Best Car Insurance for New Drivers
Use The Zebra to get the best car insurance for new drivers from GEICO, Progressive, Nationwide, Liberty Mutual and Allstate (+100 other companies)
The cheapest car insurance companies for new drivers
For new teen drivers just hitting the road, the cheapest car insurance companies are USAA ($320 per month) and State Farm ($394 per month). For new adult drivers, the cheapest insurers are also USAA ($124 per month) and State Farm ($131 per month). In comparison, the typical teen driver might see insurance bills around $420 each month, while adults without any prior insurance history generally face rates near $161 per month.
Dive into the tables below for average rates from other companies and read on to learn more about how to pick the best insurance company as a newbie behind the wheel. But remember, the "best deal" can be pretty subjective, heavily depending on your unique situation — what's cheapest on paper might not be the most cost-effective for you in reality.
Updating data...
| Company | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| USAA | $3,838 | $320 |
| State Farm | $4,726 | $394 |
| GEICO | $5,303 | $442 |
| Nationwide | $5,652 | $471 |
| Allstate | $6,834 | $569 |
| Farmers | $7,206 | $600 |
| Progressive | $7,842 | $654 |
Source: The Zebra
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| Company | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| USAA | $1,482 | $124 |
| State Farm | $1,569 | $131 |
| GEICO | $1,676 | $140 |
| Nationwide | $1,754 | $146 |
| Progressive | $2,046 | $171 |
| Farmers | $2,279 | $190 |
| Allstate | $2,678 | $223 |
Source: The Zebra
To generate estimated auto insurance prices for new drivers, The Zebra's research team used two driver profiles (methodology details). One driver is a teenager and another is a 30-year-old driver, both with full coverage and previously uninsured. The variation in the cheapest insurer for teens versus adults is due to each company's unique risk assessment model, which can lead to different pricing structures for each age group.
New and seasoned drivers alike can compare car quotes and find an affordable policy.
How long are you considered a new driver?
Typically, insurers consider a driver "new" until they have three years of U.S. driving experience. Establishing a safe driving record over time will reduce rates.
How to find the best cheap car insurance for new drivers
To find the best cheap car insurance for new drivers, The Zebra recommends you start by comparing quotes from multiple insurance companies. It's also wise to ask about discounts, consider a policy with higher deductibles or lower coverage limits, and opt for a less expensive vehicle to insure.Â
While price is important, new drivers and their parents must consider all aspects of their insurance options. Start below with our insurance comparison checklist designed for new drivers. Already well-versed in insurance shopping? Jump straight to our summary of the top three insurers for new drivers.
Insurance comparison checklist for new drivers:
Car insurance company checklist for new drivers
Does the auto insurance company offer:
✓ Affordable rates
Finding the best rate isn't just about chasing discounts; sometimes a company offers a lower overall price without them, much like how Amazon might have the lowest price despite other stores offering multiple discounts on the same item. This is why comparison shopping is so important!
✓ A positive reputation and strong financial stability
The Zebra's detailed insurer reviews will list data from reputable sources including A.M. Best, the NAIC, J.D. Power, The Zebra's Customer Satisfaction survey, and sites like Better Business Bureau and Trustpilot. You want an insurer that is responsive, pays out claims, and is easy to get ahold of.
✓ Adequate coverage
Some companies offer several coverage options, others may provide only one or two basic options. Still others, like Lemonade, let drivers select and pay only for the coverage they deem necessary, sometimes leading to lower rates because drivers aren't bundled into one-size-fits-all plans. Roughly 38% of The Zebra's customers go for "basic" coverage, which is a full coverage policy with elevated liability limits, typically 50/100/50.
✓ Accident forgiveness
This prevents a driver's insurance rate from going up after their first at-fault accident. Especially helpful considering the National Highway Traffic Safety Administration reports accident rates are significantly higher among younger, newer drivers.Â
✓ Roadside assistance programs
This can provide new drivers with immediate support during unforeseen breakdowns or incidents, fostering confidence on the road. See our comparison of roadside assistance programs here.
✓ Usage-based insurance plans
Also known as telematics, usage-based insurance can help keep dangerous driving behaviors in check and reward safe driving habits.
✓ Relevant discounts
While mostly geared towards younger drivers, many new drivers can benefit from discounts such as those related to making good grades or being a good driver. We especially like driver safety program discounts as they not only lower rates but help new drivers feel more confident and drive safer. Read more about discounts available to new drivers here.
✓ A good mobile app
While not a necessity, a good insurance app can help you keep all your information in one place and even allow you to file claims, track their status, and access customer support directly from your mobile device. The Zebra's Customer Satisfaction Survey ranked USAA, State Farm, GEICO, and Allstate all ranked highly for online and mobile satisfaction. Read the details about each insurance app here.
What is the best insurance for new drivers?
The Zebra's experts consider State Farm, USAA, and Nationwide the best insurance companies for new drivers thanks to their cheap rates, wide availability, and relevant discounts and programs. Read about the unique features offered by each company that especially suit first-time drivers.
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1. State Farm: Best overall
State Farm is our top recommendation for first-time drivers given it received top marks in The Zebra's Customer Satisfaction Survey and has some of the cheapest average prices for new teen ($394 per month) and adult ($131 per month) drivers. State Farm also offers several programs and discounts that will be especially relevant to teen and young adult drivers.
For example, real-life customer and licensed insurance agent Beth enjoys being rewarded for her safe driving through State Farm's Drive Safe and Save telematics program.
What makes State Farm good for new drivers?
- Drive Safe & Save telematics program rewards safe driving behavior.
- Those under 25 with no accidents or violations can receive up to 15% off after completing the Steer Clear driving course.
- Good student discount for students under 25.
- Driver Training discount for those under 21 who complete an approved driver education course.
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2. USAA: Best for military families
USAA topped nearly every category in The Zebra's Customer Satisfaction Survey, leading in trust, claims satisfaction, customer satisfaction, ease of use, likelihood to recommend, and online experience. Real-life customer Dani had a collision, and USAA not only handled the details but also sent her flowers after realizing the accident was on her birthday.
USAA is also often the cheapest option for new drivers, regardless of age or background. Monthly premiums average only $282 for teens and $124 for new adult drivers. USAA would have been our top pick if not for eligibility being restricted to military personnel, veterans, and their kin.
What makes USAA good for new drivers?
- The USAA SafePilot telematics program offers savings to safe drivers.
- A driver training course discount for drivers under 21.
- A good student discount (except in HI and NC).
- 10% family discount for when children of members get their own policy.
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3. Nationwide: Runner-up
Nationwide is another high-quality option for first-time drivers. They are relatively affordable at $471 per month for teens and $146 per month for adults with no insurance history and offer a wide range of coverage options, telematics programs, and discounts perfect for new drivers.
What makes Nationwide good for new drivers?
- A good student discount for young drivers with a B average or higher.Â
- Accident forgiveness ensures no rate hikes after the first at-fault accident.
- Roadside assistance for unexpected breakdowns.
- The Nationwide SmartRide program assesses driving habits for potentially more accurate and cheaper rates.
New drivers: lower rates start here.
Get 4 must-know tips on finding cheap car insurance for new drivers + track price drops automatically.
How new drivers can save money on car insurance
Now that we have outlined the top insurance providers and the cost of insuring a new driver, let's explore some other ways to save. To get a sense of how new drivers can help their pocketbooks, we reached out to The Zebra's in-house agency to get some perspectives from professionals.
"Obey the law, stay alert and avoid a lapse in coverage. Any tickets, accidents, or lapse can affect/raise the rate for years to come."
Analisa Pina — Licensed insurance advisor at The Zebra
Other ways to save on car insurance as a new driver
Zebra Tip: Newer drivers should seek out a cheaper vehicle
While a new car might feel more glamorous, getting a cheaper car can save you loads on your insurance costs. If you're not sure how much car you can afford, check out The Zebra's free calculator to get an idea.
Common car insurance discounts for new drivers
Car insurance discounts new drivers and their parents should look out for include multi-policy (bundling), multi-car, defensive driving, equipment, good driver, profession, and good student discounts. Read details about each below, but remember that many are subject to state and insurer restrictions.
Bundling policies under one insurer, such as home and auto, can earn you a discount. Homeowners will save an average of $66 more than bundling with renters, as homeowners insurance yields higher revenue for insurers than renters insurance.
A multi-car discount refers to insuring multiple vehicles with the same company. If you start with two cars, it's added from the beginning; otherwise, it's applied to your policy when a second car joins the policy
By showing proof of completion of a defensive driving course to your insurer, you can earn a discount. Such courses enhance safety, reducing insurance risks and costs. We've partnered with iDriveSafely as an affordable option. Available in most states, their courses can help you maintain a good driving record and save money on car insurance. Learn more about iDriveSafely's defensive driving classes.
While usually smaller than a multi-policy or defensive driver bonus, some insurers offer a discount for cars with anti-theft devices or services like Lojack. Many modern vehicles come with these features. Be sure such devices are considered in your insurance quote.
This is available to those with a clean driving record — meaning no at-fault accidents or citations. It is typically added when your Motor Vehicle Report (MVR) is pulled at the inception of your policy.Â
Some insurers offer discounts to professions with statistically fewer claims (e.g. teachers, physicians, police officers). Insurers often require a photocopy of your degree for eligibility.
If you're under 25 with a B average (3.0 GPA) or higher, inquire about a good student discount with your insurance company. They usually ask for proof in the form of a transcript every 6-12 months.
When to add a new driver
Add new drivers to your policy if they regularly use your vehicle, have a license, and share your address. This can include a domestic partner, roommate, or newly licensed teen.
Tip: don't wait until your teen is fully licensed and driving before adding them to your insurance coverage. Some insurance companies may even allow teens with a learner's permit to be included on the policy at no extra charge while they only have a permit (although state laws and insurer guidelines may vary). If you are uncertain, you can always speak with an agent before your teen is licensed to find out more about when to add a new teen driver to your policy.
What is permissive use?
Permissive use covers occasional drivers who aren't listed on the policy but have the policyholder's permission to drive the vehicle. For example, when a friend borrows your car once to move. However, coverage details can vary among insurers. Always inquire to clarify your insurance company's specific guidelines on what they consider "regular" vs "permissive" use. All regular drivers must be added to your policy.
Discover your perfect insurance match with The Zebra
At the end of the day, all the discounts in the world won’t matter if you choose the wrong company. Some auto insurance companies will see your age and driving background as too great a liability and apply exorbitant premiums. Shopping around every six months can help ensure you’re getting the best rate for your driving profile. To get started, enter your ZIP below to see car insurance quotes from a number of top insurance companies.
Get personalized insurance rates in less than 5 minutes.
FAQs
Find answers to some of the most common questions for new drivers below.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.