Here’s a breakdown of how we reviewed and rated the top auto insurance providers
Key Takeaways
- The cheapest national car insurance rates for new drivers start at $158 per month and the most affordable providers are Auto-Owners for minimum coverage and Farmers for full coverage.
- The best cheap auto insurance company is Auto-Owners, which offers some of the lowest rates while offering some of the high quality coverage.
Best Cheap Car Insurance Companies for New Drivers
See the most affordable and best national car insurance companies for new drivers in the table below. Rates presented are for 16-year-olds with good credit and no driving violations who are insuring a 2023 Toyota Camry, and are calculated based on around 70,000 auto insurance quotes for 16-year-olds sourced in 2025 from Quadrant Information Services. In order to rank providers for this list, we calculated a special value score that combined star rating with its ranking based on affordability.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
| Insurance Company | Star Rating | Avg. Monthly Liability Coverage Cost | Avg. Monthly Full Coverage Cost | |
|---|---|---|---|---|
|
|
$158
|
$449
|
||
|
|
$171
|
$444
|
||
|
|
$176
|
$504
|
||
|
|
$185
|
$477
|
||
|
|
$209
|
$498
|
| Insurance Company | Star Rating | Avg. Monthly Liability Coverage Cost | Avg. Monthly Full Coverage Cost | |
|---|---|---|---|---|
|
|
$158
|
$449
|
||
|
|
$171
|
$444
|
||
|
|
$176
|
$504
|
||
|
|
$185
|
$477
|
||
|
|
$209
|
$498
|
While drivers can be considered new at any age they start, typically insurers will judge your rates similarly to those of teens. So in order to mimic this, we calculated rates for new drivers using the base profile of 16-year-old with good credit and no driving violations who are insuring a 2023 Toyota Camry, unless stated otherwise.
We only included national providers that met an overall score of at least 8 out of 10 in our industry review. Once companies were sorted by this methodology, we ranked each provider in terms of overall affordability for both minimum liability coverage and full coverage. We based rates on a 50/100/50 split for liability coverages and a $500 deductible for collision and comprehensive insurance.
Learn more about our methodology.
Cheapest Car Insurance Companies for New Drivers
The tables below feature the cheapest national car insurance providers for drivers between the ages of 16 and 19, along with their average monthly rates for both minimum and full coverage. We’ve also compared each provider’s rates to the national averages for each driver age.
Cheap Minimum Liability Car Insurance for New Drivers
| Age | Average Premium | Cheapest Provider | Cheapest Provider Premium | Savings from Age Avg |
|---|---|---|---|---|
| 16 | $242 | Erie | $119 | -51% |
| 17 | $209 | Erie | $107 | -49% |
| 18 | $185 | Erie | $97 | -48% |
| 19 | $145 | USAA | $83 | -43% |
Cheap Full-Coverage Car Insurance for New Drivers
| Age | Average Premium | Cheapest Provider | Cheapest Provider Premium | Savings from Age Avg |
|---|---|---|---|---|
| 16 | $487 | Farmers | $338 | -31% |
| 17 | $457 | Farmers | $326 | -29% |
| 18 | $429 | Erie | $355 | -17% |
| 19 | $389 | USAA | $300 | -23% |
Learn More Specifics About the Cheapest Car Insurance for New Drivers
To find even more specific information about which companies have the cheapest rates for your age, we’ve provided additional resources:
- Best Cheap Car Insurance for Young Drivers
- Best Cheap Car Insurance for Young Adults
- Best Cheap Car Insurance for Teens
- Best Cheap Car Insurance for College Students
- Best Cheap Car Insurance for 16-Year-Olds
- Best Cheap Car Insurance for 17-Year-Olds
- Best Cheap Car Insurance for 18-Year-Olds
- Best Cheap Car Insurance for 19-Year-Olds
- Best Cheap Car Insurance for 20-Year-Olds
- Best Cheap Car Insurance for 21-Year-Olds
- Best Cheap Car Insurance for 25-Year-Olds
How Much Is Car Insurance for New Drivers?
Average rates for 16-year-old drivers are $235 per month for minimum coverage and $474 per month for full coverage. While it can be hard to pin down the exact costs for new drivers since you can start at any age, in general, insurance companies will start you out with rates given for the minimum required driving age. Until you have about three years of experience under your belt, you can expect to pay the highest premiums.
To illustrate this, we’ve provided costs you can expect if you have less than 10 years of driving experience:
| Years of Driving Experience | Average Monthly Minimum-Coverage Rate | Average Monthly Full-Coverage Rate |
|---|---|---|
| First Year | $242 | $487 |
| Second Year | $209 | $457 |
| Third Year | $185 | $429 |
| Fourth Year | $145 | $389 |
| Fifth Year | $129 | $365 |
| Sixth Year | $105 | $312 |
| Seventh Year | $96 | $292 |
| Ninth Year | $75 | $235 |
Car Insurance Costs for New Drivers by State
Rates can change based on a variety of geographic factors like population density and crime patterns. So to help you understand how good of a deal you are getting, we’ve provided average minimum coverage rates and the cheapest provider by state for 16-year-old drivers.
|
State
|
Average Minimum-Coverage Premium
|
Cheapest Provider
|
Cheapest Provider Premium
|
|---|---|---|---|
| Alabama | $236 | Country Financial | $141 |
| Alaska | $157 | Allstate | $108 |
| Arizona | $307 | Travelers | $169 |
| Arkansas | $279 | Travelers | $147 |
| California | $198 | USAA | $122 |
| Colorado | $305 | American National Insurance | $140 |
| Connecticut | $384 | Amica | $195 |
| Delaware | $396 | Geico | $274 |
| District of Columbia | $291 | Chubb | $73 |
| Florida | $369 | Geico | $152 |
| Georgia | $327 | USAA | $208 |
| Hawaii | $43 | Geico | $23 |
| Idaho | $174 | Farm Bureau | $69 |
| Illinois | $233 | Erie | $89 |
| Indiana | $191 | USAA | $99 |
| Iowa | $157 | Progressive | $105 |
| Kansas | $226 | USAA | $117 |
| Kentucky | $265 | Farm Bureau | $177 |
| Louisiana | $399 | Farm Bureau | $307 |
| Maine | $154 | Auto-Owners | $90 |
| Maryland | $249 | USAA | $132 |
| Massachusetts | $227 | Plymouth Rock | $135 |
| Michigan | $219 | Auto-Owners | $93 |
| Minnesota | $168 | North Star Mutual Insurance | $97 |
| Mississippi | $234 | USAA | $163 |
| Missouri | $252 | USAA | $102 |
| Montana | $187 | Geico | $85 |
| Nebraska | $231 | Farmers | $85 |
| Nevada | $407 | USAA | $272 |
| New Hampshire | $195 | Hanover Insurance | $63 |
| New Jersey | $337 | Geico | $127 |
| New Mexico | $252 | Central Insurance | $94 |
| New York | $277 | NYCM | $164 |
| North Carolina | $199 | State Farm | $144 |
| North Dakota | $187 | North Star Mutual Insurance | $66 |
| Ohio | $168 | Erie | $61 |
| Oklahoma | $239 | AFR Group | $86 |
| Oregon | $312 | Country Financial | $137 |
| Pennsylvania | $168 | Westfield Insurance | $70 |
| Rhode Island | $351 | State Farm | $161 |
| South Carolina | $312 | USAA | $169 |
| South Dakota | $202 | North Star Mutual Insurance | $74 |
| Tennessee | $198 | Erie | $99 |
| Texas | $247 | Redpoint Insurance | $55 |
| Utah | $379 | American Family | $213 |
| Vermont | $111 | Patrons Insurance | $49 |
| Virginia | $194 | Travelers | $49 |
| Washington | $281 | PEMCO Insurance | $144 |
| West Virginia | $248 | Erie | $85 |
| Wisconsin | $230 | Erie | $80 |
| Wyoming | $100 | Geico | $50 |
Why Is Car Insurance So Expensive for New Drivers?
New drivers can pay as much as $5,000 per year or more for car insurance, depending on the company. New drivers are more expensive to insure due to their lack of a driving record. Younger drivers are more likely to be in an accident, which also raises car insurance rates.
Part of the reason insurance companies hike rates for younger and newer drivers is because of the increased likelihood of an accident. In fact, the Centers for Disease Control and Prevention states that drivers between the ages of 16 and 19 are more likely to be in car accidents than any other age group. The CDC also notes that car crashes are the leading cause of death for U.S. teens.
How Long Are You Considered a New Driver for Car Insurance?
For insurance purposes, you’re considered a new driver until you have at least three years of U.S. driving experience. However, these limitations may vary. Some providers consider those with less than nine years of U.S. driving experience new drivers.
New drivers aren’t just teens and college-aged young adults. In fact, according to the Federal Highway Administration, there were almost 8,000 more licensed drivers between 25 and 29 years old than drivers aged 19 and under in 2022.
Auto insurance companies typically classify the following driving profiles as new drivers:
- Teen drivers (new young drivers)
- First-time adult drivers
- Immigrants and visiting international drivers
Car Insurance for International Drivers
As mentioned above, car insurance for first-time drivers in the U.S. includes more than just teens. International drivers who move to or visit the U.S. for an extended period must have car insurance if they drive on the open road.
According to the Center for Immigration Studies, immigrants moving to the U.S. are, on average, 31 years old.
Car Insurance for New Immigrants
Immigrants and foreign nationals may be classified as new drivers when they first enter the U.S. This is because auto insurance companies usually check domestic driving records, so you can have a clean driving record in another country and still be considered an inexperienced driver after moving to the U.S.
Being an immigrant can make it harder to purchase car insurance. Many car insurance companies will reject applicants who don’t have valid driver’s licenses. Depending on where you live, you may still be able to get a license if you don’t have the proper government paperwork.
According to the National Conference of State Legislatures, Washington, D.C. and the 19 states below allow undocumented immigrants to obtain driver’s licenses if they can produce items like a foreign birth certificate, valid foreign passport or proof of residency in the state.
How To Save on Car Insurance for New Drivers
There’s no one surefire way to find the best price for auto insurance, but there are a few things you can do to get a lower car insurance premium. We recommend using the following strategies if you’re purchasing car insurance for new drivers.
Compare Insurance Companies for New Drivers
No two insurance companies will give you the same price. Taking time to compare car insurance quotes will provide you with a baseline idea of what you can expect to pay when adding someone to an existing policy — or how much you could save by switching providers.
Improve Your Credit Score
Because having a poor credit score can make your rates go up in most states, building good credit before you start driving is a smart way to get cheaper car insurance as a new driver.
Improving your credit can seem like a daunting task, but there are many things you can start doing today to raise your credit score. Here are seven simple steps to start raising your credit so you can get lower rates on your car insurance.
Look for New Driver Car Insurance Discounts
Several car insurance companies offer discounts for young drivers and students, but you can save money through other means, too. Bundling policies like homeowners insurance with your auto coverage can lower your premium, so check to see if your insurer offers a multi-policy discount.
If you are a younger driver, the best way to get cheap car insurance is to stay on your parents’ policies. Car insurance companies typically offer families several discounts to save money on insurance coverage, including:
- Safe driving discounts
- Good student discounts (must have B average grades or higher)
- College student and student-away-at-school discounts
- Defensive driving course discounts
Young drivers can’t purchase their own policies unless they own their own cars and no longer have the same permanent address as their parents. Keep in mind that drivers under the age of 25 usually pay much higher rates. Adding a young driver to an insurance policy will still increase your premiums substantially, but the amount will depend on your insurance company, the vehicle and where you live.
Adjust Your Car Insurance Coverage
If you’re looking to save and have a new driver on the road, adjusting your current auto policy might give you a better rate. Opting for a higher deductible usually leads to lower premiums, but it does mean paying more up front if you file an insurance claim.
Another option is dropping coverage you don’t need. If one of your cars is older and you own it outright, you can likely stop paying for collision insurance and comprehensive coverage. In most states, you’ll still have to pay for liability insurance if you decide to drop the rest of your full-coverage policy.
Try Usage-Based Insurance
Also known as pay-per-mile insurance, usage-based car insurance coverage measures driving behaviors and mileage and uses this data to set rates. By linking the monthly bill to the actual time on the road and good driving habits, usage-based insurance policies usually end up costing customers less than traditional auto insurance, according to the National Association of Insurance Commissioners (NAIC).
Usage-based policies may not be available in every state. They’re also not a good option if you drive often or have a long commute, and people with poor driving habits may actually see their rates increase.
Frequently Asked Questions About Car Insurance for New Drivers
The best way to insure a new young driver is to compare rates from different car insurance companies online. New drivers can save money on car insurance by comparing rates between providers, looking for discounts and dropping unnecessary coverage.
You will be required to carry the state–minimum insurance based on where you live. Most states require liability insurance (bodily injury liability and property damage liability) at a minimum. But this will only cover other people and their passengers in accidents that you cause. If you want to protect yourself and your passengers, you may want to consider purchasing a full-coverage car insurance policy, which includes liability, collision and comprehensive coverage.
Our picks for the best car insurance for new drivers are USAA, Travelers and Geico. All of these companies offer policyholders great rates and plenty of ways to save if you are a newer driver.
Our Methodology: How We Vetted the Best Car Insurance Companies for New Drivers
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800+ hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
Studies and Ratings We Cite
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Our provider reviews cite several key industry studies and ratings, including:
- J.D. Power 2024 U.S. Insurance Shopping Study The annual J.D. Power U.S. Insurance Shopping Study measures customer satisfaction and purchase experience with auto insurance providers based on five categories: brand, price, distribution channel, quote process and policy offerings. The study average score is 676/1,000.
- J.D. Power 2024 U.S. Auto Claims Satisfaction Study The annual J.D. Power U.S. Auto Claims Study rates the claims experience customers have with different providers based on eight categories: trust, fairness of settlement, time to settle a claim, people, communication, ease of resolving a claim, ease of starting a claim and digital channels. Car insurance providers are assessed at the national level. The study average score is 697/1,000.
- NAIC Complaint Index The National Association of Insurance Commissioners Complaint Index is a representation of the number of complaints auto insurance providers receive relative to the average number of complaints for the industry based on their size. A score of 1 represents the average number of complaints for the industry.
*Data accurate at time of publication.
