Oregon25/50/25
Pennsylvania15/30/5
Rhode Island25/50/25
South Carolina25/50/25
South Dakota25/50/25
Tennessee25/50/15
Texas30/60/25
Utah25/65/15
Vermont25/50/10
Virginia25/50/20
Washington25/50/10
West Virginia25/50/25
Wisconsin25/50/10
Wyoming25/50/20
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The minimum coverage will satisfy state requirements, but it only covers liability; therefore, you’re responsible for any repairs or medical bills. However, companies price coverage individually, so maintaining the minimum coverage can help you obtain lower rates until you gain some driving experience.

Ask for Car Insurance Discounts

Car insurance companies provide various discounts for customers. These deals range from safe driving and installing safety features to attending school and being a good student. Combining these deals will lower your monthly rates.

What discounts from the best car insurance companies are available for new drivers?

The best way to lower your rates is to compare the best car insurance companies’ quotes for new drivers and bundle discounts. Insurance companies offer discounts based on various factors, including your driving history, car, schooling, and lifestyle.

Some discounts depend on your driving history, so they will usually be unavailable to new drivers. These discounts are inaccessible to inexperienced drivers:

  • Accident-free
  • Safe driver
  • Low mileage

A defensive driving discount is available from most companies for those that complete a defensive driving course. A new driver can take advantage of this perk by enrolling in the course.

Other available discounts depend on the age of the driver. For example, companies offer a deal for those who maintain a 3.0 grade point average, but this is only available to those enrolled in school.

Many companies also offer a discount for college students who leave their cars at home and attend classes at least 100 miles away.

Additionally, some discounts are typically only available for adults. Some of these savings include the following:

  • Homeowner
  • Multi-policy
  • Military
  • Professional
  • Senior

However, some discounts are available for all new drivers. These discounts depend on the car you drive and how you pay your bill. The deals available to all new drivers include:

  • Paid in full
  • Anti-theft
  • Anti-lock brakes
  • Passive restraint
  • New car
  • Daytime running lights

Combining as many deals as possible will help you save on your auto insurance. Companies will work with you to determine all available savings, so ask for a list of discounts for which you’re eligible to receive the most significant savings.

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When should you add a new driver to a policy from the best car insurance companies for new drivers?

If you have a new driver in your household, you might be wondering whether or not to add them to your policy or if they should get an individual policy.

Generally, you should add a new driver to your policy if they have regular access to your vehicle, have their driver’s license, and share the same residence. People that this might apply to include:

  • Domestic partners
  • New roommates
  • Teen drivers

A teenager in your house might be able to receive coverage before they get their license. Most of the best affordable car insurance companies for new drivers allow teenagers with a learner’s permit to join your policy at no extra charge.

As previously mentioned, a college student living on or near campus can usually remain on your policy as long as their permanent residence is the same address as the policyholder.

Best Car Insurance Companies for New Drivers: The Bottom Line

New drivers face higher rates due to their lack of experience and auto insurance history. However, you can lower your rates by combining discounts and reducing your coverage.

Additionally, comparing rates from the best car insurance companies for new drivers will help you find affordable coverage.

Now that you know about the best car insurance companies for new drivers, enter your ZIP code to find free auto 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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