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The best car insurance companies for new drivers include Liberty Mutual, Nationwide, and Geico, with rates averaging around $140/month. Refer to our detailed guide titled "A Practical Guide For Understanding Car Insurance."
Liberty Mutual stands out as the top pick overall due to its extensive coverage options, while Nationwide offers great customer service and Geico excels in competitive pricing.
| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
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#1 | 25% | A | Extensive Coverage | Liberty Mutual |
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#2 | 20% | A+ | Customer Service | Nationwide |
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#3 | 25% | A++ | Competitive Pricing | Geico |
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#4 | 25% | A | Personalized Service | American Family |
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#5 | 13% | A++ | Comprehensive Options | Travelers |
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#6 | 10% | A++ | Military Focus | USAA |
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#7 | 10% | A+ | Innovative Tools | Progressive |
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#8 | 17% | B | Broad Network | State Farm |
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#9 | 25% | A+ | Financial Stability | Allstate |
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#10 | 20% | A | Customizable Policies | Farmers |
These companies provide the best balance of affordability and quality for new drivers. Exploring these top options can help ensure you find the most suitable policy for your needs.
Our free online comparison tool above allows you to compare cheap car insurance quotes instantly — just enter your ZIP code to get started.
What You Should Know
- Liberty Mutual offers top coverage for new drivers, with rates from $140/month
- Provides top-notch customer service, making it a strong choice for new drivers
- Top providers offer competitive pricing, ideal for cost-conscious new drivers
#1 – Liberty Mutual: Top Overall Pick
Pros
- Broad Coverage Suite: Liberty Mutual offers a wide array of coverage options, which can address various needs and concerns that new drivers might have.
- Enhanced Protection Features: Offers extra features like roadside assistance and rental car coverage, perfect for new drivers facing unexpected issues.
- Educational Resources: Provides resources and tools to help new drivers understand insurance and improve their driving habits. Find out more in our Liberty Mutual review.
Cons
- Potentially Steep Premiums: Comprehensive coverage may lead to higher monthly premiums, which can be challenging for new drivers on a budget.
- Overwhelming Choices: The extensive coverage options might be complex and confusing for new drivers who are unfamiliar with what they truly need.
#2 – Nationwide: Best for Customer Service
Pros
- Top-Tier Support: Nationwide’s customer service is highly rated, offering reliable support and guidance for new drivers navigating their first policy.
- Dedicated New Driver Resources: Offers resources and support to help new drivers understand coverage and improve driving skills.
- Efficient Claims Handling: Known for effective claims handling, which reassures new drivers who may face more accidents. To learn more, check out our resource titled "When to File a Car Insurance Claim."
Cons
- Premium Costs May Be Higher: The high level of customer service can come with a higher cost, which might be a drawback for new drivers on a budget.
- Potential for Longer Wait Times: Despite excellent service, some new drivers might experience longer wait times during peak periods, affecting their overall experience.
#3 – Geico: Best for Competitive Pricing
Pros
- Budget-Friendly Rates: Geico offers some of the most affordable rates, making it a great choice for budget-conscious new drivers. Read more in our Geico vs. Progressive: Which car insurance company do customers say is better?.
- Broad Discount Opportunities: Provides numerous discounts tailored for new drivers, including savings for academic achievements and safe driving practices.
- User-Friendly Online Tools: Geico’s intuitive online tools make it easy for new drivers to obtain quotes and manage their policies with minimal hassle.
Cons
- Basic Coverage Limits: The focus on low pricing might mean that coverage options are more basic, which might not meet the needs of all new drivers.
- Customer Service Challenges: Geico's customer service may lack the personalized support that new drivers might need.
#4 – American Family: Best for Personalized Service
Pros
- Tailored Insurance Solutions: American Family’s personalized approach ensures that new drivers receive insurance solutions that fit their unique situations.
- Proactive Communication: The company actively communicates with new drivers to ensure they understand their policy and get the most out of their coverage. For a complete list, read our American Family review.
- Dedicated Agent Support: Offers personalized advice and support through one-on-one interactions with agents, ideal for new drivers.
Cons
- Higher Premiums for Personalization: The emphasis on personalized service can lead to higher premiums, which might be a concern for new drivers looking to keep costs down.
- Inconsistent Service Experience: The level of personalized service can vary depending on the agent, leading to potential inconsistencies in the experience for new drivers.
#5 – Travelers: Best for Comprehensive Options
Pros
- Extensive Coverage Choices: Travelers offers a wide range of coverage options, which can be particularly beneficial for new drivers seeking comprehensive protection.
- Additional Benefits: Features like accident forgiveness and new car replacement offer added reassurance for new drivers, which you can learn about in our Travelers review.
- Flexible Policy Adjustments: Allows new drivers to adjust their policies as needed, accommodating changes in their driving habits or circumstances.
Cons
- Possibly Higher Costs: Comprehensive options might result in higher insurance costs, which could be a downside for budget-conscious new drivers.
- Complex Policy Details: The variety of coverage options might be overwhelming, making it difficult for new drivers to understand the best options for their needs.
#6 – USAA: Best for Military Focus
Pros
- Cost-Effective Rates: USAA offers lower rates for eligible new drivers in the military community. See our USAA review for details.
- Exceptional Support Services: Known for its outstanding customer service, USAA provides high-quality support that can be particularly helpful for new drivers.
- Generous Discounts: Offers a range of discounts, including those for good driving records and safety features, which can be advantageous for new drivers.
Cons
- Eligibility Limitations: Only available to military members and their families, which excludes many new drivers from accessing USAA’s benefits.
- Limited In-Person Interaction: The lack of physical branch locations might be inconvenient for new drivers who prefer face-to-face communication.
#7 – Progressive: Best for Innovative Tools
Pros
- Cutting-Edge Technology: Progressive’s innovative tools like Snapshot help new drivers track their driving behavior and potentially earn lower rates.
- Flexible Policy Options: Offers customizable policies that can be tailored to suit the needs of new drivers as they gain experience and confidence.
- Easy Online Management: Provides a user-friendly online platform that simplifies policy management for new drivers. Discover our Progressive review for a full list.
Cons
- Variable Rates With Tracking: The use of tracking tools might lead to unexpected rate changes based on driving behavior, which can be concerning for new drivers.
- Complexity of Customization: The range of customizable options might be confusing for new drivers who are still learning about insurance.
#8 – State Farm: Best for Broad Network
Pros
- Wide Agent Network: State Farm’s extensive network ensures that new drivers have access to a local agent and personalized assistance wherever they are.
- Local Expertise and Support: Local agents offer expertise and tailored support that can help new drivers make informed decisions about their coverage.
- Reliable Coverage Options: State Farm provides consistent and dependable coverage options that new drivers can trust. Learn more in our State Farm review.
Cons
- Potentially Higher Premiums: The broad network and local support might come with higher costs, which could be a concern for new drivers with limited budgets.
- Inconsistent Service Quality: Service quality may vary between different agents, which could result in an uneven experience for new drivers.
#9 – Allstate: Best for Financial Stability
Pros
- Secure Coverage: Allstate’s financial stability ensures that they can provide reliable coverage and support, which is reassuring for new drivers.
- Strong Claims Process: Known for efficient claims handling, which can be particularly important for new drivers who might face more frequent claims.
- Diverse Discount Opportunities: Offers a variety of discounts that can help new drivers save on their insurance premiums. Get a complete view in our Allstate review.
Cons
- Higher Premium Costs: The emphasis on financial stability might lead to higher insurance premiums, which could be a drawback for new drivers.
- Complex Policy Options: The range of options and coverage details might be overwhelming for new drivers who are not yet familiar with insurance products.
#10 – Farmers: Best for Customizable Policies
Pros
- Highly Flexible Policies: Farmers allows new drivers to customize their insurance policies extensively, catering to their specific needs and preferences.
- Personalized Service: Provides tailored service to new drivers, helping them choose and understand the best coverage options for their situation.
- Adaptable Coverage Solutions: Offers adaptable coverage solutions that can evolve as new drivers gain more experience and their needs change. Explore our Farmers review.
Cons
- Higher Costs for Customization: Customizable policies might come with higher premiums, which could be a concern for new drivers seeking affordable insurance.
- Complex Policy Adjustments: The flexibility in policy options might be overwhelming for new drivers who are still familiarizing themselves with insurance terms and coverage.
Comprehensive Guide to Car Insurance Costs and Discounts for New Drivers
When searching for the best car insurance for new drivers, comparing quotes is crucial. Our comparison table provides a clear view of average monthly costs for both minimum and full coverage from various top insurance providers.
For minimum coverage, rates range from $140 with USAA to $210 with Allstate. For detailed information, refer to our comprehensive report titled "Why is car insurance so expensive?"
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $210 | $420 |
| American Family | $190 | $380 |
| Farmers | $195 | $390 |
| Geico | $160 | $350 |
| Liberty Mutual | $200 | $400 |
| Nationwide | $180 | $370 |
| Progressive | $175 | $365 |
| State Farm | $165 | $340 |
| Travelers | $170 | $360 |
| USAA | $140 | $330 |
For full coverage, rates range from $330 with USAA to $420 with Allstate. This table features major insurers like Geico, Liberty Mutual, and Nationwide, making it easy to compare and find the best value for your coverage needs.
Discover how top insurers offer savings for new drivers with various discounts. Providers like Geico, Liberty Mutual, and USAA offer reductions for good students, safe drivers, and multi-policy holders. Use this guide to find the best discounts and save on your car insurance.
The Cost of Inexperience: Why New Drivers Face High Insurance Rates
Insurance companies evaluate and assess the risk of an individual to determine first if they even want to insure them and second how much they need to pay for their risk level. Because new drivers have no experience on the road, they’re considered riskier to insure than older drivers with more experience.
This is due to insurers' assessment of driving behaviors and the age tax, which charges drivers more or less depending on their age. In addition to your risk profile, there are many other factors that affect the car insurance rates of drivers. Some of them are:
- Age, Gender, and Marital Status: Teenagers and single drivers tend to have more accidents, and therefore, pay a high premium.
- Type of Vehicle: If the car is new and expensive, the premium is higher.
- Location: Drivers who frequently drive in cities are more prone to accidents. Car insurance rates also differ by state.
- Car Insurance Coverage: What coverages you have on your policy, the limits you select and your deductibles all impact your insurance rates.
Teen drivers have accident rates nearly four times higher than drivers aged 20 or older per mile driven, according to the Insurance Institute for Highway Safety.
Understand the Coverage When Buying Car Insurance
There are six different types of car insurance coverage options on a typical policy.
Understanding what they cover and which ones are required in selecting your coverage is important.
- Bodily Injury Liability: It pays for injuries to the other person(s) in an accident caused by you. The coverage includes two limits, one that applies to each injured person and applies to each accident
- Property Damage Liability: It pays for damages caused to someone else’s property when you are at fault in an accident.
- Personal Injury Protection: It pays for the treatment of injuries to yourself as the policyholder and the passengers in your car.
- Collision Insurance: It pays for the damage to your car due to collision with another car, an object, or even rollover accidents, irrespective of who is at fault. To deepen your understanding, check out our resource titled "Five Steps to Take After a Car Accident."
- Uninsured Motorist/Underinsured Motorist Coverage: Both insurance coverages pay you if you’re the victim of a hit-and-run accident, hit by an uninsured driver or hit by a driver that doesn’t have sufficient coverage limits.
When choosing car insurance, it's crucial to understand the different types of coverage available and what each one protects.
Knowing these coverages helps you select the right policy to meet your needs and ensures you’re well-protected on the road.
Top Car Insurance Picks for New Drivers: Affordable Options and Key Insights
For new drivers, Liberty Mutual, Nationwide, and Geico are top choices, with average rates around $140 per month. Liberty Mutual is recognized for its extensive coverage options, Nationwide stands out for excellent customer service, and Geico offers competitive pricing.
Due to their lack of driving experience, new drivers often face higher insurance rates, making it crucial to compare quotes and understand different coverage types. For a comprehensive overview, explore our detailed resource titled "What is a driving record and what does it track?"
Your car insurance rates will likely increase after an at-fault accident, but you can find your cheapest coverage option by using our free quote comparison tool below today.
Frequently Asked Questions
Why do new drivers have higher insurance rates?
New drivers are considered higher risk due to their lack of driving experience. Insurance companies base rates on factors like accident statistics, and inexperienced drivers are statistically more likely to be involved in accidents.
What types of coverage should new drivers consider?
New drivers should consider comprehensive coverage, collision coverage, liability coverage, personal injury protection, uninsured motorist coverage, and medical payments. Each type protects against different risks and scenarios on the road.
How can new drivers lower their insurance premiums?
New drivers can lower premiums by maintaining a clean driving record, taking advantage of discounts for good students, safe driving, or multi-policy holders, and by comparing quotes from different insurance providers.
To gain profound insights, consult our extensive guide titled "Six Safety Tips for Driving at Night."
What are the top car insurance companies for new drivers?
The top companies for new drivers include Liberty Mutual, Nationwide, and Geico. Liberty Mutual is noted for its extensive coverage, Nationwide for excellent customer service, and Geico for competitive pricing.
How does my age impact my car insurance rates?
Younger drivers typically face higher insurance rates due to their higher risk profile. Insurance companies use age as a factor because younger drivers, particularly teenagers, have higher accident rates compared to older drivers.
What discounts are available for new drivers?
Discounts for new drivers may include those for good students, safe drivers, bundling policies, and completing defensive driving courses. Each insurance provider may offer different types of discounts, so it’s important to inquire about them.
To expand your knowledge, refer to our comprehensive handbook titled "The Cost Benefits to Taking a Defensive Driving Course."
What should I know before choosing a car insurance policy?
Before choosing a policy, understand the different types of coverage, check the provider's reputation for customer service, compare quotes from multiple insurers, and consider the coverage limits and deductibles that fit your needs.
How often should I review and update my car insurance policy?
It’s a good idea to review your car insurance policy annually or whenever you experience a major life change, such as buying a new car, moving, or changing your driving habits.
What factors should I consider when comparing insurance quotes?
When comparing quotes, consider the type and amount of coverage, premium costs, deductibles, discounts offered, and the insurer’s reputation for customer service and claims handling.
For a thorough understanding, refer to our detailed analysis titled "Do I pay a deductible if I hit a car?"
How can I use the free quote comparison tool effectively?
To use the free quote comparison tool effectively, enter your ZIP code accurately, provide detailed information about your vehicle and driving history, and compare quotes from various insurers to find the best coverage and rates for your needs.