Best Car Insurance for First-Time Drivers 2024

Nationwide and Travelers are the best overall car insurance providers for first-time drivers, offering a blend of affordability and robust coverage.

When shopping for insurance, compare quotes from at least three different companies. Various types of coverage, such as collision and comprehensive, as well as specialized options like gap insurance and accident forgiveness, offer specific benefits to new drivers.

Strong customer service and claims handling track records are also important factors in choosing an insurance provider. Inexperienced drivers — especially teen drivers — are considered higher risk, contributing to higher insurance costs. To save on insurance, consider increasing your deductibles, taking defensive driving courses, being added to a family policy and seeking discounts.

MoneyGeek found that the best insurance providers for first-time drivers are:

• Nationwide: MoneyGeek score of 97.05 out of 100 ($2,138 annually or $178 monthly)
• Travelers: MoneyGeek score of 96.77 out of 100 ($3,351 or $279 monthly)

Nationwide scores the highest in 19 states, followed by State Farm with the highest score in 17 states and Travelers in eight states.

Insurance rates for first-time drivers can differ by state due to various factors, including state laws and regulations. Additionally, the frequency of accidents, vehicle crime rates and even weather conditions in a state can influence rates. State-specific economic conditions, like the cost of medical care and vehicle repairs, also play a role. These factors collectively determine the risk that insurers associate with providing coverage in each state.

Young, first-time drivers may find the best car insurance with:

• Nationwide: MoneyGeek score of 97 out of 100 ($2,440 annually or $203 monthly)
• Travelers: MoneyGeek score of 97 out of 100 ($3,667 annually or $306 monthly)

Nationwide and Travelers are both the best and cheapest options, on average, for first-time drivers under 25. Note that the rates above are for full coverage policies.

Young drivers, especially those new to driving and in their teens, usually face higher insurance costs due to being rated as a higher risk for accidents. To find more affordable car insurance, it's a good idea to shop around each year and potentially consider switching car insurance companies if you find a better rate.

If you're newly licensed and 25 or older, you can start your insurance search with:

• Nationwide: MoneyGeek score of 97 out of 100 ($2,055 annually or $171 monthly)
• Travelers: MoneyGeek scores of 97 out of 100 ($3,202 annually or $267 monthly)

Both Nationwide and Travelers consistently offer the best car insurance policies for new drivers. Note that the rates above are for full coverage policies.

If you're an older driver but new to the road, you'll likely pay more for insurance, although not as much as younger new drivers.

Starting out with no insurance history or driving record means higher premiums, regardless of age. Having a solid credit history and maintaining a clean driving record can help keep your costs down.

From collision and comprehensive insurance to specialized options like accident forgiveness, gap insurance and usage-based telematics, various coverages offer specific advantages to help new drivers manage costs and risks on the road.

When determining how much car insurance you need, MoneyGeek recommends full coverage car insurance with liability levels of 100/300/100 for a greater level of financial protection from at-fault accidents.. If you own a vehicle that isn't worth very much, and you can afford to replace it out of pocket, you might consider carrying affordable liability-only coverage. However, a minimum coverage policy can leave you vulnerable to a substantial financial loss in an at-fault accident.

When weighing your options, remember that coverage isn't the only factor to consider. Exceptional customer service and a strong track record in handling claims are equally important. The best insurance companies are those that are there for you when you need them the most.

Car insurance costs tend to be higher for first-time drivers, primarily because their inexperience is seen as a higher liability risk by insurers. These novice drivers are statistically more prone to accidents than their experienced counterparts, who have a track record of safe driving and fewer infractions. Moreover, this increase in insurance rates is even more significant for younger drivers, especially teenagers, who are categorized as the most high-risk group due to their age, lack of driving experience and high accident rate and careless driving behaviors.

A first-time driver is anyone with no driving experience. First-time drivers include:

• Teens who have just finished driver's education
• Young adults who didn’t get their license until after graduation
• Adults who waited until later in life to get their license

Most first-time drivers get their license before the age of 18. However, it is common for people to wait until adulthood to get their license in areas with excellent public transportation options or those that rely on rideshare services.

But no matter the reason, first-time drivers of any age can expect to pay more for car insurance. Though a first-time driver who gets their license at 40 will pay less than a driver who gets their license at 18, they will still pay significantly more than a 40-year-old driver with 20 years of driving experience.

When shopping for car insurance for the first time, you will need to gather your personal information, including:

• Driver's license
• Date of birth
• Social Security number
• Address, including ZIP code
• Employment information
• Driving history
• Prior insurance information (if you’ve been insured before)
• Marital status
• Education level
• Vehicle information (make, model, year, VIN, etc.)

You don't have to wait until your new car is sitting in your driveway to start thinking about insurance. In fact, you can get a car insurance quote even before you've made the vehicle purchase, as long as you have accurate vehicle information. Most dealerships require proof of insurance before they'll hand over the keys, so having your coverage in place ensures a smooth and hassle-free experience when purchasing or leasing a vehicle.

You will also want to do some personal research before getting a quote. For example, if your employer, alma mater or another organization you are affiliated with offers a group discount with certain insurance companies, that is something you want to know ahead of time.

To find affordable car insurance, especially for first-time drivers, shop around for quotes, consider increasing your deductible, take defensive driving courses and look for applicable discounts. Additionally, keeping a clean driving record and choosing a less expensive or older car can further reduce your premiums.

New drivers understandably have lots of questions about buying their first auto policy. Knowing the answers to some of the most common ones will help ensure you get the best rate.