Key Takeaways:
- New drivers now can find average monthly rates for auto insurance to begin with approximately $92 per month or even less from most reliable insurance companies that include USAA, Travelers, Geico among others.
- New drivers will get minimum coverage at an average of $2,706 every year while full coverage is priced at an average yearly rate of $5,192.
- It does not matter at what age you start to drive a car but insurance carriers will classify any driver who has recently passed their test as a high risk for the initial three years leading to higher rates.
Compare Car Insurance Rates
You shouldn’t go very long without discovering how you might be able to get cheaper car insurance: simply answer these few questions. You can quickly select a highly recommended provider and compare the prices side by side.
Best Cheap Car Insurance Companies for New Drivers:
Below, find the top options for cheap car insurance for new drivers. The rates are quoted for those who are 16 to 19 years, have a good credit history and no history of driving violations in their records and driving a 2023 Toyota Camly.
| Insurance Provider | Average Monthly Rate (Minimum Coverage) | Average Monthly Rate (Full Coverage) |
|---|---|---|
| 1. USAA | $127 | $337 |
| 2. Travelers | $141 | $336 |
| 3. Geico | $150 | $366 |
| 4. Nationwide | $222 | $383 |
| 5. State Farm | $220 | $578 |
Note: USAA offers insurance exclusively to military members, veterans, and their families.
How We Chose the Best Cheap Car Insurance for New Drivers:
Most insurance providers consider new and inexperienced drivers in the same way they consider the teenage drivers. To model these rates, we employed a driver cohort that was 16 to 19 years old with no driving offenses, past due credit, and the insured car was a 2023 Toyota Camry.
For this study, we have restricted our sample to national providers who have achieved or exceeded a score of 8/10 in the industry league tables. The affordability rankings are based on the minimum required liability and the complete needed coverage, 50/100/50 while the comprehensive and collision coverage required a $500 deductible.
Cheapest Car Insurance for New Drivers by State:
National players may put lower tariffs, but in this question they are scouts, and regional and local players may be more loyal and offer the lower price if you take in consideration your place of living. Here are the cheapest options for new drivers to consider – we’ve also provided more places to find information on car insurance by state.
Cheapest Car Insurance for New Drivers by State:
Auto insurance rates vary greatly depending on where you live. Here’s a list of the best and most affordable car insurance providers for new drivers, broken down by state:
| State | Insurance Provider | Minimum Coverage (Monthly) | Full Coverage (Monthly) |
|---|---|---|---|
| Alabama | Country Financial | $79 | $289 |
| Alaska | Geico | $146 | $389 |
| Arizona | Geico | $113 | $297 |
| Arkansas | Geico | $121 | $440 |
| California | Geico | $124 | $430 |
| Colorado | American National Insurance | $80 | $216 |
| Connecticut | Geico | $207 | $451 |
| Delaware | Geico | $215 | $438 |
| Florida | Geico | $148 | $433 |
| Georgia | Central Insurance | $140 | $330 |
Note: If you’re affiliated with the military, USAA may offer lower rates.
Finding Specific Rates for Different Age Groups:
For more precise rates and insights based on your age and driving experience, we’ve compiled additional guides:
- Best Cheap Car Insurance for Young Adults
- Best Cheap Car Insurance for Teens
- Best Cheap Car Insurance for College Students
- Best Cheap Car Insurance for 16, 17, 18, 19-Year-Olds
- Best Cheap Car Insurance for 20 to 25-Year-Olds
How Much Is Car Insurance for New Drivers?
Currently, new drivers pay an average of $226 per month on minimum coverage and $481 per month on full coverage. Your rate will depend upon your age, experience, and geographical location but in general the less driving experience the more expensive your premium.
Here’s a breakdown of insurance costs based on driving experience:
| Years of Driving Experience | Minimum Coverage (Monthly) | Full Coverage (Monthly) |
|---|---|---|
| First Year | $281 | $519 |
| Second Year | $243 | $499 |
| Third Year | $215 | $472 |
| Fourth Year | $163 | $433 |
| Sixth Year | $120 | $349 |
| Ninth Year | $84 | $256 |
These rates apply to drivers aged 16 to 25 with good credit, driving a 2023 Toyota Camry.
Why Is Car Insurance Expensive for New Drivers?
New drivers particularly the young ones are deemed to be high risk simply because they do not have any record in terms of their driving. According to the CDC, drivers of the age 16 – 19 can be associated with crash rates higher than any other age bracket. Due to this higher risk, insurance firms charge higher premiums to new drivers who intend to drive cars.
How Long Are You Considered a New Driver?
When it comes to insurance rates, the law considers you as a novice driver unless you have been driving for at least three years. Some insurers take this to as little as nine years of driving experience if any at all.
Auto Insurance for International Drivers:
If you decide to immigrate to the United States, be prepared that most insurance companies in the States will view you as a new driver even with a clean slate from your prior country. This can make buying car insurance as difficult as possible particularly if one has no valid drivers license from the United States. Undocumented immigrants can legally get drivers’ licenses in California, Colorado, and New York and therefore, finding car insurance.
How to Save on Car Insurance for New Drivers:
Though it’s difficult to find the lowest rates as a new driver, there are several strategies you can use to lower your premiums:
Get different quotes from different people.
Opt for higher deductibles.
Discounts like good student or safe driver discounts should always be taken if possible.
Final Thoughts: Best Insurance for New Drivers
It is a common story with new drivers to attract high insurance premiums, however there are economic solutions. Some of the best carriers in the industry include USAA, Travelers, Geico, Nationwide as well as State Farm. Quotes are a great tool and by evaluating them and discussing possible discounts, you can find the right policy.
