Top 10 Auto Insurance Companies for New Drivers

Last Updated on October 7, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 4, 2026 How we fact-check

Getting car insurance as a new driver can feel overwhelming. You’re entering the insurance world with little to no driving history, and rates may seem confusing or unfair at first. The good news? Thanks to online quote comparison tools—including our own—it’s easier than ever to find affordable coverage, even if you’re brand new to driving.

For this article, a “new driver” includes anyone with limited or no prior insurance history. This includes teen drivers, but also adults who recently earned a license or are getting insured for the first time. Each of the companies below publishes something worth knowing about price, service or discounts for drivers with little experience, and the table says what.

New drivers pay more because they crash more. The IIHS puts the fatal crash rate per mile driven for 16 to 19 year olds at just over three times the rate for drivers 20 and over. Rates come down as you build a record.
Travelers, Nationwide and GEICO came out cheapest, in that order, in the one current study that ranks companies for an 18-year-old on a parent’s policy. No agency publishes premiums by age or company, so any ranking you read comes from a rate study with its own sample driver.
A family policy helps, but less than people expect. In that same study the saving from staying on a parent’s policy was $459 a year for a female 18-year-old and $803 for a male. Good student and telematics discounts are usually worth more.
New drivers can be any age. Age is its own rating factor, so a 40-year-old getting insured for the first time starts lower than a 16-year-old does, even with the same zero years of history.

Table Of Contents

Compare the Best Insurance Companies for New Drivers
1. USAA
2. GEICO
3. State Farm
4. Progressive
5. Allstate
6. Grange Insurance
7. Erie Insurance
8. COUNTRY Financial
9. Farmers Insurance
10. Liberty Mutual
Other Things to Consider When Buying Car Insurance as a New Driver
New Driver Insurance FAQ's
Final Word
Sources

Compare the Best Insurance Companies for New Drivers

Here are ten auto insurance companies worth a quote as a new driver. Insurers don’t publish premiums and no agency collects them by age, so this table is about what each company publishes and how it scores where someone independent does measure it, not about who is cheapest for you.

Insurance Company	Best For	Key Advantages	Possible Drawbacks
USAA	Military families	Membership runs for life once you qualify, and it covers eligible family members	Eligibility is limited to the military community. J.D. Power marks USAA as not rank eligible in its claims study, so there is no published score to compare
GEICO	Online shoppers; teens on a parent’s policy	One of the three cheapest for an 18-year-old on a parent’s policy in the 2026 study; third-largest auto insurer in the country by its own account	Built around digital service. GEICO’s contact page lists no phone number and tells you to use the site or app
State Farm	Drivers who want an agent	Large agent network. Ranked highest in J.D. Power’s Northwest region in 2026, for a second year running	Not in the cheapest three for an 18-year-old in the 2026 study
Progressive	New drivers willing to be monitored	Snapshot: Progressive says drivers who save with it save an average of $328 a year. It also publishes a teen driver discount for drivers 18 and under	Snapshot isn’t sold in California or by every agent, and the saving depends on how you actually drive
Allstate	Students	Publishes the conditions for its student discounts: full-time student, under 25, unmarried, good grades, driver education, and school at least 100 miles from where the car is kept	Allstate publishes no customer service phone number on its own care page
Grange Insurance	Drivers in Grange states who want another quote	A regional mutual that sells through independent agents	Grange doesn’t publish a state list, and it appears in no rate study or J.D. Power ranking we could check
Erie Insurance	East Coast and Midwest new drivers	The strongest service record on this list: first in J.D. Power’s 2025 claims study at 743 against a 700 average, and highest in three regions in the 2026 auto insurance study	Select states only, and we could not confirm its Rate Lock terms from anything ERIE publishes
COUNTRY Financial	New drivers who want a regional alternative	Sells through its own agents and publishes a state-by-state footprint	Not nationwide, and we found nothing published about its underwriting or its rates
Farmers Insurance	Households with several drivers	Large agent network and a long published discount list, including multi-vehicle and multi-policy	Farmers publishes no rate figures for young drivers, so an agent quote is the only way to find out
Liberty Mutual	Drivers who care about claims handling	Third in J.D. Power’s 2025 claims satisfaction study at 730 against a 700 average	In no rate study we could check for new drivers

1. USAA

If you are active-duty military, a veteran, or have an immediate family member who qualifies, USAA should be on your radar. USAA has a long reputation for service and price, though it sits outside the rankings that would let you check it: J.D. Power marks USAA as not rank eligible in its claims study, and it is not among the cheapest three in the current 18-year-old rate study. Membership is lifelong once you qualify, and it extends to eligible family members, which is the real draw. The downside is that eligibility is limited to the military community.

USAA
Company Address	9800 Fredericksburg Road San Antonio, TX 78288
Phone Number	We could not confirm a USAA service number, so we have left it out rather than print one we have not seen. Members should use the number on their policy documents.
Website URL	http://www.usaa.com/

2. GEICO

GEICO is one of the most popular choices for new drivers, and the one on this list with a current number behind it. In CarInsurance.com’s June 2026 study of 18-year-olds, GEICO was the third cheapest for an 18-year-old on a parent’s policy at $5,849 a year for a female driver and $6,429 for a male. GEICO also calls itself the third-largest private passenger auto insurer in the country. Service is built around the website and app rather than the phone.

GEICO
Company Address	7272 Wisconsin Avenue Bethesda, MD 20814
Phone Number	GEICO publishes no phone number on its contact page; it directs you to the site, the app or live chat.
Website URL	https://www.geico.com/

3. State Farm

State Farm is the agent-network option. It ranked highest in J.D. Power’s Northwest region in the 2026 U.S. Auto Insurance Study, its second year in a row there. It is not in the cheapest three for an 18-year-old in the current study, so treat it as a quote worth getting rather than a guaranteed low price. If you want affordability combined with agent support, State Farm is a strong option.

State Farm
Company Address	One State Farm Plaza Bloomington, IL 61710
Phone Number	1-800-782-8332 (800-STATE-FARM)
Website URL	https://www.statefarm.com/

4. Progressive

Progressive is worth a quote mainly for its telematics program. Progressive says drivers who save with Snapshot save an average of $328 a year, and it publishes a teen driver discount for drivers 18 and under that applies after a year with the company. Snapshot isn’t available in California or from every agent, and what you save depends on how you drive.

Progressive
Company Address	300 North Commons Blvd. Mayfield Village, OH 44143
Phone Number	1-855-347-3939 (general customer service)
Website URL	https://www.progressive.com/

5. Allstate

Allstate is nationwide and publishes the conditions on its student savings, which is more than most do. For its student discounts you generally need to be a full-time student under 25, unmarried, with good grades, driver education completed, and the car kept at least 100 miles from school. Worth asking about if you have a student on the policy.

Allstate
Company Address	2775 Sanders Road, Suite F3SE Northbrook, IL 60062-6127
Phone Number	Allstate publishes no phone number on its customer care page; it offers chat and an agent locator.
Website URL	https://www.allstate.com/

6. Grange Insurance

Grange Insurance is a Columbus-based mutual that sells through independent agents in part of the country. It doesn’t publish a list of the states it writes in, and it appears in no rate study or J.D. Power ranking we could check, so there is nothing to compare it on. That doesn’t make it a bad quote, but take anyone’s claim that it beats the big carriers on price as a claim, not a finding.

Grange Insurance
Company Address	671 South High Street Columbus, Ohio 43206
Phone Number	1-800-422-0550
Website URL	https://www.grangeinsurance.com/

7. Erie Insurance

Erie Insurance is a smaller regional insurer in the Midwest and on the East Coast, and it has the best independent service record on this list. It ranked first in J.D. Power’s 2025 U.S. Auto Claims Satisfaction Study with 743 against a study average of 700, and it ranked highest in three regions in the 2026 U.S. Auto Insurance Study: Mid-Atlantic, North Central and Southeast. On price, there is no study covering Erie that we could check.

Erie
Company Address	100 Erie Insurance Place Erie, PA 16530
Phone Number	We could not confirm an ERIE service number, so we have left it out rather than print one we have not seen. Ask your ERIE agent or use the number on your policy documents.
Website URL	https://www.erieinsurance.com/

8. COUNTRY Financial

COUNTRY Financial is a Bloomington, Illinois insurer selling through its own agents in part of the country. It gets named often as an option for drivers with poor credit or an at-fault accident, but COUNTRY publishes nothing about its underwriting standards and no rate study we could reach includes it. Get a quote and compare it rather than assuming it will come in lower.

COUNTRY Financial
Company Address	1711 General Electric Road, PO Box 2020 Bloomington, IL 61702
Phone Number	1 (866) 268-6879
Website URL	https://www.countryfinancial.com/

9. Farmers Insurance

Farmers Insurance is a major national insurer with a large agent network and a long published discount list, which matters most in a household with more than one driver and more than one policy. Farmers doesn’t publish rate figures for young drivers, so the only way to know what it would cost you is to ask an agent.

Farmers
Company Address	Home office: Los Angeles, CA. Farmers publishes no street address.
Phone Number	1-888-327-6335
Website URL	https://www.farmers.com/

10. Liberty Mutual

Liberty Mutual rounds out the list on claims handling rather than price: it placed third in J.D. Power’s 2025 U.S. Auto Claims Satisfaction Study with 730, against a 700 average. We found no rate study covering it for new drivers, so include it in your comparison and judge it on the quote.

Liberty Mutual
Company Address	175 Berkeley Street Boston, MA 02116
Phone Number	1-800-290-8711 (general customer service)
Website URL	https://www.libertymutual.com/

Other Things to Consider When Buying Car Insurance as a New Driver

Age & Experience Have a Huge Impact on Rates

Insurers charge new drivers more because new drivers crash more. The IIHS reports that the fatal crash rate per mile driven for 16 to 19 year olds is just over three times the rate for drivers 20 and over. If you have never been insured before, at any age, you have no record for an insurer to price off, and that costs you too. Both effects fade as you build a history.

The numbers are steep. CarInsurance.com’s June 2026 study puts an 18-year-old on their own full-coverage policy at $7,498 a year on average, $7,047 for a female driver and $7,946 for a male. That is close to three times the $2,578 national average the same publisher gives for a 40-year-old driver on identical coverage. Rates do come down as you age and build a record, so expect real drops in your twenties, but no study we could find publishes a reliable figure for how much is left by 25 or by 30.

You Can Be a New Driver at Any Age—But Older New Drivers Often Pay Less

An older first-time driver still pays a new-driver price, but starts from a lower base, because age is its own rating factor and a 40-year-old is not in the IIHS’s highest-crash group. We could not find a study that puts a timetable on how fast either one declines, so be skeptical of anyone who quotes you one. What is measurable is the cost of a blemish: against a clean record, full coverage averaged 28% more after a speeding ticket, 49% more after an at-fault accident and 88% more after a recent DUI in NerdWallet’s October 2026 analysis. Keeping the record clean is the lever you control.

Join a Family Policy When Possible

Adding a teen to a parent’s policy is cheaper than a standalone policy, but by less than people assume. In the June 2026 study, an 18-year-old on their own policy averaged $7,047 a year for a female driver and $7,946 for a male. On a parent’s policy the same drivers averaged $6,588 and $7,143. That is a saving of $459 and $803 a year. Worth taking, but the discounts below are often worth more.

Ask About Discounts

Every insurer offers ways to save. New drivers should ask about:

Good student discounts (high school or college)
Driver’s training discounts
Multi-policy discounts if you bundle auto with renters or homeowners insurance
Telematics programs that reward safe driving

New Driver Insurance FAQ’s

Why is car insurance so expensive for new drivers?

Two reasons. New drivers really do crash more: the IIHS puts the fatal crash rate per mile driven for 16 to 19 year olds at just over three times the rate for drivers 20 and over. And with no insurance history, an insurer has nothing to price you off, so it prices the group instead. Both improve as you build a record.

What is the cheapest insurance company for new drivers?

There is no official answer, because no agency publishes premiums by age or company. The one current study we could find that ranks companies for an 18-year-old on a parent’s full-coverage policy puts Travelers first ($4,601 a year for a female driver, $5,185 for a male), Nationwide second ($5,816 / $6,149) and GEICO third ($5,849 / $6,429). That is CarInsurance.com’s June 2026 study of a specific sample driver, so treat it as a starting point and compare your own quotes.

Can new drivers get discounts on auto insurance?

Yes. Many insurers offer good student discounts, driver’s education discounts, telematics program savings, multi-policy discounts, and family policy savings, all of which can help reduce rates for new drivers.

Is it cheaper for new drivers to be added to a family policy?

Usually yes, but the gap is smaller than people expect. In CarInsurance.com’s June 2026 study, an 18-year-old on their own full-coverage policy averaged $7,047 a year for a female driver and $7,946 for a male; on a parent’s policy, $6,588 and $7,143. That is $459 and $803 a year. Most insurers let licensed household members join a family policy, so there is no reason not to take it.

How long does it take for insurance rates to go down for new drivers?

Rates fall as you add clean years and as you age out of the highest-risk group, so expect the biggest drops through your twenties. We could not find a study that publishes reliable national figures for the exact milestones, so be wary of promises that your premium halves at 21 or 25. Ask your own insurer what a clean renewal does to your price.

Can adults be considered new drivers?

Yes. Anyone with limited or no driving history—whether 16 or 40—is considered a new driver. However, older new drivers often see their rates decrease faster than teens after just a few years of safe driving.

Which insurance company is best for a new driver with poor credit?

Neither of those two, nor anyone else, publishes how tolerant its underwriting is of poor credit, so there is no company we can point you to on evidence. What is worth knowing is that credit-based insurance scores are banned or restricted in some states, so where you live may matter more than which company you pick. Get several quotes, and ask each one whether credit is used in your state.

What coverages should new drivers consider?

In addition to liability coverage, new drivers should consider comprehensive and collision coverage, uninsured motorist protection, and possibly roadside assistance. These coverages protect against common risks faced by inexperienced drivers.

Final Word

Yes, car insurance for new drivers is expensive—but it doesn’t have to break your budget. By comparing quotes, joining a family policy, seeking out discounts, and choosing the right insurer, you can reduce your monthly payments significantly.

The companies above are all worth a quote, but notice what the evidence actually supports: GEICO on price for a teen on a parent’s policy, Erie and Liberty Mutual on claims handling, Progressive on telematics, Allstate on published student discounts. Everything else is a quote you have to go and get.

My advice is to get at least five quotes the first year and then shop again at every renewal for the first three. A new driver’s price moves more between renewals than anyone else’s, and the company that was cheapest at 17 often isn’t at 20.

Sources

Checked October 4, 2026

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