Cheapest New Driver Car Insurance Quotes
Finding cheap car insurance for new drivers can be difficult. Car insurance companies consider young or inexperienced drivers to be high risk, so new drivers usually pay the highest rates for auto insurance.
In most cases, State Farm has the cheapest new driver car insurance quotes, though depending on your situation and where you live, you might find a better deal somewhere else.
What companies have the cheapest car insurance for new drivers?
Overall, State Farm has the cheapest auto insurance rates for first-time drivers. It’s followed up by Geico, the second most affordable option for young drivers.
Cheapest full-coverage car insurance for new drivers: State Farm
State Farm has the cheapest full-coverage car insurance for new drivers in the country, with an average annual rate of $4,078, or $340 a month.
Geico is the second-cheapest option for teen drivers, with full coverage at $4,866 a year, or $406 a month.
Cheapest companies for full-coverage car insurance for new drivers
| Company | Average annual rate |
|---|---|
| State Farm | $4,078 |
| Geico | $4,866 |
| Allstate | $7,405 |
| Progressive | $8,187 |
| Farmers | $8,854 |
Rates are for full-coverage car insurance for an 18-year-old male with a clean driving record.
Full-coverage combines liability-only, collision and comprehensive coverage. You’ll need this type of policy if you want your damages to be covered after you or another family member on the policy is involved in an accident.
Cheapest liability-only car insurance for new drivers: State Farm
For new drivers looking for liability-only car insurance, State Farm has the lowest average quote at $1,803 a year, or $150 monthly. Geico has the next cheapest liability-only rate at $1,992 a year, or $166 a month.
Cheapest companies for liability-only insurance for new drivers
| Company | Average annual rate |
|---|---|
| State Farm | $1,803 |
| Geico | $1,992 |
| Progressive | $3,089 |
| Allstate | $3,339 |
| Farmers | $4,084 |
Rates are for liability-only car insurance for an 18-year-old male with a clean driving record.
Liability-only, also known as “minimum car insurance”, covers damages and injuries of other drivers involved in an accident you’re responsible for. Drivers are required to carry state-mandated minimum limits of coverage in most states.
How much is car insurance for teens?
Teen drivers pay an average rate of $5,670 a year for full-coverage car insurance, in comparison to the average adult rate of $1,976 annually. As for liability-only coverage, teens pay an average of $2,394 a year — in comparison, adults pay an average of $773 a year.
| Car insurance policy type | Average annual teen rate | Average annual adult rate | Rate difference for teens |
|---|---|---|---|
| Full coverage | $5,670 | $1,976 | 187% |
| Liability-only | $2,394 | $773 | 210% |
Rates are for car insurance for an 18-year-old and a 30-year-old male with clean driving records.
The graph below shows the average full- and liability-only rates for young drivers in all 50 states and the District of Columbia. Alabama has the cheapest rates for teen drivers in the country, while Rhode Island’s rates are the highest ones (this applies for both full- and liability-only coverage).
Rates are for car insurance for an 18-year-old male with a clean driving record.
| State | Full-coverage average annual rate | Liability-only average annual rate |
|---|---|---|
| Alabama | $502 | $193 |
| Alaska | $4,424 | $1,878 |
| Arizona | $8,211 | $3,411 |
| Arkansas | $5,954 | $2,119 |
| California | $4,446 | $1,477 |
| Colorado | $7,165 | $2,902 |
| Connecticut | $7,710 | $3,816 |
| Delaware | $10,153 | $4,954 |
| Florida | $6,306 | $1,882 |
| Georgia | $6,229 | $2,884 |
| Hawaii | $1,739 | $649 |
| Idaho | $1,561 | $1,561 |
| Illinois | $2,851 | $2,851 |
| Indiana | $4,146 | $1,612 |
| Iowa | $4,332 | $1,328 |
| Kansas | $5,975 | $2,124 |
| Kentucky | $7,648 | $3,760 |
| Louisiana | $7,974 | $3,041 |
| Maine | $3,689 | $1,632 |
| Maryland | $6,951 | $3,604 |
| Massachusetts | $5,808 | $2,072 |
| Michigan | $9,761 | $3,717 |
| Minnesota | $5,407 | $2,304 |
| Mississippi | $5,525 | $2,105 |
| Missouri | $4,986 | $2,059 |
| Montana | $6,214 | $1,784 |
| Nebraska | $4,919 | $1,515 |
| Nevada | $9,325 | $4,682 |
| New Hampshire | $3,168 | $1,478 |
| New Jersey | $6,929 | $4,153 |
| New Mexico | $5,495 | $2,024 |
| New York | $6,273 | $3,279 |
| North Carolina | $2,848 | $1,129 |
| North Dakota | $5,584 | $1,742 |
| Ohio | $4,105 | $1,688 |
| Oklahoma | $6,653 | $2,342 |
| Oregon | $6,493 | $3,243 |
| Pennsylvania | $4,369 | $1,421 |
| Rhode Island | $10,639 | $4,972 |
| South Carolina | $5,629 | $2,641 |
| South Dakota | $5,108 | $1,206 |
| Tennessee | $4,851 | $1,699 |
| Texas | $5,016 | $2,029 |
| Utah | $7,398 | $3,317 |
| Vermont | $3,673 | $1,225 |
| Virginia | $5,960 | $2,579 |
| Washington | $5,256 | $2,403 |
| Washington DC | $7,370 | $3,492 |
| West Virginia | $5,609 | $2,088 |
| Wisconsin | $5,352 | $1,932 |
| Wyoming | $4,498 | $1,111 |
Why is car insurance for new drivers so expensive?
New drivers pay the highest rates for car insurance due to their inexperienced driving. The Highway Loss Data Institute (HLDI) finds that drivers ages 16 to 19 have three times the fatal crash rate of drivers ages 20 and older.
Due to their higher chances of being involved in an insurance claim, auto insurance companies charge new drivers a higher rate for a policy.
Car insurance rates for new drivers decrease over time. For teen drivers, those rates tend to fall and stabilize around age 25 for a long period, as long as they maintain a good driving record.
How do I get affordable car insurance for a young driver?
To find a low-cost car insurance policy for a teen, you should consider getting on a parent’s policy, taking advantage of discounts and comparing quotes.
Get on a parent’s auto insurance policy
Getting a child on a parent’s already-existing car insurance policy is probably the most direct way to save money on a new driver’s car insurance. Most car insurance companies consider the parent’s driving record when adding a child to a policy, and reduce the rate accordingly.
Of course, you will see your premium increase. But the overall cost of your policy should be cheaper than if you bought your coverage and your child’s separately.
Explore discounts
Car insurance companies offer discounts specifically geared toward teen drivers. Many providers have a good student discount, where you can save money on your annual premium if you maintain a 3.0 GPA.
If you’re going away to school and leaving your car at home, some auto insurance companies offer a discount based on that. This way, you have the car available when you’re home on break or holiday, and can keep your car covered.
Another good discount to consider is through bundling. If you purchase auto insurance and have renters, home or life insurance through the same company, you may get a discount on both policies.
Compare quotes
While all standard car insurance policies are almost the same, different companies put different risk values on the factors they use to calculate your quote.
For example, one insurer may consider the make of your car a higher risk value than another company. This is a reason why car insurance quotes can vary.
By comparing several quotes for the same coverage from different companies, you can find which provider gets you or your teen the best car insurance as a new driver.
More frequently asked questions
Drivers with a learner’s permit need to have car insurance before they get behind the wheel. Getting the child on a parent’s policy is a good solution in this case.
Drivers under the age of 18 cannot enter into a contractual agreement without cosigning from their parents (in some states, the age limit is 19). Check with your local department of motor vehicles to learn what your state’s age limit is.