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Key Takeaways:
- Driving a less expensive car can help you save money on car insurance.
- Way offers a variety of coverage options to suit your needs and goals.
- We at Way are committed to providing exceptional value and top-notch customer service.
Who Is Considered a New Driver?
In general, those under 25 are considered new drivers, with teenagers and young adults representing the most distinct groups within this category. As a result, new drivers typically pay higher insurance premiums than experienced motorists. The average annual cost for a new driver ranges from $1,020 to $3,357, with those who maintain a clean driving record potentially paying as low as $873 by age 25.
For those who obtained their license later in life, recently immigrated to the United States, or have a significant driving or insurance history gap, the average annual cost for minimal coverage may be slightly higher than the national average of $726.
Getting the most affordable car insurance for new drivers can be a daunting task. You can learn how auto insurance works and find the best car insurance for new drivers with Way.
Average Rates for Teens with No Insurance History Premiums
| Company | Avg. Annual Premium |
|---|---|
| USAA | $3846 |
| State Farm | $4734 |
| Nationwide | $5667 |
| Allstate | $6848 |
| Farmers | $7215 |
| Progressive | $7854 |
Average Rates for Adults with No Insurance History Premiums
| Company | Avg. Annual Premium |
|---|---|
| USAA | $1494 |
| State Farm | $1578 |
| Nationwide | $1764 |
| Progressive | $2055 |
| Farmers | $2286 |
| Allstate | $2688 |
How Much Is Insurance for a New Driver?
As a new driver, you're prepared for the thrill of open roads and the freedom of cruising around town. But hold on to your steering wheel because car insurance premiums can be bumpy.
On average, new drivers expect to pay around $1,596 for basic liability coverage and $3,879 for comprehensive and collision coverage.
These numbers are just averages; your actual premium could be higher or lower depending on your age, location, and credit score.
Best Insurance Company for New Drivers
After an in-depth evaluation by our team of experts, we recommend State Farm as the top choice for new drivers seeking the best overall car insurance experience. Our analysts carefully compared State Farm's rates, insurance coverage options, and customer satisfaction ratings, placing it one of the best-reviewed car insurance carriers for new drivers.
| Company |
|---|
| State Farm |
| Nationwide |
| Farmers |
| Allstate |
| USAA |
Affordable Car Insurance for New Adult Drivers
Nationwide offers the lowest full-coverage car insurance for first-time drivers at $2148 per year , according to Way.com.
| Company | Annual Premium |
|---|---|
| Nationwide | $2148 |
| Allstate | $2799 |
| State Farm | $2985 |
| Travelers | $3363 |
| Progressive | $4122 |
| Farmers | $5424 |
Best Car Insurance for New Drivers Under 21
Nationwide offers the cheapest coverage for newly licensed drivers under 21. Most vehicle insurance policies require written authorization from a parent or guardian if you are under 18. Find low-cost car insurance deals for new drivers under 21 in the table below.
| Company | Added to Existing Policy Premium | Individual Premium |
|---|---|---|
| Nationwide | $2,718 | $5,108 |
| State Farm | $3,055 | $3,732 |
| Allstate | $3,292 | $6,583 |
| Travelers | $3,436 | $5,622 |
| Progressive | $3,454 | $7,481 |
| Farmers | $3,562 | $8,864 |
Best Car Insurance for New Drivers Under 21 by State
| State | Company | Individual Premium | Added to Existing Policy Premium |
|---|---|---|---|
| Alabama | Nationwide | $4,019 | $1,871 |
| Arizona | State Farm | $3,345 | $2,457 |
| Arkansas | Auto-Owners Insurance Co | $3,322 | $2,650 |
| California | State Farm | $3,026 | $2,210 |
| Colorado | Capital Insurance Group | $3,307 | $3,405 |
| Connecticut | Auto-Owners Insurance Co | $4,193 | $3,519 |
| Delaware | Kemper | $4,111 | $2,023 |
| Florida | Travelers | $4,344 | $3,230 |
| Georgia | State Farm | $3,782 | $1,836 |
| Hawaii | State Farm | $5,543 | $4,887 |
| Idaho | Auto-Owners Insurance Co | $3,127 | $2,485 |
| Illinois | Travelers | $742 | $742 |
| Indiana | Travelers | $1,807 | $1,325 |
| Iowa | Auto-Owners Insurance Co | $2,693 | $2,089 |
| Kansas | State Farm | $2,921 | $2,189 |
| Kentucky | State Farm | $2,372 | $1,820 |
| Louisiana | Nationwide | $2,372 | $1,150 |
| Maine | State Farm | $3,400 | $2,869 |
| Maryland | State Farm | $6,954 | $5,605 |
| Massachusetts | Concord Group | $1,755 | $1,062 |
| Michigan | Progressive | $4,311 | $2,046 |
| Minnesota | State Farm | $1,824 | $1,220 |
| Mississippi | Traveler | $2,912 | $2,469 |
| Missouri | Auto-Owners Insurance Co | $2,948 | $2,603 |
| Montana | State Farm | $3,942 | $2,999 |
| Nebraska | State Farm | $3,987 | $3,113 |
| Nevada | State Farm | $2,411 | $1,893 |
| New Hampshire | Auto-Owners Insurance Co | $2,963 | $2,441 |
| New Jersey | State Farm | $4,795 | $3,597 |
| New Mexico | Concord Group | $1,827 | $1,151 |
| New York | Traveler | $2,597 | $2,554 |
| North Carolina | State Farm | $3,159 | $2,364 |
| North Dakota | Progressive | $3,620 | $2,378 |
| Ohio | State Farm | $1,341 | $1,237 |
| Oklahoma | Nationwide | $2,440 | $1,167 |
| Oregon | Auto-Owners Insurance Co | $2,575 | $2,287 |
| Pennsylvania | State Farm | $3,165 | $2,431 |
| Rhode Island | State Farm | $3,076 | $1,982 |
| South Carolina | Travelers | $3,175 | $1,742 |
| South Dakota | State Farm | $2,978 | $2,143 |
| Tennessee | Allstate | $3,818 | $3,535 |
| Texas | State Farm | $3,082 | $2,291 |
| Utah | State Farm | $2,767 | $2,009 |
| Vermont | State Farm | $3,181 | $2,224 |
| Virginia | Auto-Owners Insurance Co | $3,936 | $2,707 |
| Washington | State Farm | $2,001 | $1,468 |
| Washington, D.C. | Nationwide | $2,971 | $1,300 |
| West Virginia | Kemper | $2,601 | $1,809 |
| Wisconsin | State Farm | $2,707 | $3,270 |
| Wyoming | Auto-Owners Insurance Co | $2,616 | $2,076 |
Best Car Insurance for New Drivers Under 25
Car insurance costs for 25-year-olds are often higher than for older drivers, but the exact rates vary significantly between companies. It's not uncommon for the same driver to receive quotes that differ by hundreds of dollars. The key to finding affordable coverage for drivers under 25 is to shop around and compare quotes.
| Company | Average Full Coverage Premium |
|---|---|
| Allstate | $5526 |
| American Family | $2739 |
| Farmers | $4656 |
| Nationwide | $4768 |
| Progressive | $3987 |
| State Farm | $3210 |
| Travelers | $3516 |
| USAA | $2385 |
Best Car Insurance for New Drivers Under 25 by State
| State | Company | Individual Premium | Added to Existing Policy Premium |
|---|---|---|---|
| Alabama | Allstate | $1,107 | $1,362 |
| Arizona | State Farm | $778 | $1,218 |
| Arkansas | State Farm | $1,174 | $1,816 |
| California | State Farm | $977 | $1,365 |
| Colorado | Progressive | $1,575 | $1,860 |
| Connecticut | State Farm | $972 | $1,361 |
| Delaware | State Farm | $1,164 | $1,047 |
| Florida | State Farm | $1,243 | $1,632 |
| Georgia | State Farm | $864 | $1,049 |
| Hawaii | State Farm | $2,267 | $3,092 |
| Idaho | Allstate | $1,174 | $1,238 |
| Illinois | State Farm | $680 | $680 |
| Indiana | State Farm | $636 | $713 |
| Iowa | State Farm | $961 | $1,409 |
| Kansas | State Farm | $790 | $887 |
| Kentucky | State Farm | $852 | $993 |
| Louisiana | Nationwide | $934 | $846 |
| Maine | Auto-Owners Insurance Co | $1,241 | $1,551 |
| Maryland | State Farm | $2,410 | $4,310 |
| Massachusetts | Concord Group | $790 | $706 |
| Michigan | Progressive | $1,137 | $1,452 |
| Minnesota | State Farm | $591 | $562 |
| Mississippi | State Farm | $1,129 | $1,374 |
| Missouri | State Farm | $1,213 | $1,332 |
| Montana | Progressive | $1,148 | $721 |
| Nebraska | Allstate | $1,442 | $1,475 |
| Nevada | Progressive | $750 | $1,026 |
| New Hampshire | State Farm | $1,178 | $1,316 |
| New Jersey | State Farm | $1,460 | $2,977 |
| New Mexico | State Farm | $905 | $1,016 |
| New York | State Farm | $1,626 | $1,910 |
| North Carolina | State Farm | $1,148 | $1,475 |
| North Dakota | Progressive | $1,100 | $1,180 |
| Ohio | State Farm | $824 | $1,127 |
| Oklahoma | Nationwide | $956 | $830 |
| Oregon | Nationwide | $866 | $769 |
| Pennsylvania | State Farm | $1,292 | $1,430 |
| Rhode Island | State Farm | $1,057 | $1,034 |
| South Carolina | Travelers | $881 | $815 |
| South Dakota | State Farm | $1,184 | $1,329 |
| Tennessee | Auto-Owners Insurance Co | $1,271 | $1,519 |
| Texas | Allstate | $996 | $916 |
| Utah | State Farm | $982 | $1,084 |
| Vermont | State Farm | $1,239 | $1,228 |
| Virginia | State Farm | $1,125 | $1,564 |
| Washington | State Farm | $722 | $802 |
| Washington, D.C. | Nationwide | $1,057 | $867 |
| West Virginia | State Farm | $1,197 | $1,311 |
| Wisconsin | State Farm | $1,039 | $1,300 |
| Wyoming | State Farm | $717 | $870 |
Best Full Coverage Car Insurance
A full coverage policy for a 20-year-old driver costs $2,478 per year. In contrast, according to Way, the same policy for a 25-year-old driver costs $1,410 annually.
These providers offer various coverage options at competitive prices and discounts for drivers under 25.
| Company | Minimum coverage | Full coverage |
|---|---|---|
| Allstate | $1215 | $4503 |
| Esurance | $1287 | $3318 |
| Mercury | $1305 | $3555 |
| Metromile | $1329 | $8304 |
| Liberty Mutual | $1410 | $9567 |
| Progressive | $1587 | $4566 |
| State Farm | $1557 | $3678 |
| USAA | $1398 | $3786 |
| Safeco | $2472 | $5439 |
| Travelers | $3219 | $7299 |
| Nationwide | $3372 | $8199 |
| Farmers | $4506 | $9678 |
Best Car Insurance for New Drivers Over 25
So, you're finally over 25 and ready to hit the road with your newfound driving freedom. But before you cruise off into the sunset, there's one more thing you need to tackle: car insurance.
Erie Insurance, Allstate, and State Farm have emerged as the top picks for first-time drivers over 25. These companies offer competitive rates and a range of coverage options to suit your needs.
| Car Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Erie Insurance | $720 | $1509 |
| American Family Insurance | $819 | $1710 |
| State Farm | $603 | $1410 |
| Progressive | $981 | $1989 |
| Allstate | $411 | $1578 |
| Nationwide | $1719 | $3972 |
| Liberty Mutual | $1122 | $3279 |
| USAA | $729 | $1908 |
| Farmers | $1209 | $3618 |
Best Car Insurance for New Drivers on a Family Policy
Newly licensed drivers can score significantly better rates by simply sharing an insurance policy with their parents or an older relative. This is because insurance companies consider young drivers high-risk, and grouping them with more experienced drivers helps lower the overall risk assessment.
Among the major insurance providers, Allstate and State Farm offer lower rates than the national average. Adding another car and driver to an existing policy can be done seamlessly. While it does increase the overall premium, State Farm's competitive rates make it a wise choice. The table below shows the best rates, go through and see which providers fit your budget.
| Company | Parents only | With 16-year-old | With 18-year-old | With 21-year-old |
|---|---|---|---|---|
| State Farm | $1044 | $3150 | $2655 | $1998 |
| Allstate | $1527 | $3486 | $3489 | $2295 |
| Nationwide | $1938 | $4449 | $4407 | $3297 |
| Farmers | $2409 | $5028 | $4770 | $5535 |
| USAA* | $1098 | $3438 | $3189 | $2520 |
The rates were calculated based on a scenario where a first-time driver and two parents share three-car full-coverage insurance to provide a realistic comparison. The result is striking: adding a car and driver to an existing full-coverage policy is three to five times less expensive than purchasing a separate policy.
So, for young drivers seeking to navigate the insurance landscape, sharing a policy with experienced drivers is an intelligent financial decision that can lead to substantial savings.
How To Save On Car Insurance as a New Driver
Now that we've covered the best insurance companies for new drivers and the average cost of car insurance for this group, let's explore some practical tips to save money on your premiums.
- Stay on Your Parent's Insurance Plan: This is one of the best ways for young drivers to get affordable car insurance. Staying on your parent's policy can save you thousands of dollars annually.
- Shop Around and Compare Rates: Comparing quotes from multiple companies is crucial to finding the best deal. Get quotes from several insurers to see who offers the most affordable coverage.
- Choose a Budget-Friendly Car: The value and features of your car can significantly impact insurance costs, especially for new drivers. Consider cars with safety features but avoid high-tech sensors or specialized equipment that could increase premiums.
- Consider a High-Deductible Policy: Increasing your deductible can help you save money on coverage.
- Look for Discounts: Discounts won't cut your premiums in half. However, they can add significant savings, especially for new drivers.
Discover New Driver's Car Insurance with Way
Are you looking to save some dough on your car insurance? Start by driving a less expensive car! Need help determining what you can afford? Just click on any of the Way banners to get a quick estimate.
Way stands out because we prioritize exceptional value and top-notch customer service. We offer various coverage options, ensuring you find the perfect policy to suit your needs and aspirations. Way.com provides multiple coverage options for drivers, so you're sure to find the right fit for you.
INSURANCE AGENT EXPERTS
Auto Insurance Data Methodology
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
DATA SOURCES
Way.com’s Insurance Broker Quote Data
Frequently Asked Questions
What's the best insurance for a new driver?
Allstate, Progressive, and Safeco are the best car insurance companies for new drivers. In addition, they are among the most affordable auto insurance providers for drivers of all ages.
Is it cheaper for a new driver to get their own insurance?
New drivers will discover lower rates by being added to someone else's insurance. This is especially true for teenagers and young adults, who may face significantly higher premiums when purchasing insurance on their own.
Why is first-time car insurance so expensive?
New drivers and cars have a higher risk of being in an accident. Car Insurance companies always prefer to be on the safer side by raising the insurance premiums for new drivers.
Can a 16-year-old have their own car insurance?
Yes, 16-year-olds can buy car insurance on their own.
How much is car insurance in NY For a 21-year-old?
In New York, the average monthly cost of vehicle insurance for a 21-year-old is $281. However, rates differ significantly amongst insurers.
Is car insurance cheaper when you are 21?
The cost of full-coverage vehicle insurance typically lowers with age, and premiums for young drivers can vary dramatically in just a few years. The average 21-year-old pays $384 monthly, $232 less than an 18-year-old would pay.
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