Best Auto Insurance Options For New Drivers

First-time drivers are often considered high-risk by insurance companies due to their lack of driving experience, resulting in higher insurance premiums. However, there are ways to obtain more affordable coverage. Staying on a parent's policy, comparing quotes from multiple companies, choosing a higher deductible, and taking advantage of various discounts are all effective strategies for reducing insurance costs. When it comes to insurance providers, Nationwide and Travelers are consistently ranked as the best options for first-time drivers, offering a combination of affordable rates and robust coverage. Other notable mentions include State Farm, GEICO, and USAA, which is exclusive to military members, veterans, and their families.

Best insurance for first-time drivers over 25

First-time drivers over 25 can expect to pay higher insurance rates than experienced drivers. This is because they are considered a higher risk due to their lack of driving experience. However, there are still some insurance providers that offer competitive rates for this demographic.

USAA, for example, offers insurance for military members, veterans, and their families, with an average six-month rate of $605 for first-time drivers over 25. GEICO is another option, with an average six-month rate of $680. State Farm, Progressive, Liberty Mutual, and Farmers also offer insurance for this group, with average six-month rates ranging from $726 to $919.

To find the best insurance rates as a first-time driver over 25, it is recommended to compare quotes from multiple companies and look for discounts. Bundling policies, such as homeowner's and auto insurance, can also help lower your rates. Additionally, maintaining a good driving record and improving your credit score can lead to cheaper insurance premiums over time.

It is worth noting that insurance rates for first-time drivers over 25 may decrease within three years of gaining driving experience. By the time they reach 30, they should see a significant decrease in their insurance rates.

Best insurance for first-time drivers under 25

First-time drivers under 25 are considered high-risk by insurance companies due to their lack of driving experience and are therefore subject to higher insurance rates. The best way to get affordable car insurance as a first-time driver under 25 is to compare quotes from different insurance companies and look for discounts. Here are some of the best insurance options for first-time drivers under 25:

Allstate

Allstate offers the cheapest minimum liability-only car insurance for first-time drivers under 25. On average, new drivers can expect to pay around $100 per month for minimum coverage from Allstate, which is less than half the average cost for new drivers.

State Farm

State Farm is the best car insurance company for drivers under 25, offering full coverage at a rate of around $276 per month for young first-time drivers. This is about half of the average monthly rate of $544, making State Farm a cost-effective option for new drivers.

Geico

Geico is recommended as the best car insurance for 25-year-olds, offering rates that are about 25% cheaper than the national average. They provide a wide range of coverage options, a highly-rated mobile app, and usage-based insurance discounts through their DriveEasy program.

USAA

USAA offers cheap insurance rates for military members, veterans, and their families. Their average rates are about 29% cheaper than the national average for 25-year-olds. USAA also provides multiple discounts, including a safe-driving program called SafePilot®.

Erie Insurance

Erie Insurance is available in 12 states and Washington, D.C., and offers very affordable rates for 25-year-olds. Their rates are about 25% lower than the national average for full-coverage car insurance. They also provide additional coverage options such as pet coverage, personal item coverage, and auto glass repair.

Progressive

Progressive has a reputation for offering reasonable rates to high-risk drivers, including younger and less experienced drivers. They offer a teen driver discount and include accident forgiveness coverage in their policies, which can be beneficial for new drivers.

While the above options tend to offer competitive rates for first-time drivers under 25, it's important to shop around and compare quotes from multiple insurance companies to find the best deal. Additionally, looking for discounts, such as good student discounts or safe driver discounts, can further reduce insurance costs.

Best insurance for first-time drivers with no insurance history

The best insurance for first-time drivers with no insurance history will vary depending on several factors, including age, location, vehicle type, and individual circumstances. However, here is a list of insurance providers that offer competitive rates and comprehensive coverage for first-time drivers:

• Nationwide Insurance: Nationwide is consistently ranked as one of the best insurance providers for first-time drivers. They offer affordable rates, accident forgiveness, and usage-based telematics programs that reward safe driving. Their SmartRide® and SmartMiles® programs can help new drivers save money on their premiums.
• Travelers Insurance: Travelers is known for offering lower-than-average rates and coverage options beneficial to young and new drivers. They provide accident forgiveness and a telematics program called IntelliDrive, which can help new drivers access even cheaper rates.
• Progressive Insurance: Progressive has a reputation for offering reasonable rates to high-risk drivers, including younger and less experienced drivers. They offer a teen driver discount and include some accident forgiveness coverage in their policies.
• Geico Insurance: Geico, the third-largest auto insurance provider in the country, offers competitively low rates for most new drivers. They have a straightforward claims process and a user-friendly mobile app. Geico's DriveEasy program incentivizes new drivers to maintain a good driving record by offering rate discounts.
• USAA Insurance: USAA provides insurance for active and retired military members and their families. They offer lower-than-average rates and a wide range of coverage options, backed by excellent customer reviews. USAA also has a good student discount for first-time drivers who are still in school.
• Erie Insurance: Erie Insurance is available in 12 states and Washington, D.C., and is known for its strong industry reputation. They offer a young driver discount, car safety equipment discounts, and reduced usage discounts, making it an excellent choice for new drivers in their coverage areas.
• State Farm Insurance: State Farm is often recommended as the best insurance provider for young drivers under 25. They offer reliable customer service and affordable quotes, with full coverage costing around $276 per month for new drivers.

To find the best insurance for your specific needs as a first-time driver, it is recommended to compare quotes from multiple insurance providers and consider factors such as coverage options, discounts, and customer reviews. Additionally, staying on a parent's or family member's policy, choosing a higher deductible, and selecting a moderately priced vehicle can help reduce insurance costs for first-time drivers.

Best insurance for first-time drivers with their own policy

Moving out of a family home and getting your first car insurance policy can be intimidating, but there are some tips to help you navigate the process. First, you need to determine your net worth and choose liability coverage that matches it. You should also consider whether your vehicle is properly protected and whether you can afford your deductibles. Finally, make sure you are maximizing all available discounts.

When buying car insurance for the first time, you have the freedom to choose your own insurance company and customize your policy to fit your needs. It's important to remember that the cheapest car insurance policy may not always be the best option, as it may not provide adequate coverage.

State Farm

State Farm is a good option for first-time drivers under 25, offering full coverage for young drivers at around $276 per month, which is about half of the average monthly rate. They also offer reliable customer service and affordable quotes for new drivers. State Farm also has a Steer Clear program for new drivers under 25.

Allstate

Allstate offers the cheapest liability-only car insurance for first-time drivers under 25, with rates averaging $100 per month. This is less than half the average cost for new drivers. Allstate also has a good selection of optional coverage types and a low level of complaints about its auto insurance.

Geico

Geico is known for its combination of low prices, 17 possible discounts, and varied coverage options. They also have a streamlined claim process and a user-friendly mobile app. Geico's DriveEasy program incentivizes new drivers to maintain a good driving record in exchange for rate discounts.

Travelers

Travelers offer the cheapest rates for first-time drivers, with a minimum coverage policy costing $1,372 per year on average. They also offer 14 total discounts, many of which first-time drivers may qualify for.

USAA

USAA is a good option for first-time drivers who are military service members, veterans, or their relatives. They offer affordable rates and several discounts, such as their good student discount for students who maintain a B average or above.

Erie Insurance

Erie Insurance is a good choice for first-time drivers in the 12 states and Washington, D.C., where it operates. They offer a young driver discount, car safety equipment discounts, and reduced usage discounts. They also have a strong industry reputation and their Erie Rate Lock® helps prevent rate increases.

Nationwide

Nationwide is a top pick for first-time drivers, offering affordable and robust coverage. They also have special coverages like new car replacement, accident forgiveness, mechanical breakdown assistance, and vanishing deductibles.

Mercury

Mercury is a good choice for first-time drivers looking for affordable coverage in the 11 states where it operates. Their rates are competitive, and they have a straightforward claims process, making it a good option for new drivers.

When shopping for insurance, it's recommended to compare quotes from at least three different companies and consider various types of coverage, such as collision and comprehensive insurance, as well as specialized options like gap insurance and accident forgiveness.

Best insurance for first-time drivers on a family policy

First-time drivers are considered a higher risk for insurance companies, and therefore, insurance premiums are higher for this group. However, there are ways to keep costs down, especially when it comes to family policies.

Staying on a Family Policy

First-time drivers can save money by staying on their parents' policy. This is because the parents' insurance background, credit score, and driving history may lead to lower rates than the new driver would find on their own. By staying on a parent's auto insurance policy, a young driver can save thousands of dollars per year.

Best Insurance Companies for Family Policies

According to ValuePenguin, the best car insurance for new drivers on a family policy is offered by Geico, with an average monthly rate of $118. State Farm is also a good option, with a monthly rate of $183, which is $68 less than the average.

Nationwide is another good option for family policies, as it offers a 10% discount on certain coverage types for drivers who sign up for their SmartRide program, which tracks driving habits.

USAA is also worth considering, as it offers lower-than-average rates for military members, veterans, and their families.

Other Ways to Save on Insurance for First-Time Drivers

• Compare quotes from multiple companies.
• Improve your credit score.
• Look for discounts for young drivers, such as good student discounts.
• Adjust your coverage by opting for a higher deductible or dropping unnecessary coverage.
• Try usage-based insurance, which measures driving behaviour and mileage.
• Choose a cheaper vehicle, as insurance rates are often higher for luxury or sports cars.
• Add safety features to your vehicle, which can lead to insurance savings.

Frequently asked questions