Top 10 Auto Insurance Companies for New Drivers
Last Updated on December 9, 2025
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. Regardless of age, the companies below consistently offer strong pricing, helpful support, or generous discounts for drivers with little experience.
Key Takeaways
- New drivers pay more for insurance because they lack driving history, but rates drop significantly with each year of safe driving.
- USAA, GEICO, and State Farm consistently offer some of the lowest rates for new drivers, while smaller regional insurers like Erie and Grange can be hidden gems.
- Joining a family policy and taking advantage of discounts—such as good student, driver training, and telematics programs—can reduce premiums dramatically.
- New drivers can be any age, but older first-time drivers usually see their rates decrease faster than teen drivers with the same experience.
- 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
Compare the Best Insurance Companies for New Drivers
Here are the top 10 auto insurance companies for new drivers looking for affordable, reliable coverage:
| Insurance Company | Best For | Key Advantages | Possible Drawbacks |
|---|---|---|---|
| USAA | Military families & young drivers | Lowest average rates; top customer service; great digital experience | Only available to military members & families |
| GEICO | Drivers with good credit; online shoppers | Consistently low rates; easy online quotes; strong discounts | Agent support is limited in some areas |
| State Farm | Drivers wanting agent support | Large agent network; good rates for clean records | Prices vary more by location than GEICO/USAA |
| Progressive | New drivers comparing many quotes | Snapshot program can reward safe driving; very competitive in some states | Snapshot can increase rates if you drive aggressively |
| Allstate | Students & discount seekers | Strong good-student discounts; solid coverage options | Base rates can be higher unless discounts apply |
| Grange Insurance | Drivers in eligible states seeking cheaper alternatives | Surprisingly low rates; high customer satisfaction | Limited regional availability |
| Erie Insurance | East Coast & Midwest new drivers | Great customer service; low premiums; Rate Lock feature | Only available in select states |
| COUNTRY Financial | New drivers with accidents or poor credit | More forgiving underwriting; reasonable rates for high-risk newbies | Not available nationwide |
| Farmers Insurance | Drivers wanting strong agent support | Large company with many discounts; good for households with multiple drivers | Rates can be higher without discounts |
| Liberty Mutual | Drivers wanting flexible coverage options | Tons of optional add-ons; strong digital features | Premiums can be higher than average |
1. USAA
If you are active-duty military, a veteran, or have an immediate family member who qualifies, USAA should be on your radar. Known for its top-tier customer service and highly competitive prices, USAA is one of the cheapest insurers for both new and experienced drivers. The only downside: eligibility is limited to military families.
| USAA | |
|---|---|
| Company Address | 9800 Fredericksburg Road San Antonio, TX 78288 |
| Phone Number | 1-210-531-USAA |
| Website URL | http://www.usaa.com/ |
2. GEICO
GEICO is one of the most popular choices for new drivers due to its low prices, fast online quotes, and strong digital tools. If you’re a new driver with decent credit, GEICO often delivers some of the lowest premiums available.
| GEICO | |
|---|---|
| Company Address | 5260 Western Avenue Chevy Chase, MD 20815 |
| Phone Number | 1-800-861-8380 |
| Website URL | https://www.geico.com/ |
3. State Farm
State Farm offers consistently competitive rates for new drivers—especially those with clean records. State Farm is also known for being relatively forgiving after a single at-fault accident. If you’re looking for affordability combined with agent support, State Farm is a strong option.
| State Farm | |
|---|---|
| Company Address | 1 State Farm Plaza Bloomington, IL 61701 |
| Phone Number | 1-309-766-2311 |
| Website URL | https://www.statefarm.com/ |
4. Progressive
Progressive is not always the cheapest—but in many states, it is the cheapest option for new drivers by a significant margin. This makes Progressive an insurer that every new driver should at least get a quote from.
| Progressive | |
|---|---|
| Company Address | 6300 Wilson Mills Road Mayfield Village, OH 44143 |
| Phone Number | 1-800-776-4737 |
| Website URL | https://www.progressive.com/ |
5. Allstate
Allstate provides strong nationwide availability and excellent discount opportunities. New drivers in school may especially benefit from Allstate’s good student discount and additional savings programs.
| Allstate | |
|---|---|
| Company Address | 2775 Sanders Road Northbrook, IL 60062 |
| Phone Number | 1-800-255-7828 |
| Website URL | https://www.allstate.com/ |
6. Grange Insurance
Grange Insurance isn’t available everywhere, but in the states where it does operate, it often beats larger insurers on price. Some new drivers even report paying less with Grange than with USAA—an impressive achievement.
| Grange Insurance | |
|---|---|
| Company Address | 671 South High Street Columbus, Ohio 43206 |
| Phone Number | 1-800-399-3797 |
| Website URL | https://www.grangeinsurance.com/ |
7. Erie Insurance
Erie Insurance is a smaller regional insurer operating mainly in the Midwest and East Coast. Erie consistently scores high in customer satisfaction and is frequently among the cheapest options for new drivers.
| Erie | |
|---|---|
| Company Address | 100 Erie Insurance Place Erie, PA 16530 |
| Phone Number | 1-800-458-0811 |
| Website URL | https://www.erieinsurance.com/ |
8. COUNTRY Financial
COUNTRY Financial is known for being friendly to new drivers with poor credit or an at-fault accident. If your driving or credit history is less than perfect, COUNTRY Financial may give you a better price than most major insurers.
| COUNTRY Financial | |
|---|---|
| Company Address | 701 Towanda Ave Bloomington, IL 61701 |
| Phone Number | 1 (866) 268-6879 |
| Website URL | https://www.countryfinancial.com/ |
9. Farmers Insurance
Farmers Insurance is a major national insurer with a strong network of agents and solid coverage options. Depending on your age and ZIP code, Farmers may be surprisingly affordable for new drivers.
| Farmers | |
|---|---|
| Company Address | 4680 Wilshire Blvd Los Angeles, CA 90010 |
| Phone Number | 1-888-327-6335 |
| Website URL | https://www.farmers.com/ |
10. Liberty Mutual
Liberty Mutual rounds out our list with its flexible policy options and numerous discounts. While prices vary, Liberty Mutual remains a good company to include in your comparison shopping.
| Liberty Mutual | |
|---|---|
| Company Address | 75 Berkeley Street Boston, MA 02116 |
| Phone Number | 1-888-398-8924 |
| 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
Insurance companies charge higher rates to new drivers because they lack a driving record. Whether you are 16 or 40, if you’ve never been insured before, insurers view you as higher risk. The good news is that rates generally drop quickly as you gain experience.
At 16, you may pay $5,000+ per year for coverage. By 25, rates typically fall dramatically, often to less than one-third of teen prices. Rates stabilize in your 30s and remain low until your 70s.
You Can Be a New Driver at Any Age—But Older New Drivers Often Pay Less
An older first-time driver (say, at 25 or 40) may initially face high premiums—but these decline faster than for teens. A 16-year-old may need 8–10 years of experience to see meaningful decreases, while an older new driver often qualifies for significantly lower rates within 3–5 years.
Join a Family Policy When Possible
New drivers—especially teens—pay far less when added to a parent or household policy. A standalone policy for a teen can cost $5,000–$6,500 per year, but joining a family plan can substantially reduce those costs.
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
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 consistently offer some of the best pricing and support for new drivers nationwide. Compare rates today to find the perfect fit for your situation.
Leave a Reply