Best and Cheapest Car Insurance for New Drivers (2025)
USAA is the cheapest nationally available insurer for young drivers, while regional carriers COUNTRY Financial and Auto-Owners offer cheap rates in a limited number of states.
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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 $198 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
GEICO: Best all around
State Farm: Best for customer satisfaction
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.
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
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 $198 per month for a liability policy and $350 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 $150, $171, and $112, 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, Auto-Owners, and USAA. They have monthly rates starting at $44, $84, and $94.
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