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

1. New drivers pay more for insurance because they lack driving history, but rates drop significantly with each year of safe driving.
2. 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.
3. Joining a family policy and taking advantage of discounts—such as good student, driver training, and telematics programs—can reduce premiums dramatically.
4. 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

Here are the top 10 auto insurance companies for new drivers looking for affordable, reliable coverage:

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.