Top 10 Auto Insurance Companies for New Drivers
Last Updated on October 3, 2020
Getting car insurance as a new driver can be an intimidating process. Fortunately, it doesn’t have to be scary. Thanks to easy online car insurance comparison websites like our own, it’s easier than ever to compare car insurance for new drivers.
For the purposes of this article, we’ll define a new driver as someone with no history of being insured – or limited history. All teen drivers are new drivers, for example. However, you can be a new driver at any age. The insurance companies below all represent the best option for teen drivers across the spectrum.
Certain companies have a reputation for being particularly kind towards new drivers. Some companies offer surprisingly low prices to new drivers, for example. Other insurance companies are famously user-friendly, making it easy for drivers of all experience levels to navigate their policy.
Whatever you’re looking for in a car insurance company, we want to help. Here are the top 10 car insurance companies for new drivers in no particular order:
If you are a veteran or active-duty military, or if you have an immediate family member who is an active-duty military or a veteran, then you may qualify for USAA. USAA is one of the most affordable car insurance companies in the country whether you’re a new driver or an experienced driver. The only “catch” is that it’s only available to active duty or retired military and their families. If you qualify, then USAA may be your best option as a new driver.
|Company Address||9800 Fredericksburg Road
San Antonio, TX 78288
GEICO, which originally stood for Government Employees Insurance Company, is another company that frequently ranks as one of the cheapest for new drivers. GEICO tends to offer competitive rates to drivers of all experience levels. If you’re a new driver with a good credit score, then you should be able to get a very competitive rate with GEICO.
|Company Address||5260 Western Avenue
Chevy Chase, MD 20815
State Farm is another major nationwide car insurance company that offers competitive rates for new drivers. If you’re a new driver with a clean record, then State Farm is a great option. However, some drivers also report getting a particularly good rate at State Farm after a single at-fault accident. So if you’re a new driver worried about paying too much for car insurance after an at-fault accident, then State Farm might be worth a look.
|Company Address||1 State Farm Plaza
Bloomington, IL 61701
Progressive isn’t as cheap as the three companies above, but it still tends to offer competitive prices on car insurance for new drivers. In certain states, meanwhile, Progressive is by far the cheapest option – so be sure to request a quote regardless.
|Company Address||6300 Wilson Mills Road
Mayfield Village, OH 44143
Allstate is a major nationwide car insurance company that offers very competitive prices to drivers of all experience levels across the country. New drivers may be able to take advantage of discounts like good student discounts.
|Company Address||2775 Sanders Road
Northbrook, IL 60062
Grange Insurance is the smallest company on this list so far. It’s available in only about a dozen states. However, in states where it is available, Grange may be the best option for new drivers who want to pay affordable rates for fair coverage. Some new drivers even tell us they received a cheaper rate through Grange Insurance than through USAA.
|Company Address||671 South High Street
Columbus, Ohio 43206
Erie Insurance, like Grange, is a smaller insurance company available in only about a dozen states – mostly on the east coast and the northeastern United States. If Erie is available in your area, then it’s worth a look for new driver car insurance. Erie Insurance seems to offer particularly competitive prices on car insurance for new drivers, although your mileage may vary.
|Company Address||100 Erie Insurance Place
Erie, PA 16530
COUNTRY Financial is available in about half of the country. If you have poor credit or an at-fault accident, then COUNTRY Financial might be your cheapest option. COUNTRY Financial offers surprisingly good rates to new drivers with poor credit or an accident on their record.
|Company Address||701 Towanda Ave
Bloomington, IL 61701
|Phone Number||1 (866) 268-6879
Farmers Insurance is one of the largest car insurance companies in the United States. Available nationwide, Farmers offers great rates to drivers of all experience levels. Depending on your demographic data and location, Farmers may be the best option for your new driver car insurance.
|Company Address||4680 Wilshire Blvd
Los Angeles, CA 90010
Liberty Mutual is another popular car insurance company for new drivers. It may not be as cheap as the companies at the top of our list, but it’s worth a look if you want to compare as many quotes as possible.
|Company Address||75 Berkeley Street
Boston, MA 02116
Other Things to Note When Buying Car Insurance as a New Driver
When shopping for car insurance as a new driver, here are some other things you’ll want to pay attention to.
Age and Experience Significantly Affect Car Insurance Prices
First, let’s get something obvious out of the way. As a new driver, the insurance company has no way of knowing whether or not you’re a safe driver. You have no history of being insured. You could be the best driver in the world. Or, you could be the worst person in the history of the world to drive. The insurance company doesn’t know, which is why they err on the side of caution by charging higher rates.
As you get older and collect more driving experience, your car insurance prices will gradually decrease. Let’s assume you get your license at 16, which is the legal age in most states. After age 16, your car insurance prices will drop sharply every year. By the time you hit 25, you’re going to be paying less than one-third of what you’re paying at 16, on average (say, from $6,000 per year down to $2,000). By the time you hit age 30, car insurance prices are at their lowest level. Aside from a slight dip in your 40s and 50s, you’ll pay low car insurance prices until they start rising again at around age 70.
You Can Be a New Driver at Any Age, Although Older New Drivers Tend to Pay Less
Drivers who wait until they’re older will have a slight advantage over younger new drivers. If you’re an older new driver, then you’ll pay similar rates to a 16-year-old driver when you start driving. After all, neither you nor the 16-year-old have any driving experience. However, you should notice insurance prices start to drop off after 3 to 5 years of safe driving as an older new driver. A 16-year-old will still be paying high insurance prices at 19 or 20 after years of safe driving, but an older new driver will be paying comparatively lower rates.
Join a Family Policy
Feeling overwhelmed by the cost of car insurance as a new driver? There’s nothing wrong with joining your family’s car insurance policy. The average 16-year-old driver will pay around $5,000 to $6,500 per year for car insurance on their own vehicle. If you’re added as a driver under your family plan, however, this cost can be significantly reduced. Talk to your insurance company to confirm this is an option. However, it’s generally an option for new drivers who still live at home.
Ask About Other Car Insurance Discounts
Getting car insurance as a new driver is always going to be expensive. There’s no way to avoid the cost of new driver car insurance. However, there are ways to reduce the cost. Research car insurance discounts from your insurance company. If you’re still in school, then you may qualify for a good grade discount, which is typically available to high school and college students.
You’ll also get a discount for completing a driver’s training program – something that’s a good idea as a new driver anyway.
Conclusion: Don’t Be Intimidated When Shopping for Car Insurance as a New Driver
Car insurance for new drivers can be expensive. Unfortunately, it’s hard to avoid the high costs. However, by using the tips listed above and picking the right car insurance company, you can get a competitive rate on your next car insurance policy as a new driver.