The best car insurance for a new driver is not one company or one national price. For example, a newly licensed teen and a newly licensed adult can receive very different quotes. The same is true even when they drive the same vehicle. Therefore, compare the same coverage across several insurers. Then review discounts, deductibles, driving programs, and household-policy options.
Progressive notes that first-time adult drivers may have an age advantage over newly licensed teens.[1] IIHS data help explain why teen pricing is often higher. Drivers ages 16–19 have crash rates more than four times those of drivers 20 and older per mile driven.[2] Therefore, driving experience and driver profile are better starting points than one broad “new driver” label.
Five Rules That Make New-Driver Insurance Easier to Compare
New does not always mean teen
Age, years licensed, prior insurance, driving record, state, vehicle, mileage, and household setup can all change the quote.
Compare the same coverage
A lower premium may simply contain lower liability limits, higher deductibles, or fewer optional coverages.
Check the family policy first
For a teen living at home, first compare the cost of adding the driver to the household policy. Then compare that price with a separate policy.[3]
Discounts vary by insurer and state
Good-student, driver-training, distant-student, multi-policy, telematics, and low-mileage savings are not universal.
Quote the car before buying it
Vehicle value, repair cost, theft exposure, performance, and safety design can materially affect both premium and protection needs.
Separate Driving Experience From Age
A “new driver” can describe several insurance profiles. For example, it can mean a teen receiving a first license or a young adult who began driving later. It can also mean an adult newly licensed in the United States. In addition, someone buying a first personal auto policy may still have years of driving experience. Insurers do not always rate these profiles the same way.
Progressive distinguishes newly licensed adults from teen drivers.[1] An adult first-time driver may benefit from being older, even with a short driving history. For teens, however, inexperience remains a major safety issue. CDC says crash risk is highest during the first year of licensure. The risk is especially high during the first several months.[4]
Teen driver: age and inexperience combine to create a distinctly higher-risk profile.
New adult driver: limited driving history still matters, but the risk profile is not identical to a newly licensed teen.
First-time policyholder: may have driving history but limited prior-insurance history in their own name.
What a 20-Year-Old Benchmark Looks Like in August 2026
Price matters when looking for affordable new-driver insurance. However, the methodology behind a published rate matters too. NerdWallet used a hypothetical 20-year-old good driver in its August 2026 analysis. The profile had no credit history. It also excluded good-student, telematics, and away-at-school discounts. Its full-coverage sample used 100/300/50 liability and 100/300 uninsured-motorist bodily injury. It also used $1,000 collision and comprehensive deductibles.[24]
USAA*
$3,440 median annual rate in the published sample.
Progressive
$3,594 median annual rate in the published sample.
Travelers
$3,657 median annual rate in the published sample.
GEICO
$3,777 median annual rate in the published sample.
State Farm
$4,523 median annual rate in the published sample.
NerdWallet generated these medians from public filings through Quadrant Information Services. USAA, however, limits eligibility to the military community and qualifying family members. Your own result can look very different. For example, state, age, vehicle, coverage, discounts, and insurance history can all change the price.[24]
Insurance.com’s 2026 analysis reports lower averages for newly licensed adults than for new teen drivers. For example, it lists about $2,970 annually for a 25-year-old new driver. It lists about $2,663 for a 30-year-old new driver. However, those figures use a different methodology from NerdWallet. Therefore, do not compare the two studies row for row. Together, they show that age and driving experience are separate rating factors.[25]
A Good New-Driver Policy Starts With the Right Coverage, Not the Lowest Premium
Every state has its own minimum auto-insurance rules. However, state minimums are only a legal starting point. The National Association of Insurance Commissioners (NAIC) recommends comparing policies with the same coverage and limits. That makes price differences more meaningful.[5]
Bodily injury and property damage
Helps pay claims when you are legally responsible for injury or property damage. Therefore, compare liability limits line by line. Do not compare only against the state minimum.
Damage to your own vehicle
Can pay for covered collision damage, subject to the deductible. In addition, a lender or lessor may require it on a financed or leased car.
Covered non-collision losses
Can address covered losses such as theft, vandalism, weather, fire, glass, and animal contact. However, coverage still depends on policy terms.
Uninsured or underinsured drivers
Availability and requirements differ by state. Therefore, compare the same selected limits on every quote.
Medical-expense protection
Requirements and availability vary by state. So, do not assume the cheapest quote includes the same medical coverage.
Rental, roadside, GAP and more
Useful for some drivers, but unnecessary for others. Therefore, treat each option separately instead of assuming “full coverage” includes everything.
A serious at-fault crash can create costs far beyond a low state minimum. Therefore, review our auto insurance coverage limits guide before reducing liability just to lower a quote.
For Teen Drivers, Compare Adding Them to the Family Policy Before Buying a Separate Policy
Progressive says adding a teen to an existing policy is generally cheaper than buying a separate teen policy.[3] However, the actual result depends on the household, state, insurer, vehicles, and coverage. Allstate also notes that rules for permit and licensed teen drivers vary by insurer and state.[6]
This does not mean you should leave a household driver undisclosed. NAIC guidance says insurers need accurate information about household members and vehicle use.[7] Therefore, ask how the insurer handles permit drivers, licensed drivers, occasional drivers, and exclusions.
Potential advantages
- May be less expensive than a separate teen policy
- Existing multi-car or multi-policy discounts may apply
- Parents can manage coverage and renewals together
Potential reasons to compare it
- Adult new driver maintains a separate household
- Vehicle ownership or registration makes a separate policy more appropriate
- Household circumstances or insurer rules require different treatment
If the family policy has much higher liability limits or broader coverage, the prices are not directly comparable. Therefore, match the coverage first.
Strong New-Driver Options Depend on the Driver, State and Discount Eligibility
No insurer is cheapest for every new driver. Therefore, the table below is not a universal ranking. Instead, it highlights current public programs that may make each company worth quoting. Product availability, underwriting, eligibility, and discounts vary by state.
| Insurer | New-driver features worth checking | Potential fit | Important caveat |
|---|---|---|---|
| State Farm | Good Student; Steer Clear for eligible young drivers; Drive Safe & Save | Teen or under-25 drivers who can qualify for student or safe-driving programs | Eligibility and savings vary by state and program.[8] |
| GEICO | Good Student; state-specific defensive-driving discounts; DriveEasy where available | Students and drivers willing to compare telematics | DriveEasy and discounts are not available in all states or situations.[9] |
| Progressive | Teen Driver; Good Student; Distant Student; Snapshot where available | Families adding a teen or student to an existing policy | Age limits, state rules, and discount availability apply.[10] |
| Allstate | Good Student; student-away options; Drivewise; other vehicle/payment discounts | Students and households that can combine several discounts | Drivewise can increase rates for high-risk driving in some states and is not available everywhere.[11] |
| Farmers | Good Student; Distant Student; driver-safety-course opportunities; household discounts | Students and families comparing multi-policy savings | Discount availability varies by state.[12] |
| Liberty Mutual | New Teen Driver; Teen Driving Program; Good Student; Student Away at School | Households with a newly added teen or college student | Programs and eligibility vary by state and policy.[13] |
| Travelers | Good Student; driver-training opportunities; student-related discounts in eligible situations | Students with strong grades or completed driver training | Age, school-status, and state restrictions can apply.[14] |
| Nationwide | Good Student; SmartRide; SmartMiles in eligible states | Safe drivers or low-mileage drivers who fit the available programs | SmartRide and SmartMiles availability varies; compare how data or mileage affects pricing.[15] |
| AAA | Young-driver resources; driver-training programs; potential insurance discounts | Families already using AAA or interested in driver training | AAA insurance products and discounts vary by regional Auto Club.[16] |
| USAA | Good Student; SafePilot and teen-driver savings programs where available | Eligible military-community households | USAA membership eligibility applies, and programs vary by location.[17] |
Insurers can price the same new driver very differently. For example, ZIP code, vehicle, age, coverage, mileage, and prior insurance can all matter. Other legally permitted factors can matter too. Therefore, a company that is best for one profile may be expensive for another.
“Best” Should Mean More Than the Biggest Discount Banner
Our 10-company table is a comparison shortlist, not a star-rating system. We selected large insurers with current public information for new, teen, or student drivers. Before choosing one, compare the actual quote and coverage. Also review complaint history, financial strength, claims access, and programs you can actually use.
Equivalent premium
Compare the same drivers, vehicle, limits, deductibles, optional coverage, mileage, and policy term. Otherwise, the premium comparison can mislead you. Published rate studies are directional evidence, not your personal price.
New-driver savings
Good Student, driver training, distant student, telematics, multi-car, bundling, and low-mileage programs can all help. However, they matter only if you qualify.
Regulatory complaint data
NAIC’s Consumer Insurance Search lets consumers research complaint information by state and insurance type. However, NAIC cautions against using one factor by itself.[26]
Ability to meet obligations
AM Best publishes Financial Strength Ratings for insurers. These ratings provide an independent opinion about an insurer’s ability to meet ongoing obligations.[27]
Claims and service fit
Consider the type of service you prefer. For example, you may want local agents, digital service, mobile claims tools, or repair-network features.
National and regional choices
Do not stop at household-name national carriers. Regional companies can also be competitive where available. Therefore, compare more than the biggest brands.
NerdWallet’s 2026 teen analysis finds different large-insurer winners for different household setups. For example, results change with age and whether the teen shares a vehicle. They also change with the number of adults on the policy. Insurance.com’s 2026 young-driver analysis also highlights Erie as a competitive regional option for teens in states it serves.[29] Therefore, include a strong regional carrier when one operates in your state.
How to Compare New-Driver Quotes Without Accidentally Comparing Different Policies
Allstate recommends comparing young-driver quotes with the same coverages, deductibles, and limits.[18] Likewise, NAIC’s shopping tool uses the same principle. First normalize the policy, then compare the premium.[5]
For a reusable process, see our car insurance quote comparison guide.
New Drivers Should Ask About Discounts—But Only Count the Ones on the Actual Quote
Large insurers commonly advertise student and safe-driving savings. However, the details differ by company. State Farm advertises a Good Student discount of up to 25% for qualifying teen drivers.[8] GEICO advertises up to 15% on certain coverages for eligible good students.[9] Nationwide also lists a Good Student discount for qualifying drivers ages 16–24.[15] In addition, Farmers, Liberty Mutual, Travelers, Allstate, AAA, and USAA publish student or driver-training opportunities.
Grades can matter
These discounts often require full-time enrollment and a B-range average or similar standard. However, age limits vary.
Approved courses
Some insurers offer discounts for approved driver-education or defensive-driving programs. However, state rules may apply.
Car stays home
Some insurers reduce costs for eligible students who attend school far from home. Usually, the student must have limited access to the insured car.
Household vehicles
Adding a new driver to a household policy can also affect multi-car pricing. Therefore, compare the total household premium.
Auto + renters/home
Young adults living independently may compare an auto and renters bundle with separate policies. However, the best option depends on the final total.
Drive less
Some insurers offer mileage-based discounts or products. However, the rules and data collection vary.
A 25% discount on a high base premium can still produce a higher final price. Therefore, compare the final equivalent quote instead of the advertised percentage.
Telematics Can Help Some New Drivers—but Read the Rating Rules Before Enrolling
Telematics programs can measure mileage, braking, acceleration, speed, time of day, or phone-related behavior. However, each insurer measures different factors. These programs can help some safe new drivers. Still, the pricing rules deserve close review.
However, a safe-driving app does not always mean a discount. Allstate says Drivewise can increase rates for high-risk driving in some states.[11] State Farm says Drive Safe & Save adjusts at renewal based on mileage and driving characteristics.[19] In addition, a mileage change can remove a low-mileage reduction. GEICO says DriveEasy is optional and is not available in all states or situations.[9]
- Can poor driving behavior increase my rate?
- Which behaviors are measured?
- Does every driver on the policy have to participate?
- How long is data collected?
- How does mileage affect the result?
- Can I opt out later, and what happens to the rate?
- What driving and phone data are collected, retained, or shared?
NAIC advises consumers to understand the privacy tradeoffs of usage-based insurance. In particular, check what data the program collects and how it affects the premium.[28]
Quote Insurance Before Buying the Vehicle
The car can change both the premium and the coverage you may want. Therefore, price insurance before buying the vehicle. NAIC advises families to consider insurance cost before giving a vehicle to a teen.[20] IIHS also publishes safety guidance and vehicle recommendations for young drivers.[2]
Do not assume a cheap used car will also have cheap insurance. For example, repair cost, theft exposure, performance, and vehicle value can affect the premium. Safety systems and state-specific rating rules can matter too. Therefore, get a quote for the exact VIN when possible before buying.
Safety first
First, check crash protection and electronic stability control. Also review automatic emergency braking and other proven safety features.
Avoid unnecessary performance
High-powered vehicles can be a poor fit for an inexperienced driver. In addition, they may be expensive to insure.
Price physical damage
Quote collision and comprehensive before buying. This matters especially when coverage for a newly purchased vehicle must satisfy lender requirements.
Check total ownership cost
Insurance, financing, fuel, repairs, tires, registration, and maintenance all belong in the budget. Therefore, compare total ownership cost.
A Higher Deductible Can Lower Premium, but It Also Transfers More Risk to You
Increasing collision or comprehensive deductibles can reduce the premium. However, the driver or family must be able to pay the larger deductible after a loss. Otherwise, the cheaper premium can become a poor financial choice.
A lender or lessor may restrict the deductible on a financed or leased car. Therefore, compare several deductible levels and verify the financing contract first.
A $1,000 deductible may be difficult to pay after a loss. If so, do not choose it only to save a small monthly amount. Instead, select a deductible you could realistically cover.
Useful for Some New Drivers, but Not a Core Insurance Requirement
The old page treated roadside assistance as almost essential. However, it is optional rather than core liability or physical-damage protection. Travelers, for example, lists towing, jump starts, fuel delivery, flat-tire assistance, and lockout help.[21]
Before adding roadside coverage, check for similar benefits elsewhere. For example, your manufacturer, dealer plan, credit card, or auto club may already provide them. Otherwise, you could pay twice for similar services.
Safe Driving Is More Than a Discount Strategy
IIHS reports that drivers ages 16–19 have crash rates more than four times those of drivers 20 and older.[2] That comparison is based on miles driven. CDC also says the first months after licensure carry especially high risk.[4] Therefore, these safety realities help explain higher prices for inexperienced teen drivers.
Graduated Driver Licensing rules, supervised practice, seat-belt use, and distraction reduction are primarily safety measures. They can also limit high-risk nighttime driving and passengers. In addition, IIHS says graduated licensing reduces teen driving risk.[22]
Maintaining a clean driving record and avoiding lapses can strengthen a future rating profile. Therefore, re-shop as experience grows and discount eligibility changes.
Information to Gather Before Requesting Quotes
Accurate quotes depend on accurate inputs. Therefore, do not omit household drivers, prior incidents, garaging, or business use just to lower a screen price.
Names, dates of birth, license information, years licensed, household-driver details, violations, and accidents.
VIN, year/make/model, ownership or financing status, garaging ZIP code, annual mileage, and intended use.
Target liability limits, UM/UIM, PIP/MedPay, collision/comprehensive deductibles, and optional coverages.
Student status, grades, driver training, distant-school status, multi-car, bundling, low mileage, and telematics willingness.
New Drivers Still Have a Regulatory Safety Net
NAIC says to contact your state insurance department if you cannot find coverage because you are a new driver. The same advice applies if your driving record or lack of prior insurance creates problems.[23] In addition, states may offer assigned-risk or other residual-market options for eligible drivers.
Do not misstate prior insurance or driving history on an application. Instead, ask the state regulator or a licensed producer about legitimate options.
How New Drivers Can Find Better Value
- 1Do not use one national “average” as your expected price. New-driver rates depend heavily on age, experience, state, vehicle, household, coverage, and insurer.
- 2For teens, compare the household-policy option first. It is often worth pricing before a separate policy.
- 3Normalize every quote. Same drivers, car, limits, deductibles, optional coverage, mileage, and policy term.
- 4Compare at least several major insurers. Student and new-driver programs vary significantly.
- 5Use discounts as a tie-breaker, not the entire strategy. The final equivalent premium matters more than the advertised discount percentage.
- 6Read telematics rules before enrolling. Some programs can affect renewal pricing differently depending on driving behavior and state.
- 7Quote the vehicle before buying it. A first-car decision can materially change insurance cost and safety.
Car Insurance Questions for New Drivers
Who is considered a new driver for insurance?
A new driver can be a newly licensed teen or adult. Insurers may also treat first-time policyholders differently. In addition, drivers with limited U.S. insurance history may receive different treatment. Therefore, a newly licensed adult should not assume teen-driver rates apply.
Why is car insurance expensive for teen drivers?
Inexperience and crash risk are major reasons. IIHS reports that drivers ages 16–19 have crash rates more than four times those of drivers 20 and older.[2] That comparison is based on miles driven. For more detail, see our guide to why young-driver insurance costs more.
Is it cheaper to add a teen to a parent’s policy?
Often, but not always. Progressive says adding a teen to an existing policy is generally cheaper than buying a separate teen policy. However, compare both options with the same coverage.[3]
Does a learner’s permit driver need to be added to insurance immediately?
Rules vary by state and insurer. Therefore, Allstate advises contacting the insurer about permit-driver treatment. The point when a teen becomes a rated driver can differ.[6]
Which company has the cheapest insurance for new drivers?
There is no company that is cheapest for every new driver. For example, age, ZIP code, vehicle, coverage, mileage, and prior insurance can all change the result. Therefore, request equivalent quotes from multiple carriers.
Which major insurers have discounts for new or teen drivers?
State Farm, GEICO, Progressive, Allstate, Farmers, Liberty Mutual, Travelers, Nationwide, AAA, and USAA all publish new-driver savings opportunities. These may include student, driver-training, distant-student, or telematics programs. However, eligibility and availability vary by company and state.[8][9][10]
How much can a good student discount save?
The amount varies. For example, State Farm advertises up to 25% for qualifying teen drivers.[8] GEICO advertises up to 15% on certain coverages for eligible good students.[9] However, other carriers use different rules. Therefore, compare the final premium instead of the headline percentage.
Can driver education lower car insurance?
Sometimes. Farmers, AAA, Travelers, GEICO, and other insurers publish driver-training or defensive-driving savings.[12][14][16] However, approved courses, ages, and state rules vary.
Should a new driver use a telematics program?
It can be worth considering for a safe driver. However, read the program rules first. Some programs use driving behavior for renewal pricing. For example, Allstate says Drivewise can increase rates for high-risk driving in some states.[11]
What coverage limits should a new driver buy?
There is no universal limit. First, start with state requirements. Then consider assets, income, household exposure, financing, and the risk you can absorb. Remember, low state minimums can leave substantial costs after a serious crash.
Does a new driver need collision and comprehensive?
Not solely because the driver is new. Collision and comprehensive protect the vehicle against different losses. In addition, a lender or lessor may require them on a financed or leased car. For an owned vehicle, consider its value and replacement cost.
Is roadside assistance necessary for a new driver?
No. Roadside assistance can be useful, but it is optional. Before buying it, check whether another program already includes towing, lockout, or jump-start services.[21]
Should a new driver choose a high deductible?
Only if the savings justify the added risk. Also, make sure you could pay the deductible after a loss. A financed or leased vehicle may have lender deductible limits.
Does the first car affect insurance rates?
Yes. Vehicle value, repair costs, theft exposure, performance, and safety design can affect the premium. In addition, collision and comprehensive costs can vary by vehicle. Therefore, quote the exact vehicle before purchase when possible.
Can a college student get a discount for living away from home?
Some insurers offer distant-student discounts when eligibility rules are met. Usually, the student must live far from home and have limited access to the insured vehicle. Progressive, Farmers, Liberty Mutual, Allstate, and others publish versions of this discount.[10][12][13]
Can an adult new driver get cheaper insurance than a teen?
Potentially. Progressive notes that newly licensed adults can have an age advantage over teen drivers.[1] However, limited driving experience can still affect the price.
What if a new driver cannot find an insurer?
NAIC recommends contacting the state insurance department if a new driver cannot find coverage. The same applies when prior insurance or driving history creates problems.[23] Then the regulator can explain residual-market or other state-specific options.
How often should a new driver shop for new quotes?
Review coverage at renewal. Also re-shop after a meaningful change, such as more driving experience, a move, or a different vehicle. Changes in student status or discount eligibility can also matter. However, never switch in a way that creates a coverage lapse.
Compare New-Driver Quotes With the Same Coverage
Keep the drivers, vehicle, limits, deductibles, optional coverage, mileage, and policy term consistent. Then compare the final premium and confirmed discounts. Do not rely on one advertised “cheap” rate.
Compare Auto Insurance OptionsReferences
- Progressive. Best Car Insurance for New Drivers. ↩
- Insurance Institute for Highway Safety. Teenagers: Crash Risk and Graduated Licensing. ↩
- Progressive. Car Insurance for Teens. ↩
- Centers for Disease Control and Prevention. Teen Driver Danger Zones. ↩
- National Association of Insurance Commissioners. A Shopping Tool for Auto Insurance. ↩
- Allstate. Learner’s Permit and Teen Driver Insurance. ↩
- National Association of Insurance Commissioners. Household Drivers and Auto Insurance. ↩
- State Farm. Car Insurance for Teens and New Drivers; Steer Clear Safe Driver Discount. ↩
- GEICO. Auto Insurance Discounts; DriveEasy. ↩
- Progressive. Car Insurance Discounts and Information for Students. ↩
- Allstate. Auto Insurance Discounts; Drivewise. ↩
- Farmers. Car Insurance for Teen Drivers; Car Insurance Discounts. ↩
- Liberty Mutual. Car Insurance for Teen Drivers. ↩
- Travelers. Good Student Discount; Adding a Teen’s Car to Insurance. ↩
- Nationwide. Car Insurance for Young Drivers; SmartRide. ↩
- AAA. Car Insurance for Young and Teen Drivers. ↩
- USAA. Car Insurance for Teens and Young Drivers; Good Student Discount. ↩
- Allstate. Best Car Insurance for Young Drivers. ↩
- State Farm. Drive Safe & Save Mobile. ↩
- National Association of Insurance Commissioners. Protect Yourself: Insuring a Teen Driver. ↩
- Travelers. Emergency Roadside Assistance. ↩
- Insurance Institute for Highway Safety. Graduated Driver Licensing Laws. ↩
- National Association of Insurance Commissioners. What to Do if You Cannot Find Auto Insurance. ↩
- NerdWallet. Car Insurance for New Drivers — August 2026 Rates and Methodology. ↩
- Insurance.com. Car Insurance for New Drivers: Costs, Factors and Ways to Save. ↩
- National Association of Insurance Commissioners. Researching Complaints Against Insurance Carriers. ↩
- AM Best. Company and Financial Strength Rating Search. ↩
- National Association of Insurance Commissioners. Understanding Usage-Based Insurance and Telematics. ↩
- Insurance.com. Best Cheap Car Insurance for Teens and Young Drivers. ↩