The Best Cheap Car Insurance for New Drivers
State Farm has the best cheap car insurance for new drivers. New drivers under 25 with their own policy pay around $276 per month for full coverage from State Farm.
Find Cheap New Driver Car Insurance Quotes
Best cheap insurance for new drivers
ValuePenguin collected thousands of car insurance quotes from every ZIP code in Texas to find the best and cheapest insurance for new drivers. Rates are for new drivers ages 16, 17, 18, 21, 25, 35, 45 and 55, and a 16-year-old, 18-year-old or 21-year-old on a policy with his two 50-year-old parents.
First-time drivers pay more for car insurance because they have less experience on the road and are more likely to cause a crash.
New drivers under 25 years old pay an average of $544 per month for their own full coverage insurance. However, new drivers who share a policy with their parents, family or roommates can pay significantly less for car insurance.
Best car insurance for new drivers under 25
State Farm has the best car insurance for drivers under 25.
Full coverage from State Farm costs young first-time drivers around $276 per month. That's about half the average monthly rate, which is $544. This makes State Farm the best car insurance company for new drivers.
Find Cheap New Driver Car Insurance Quotes
Allstate has the best cheap insurance for young drivers. It offers the most affordable liability-only car insurance rates for first-time drivers under 25 years old. On average, new drivers can expect to pay $100 per month for minimum coverage from Allstate. That's less than half the average cost for new drivers.
Cheap car insurance for first-time drivers
Full coverage
Minimum coverage
Company | Monthly rate | ||
|---|---|---|---|
| State Farm | $276 | |
| Geico | $296 | |
| Allstate | $374 | |
| Nationwide | $692 | |
| Farmers | $796 | |
| USAA* | $293 | |
*USAA is only available to current and former military members and their families.
Full coverage
Company | Monthly rate | ||
|---|---|---|---|
|
| State Farm | $276 | |
|
| Geico | $296 | |
|
| Allstate | $374 | |
|
| Nationwide | $692 | |
|
| Farmers | $796 | |
|
| USAA* | $293 | |
*USAA is only available to current and former military members and their families.
Minimum coverage
Company | Monthly rate | ||
|---|---|---|---|
|
| Allstate | $100 | |
|
| State Farm | $129 | |
|
| Geico | $131 | |
|
| Nationwide | $280 | |
|
| Farmers | $375 | |
|
| USAA* | $116 | |
*USAA is only available to current and former military members and their families.
What kind of car insurance should new drivers get?
Minimum coverage policies are the cheapest car insurance for new drivers. That's because they include the lowest amount of coverage you can legally have in your state.
However, liability insurance only pays for injuries to other drivers if you cause a crash. It doesn't pay for your car repairs or medical bills.
If you're in an accident, you could pay more for repairs than you saved on insurance with minimum coverage. A full coverage auto insurance policy can protect you against this scenario. Keep in mind that full coverage will cost more.
Best car insurance for new drivers over 25
State Farm has the cheapest full-coverage car insurance for new drivers over 25 years old. New drivers with State Farm pay $117 per month. That would save $83 per month from the nationwide average.
Find Cheap New Driver Car Insurance Quotes
First-time drivers older than 25 can find the cheapest minimum coverage auto insurance with Allstate. The company charges $33 per month. That's less than half the national average.
Cheap insurance quotes for new drivers over 25
Full coverage
Minimum coverage
Company | Monthly rate | ||
|---|---|---|---|
|
| State Farm | $117 | |
|
| Allstate | $131 | |
|
| Geico | $168 | |
|
| Nationwide | $238 | |
|
| Farmers | $330 | |
|
| USAA* | $158 | |
*USAA is only available to current and former military members and their families.
Full coverage
Company | Monthly rate | ||
|---|---|---|---|
|
| State Farm | $117 | |
|
| Allstate | $131 | |
|
| Geico | $168 | |
|
| Nationwide | $238 | |
|
| Farmers | $330 | |
|
| USAA* | $158 | |
*USAA is only available to current and former military members and their families.
Minimum coverage
Company | Monthly rate | ||
|---|---|---|---|
|
| Allstate | $33 | |
|
| State Farm | $49 | |
|
| Geico | $79 | |
|
| Nationwide | $88 | |
|
| Farmers | $142 | |
|
| USAA* | $59 | |
*USAA is only available to current and former military members and their families.
Best car insurance for new drivers on a family policy
Full coverage car insurance for new drivers costs around half as much if you share a policy with your family.
Rates from Allstate, Geico and State Farm are all cheaper than average. Geico charges the least to add another car and driver to an existing policy at $118 per month, on average.
Although State Farm charges more to add another car and driver, its overall rates are more affordable than other major companies making it the cheapest car insurance for young drivers on a family policy. On average, a full coverage policy with parents and a teen driver from State Farm costs $183 per month. That's $68 per month less than average.
Monthly rates for a family policy with a new driver
16-year-old
18-year-old
21-year-old
Company | Parents only | Family w/ 16-year-old |
|---|---|---|
| State Farm | $87 | $262 |
| Geico | $137 | $270 |
| Allstate | $127 | $290 |
| Nationwide | $160 | $370 |
| Farmers | $199 | $418 |
| USAA* | $91 | $286 |
Rates are for a first-time driver and two parents sharing a full coverage policy with three cars. *USAA is only available to current and former military members and their families.
16-year-old
Company | Parents only | Family w/ 16-year-old |
|---|---|---|
| State Farm | $87 | $262 |
| Geico | $137 | $270 |
| Allstate | $127 | $290 |
| Nationwide | $160 | $370 |
| Farmers | $199 | $418 |
| USAA* | $91 | $286 |
Rates are for a first-time driver and two parents sharing a full coverage policy with three cars. *USAA is only available to current and former military members and their families.
18-year-old
Company | Parents only | Family w/ 18-year-old |
|---|---|---|
| State Farm | $87 | $220 |
| Geico | $137 | $258 |
| Allstate | $127 | $290 |
| Nationwide | $160 | $366 |
| Farmers | $199 | $397 |
| USAA* | $91 | $265 |
Rates are for a first-time driver and two parents sharing a full coverage policy with three cars. *USAA is only available to current and former military members and their families.
21-year-old
Company | Parents only | Family w/ 21-year-old |
|---|---|---|
| State Farm | $87 | $165 |
| Allstate | $127 | $190 |
| Geico | $137 | $237 |
| Nationwide | $160 | $274 |
| Farmers | $199 | $461 |
| USAA* | $91 | $209 |
Rates are for a first-time driver and two parents sharing a full coverage policy with three cars. *USAA is only available to current and former military members and their families.
How long can you stay on your parent's insurance?
There is no age limit for sharing a car insurance policy with your parents. As long as you live in the same house, you can share a policy.
Once you move out, you'll need to get your own policy. However, you can stay on your parent's policy if you're still considered their dependent.
Best car insurance companies for new drivers
State Farm is the best car insurance company for new drivers because it offers reliable customer service and affordable quotes.
It's important for first-time drivers to compare insurance quotes to find the cheapest auto rates. But choosing an insurance company with excellent customer service is just as important. A company with good support will pay your claim and fix your car quickly after an accident.
Company |
Editor's rating
|
J.D. Power
|
AM Best
|
|---|---|---|---|
| State Farm | 859 | A++ | |
| Geico | 843 | A++ | |
| Nationwide | 831 | A+ | |
| Farmers | 818 | A | |
| Allstate | 838 | A+ | |
| USAA* | 890 | A++ |
*USAA is only available to current and former military members and their families.
How much does new-driver insurance cost?
Car insurance for new drivers costs an average of $322 per month for full coverage.
Minimum coverage for new drivers costs around $132 per month. However, car insurance rates differ depending on your age, where you live and other factors, such as your credit score.
Who do insurance companies consider a new driver?
How does driving experience affect car insurance rates?
People with little to no driving history tend to pay much more for car insurance.
That's because their lack of driving experience makes them riskier to insure. That's why they'll have to pay higher insurance rates during the first few years of their driving careers. However, as you spend more time behind the wheel, you'll likely see your insurance rates fall.
Car insurance rates by years of driving experience
Years licensed | Monthly rate | Decrease from zero experience |
|---|---|---|
| 0 | $92 | -0 |
| 1 | $74 | -20% |
| 2 | $71 | -23% |
| 3 | $69 | -25% |
| 4 | $69 | -25% |
| 5 | $64 | -30% |
Rate decrease is compared to the monthly rate for a driver with no experience.
In Texas, a 30-year-old man with no driving experience can expect to pay $92 per month for minimum coverage. After one year of driving without tickets, his monthly rates go down by $18.
After five years of ticket- and accident-free driving, his rates are $28 per month cheaper.
Insurance companies only consider your driving experience within the U.S. Immigrants and foreign drivers typically pay higher rates, even if they have driving experience in another country.
How does age affect car insurance rates?
In general, your car insurance rates will fall as you get older until you reach middle age. That's because car insurance for teenagers tends to cost more than the same coverage for middle-aged drivers because teen drivers get into more incidents.
However, some people begin driving later in life. If you're a new, but not young, driver, you'll still pay higher rates than other drivers your age. However, you'll pay less than younger drivers with the same experience.
New driver car insurance monthly cost by age
Age | Minimum coverage | Full coverage |
|---|---|---|
| 16 | $258 | $602 |
| 17 | $252 | $590 |
| 18 | $259 | $621 |
| 21 | $146 | $363 |
| 25 | $100 | $249 |
Rates are for a single man living in Texas with no driving experience.
Insurance for teens will almost always cost more than insurance for older new drivers. For example, in Texas, a 16-year-old driver pays more than twice what a 25-year-old new driver pays for a full coverage policy. This is despite the fact that they have the same level of driving experience. First-time drivers in their 30s, 40s and 50s can expect to pay even less.
How to save on new-driver car insurance
Regardless of age, you'll pay more for insurance if you don't have much driving experience. However, you can lower your monthly bill by combining policies, bundling and finding discounts.
-
Compare quotes from multiple insurance companies.
- Join a family policy.
- Consider the car you drive. Low-to-mid-priced vehicles with a good safety rating are usually cheaper to insure than expensive, high-tech cars.
- Pay your insurance bill up front.
- Bundle your auto and renters insurance policies.
- Ask about a defensive driving or good student discount.
- Choose a higher deductible.
Frequently asked questions
How much is insurance for a first-time driver?
Minimum coverage insurance costs $132 per month for first-time drivers, on average. A full coverage policy costs around $322 per month. Young drivers may be able to save money by sharing a policy with parents or older family members.
What is the best insurance for first-time drivers?
New drivers should strongly consider Full coverage insurance. Full coverage insurance includes comprehensive and collision coverage, which pays for damage to your car, regardless of fault. That could be worth paying for since first-time drivers typically have more accidents than experienced drivers. State Farm is the best car insurance company for most new drivers because of its cheap full coverage policies.
Does a new driver need insurance?
Every state requires auto insurance or proof of financial responsibility to drive legally. You typically need liability insurance to pay for injuries and damage you cause. You can also buy collision and comprehensive insurance to help pay for damage to your car.
What do you need to get car insurance?
To get car insurance quotes as a new driver, you need to provide your info (full name, age, address and driver's license number), vehicle info (make, model, date of purchase and mileage) and your payment info (usually a bank account or credit card).
How much does car insurance cost for a 16-year-old?
A full coverage policy for a 16-year-old new driver costs $602 per month for a stand-alone policy on average. However, you could save around $286 per month if you share a policy with your parents.
State Farm offers the best car insurance for teens with an average policy costing just $183 per month for a full-coverage policy.
How much do car insurance rates drop when you turn 25?
A 25-year-old driver pays 60% less than an 18-year-old, on average. The biggest rate decrease happens between ages 18 and 21.
Methodology
ValuePenguin experts collected thousands of quotes from ZIP codes across Texas for the largest insurance companies in the state to determine the best rates for new drivers.
For minimum coverage rates, ValuePenguin gathered quotes for a policy with the minimum required limits in Texas. Rates are for a 30-year-old man with average credit who drives a 2015 Honda Civic EX, unless otherwise noted. Full coverage quotes include comprehensive and collision coverage and higher liability limits than the state requirement.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured motorist bodily injury liability: $50,000 per person and $100,000 per accident
- Comprehensive and collision deductible: $500
For the difference in rates after adding a first-time driver to a family policy, quotes are based on a 16-year-old, 18-year-old or 21-year-old male sharing a policy with a married couple who are both 50 years old.
Quadrant Information Services provided insurance rate data for ValuePenguin's analysis. Rates came from public filings and should only be used for comparative purposes. Your quotes will differ.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
