Updated: January 23, 2025
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New drivers often face higher insurance premiums due to their lack of driving experience.
Comparing quotes from multiple providers can help new drivers find the most affordable coverage.
Many insurers offer discounts for safe driving habits, bundling policies or completing driver education courses.
There are many cheap car insurance options for new drivers on the market. Understanding your options and taking advantage of discounts can help reduce costs significantly. This guide explores the cheapest car insurance options for new drivers in 2024, offering tips to find coverage that fits your budget while providing the financial protection you need.
Cheapest Car Insurance for New Drivers By Age
Cheapest Car Insurance for 16-Year-Olds
Cheapest Car Insurance for 17-Year-Olds
Cheapest Car Insurance for 18-Year-Olds
Cheapest Car Insurance for 19-Year-Olds
Cheapest Car Insurance for 20-Year-Olds
Cheapest Car Insurance for 21-Year-Olds
Cheapest Car Insurance for 22-Year-Olds
Cheapest Car Insurance for 23-Year-Olds
Cheapest Car Insurance for 24-Year-Olds
Cheapest Car Insurance for 25-Year-Olds
Overall, Nationwide and Allstate offer the most affordable insurance options for newly licensed adult drivers on average at $2,138 and $2,790 per year, respectively.
Nationwide offers the most affordable rates for younger drivers most of the time, especially drivers 21 and under. GEICO is also a cost-effective choice if you've just reached your early 20s but are still under 26 years old. Meanwhile, Nationwide also provides competitive pricing for those over 25 and new to driving.
The table below displays the major insurers' average premiums for new drivers
| Nationwide | $2,138 | $178 |
| Allstate | $2,790 | $233 |
| State Farm | $2,977 | $248 |
| GEICO | $3,195 | $266 |
| Travelers | $3,351 | $279 |
| Progressive | $4,110 | $343 |
| Farmers | $5,412 | $451 |
For newly licensed drivers aged 21 and under seeking affordability, Nationwide and GEICO are the two cheapest insurance providers, on average.
Use the table below to find the most affordable car insurance for new drivers 21 and younger:
| Nationwide | $2,178 | $3,730 | $1,552 |
| GEICO | $2,262 | $3,302 | $1,040 |
| State Farm | $2,419 | $2,723 | $305 |
| Allstate | $2,476 | $3,882 | $1,406 |
| Travelers | $2,539 | $3,414 | $876 |
| Progressive | $2,898 | $4,923 | $2,024 |
| Farmers | $2,913 | $5,078 | $2,165 |
Young drivers living at home can join the family's policy for more affordable insurance. Even if you head to college, you can usually remain on your parent's policy as long as your family's home is still your permanent residence.
We analyzed which companies have the best rates for new drivers under 21 by age and gender. We found that Nationwide offers the most affordable rates to this age group. For example:
Use the table below to filter by age and gender and find out which company may offer the most affordable rates for you. Note that some states do not allow insurers to consider age or gender when determining rates.
| Nationwide | $2,801 | $5,450 | $2,649 |
| GEICO | $3,040 | $5,662 | $2,621 |
| State Farm | $3,310 | $4,065 | $755 |
| Allstate | $3,426 | $6,727 | $3,301 |
| Progressive | $3,546 | $7,755 | $4,209 |
| Farmers | $3,623 | $9,070 | $5,447 |
| Travelers | $3,674 | $6,166 | $2,492 |
The state with the most affordable rates is Hawaii, with an average annual premium of $689 from State Farm for new drivers in this age group added to existing policy. Meanwhile, Louisiana has the highest average premium at $4,310 per year, also from State Farm.
Check out the table below to review competitive rates from various car insurance providers according to the state you live in:
| GEICO | $1,562 | $2,908 | $1,347 |
| Allstate | $1,604 | $2,719 | $1,115 |
| Nationwide | $1,621 | $2,835 | $1,214 |
| Travelers | $1,961 | $2,943 | $982 |
| Farmers | $2,337 | $4,876 | $2,539 |
| State Farm | $3,004 | $2,986 | $-18 |
| Auto-Owners Insurance Co | $3,050 | $2,975 | $-75 |
| Progressive | $3,375 | $6,656 | $3,280 |
As long as you live with your parents or their home is your primary residence, you can stay on their policy. But if you move out permanently, you will need to buy your own policy for your car.
For young drivers aged 25 and under, GEICO and Nationwide offer the most affordable options for car insurance:
Compare car insurance rates for drivers 25 and under using the table below:
| GEICO | $1,481 | $1,518 | $-37 |
| State Farm | $1,566 | $1,638 | $-72 |
| Travelers | $1,709 | $1,622 | $88 |
| Allstate | $1,714 | $1,766 | $-52 |
| Nationwide | $1,765 | $1,482 | $282 |
| Progressive | $1,878 | $2,116 | $-238 |
| Farmers | $2,151 | $2,505 | $-353 |
MoneyGeek found that GEICO provides some of the most affordable car insurance options for budget-conscious young adults at $1,334 for 25-year-old males, but this rate varies depending on several other factors.
To find the most affordable car insurance, filter the table below to display the companies offering the most competitive rates for your age and gender:
| GEICO | $1,721 | $1,729 | $-8 |
| State Farm | $1,940 | $1,983 | $-43 |
| Allstate | $1,950 | $1,959 | $-9 |
| Travelers | $1,994 | $1,796 | $197 |
| Nationwide | $2,075 | $1,630 | $445 |
| Progressive | $2,274 | $2,374 | $-100 |
| Farmers | $2,431 | $2,742 | $-311 |
Currently, Maine offers the cheapest car insurance for drivers aged 21–25, with an average annual premium of $779 from Concord Group, while Louisiana has the most expensive average premium at $2,689 from State Farm.
Selecting your state from the table below will reveal the insurance providers that offer the most competitive rates in your area.
| Nationwide | $1,184 | $1,269 | $85 |
| Travelers | $1,216 | $1,383 | $167 |
| GEICO | $1,254 | $1,271 | $17 |
| Allstate | $1,333 | $1,136 | $-198 |
| Auto-Owners Insurance Co | $2,030 | $1,701 | $-330 |
| State Farm | $2,053 | $1,619 | $-434 |
| Farmers | $2,133 | $1,376 | $-758 |
| Progressive | $2,605 | $2,245 | $-360 |
MoneyGeek found that State Farm, Progressive and Farmers offer affordable full coverage policies for drivers with international licenses:
However, if you’re only visiting the U.S. temporarily, the cheapest way to get foreign driver car insurance is to buy coverage from your car rental company.
To ensure you get the best full coverage option for your needs, explore the following sections for guidance on choosing the right policy. This will help you find the balance between coverage and cost, tailored to your situation.
New drivers — especially young drivers — face higher car insurance rates on average. If you want to manage insurance costs as a new driver, there are several tips and strategies you can employ:
Young drivers under 25 usually face higher insurance costs due to increased accident risks. To cut costs, they can join a family insurance policy. Students can also access discounts with good grades or if they're away at school without regular access to a car. Meanwhile, older new drivers, such as those in their 40s, can save with multi-car policies.
New drivers often find better insurance deals by shopping around. Compare at least three quotes to find the most competitive rates. Regularly shopping for insurance, such as annually before your policy renewal, can also lead to savings. As drivers log more hours on the road and gain experience, maintaining a clean record can further reduce insurance costs.
Car insurance companies often provide the option to stack multiple discounts for which you're eligible. Among these are student discounts, good driver discounts and safety feature discounts.
For example, GEICO offers up to a 23% discount if your car is equipped with airbags. State Farm might give a discount of up to 20% if both you and a family member choose to insure with them. By taking advantage of these cumulative discounts, drivers can significantly reduce their insurance premiums.
Your car's value directly influences insurance premiums. Insurers charge more for pricier cars because they expect higher expenses if the car is damaged, stolen or involved in an accident. For new drivers, opting for older, less expensive vehicles, like a Toyota Camry, can be more economical than insuring a sports car.
Insurance companies often use credit-based insurance scores to set rates. However, Massachusetts, Michigan, California and Hawaii prohibit insurers from using credit factors to rate auto insurance. To maintain a strong credit score and history, always pay bills on time and avoid high credit card balances.
Here are some possible discounts that new drivers should look into when shopping around for car insurance:
Most insurance companies consider you a new driver from anywhere between three and five years after you start driving with a driver's license. During this time, insurers will likely see you as a high-risk driver, which makes finding cheap car insurance difficult.
A few factors other than age influence the new driver status other than age, like claims history, driving record and the type of car you drive. Your insurance premiums will almost certainly decrease once the new driver status is lifted.
Low-mileage and safe drivers may lower their auto insurance premium with telematics/usage-based insurance. These programs monitor how often you drive, at what time you drive, your speed, whether you break hard and other details. If your driving habits are good, you may get a discount on your auto insurance premium. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Every person who drives a car must have insurance, including new car owners. Unfortunately, premiums can be notably higher for newer drivers; insurance companies don't trust people just starting to drive, and it'll take a few years for a newer driver to lower their risk profile. Providers like State Farm and GEICO offer competitive rates for new drivers, and you can combine discounts like safe driving, defensive driving courses and good student to lower costs even more.
If you maintain a good record, your insurance premiums will gradually reduce over time. Drive safely, and you'll save money.
MoneyGeek addresses the most common questions new drivers have about car insurance.
It depends on what type of new driver you are. MoneyGeek found that Nationwide is the cheapest for new drivers in their early 20s, the cheapest for new teen drivers and the cheapest for adults who are new to driving.
The cheapest for you could depend on your driving history, location and other factors, so it's best to compare multiple quotes.
Several elements play a role, including the driver's age, type of vehicle, location and more. New drivers, especially younger ones, often face higher rates due to their lack of driving experience.
Many insurance providers offer discounts for good academic performance, completion of driver's education courses or for safe driving habits. It's always a good idea to ask potential insurers about available discounts.
Generally, it's more affordable for new drivers to join a family policy. This can spread out the cost and often results in a lower combined premium than if the new driver had an individual policy.
It's a good practice to compare insurance quotes annually. As a driver gains experience and maintains a clean record, rates can decrease, and shopping around helps ensure they're getting the best deal.
Another group that typically pays more for car insurance is drivers with a gap in insurance coverage. Insurance companies consider such drivers to be a higher risk because they assume that you were driving without insurance during that time. Drivers who have a lapse in insurance and then buy a new insurance policy will pay higher rates even if they're an experienced driver.
On average, newly licensed adults pay, $3,131 for full coverage car insurance each year. While older first-time drivers might pay more than those with years of driving experience, they generally enjoy more favorable rates than teens. It's also worth noting that rates can fluctuate based on factors like driving history, type of vehicle, location and more.
Yes, everyone with a permit needs car insurance to legally drive a car.
Statistically, drivers under 25 typically face higher insurance premiums, with young male drivers typically incurring the most expensive rates. This cost disparity is due to the higher risk associated with younger, less experienced drivers, particularly young men, who data shows are more likely to engage in risky driving behaviors. Only six states do not allow gender as a rating factor: Michigan, California, Hawaii, Pennsylvania, North Carolina and Massachusetts.
Data Depth and Overview
Overall, MoneyGeek analyzed 2,474,515 quotes, from 607 companies, across 3,523 ZIP codes to determine the cheapest car insurance premiums for new drivers.
Driver Profiles
To find the cheapest car insurance for new drivers, MoneyGeek created an average driver profile to collect rates from insurers. This profile includes the following characteristics:
To collect data on rates for specific driver characteristics, the average driver profile was modified by geographic location, age and gender to the standard driver profile.
Defining Full Coverage
Unless specifically indicated, when MoneyGeek refers to a full coverage policy on this page, it means a policy with:
Learn more about full coverage.
Defining Liability-Only Coverage
Unless specifically indicated, when MoneyGeek refers to a liability-only policy on this page, it means a policy with:
Learn more about liability-only coverage.
Learn more about state minimum coverage requirements.
Learn more about MoneyGeek's auto insurance methodology.
About Gail Kellner
Gail Kellner is a finance writer at MoneyGeek, specializing in life insurance, auto insurance and personal finance. She also has a 23-year experience in the health sector.
Kellner has a Master of Science from Indiana State University and a Bachelor of Arts in Psychology from Western Connecticut State University.
