Best Auto Insurance for New Drivers: Top Providers in 2026
Erie, USAA, and Liberty Mutual offer the best auto insurance for new drivers, with USAA providing the lowest rates starting at $73 per month. Top insurers also offer young-driver discounts, UBI programs, and teen-driving courses to help lower premiums while maintaining reliable coverage.
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Insurance Content Team Lead
Tonya Sisler has been a technical insurance writer for over five years. She uses her extensive insurance and finance knowledge to write informative articles that answer readers' top questions. Her mission is to provide readers with timely, accurate information that allows them to determine their insurance needs and choose the best coverage. Tonya currently leads a team of 10 insurance copywrite...
Tonya Sisler
Managing Editor
Daniel S. Young began his professional career as chief editor of The Chanticleer, a Jacksonville State University newspaper. He also contributed to The Anniston Star, a local newspaper in Alabama. Daniel holds a BA in Communication and is pursuing an MA in Journalism & Media Studies at the University of Alabama. With a strong desire to help others protect their investments, Daniel has writt...
Daniel S. Young
Licensed Insurance Adjuster
Theodore (Ted) Patestos is a seasoned innovator and policyholder advocate in the public adjusting industry. With a career dedicated to turning data into actionable insights, Ted has championed tools and strategies that improve transparency, efficiency, and outcomes for both consumers and adjusters. He developed Claim Machine, a platform that uses weather data to help public adjusters, contractors,...
Ted Patestos
Updated August 2026
Erie, USAA, and Liberty Mutual offer the best auto insurance for new drivers. Erie is our top pick overall, while USAA offers the cheapest rates for eligible drivers.
- State Farm helps new drivers save with training and discounts
- The cheapest new driver policies are USAA’s at $73/mo
- Adding a new driver to a family policy can lower insurance costs
Erie is the top overall pick for new drivers, with reliable claims service and support throughout the claims process.
USAA offers affordable coverage and high customer satisfaction for eligible military families, while Liberty Mutual stands out for its flexible add-on coverage.
Top 10 Companies: Best Auto Insurance for New Drivers
| Company | Rank | Claims Satisfaction | A.M. Best | Best for |
|---|---|---|---|---|
 | #1 | 743 / 1,000 | A | Claims Service |
 | #2 | 741 / 1,000 | A++ | Military Families |
 | #3 | 730 / 1,000 | A | Add-On Options |
 | #4 | 729 / 1,000 | A+ | UBI Savings |
 | #5 | 716 / 1,000 | A+ | Good Students |
 | #6 | 702 / 1,000 | A | Loyalty Savings |
 | #7 | 697 / 1,000 | A++ | Online Tools |
 | #8 | 693 / 1,000 | A+ | Safe Drivers |
 | #9 | 691 / 1,000 | A++ | Policy Options |
 | #10 | 673 / 1,000 | A+ | Telematics |
The average cost of auto insurance varies by age, location, driving history, and coverage. Compare quotes to find the right policy.
Compare quotes to find reliable coverage that fits your needs and budget. Enter your ZIP code into our free tool to compare new driver insurance prices today.
Compare Car Insurance Costs for New Drivers
USAA offers the lowest minimum coverage for eligible military families at $73 per month with excellent credit. The $86 rate below is based on good credit, which accounts for the higher cost.
Erie follows at $105 per month, offering affordable coverage and strong claims service. State Farm starts at $151 per month with a wide range of discounts.
New Driver Auto Insurance Monthly Rates by Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $278 | $768 |
| $197 | $590 |
| $105 | $371 |
| $170 | $522 |
| $201 | $675 |
| $281 | $760 |
| $266 | $844 |
| $151 | $680 |
| $221 | $497 |
| $86 | $392 |
Geico offers coverage that starts at $170 per month, while Progressive starts at $266 per month. Progressive’s Snapshot® program can help eligible new drivers lower their prices over time.
Eligible military families can get cheap full coverage auto insurance for new drivers through USAA, with premiums starting at $392 per month.
For other drivers, Erie offers the lowest full coverage cost in this comparison at $371 per month. Travelers follows at $497 per month, while Geico offers full coverage at $522 per month.
Comparing quotes from multiple insurers remains the best way for new drivers to find the lowest monthly price and the right coverage. Instantly compare quotes by entering your ZIP code here.
How a New Driver’s Age & Gender Impacts Insurance Pricing
Auto insurance rates by age are highest for new drivers during their teenage years because limited driving experience increases the risk of accidents and claims.
Drivers under 21 can pay $408 to $911 per month for full coverage, depending on age and gender.
By age 21, prices drop to about $335 for female drivers and $370 for male drivers, with a clean record helping keep costs lower.
Monthly full coverage premiums become more affordable as drivers get older. From ages 16 to 21, costs fall from $911 to $370 for males and from $820 to $335 for females, saving them $541 and $485 per month.
Regularly comparing quotes can help new drivers secure lower premiums as their driving history improves.
Use your location to compare personalized quotes and find the best coverage at the lowest available price. Enter your ZIP code to compare quotes and find the most affordable insurance rates.
How a New Driver’s Driving Record Affects Insurance Costs
New driver auto insurance rates can rise significantly after an accident, DUI, or traffic ticket, which makes a clean driving record especially valuable for keeping premiums affordable.
USAA has the lowest price in this comparison at $86 per month for a clean record, while Erie follows closely at $105 per month.
New Driver Auto Insurance Monthly Rates by Driving Record
| Company | Clean Record | One Accident | One DUI | One Ticket |
|---|---|---|---|---|
| $278 | $433 | $405 | $347 |
| $197 | $259 | $266 | $236 |
| $105 | $156 | $195 | $130 |
| $170 | $289 | $388 | $226 |
| $201 | $299 | $374 | $249 |
| $281 | $454 | $591 | $377 |
| $266 | $401 | $362 | $359 |
| $151 | $191 | $220 | $174 |
| $221 | $306 | $390 | $287 |
| $86 | $122 | $165 | $104 |
Erie also keeps prices relatively low after driving violations, offering cheap auto insurance after a DUI at $195 per month, compared with $156 after an accident and $130 after a ticket.
With strong claims service and competitive pricing, Erie is a reliable choice for new drivers seeking affordable coverage and dependable support.
How Credit Scores Affect Insurance Premiums for New Drivers
Excellent credit can help lower new drivers’ car insurance prices, but affordability is only part of the equation.
Erie offers some of the lowest prices for drivers with excellent credit at $90 per month, while Geico starts at $145 per month.
New Driver Auto Insurance Monthly Rates by Credit Score
| Company | Excellent (800+) | Good (670-799) | Fair (580-669) | Poor (<580) |
|---|---|---|---|---|
| $237 | $278 | $326 | $459 |
| $168 | $197 | $231 | $325 |
| $90 | $105 | $123 | $173 |
| $145 | $170 | $199 | $283 |
| $171 | $201 | $235 | $332 |
| $240 | $281 | $329 | $464 |
| $227 | $266 | $311 | $439 |
| $129 | $151 | $177 | $249 |
| $188 | $221 | $259 | $365 |
| $73 | $86 | $101 | $142 |
Erie offers coverage for drivers with excellent credit at $90 per month, along with affordable rates and outstanding claims service.
Its overall value makes it the top pick for new drivers. Enter your ZIP code to compare insurance costs.
New drivers should check their credit report before comparing quotes, as correcting errors may help lower insurance prices.
Kristen Gryglik Licensed Insurance Agent
USAA offers the best auto insurance for military families and veterans, with the lowest premium in this comparison at $73 per month for drivers with excellent credit.
For most drivers, Erie offers a strong balance of affordable coverage and dependable service, while USAA provides the lowest price for eligible military families.
Car Insurance Costs for New Drivers in the U.S.
New driver auto insurance costs vary by state based on local risks, repair prices, claim frequency, and insurance laws.
When looking at the average cost of car insurance at the state level, the cheapest monthly premiums are found in Hawaii at just $27 for minimum coverage.
North Carolina offers relatively affordable coverage at $82 for minimum and $140 for full coverage, while New York averages $71 and $251 per month, respectively.
Auto insurance rates by state can vary significantly, so comparing quotes from multiple insurers is one of the best ways for new drivers to save.
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Easy Ways New Drivers Can Save on Auto Coverage
New drivers have several opportunities to lower their auto insurance prices beyond simply choosing the cheapest policy.
Avoiding accidents, traffic violations, and claims helps drivers qualify for lower prices as they gain experience.
- Avoid Coverage Lapses: Keeping continuous insurance coverage can help new drivers qualify for lower costs and avoid price increases.
- Choose the Right Vehicle: Choosing a vehicle with high safety ratings and lower repair costs can help you qualify for the cheapest car insurance for new drivers.
- Maintain Good Grades: Young drivers who excel in school may be eligible for good student discounts that lower their insurance premium.
- Pay Policy in Full: Paying the entire price upfront can qualify new drivers for discounts while avoiding monthly installment fees.
- Use Telematics Programs: Safe drivers can lower premiums by enrolling in usage-based insurance programs that track driving habits.
Comparing quotes from several insurers can help new drivers find savings that match their individual profile and coverage needs.
Reviewing a policy regularly can also uncover new savings opportunities as driving experience increases and circumstances change.
Many insurers also offer safe driving discounts and usage-based insurance programs that reward responsible driving with additional savings.
Using these strategies can help new drivers qualify for the best auto insurance discounts, lowering premiums while building a strong insurance history.
Top Auto Insurance Discounts for New Drivers
| Company | Anti-Theft | Bundling | Good Driver | Usage-Based |
|---|---|---|---|---|
| 10% | 17% | 25% | 30% |
| 25% | 25% | 25% | 35% |
| 15% | 15% | 23% | 30% |
| 25% | 10% | 26% | 25% |
| 35% | 10% | 20% | 30% |
| 5% | 18% | 40% | 40% |
| 25% | 11% | 30% | 30% |
| 15% | 18% | 25% | 30% |
| 15% | 13% | 10% | 40% |
| 15% | 6% | 30% | 30% |
New drivers can save the most on their premiums with good driver and usage-based discounts of up to 40%, especially when they maintain safe driving habits.
These discounts matter because limited driving experience often leads to higher premiums. Using available discounts can lower insurance costs and reward safer driving habits.
How to Buy Insurance for Your First Vehicle
Buying auto insurance for your first car starts with understanding your state’s insurance requirements and gathering important vehicle details, including the VIN, make, model, and year.
If you’re financing or leasing the vehicle, check your lender’s requirements, as many require full coverage until the loan or lease is paid off.
Before choosing a policy, compare quotes from several insurance companies to evaluate price, coverage options, and the best auto insurance discounts for a new car.
Selecting the right coverage for your budget and driving needs can help you avoid unnecessary costs while maintaining adequate financial protection. Once you’ve chosen a policy, complete your purchase and keep proof of insurance before driving your new car.
10 Best Insurance Companies for New Drivers
Choosing the right car insurance for a new driver can make a big difference in both cost and coverage.
State Farm, Progressive, Geico, Allstate, and USAA are the five largest insurers by market share in the auto insurance industry.
The new driver ranking looks at cost and coverage, along with available discounts and claims service. Erie ranks first, followed by USAA, Liberty Mutual, Nationwide, and State Farm, giving new drivers several options to consider based on their needs.
The providers below are among the best auto insurance companies, offering strong value backed by financial stability and positive customer experiences.
#1 – Erie: Top Pick Overall
Pros
- Top Claims Service: New drivers benefit from Erie’s industry-leading 743/1,000 claims satisfaction score and smoother claims experience.
- Affordable Premium: Erie offers basic coverage from $105 a month for inexperienced drivers, making it a budget-friendly option, as explained in our Erie Insurance Review.
- Safe Driver Savings: New drivers may qualify for discounts that reward safe driving habits and help reduce insurance costs over time.
Cons
- No Military Discount: New drivers from military families may find better savings with insurers that offer military-specific discounts.
- Limited Bundling: New drivers without additional policies to bundle may have fewer opportunities for extra discounts.
#2 – USAA: Best for Military Families
Pros
- Military-Exclusive Discounts: New drivers from military families can qualify for exclusive savings, including vehicle storage discounts during deployments.
- Lowest New Driver Rates: Minimum coverage costs as low as $73 per month, while full coverage starts at $392. Explore premiums in our guide: USAA Insurance Review
- Strong Financial Stability: Gives new drivers confidence that claims will be paid reliably when they need coverage.
Cons
- Higher Rates for Some Drivers: New drivers may find lower premiums with other insurers depending on their location and driving profile.
- Limited Public Access: Most new drivers cannot qualify unless they meet military eligibility requirements.
#3 – Liberty Mutual: Best for Add-On Options
Pros
- Custom Coverage Options: New drivers can personalize their policy with add-ons such as accident forgiveness, new car replacement, and rental car reimbursement.
- RightTrack Savings: Our review of Liberty Mutual found that RightTrack rewards safe driving habits with discounts for new drivers.
- Flexible Deductibles: Young driver car insurance policies allow drivers to choose deductible levels that fit their budget and coverage needs.
Cons
- Premium Increases After Claims: New drivers may face higher premiums after filing an at-fault accident claim, depending on the circumstances and their policy.
- Telematics Participation Required: New drivers must enroll in RightTrack to qualify for its safe-driving discount.
#4 – Nationwide: Best for UBI Savings
Pros
- SmartMiles Option: Low-mileage new drivers can reduce premiums with its pay-per-mile SmartMiles program. What to Know: Nationwide Insurance Review
- SmartRide Savings: New drivers can save up to 40% through Nationwide’s SmartRide usage-based insurance program by practicing safe driving habits.
- Discount Variety: New drivers may qualify for savings through multi-policy, safe driver, good student, and defensive driving discounts.
Cons
- Driving Monitoring: New drivers must agree to have their driving behavior tracked to maximize SmartRide savings.
- Higher Base Price: Standard costs may be less competitive for new drivers who do not qualify for telematics or discounts.
#5 – State Farm: Best for Good Students
Pros
- Good Student Discount: Eligible new drivers who maintain good grades can qualify for premium savings through State Farm’s Good Student Discount.
- Drive Safe & Save: New drivers can lower prices through the Drive Safe & Save telematics program. Learn more in our guide: State Farm Insurance Review
- Extensive Agent Network: New drivers can receive personalized guidance from thousands of local agents nationwide.
Cons
- Bundling Encouraged: New drivers can unlock the biggest savings by bundling auto insurance with other eligible policies.
- State Availability Varies: State-specific rules may affect the discounts and coverage available with State Farm car insurance for new drivers.
#6 – American Family: Best for Loyalty Savings
Pros
- Loyalty Rewards: New drivers who are added to an existing AmFam policy can save even more.
- Volunteer Discount: New drivers who are enrolled in school and volunteer may qualify for additional savings.
- Teen Driver Program: Resources and discount opportunities encourage safe driving habits for new drivers, according to our review of American Family.
Cons
- Volunteer Eligibility: Some discounts for new drivers depend on meeting specific eligibility requirements rather than being automatically available.
- Regional Network: New drivers relocating outside American Family’s service area may need to switch insurers.
#7 – Geico: Best for Online Tools
Pros
- Online Claims: New drivers can easily file claims online, upload documents, and track their claim status digitally. Discover More: Geico Insurance Review
- DriveEasy Rewards: The DriveEasy telematics program helps new drivers earn personalized discounts by rewarding safe driving habits.
- Easy Digital Tools: A highly rated mobile app lets young drivers compare cheap car insurance quotes online, file claims, and access ID cards.
Cons
- Fewer Coverage Add-Ons: Geico offers fewer optional endorsements than some competitors, limiting customization for new drivers.
- Limited Local Agents: Most new drivers will manage their policy online or by phone rather than through local agents.
#8 – Allstate: Best for Safe Drivers
Pros
- Safe Driving Rewards: Allstate’s Drivewise® rewards safe driving habits, such as maintaining safe speeds and stops, with potential savings, as detailed in our Allstate Insurance Review.
- Coverage Flexibility: A new driver can change a policy to include optional coverages such as roadside service coverage, car rental reimbursement, and new-car replacement.
- Accident Forgiveness: Eligible policyholders can avoid a price increase after their first at-fault accident, providing added financial security for a new driver.
Cons
- Costly Add-Ons: Optional coverage upgrades can increase the overall price for a new driver seeking broader protection.
- Driving Monitoring: A new driver who enrolls in Drivewise must agree to have driving behavior tracked to qualify for savings.
#9 – Travelers: Best for Policy Options
Pros
- Flexible Policies: New drivers can choose from a variety of policy options to better match their budget and coverage needs.
- IntelliDrive Savings: IntelliDrive rewards safe driving with potential discounts for new drivers, a benefit highlighted in our Travelers Insurance Review.
- Gap Insurance: New drivers financing or leasing a vehicle can add loan/lease gap coverage to help pay the remaining balance after a total loss.
Cons
- State Availability: Some coverages and discounts for new drivers vary by state and may not be available everywhere.
- Limited Discounts: Discount opportunities for new drivers may be fewer than those offered by insurers with extensive student or training programs.
#10 – Progressive: Best for Telematics
Pros
- Telematics Savings: Progressive typically charges higher premiums, but its usage-based insurance program allows safe drivers to reduce their premiums over time.
- Snapshot Rewards: Our detailed review of Progressive explains how new drivers can earn discounts through the Snapshot telematics program.
- Flexible Payment Plans: Multiple payment options make it easier for new drivers to manage insurance costs throughout the policy term.
Cons
- Discount Eligibility: Certain savings require meeting program requirements, so not every new driver will qualify for the maximum discounts.
- Price Increases: Unsafe driving behavior tracked through Snapshot may lead to higher premiums for some new drivers.
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Choose the Best New Driver Auto Insurance Policy
The best auto insurance for new drivers combines affordable premiums, dependable coverage, and discounts that help keep costs manageable.
Erie, USAA, and Liberty Mutual are among the best auto insurance companies for new drivers. Erie offers outstanding claims service, giving new drivers confidence that claims will be handled quickly and fairly.
New drivers should consider policy flexibility along with price, since their coverage needs may change over time.
Daniel Walker Licensed Insurance Agent
USAA offers the lowest premiums, starting at $73 per month, for qualified active-duty military members, veterans, and their families.
Liberty Mutual offers flexible coverage options that can adjust as a new driver’s insurance needs change.
These providers rank among the cheapest auto insurance companies because of their lower monthly rates, while also offering coverage options and discounts that add value.
Find the best car insurance for new drivers by entering your ZIP code into our free comparison tool to compare the lowest available costs.
Frequently Asked Questions
What is the best car insurance for young drivers?
Erie, USAA, and Liberty Mutual offer some of the best auto insurance for young drivers, while eligible military families may find the lowest costs with USAA. Compare quotes to find the best deal.
Who has the cheapest car insurance for new drivers?
USAA offers the cheapest auto insurance for new drivers, with rates as low as $73 per month for eligible military members, veterans, and their families. For most drivers, Erie offers some of the lowest costs at $105 for minimum coverage and $371 for full coverage, while Travelers offers full coverage at $497 per month.
What’s the average insurance for first-time drivers?
Average car insurance costs for first-time drivers vary widely. Rates range from $27 to $281 per month for minimum coverage and $78 to $911 per month for full coverage auto insurance, depending on age, location, and insurer.
How do you get cheap auto insurance for new drivers?
Compare quotes from multiple insurers to find cheap auto insurance for new drivers. You can also save with good student or telematics discounts, continuous coverage, a clean driving record, and a less expensive vehicle to insure.
Find cheaper car insurance as a new driver by entering your ZIP code to compare quotes from top insurers.
Is car insurance for first-time drivers more expensive?
Yes. Car insurance for first-time drivers typically costs more because insurers have less driving history to evaluate and often view inexperienced drivers as a higher risk for accidents and claims.
When does car insurance get cheaper for young drivers?
The best car insurance for young drivers usually costs less with experience and a clean driving record. While most drivers will see lower premiums at age 25, safe driving can lead to reduced prices much sooner.
How do you get the best car insurance for drivers under 25?
Auto insurance companies check driving records as part of the underwriting process, so maintaining a clean record can help you qualify for lower premiums. Compare car insurance quotes for young drivers from multiple insurers, use available discounts, and choose a vehicle that’s less expensive to insure.
What are the best ways to lower new driver insurance costs?
Comparing quotes can help new drivers find a lower rate, while maintaining a clean driving record and qualifying for discounts can further reduce insurance costs.
New drivers can find the cheapest minimum auto insurance premiums by entering their ZIP code into our free comparison tool.
Is full coverage the best car insurance for young adults?
For many drivers, the best auto insurance for young adults is a full coverage policy that includes liability, collision, and comprehensive coverage for greater financial protection.
Why is car insurance so high for first-time drivers?
Drivers looking for cheap auto insurance for 18-year-olds may face higher premiums because insurers associate limited driving experience with greater risk.
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