The Best Cheap Car Insurance for New Drivers

State Farm has the best insurance for new drivers. New drivers under 25 with their own policy pay around $276 per month for full coverage from State Farm.

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Best cheap insurance for new drivers

ValuePenguin collected thousands of car insurance quotes from every ZIP code in Texas to find the 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.

Full methodology


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 full coverage car insurance quotes for first time drivers under 25 years old.

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.

auto insurance rates for first-time drivers under 25-years-old.

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Allstate offers the cheapest 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 logo
State Farm
$276
Geico logo
Geico
$296
Allstate logo
Allstate
$374
Nationwide logo
Nationwide
$692
Farmers logo
Farmers
$796
USAA logo
USAA*
$293

*USAA is only available to current and former military members and their families.

Full coverage

Company
Monthly rate
State Farm logo
State Farm
$276
Geico logo
Geico
$296
Allstate logo
Allstate
$374
Nationwide logo
Nationwide
$692
Farmers logo
Farmers
$796
USAA logo
USAA*
$293

*USAA is only available to current and former military members and their families.

Minimum coverage

Company
Monthly rate
Allstate logo
Allstate
$100
State Farm logo
State Farm
$129
Geico logo
Geico
$131
Nationwide logo
Nationwide
$280
Farmers logo
Farmers
$375
USAA logo
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 damage 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. That's why most people should get a full coverage auto insurance policy instead of minimum coverage, if they can afford it.

Best car insurance for new drivers over 25

State Farm has the cheapest full coverage rates for first-time drivers over 25 years old. New drivers with State Farm pay $117 per month, which is $83 per month more affordable than average.

auto insurance rates for first-time drivers over 25-years-old.

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First-time drivers over 25 can find the cheapest minimum coverage auto insurance with Allstate. The company charges $33 per month, which is 56% less than average.

Cheap insurance quotes for new drivers over 25

Full coverage

Minimum coverage

Company
Monthly rate
State Farm logo
State Farm
$117
Allstate logo
Allstate
$131
Geico logo
Geico
$168
Nationwide logo
Nationwide
$238
Farmers logo
Farmers
$330
USAA logo
USAA*
$158

*USAA is only available to current and former military members and their families.

Full coverage

Company
Monthly rate
State Farm logo
State Farm
$117
Allstate logo
Allstate
$131
Geico logo
Geico
$168
Nationwide logo
Nationwide
$238
Farmers logo
Farmers
$330
USAA logo
USAA*
$158

*USAA is only available to current and former military members and their families.

Minimum coverage

Company
Monthly rate
Allstate logo
Allstate
$33
State Farm logo
State Farm
$49
Geico logo
Geico
$79
Nationwide logo
Nationwide
$88
Farmers logo
Farmers
$142
USAA logo
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.

cost of adding a first-time driver to an existing auto insurance policy

Although State Farm charges more to add another car and driver, its overall rates are more affordable than other major companies. 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 insurance companies for new drivers

State Farm is the best car insurance company for new drivers due to its reliable customer service and affordable quotes.

It's important for first-time drivers to compare auto insurance quotes to find the cheapest 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
859A++
Geico
843A++
Nationwide
831A+
Farmers
818A
Allstate
838A+
USAA*
890A++

*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 can vary greatly based 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 begin to fall.

Car insurance rates by years of driving experience

Years licensed
Monthly rate
Rate decrease
0$92-
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?

One of the most significant factors in new-driver rates is age. Teen drivers tend to get into more driving incidents than middle-aged drivers.

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 see less of an increase than younger drivers.

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
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Rates are for a single man living in Texas with no driving experience.

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. Rates are even lower for first-time drivers in their 30s, 40s and 50s.

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.


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?

Full coverage insurance is a good idea for new drivers. Full coverage insurance includes comprehensive and collision coverage, which pay for damage to your car, regardless of fault. That could be worth paying for since first-time drivers are more likely to have an accident. State Farm offers the best full coverage insurance rates for most new drivers.

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. However, you could save around $286 per month if you share a policy with your parents.

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 insurers 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 are publicly sourced from insurer 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.