Car Insurance Companies For Young Drivers - The cheapest car insurance for new drivers depends on whether they add to an existing policy or decide to get their own cover. GEICO is, on average, the best low-cost company for new drivers to add to their family's policy. State Farm is a great option for new drivers who decide to get their own coverage.
Car insurance for new drivers can cost thousands of dollars more per year than insurance for more experienced drivers. But new drivers can get cheaper insurance by comparing quotes from multiple companies and considering insurance based on mileage or usage.
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Insurance companies don't need a definition of who they consider new drivers. For insurance purposes, teenage drivers are not the only members of this group. Instead, the "new drivers" could be:
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Despite their lack of experience, newly licensed drivers are not required to obtain a specific type of new driver auto insurance to meet their state's insurance requirements. The only difference for new drivers is that their insurance cover will be more expensive as they do not yet have a driving record.
If you are considering an insurance company as a new driver, the process of buying car insurance will be the same for you as experienced drivers. You can still get coverage from reputable companies.
New teenage drivers will be happy if they are added to an existing family policy, while newly licensed adults may need to shop around for their own coverage.
But some new drivers can find it difficult to find their own car insurance. It's more expensive, and insurance companies don't always allow newly licensed drivers to fill out an online quote form to get their own insurance. Also, if you are a minor and want your own car insurance, you will need to get permission from a parent or guardian.
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How we achieve the rating: 'Ratings are determined by our editorial team. Our methodology takes into account several factors, including pricing, financial ratings, quality of customer service and other product-specific characteristics.
GEICO has the best insurance rates of any company available nationally for adding a new driver to an existing auto insurance policy. In addition to lower rates, GEICO offers coverage endorsements such as rental reimbursement and roadside assistance.
GEICO is the best and cheapest auto insurance for families adding a new driver to an existing auto insurance policy. GEICO isn't the cheapest overall, but it's still an affordable choice that's available in every state. At $240 per month, we found that GEICO has $907 less per year than the average rate for new drivers.
NJM is the cheapest car insurance for new drivers, but is only available in Connecticut, Maryland, New Jersey, Ohio or Pennsylvania. But new driver insurance from NJM is slightly cheaper than GEICO - $6 a year on average.
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Military members, active duty and retired vets (and their families) can get cheap auto insurance for new drivers from USAA, where coverage for new drivers costs $141 per month ($1,076 less than the annual average). But unlike GEICO and NJM, USAA is not available to the public.
Most insurance companies require licensed drivers in your household to be included in your auto insurance policy. Fortunately, adding a new driver to an existing policy is easy.
You can usually add a new driver to your existing policy over the phone or online through your insurance company's website or mobile app.
To add a driver to a car insurance policy, you need some important information, including:
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New drivers who shop for their own policy may get less coverage from State Farm. Because State Farm's rates are lower after an accident or speeding ticket, new drivers won't have to pay higher rates after an earlier mistake.
State Farm has the best and cheapest auto insurance for new drivers buying their own policy. New driver insurance costs an average of $380 per month in State Farm, which is $1,632 less than the average annual cost for new drivers.
Auto insurance from State Farm is available in all states except Massachusetts and Rhode Island, but a smaller company may be a cheaper option depending on where you live. COUNTRY, then Erie, and car owners we found to have the cheapest car insurance for new drivers.
Here are the cheapest auto insurance companies for new drivers in every state—whether you're adding a new licensed driver to your family policy or looking around for a new driver on your own.
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Anyone who moves to the United States is considered a new driver, regardless of age or experience. Because these drivers have no insurance history with American companies, it is difficult to determine their chances of claiming in the future.
While insurance costs may be more expensive for newly licensed international drivers, regardless of their experience in their home country, their rates will be lower as long as they avoid accidents and tickets.
Meanwhile, foreign drivers moving to the United States can get better rates from the same companies that are cheaper for new drivers, including GEICO and State Farm.
New drivers can still get car insurance if they are undocumented immigrants, but it depends on where they live. Not all states allow undocumented new drivers to get a license - you'll need to get car insurance.
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But the following states allow undocumented new drivers to get licenses and car insurance even without proof of citizenship. These states are:
Car insurance for new drivers is always more expensive than the average rates for older and more experienced drivers. But finding cheap car insurance can be more difficult if you're a new driver buying your own policy, rather than adding to an existing one.
New driver insurance costs an average of $380 per month or $4,562 per year. That's about $2,000 more per year than adding a new driver to an existing policy, which costs $230 per month or $2,763 per year.
At the largest companies, car insurance for new drivers costs $280 more per month than most older drivers (ages 30 to 45) with a comparable self-employed policy.
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There are two reasons why car insurance costs more for new drivers than older drivers. Because of their lack of experience, new drivers are more likely to be involved in a serious accident than their more experienced peers.
Companies also look at your driving record to predict how likely you are to get into an accident. But because new drivers don't yet have a record, companies charge higher rates until they prove they are safe drivers.
The best way to get new driver insurance that isn't too expensive is to shop around and compare quotes, but you should:
For new drivers joining an existing policy, car insurance costs $2,763 per year. But a stand-alone policy for a new driver costs an average of $4,562 per year.
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Among the major companies, GEICO has the lowest rates for new drivers. But you may be able to get insurance at a lower price from NJM, a local company available in five states. Most new drivers who get their own coverage have better rates with State Farm. Smaller companies like COUNTRY and Erie also have lower rates.
New drivers should shop for car insurance and compare quotes from multiple companies. They should also be prepared to switch companies if their rates become more expensive over time. New drivers can get cheaper car insurance by taking full advantage of discounts or switching to per-mile or usage-based insurance to save.
Car insurance costs for new drivers were found through rates provided by Quadrant Information Services. These rates relate to every ZIP code in the District of Columbia in all 50 states. Our sample insured vehicle was a 2017 Toyota Camry LE driven 10,000 miles per year.
We calculated the cost of adding a driver to an existing policy by finding the average annual dropout rate for drivers between the ages of 17 and 21. We then applied these rates of change to each company's average rate for drivers less than a year old. Cost of adding a 16 year old to an existing policy.
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Certain carriers may be represented by affiliates or subsidiaries. The rates given are an example of costs. Your actual quotes may vary.
Andrew Hurst is a senior editor and licensed auto insurance expert. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin and Property Casualty 360.
Fabio Fashi is a licensed property and casualty insurance agent. His home and auto insurance expertise has been featured in Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFgate, Bankrate and Lifehacker. "Expert reviewed" means that our Financial Review Board has thoroughly evaluated the article for accuracy and clarity. The review board consists of a panel of financial experts to ensure that our content is always objective and balanced.
Written by Cate Deventer Cate Deventer Arrow Right Insurance writer and editor Cate Deventer
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