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Christy Rakoczy has been a personal finance and insurance writer for over a decade. Her work has been published on USA Today, MSN, Yahoo Finance, Credit Karma, Forbes Advisor, and Insurify, and she’s been writing for Compare.com since 2024.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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New drivers often lack experience, and many tend to pay higher-than-average rates, since they don’t have a driving history for insurance companies to review. Many new drivers are also teens, and they’re statistically more likely to text, speed, and engage in other dangerous behaviors. Factors like these increase the likelihood of an accident and filing claims.
While all insurers charge inexperienced motorists higher premiums, some companies — including COUNTRY Financial, Auto-Owners, and USAA — offer cheap car insurance for new drivers.
Read on to learn more about some of the best auto insurance companies offering the cheapest car insurance for these high-risk drivers, as well as a few tips on how to save even more.
Car insurance for teens averages $265 per month, compared to the national average of $137 for adults.
COUNTRY Financial, Auto-Owners, and USAA offer some of the cheapest car insurance for new drivers, on average.
New drivers should ask about savings opportunities and discounts to reduce premiums.
The cost of car insurance for new drivers can vary from one company to another. Each insurer evaluates risk differently, and since teens are considered the riskiest age group, the price gap is often greater than it is for adults.
The table below highlights the cheapest car insurance companies for new drivers, according to our data. New drivers can find the cheapest auto coverage with COUNTRY Financial, at $58 per month, according to Compare.com data.
Company  | Average Monthly Premium |
|---|---|
| COUNTRY Financial | $58 |
| Auto-Owners | $99 |
| USAA | $99 |
| State Farm | $114 |
| Dairyland | $141 |
| NJM | $145 |
| Erie | $145 |
| Root | $149 |
| The General | $154 |
| American Family | $158 |
| Allstate | $160 |
| Mile Auto | $160 |
| GEICO | $160 |
| Commonwealth Casualty | $161 |
| Bristol West | $179 |
| Mercury | $180 |
| Anchor | $188 |
| Elephant | $192 |
| Safeco | $196 |
| GAINSCO | $197 |
| Direct Auto | $200 |
| Nationwide | $202 |
| CSAA | $206 |
| Clearcover | $213 |
| National General | $214 |
| Travelers | $232 |
| Farmers | $236 |
| 21st Century | $241 |
| Liberty Mutual | $264 |
| Chubb | $283 |
| AssuranceAmerica | $287 |
| Shelter | $317 |
| The Hartford | $422 |
| State Auto | $464 |
| Amica | $529 |
Car insurance for new drivers is more expensive than the average cost for all motorists. With less time behind the wheel, new drivers are more likely to cause accidents and file car insurance claims.
The table below breaks down the average monthly premiums for several types of new drivers, including teenagers, first-time adults, and foreign motorists, according to Compare.com data.
Driver Type | Average Monthly Premium |
|---|---|
| Teen driver (on their own policy) | $267 |
| Teen driver (on parent’s policy) | $203 |
| First-time adult drivers (25+) | $216 |
Every driver is different, so there’s no one insurer offering the lowest prices for every new driver. Many factors — including location, age, the vehicle they drive, and more — can affect how much new drivers pay for auto insurance. Insurance costs are also affected by whether a teen driver is on their parents’ insurance plan or buys stand-alone coverage.
That being said, while prices vary, some insurers provide coverage for young drivers that is more affordable than others. We’ve analyzed average insurance premiums, J.D. Power ratings, and policy features to find three of the best car insurance companies for new drivers.
The following companies all offer extremely competitive rates and other great features for this group.
| User Reviews | 4.3 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.2 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $77/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $122/mo |
Drivers value the excellent coverage and quick claim responses but dislike the significant rate increases and lack of responsiveness to emails.
Drivers value the excellent coverage and quick claim responses but dislike the significant rate increases and lack of responsiveness to emails.
Erie Insurance offers some of the most competitive prices for teen drivers of any insurer. It’s an especially great choice for young teen drivers who still live at home because it offers an additional discount for unmarried drivers under 21 who live with their parents. Erie also offers a driver training discount for drivers under 21 who’ve completed an approved training course.
While the insurer doesn’t have a good student discount, it still provides more opportunities than many competitors for new drivers to lower rates on insurance products. But its mobile app receives low ratings and lacks important features, including support for Apple Wallet, which many young drivers prefer.
| User Reviews | 4.0 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.6 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $89/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $140/mo |
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
GEICO is also one of the most affordable options for teens. Additionally, students with a minimum B average qualify for the company’s good student discount. The insurer also partners with several alumni and university organizations to provide additional savings opportunities for young drivers.
The GEICO mobile app earned 4.8 out of 5 stars on the App Store, and its DriveEasy program offers additional opportunities to save, especially for new drivers who drive safely.[3] But its J.D. Power Claims Satisfaction rankings are below average.
Affordable premiums for new drivers
Good student discounts available
Discounts available for alumni associations
Below-average J.D. Power Customer Satisfaction scores
Limited local agent network
Gap insurance not available
| User Reviews | 4.3 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $53/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $98/mo |
Customers appreciate the prompt customer service and claims handling but are frustrated by the significant and frequent price increases.
Customers appreciate the prompt customer service and claims handling but are frustrated by the significant and frequent price increases.
USAA is a good option for military members or young people who qualify based on a family relationship with someone in the armed forces. In fact, USAA’s premiums for new drivers are the most affordable, on average, of any insurer.
The company also offers a good student discount, but it doesn’t have quite as many savings opportunities for young people as some competitors. USAA’s mobile app is also top-rated and offers some options other competitors don’t, such as pay-as-you-go insurance, which prices premiums based on how often and how safely you drive.[4] [5]
Competitive rates for new drivers
Top marks for customer satisfaction[6]
Good student discount available
Must be a USAA member to qualify
Few discounts available for young drivers
No local agent network
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It’s important for new drivers to find ways to save on car insurance since premiums are so high for this group. Here are a few tips to reduce your rates if you’re a new driver:
Earn good grades. Most insurers offer good student discounts to young drivers with a B average or higher.
Complete a defensive driving class or driver’s education course. Many companies offer discounts for drivers who have received formal training. Be sure to check with your insurer to find out its course requirements.
Avoid accidents and tickets. Insurance rates increase for new drivers who have a ticket or accident on their record since things like speeding tickets make insurers believe you’re high-risk. Always follow the rules of the road if you want the best rates.
Shop for coverage. Some insurers charge more than double their average rates for new drivers, according to our research. Shop around and get several car insurance quotes to find a company providing the most affordable car insurance.
Many insurance companies offer discounts. The table below outlines some common discounts for new drivers to lower their car insurance rates.
Good student: Students who maintain a grade point average of at least B or higher qualify for a good student discount.
Youthful driver: Unmarried drivers younger than 21 who live at home with their parents may qualify for a youthful driver discount.
Driver training/driver’s education: If you complete a driver education or safety course approved by your insurer before getting your driver’s license, you may be able to get this discount.
Driver affiliation: You can earn this discount if you’re a member of an organization that partners with your insurer.
Distant student: Students who attend college away from home (more than 100 miles) and don’t take a car with them are eligible for this discount.
Safe driver: Keep a clean driving record free of accidents and violations for a period of time, and your insurer may reward you with a good driver discount.
New vehicle: Inexperienced drivers who purchase a new car can also save if they choose an insurer offering a new car discount.
Online quote: Starting your car insurance policy quote online may qualify you for this discount.
Paperless: You can receive a paperless discount when you sign up to receive your policy documents and billing statements electronically.
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If you’re buying car insurance for the first time, don’t be intimidated. You can find an affordable policy quickly and easily if you follow these steps:
See if you’re eligible to be covered under a parent’s policy. It’s often cheaper and easier for new teenage drivers to be added to a parent’s policy rather than getting their own coverage.
Determine how much coverage you need. Most states require liability insurance, but you should also look into additional coverages to make sure you’re fully protected. This can include collision coverage to pay for damage to your own vehicle and comprehensive coverage to pay for damage caused by vandalism, animals, weather, or other “non-collision events.” Often, a full-coverage policy is a good choice, even though you’ll pay higher rates for the extra protection.
Compare car insurance quotes. The best way to get the best deal on coverage is to get personalized car insurance quotes from multiple companies regularly. Prices vary widely since insurers weigh factors differently — you could save hundreds by switching insurers.
Apply for your new policy. You’ll need to provide information about yourself, your vehicle, your driving history, and your coverage needs before purchasing your new policy. Many companies offer same-day coverage, which means you can be on the road and driving legally in no time.
Ask about discounts. Many insurers offer discounts for new drivers — you can even stack them. New drivers should start by taking advantage of student discounts, driver safety programs, and safe driving program discounts.
Choose your deductible. The deductible you choose matters, meaning the higher your deductible, the lower your monthly premium. Just be sure that you can afford to pay the higher out-of-pocket costs if you file a claim.
Car insurance can be confusing, especially if it’s your first time buying a policy. We’ve answered some of the most commonly asked questions to help simplify the process.
The cost of insurance for a new driver depends on many factors, including age, location, and coverage levels. The cheapest insurers charge average monthly rates between $176 and $194 for new teen drivers. But some insurance companies charge upwards of $400 per month to provide the same coverage. That’s why it’s so important to compare quotes from multiple companies before making a decision on your next policy.
Yes, all drivers in nearly every state must have car insurance to drive legally — including new drivers. You typically must provide proof of insurance to buy or rent a vehicle or when requested by law enforcement after an accident or at a traffic stop. It’s illegal to drive without coverage in most states, and you could be held personally responsible for repair and medical costs you cause while driving uninsured.
The best insurance for new drivers depends on many things, including your age, where you live, whether you have coverage through a parent’s policy, and the types of coverage you need. New drivers should shop around and compare rates to find the most affordable auto insurance.
Most insurance companies consider you a new driver for about three to five years after getting your license. Keep in mind, some companies factor in age and treat young drivers as high-risk until around age 24.
Yes. It’s almost always cheaper to add a teen to a parent’s existing policy than it is to buy a separate one.
Yes, you can get car insurance with a learner’s permit. Most states require all drivers to have a minimum amount of car insurance to drive legally, even if you’re learning how to drive. In most cases, insurers require you to add a driver with a permit to an existing household policy.
Your car insurance rates can start to drop around age 20, but most drivers see the biggest decrease by age 25. Your rates typically decrease as you gain more experience behind the wheel and maintain a clean driving record.
The cheapest cars to insure for all drivers are the Subaru Crosstrek and the Honda CR-V, according to Compare.com data. Cars with more advanced safety features and better anti-theft technologies tend to be cheaper to insure because they present a reduced risk of an insurance claim.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Christy Rakoczy has been a personal finance and insurance writer for over a decade. Her work has been published on USA Today, MSN, Yahoo Finance, Credit Karma, Forbes Advisor, and Insurify, and she’s been writing for Compare.com since 2024.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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