How to Find Cheap Car Insurance For New Drivers (2024)

New drivers can find low rates on car insurance from non-standard insurance companies like National General, Commonwealth, and Progressive.
Written by Amy Bobinger
Edited by Sarah Gray
New drivers with less than three years of experience behind the wheel get higher
quotes for car insurance
than seasoned drivers. Here’s how to change that. 
Quick look
Adults drivers with less than three years of driving experience pay 14% more for car insurance than more experienced drivers. 
Teens, immigrants, and adults moving from a city to a small town or rural area can all be considered “new drivers” by insurance companies.
The best way to 
find cheap car insurance
 as a new driver is to practice safe driving habits and achieve a clean driving record. 
While you wait for your rate to drop, work on finding discounts, building credit, and 
comparing car insurance quotes

Find cheap car insurance quotes for new drivers

Insurance companies
base car insurance premiums on risk
—and a lack of driving history translates to a higher risk on the road. 
The table below shows the difference in the average cost of car insurance coverage based on driving experience: 
Driver category
Average annual cost of car insurance
Drivers over 25 years old with under 3 years of driving history
Drivers with 3 or more years of driving history
Drivers with 10 or more years of driving history
You might pay a higher rate for car insurance as a new driver if you are: 
  • A teenager:
    New teen drivers
    have some of the highest rates of collisions and violations, making them extremely high-risk drivers. 
  • An immigrant or foreign national: Even if you have lots of driving experience in another country, only your time as a licensed U.S. driver will count when calculating your insurance premiums. 
  • Recently licensed: If you get your driver’s license after the age of 25, you’ll typically pay a lower rate than teenage drivers, but a higher rate than adult drivers with more experience.

The cheapest car insurance companies for new drivers

We analyzed data from real drivers across the country to find out which auto insurance companies offer the cheapest monthly rates for drivers under 25. Check out the table below to see what young drivers will pay for minimum liability vs. a full-coverage policy.
Insurance company
Minimum liability
Mile Auto
Other major insurers, like Allstate, GEICO, Nationwide, State Farm, and USAA, may offer cheap auto insurance rates to new drivers—but because adult drivers with no driving history are considered high-risk, they’re more likely to find the cheapest rates with
non-standard insurance companies
Non-standard insurance companies are also more likely to work with drivers with foreign licenses, making them a better choice for most immigrant drivers. 
Keep in mind: Most of the quotes analyzed in our study were for minimum coverage, meaning that a full-coverage car insurance policy would likely cost more than the averages shown above. 
The bottom line: Compare rates from real insurance companies using the
app to find the insurance provider with the lowest car insurance rates for your profile.

The best car insurance discounts for new drivers

To offset the higher cost of car insurance for new drivers, research discounts available from any insurance companies you’re interested in. The table below compares the average savings of some of the best policy discounts for first-time drivers. 
How to qualify
Average savings
Allow your insurer to track your driving habits through a telematics app or device and avoid unsafe driving behaviors like speeding and harsh braking.  
10% to 40%
Earn a B average or higher as a full-time student under 25.  
8% to 25%
Anti-theft discount
Install an anti-theft device in your vehicle. 
5% to 25%
Purchase homeowners or renters insurance from the same company as your auto insurance.
7% to 13%
Take an approved driver education or defensive driving course. 
5% to 15%
Online quote discount
Get a quote for car insurance online instead of by phone or in person.  
4% to 11%
Electronic billing discount 
Pay your bill using an electronic funds transfer (EFT) rather than a paper check & opt to receive policy documents electronically. 
1% to 6%

The best cars for new drivers

Choosing the right car can help to keep the cost of your first car insurance policy low. Whether you’re buying a new ride for your 16-year-old who just got their learner’s permit or trying to find a good commuter car, consider these top picks for first-time drivers: 
  • Toyota Tacoma Xtracab
    : A small pickup truck with a reputation for safety and reliability is a great option for first-time drivers. Average cost to insure: $133 per month.
  • Subaru Forester:
    High safety scores and a low rate of insurance claims make this easy-to-drive AWD SUV a safe pick for new drivers. Average cost to insure: $171 per month. 
  • Chevrolet Bolt
    : If you’re trying to save on gas, this cheap EV has a very low rate of insurance losses to go along with its reduced fuel costs. Average cost to insure: $177 per month. 
Expert Tip Used cars are typically cheaper to insure than new cars—but don’t just buy the cheapest car you can find. Vehicles with AWD and high safety ratings usually come with lower ownership costs (including insurance).  

How to save on car insurance as a new driver

Teen drivers and college students can keep their rates low by staying on a parent’s policy—but if you’re buying car insurance for the first time as an adult, you might not have that option. Instead, use the following strategies to get the best rates on your own policy. 
1. Compare car insurance quotes: Don’t just pay the first rate you see. Use
to compare quotes from dozens of insurance companies at once to be sure you’re paying the lowest price available for your unique driving profile.
2. Balance your coverage limits against your budget: Most new drivers choose to purchase minimum coverage instead of full coverage. But take some time to compare plans with different coverage levels—you may find it’s more affordable than you think to increase your liability limits or add full coverage to your policy.
3. Take advantage of discounts: First-time drivers can save on car insurance with discounts for new cars, multi-car policies, safe driving habits, and even good grades in school. 
4. Buy a lower-priced car: Older models are cheaper to insure than brand-new cars. For young drivers and other new drivers, a used SUV with strong safety ratings is the best choice for cheap insurance. 

How much car insurance should first-time drivers buy? 

For most drivers, regardless of driving history, an auto insurance policy should include: 
  • Liability insurance: This type of coverage, which includes
    bodily injury
    property damage liability coverage
    , covers medical bills and repair costs for other drivers if you’re at fault in an accident, insuring you against potential lawsuits. 
  • Collision coverage: With
    collision coverage
    , you can file a claim with your insurance company if your vehicle is damaged in a crash with another car or a stationary object like a telephone pole or guardrail. 
  • Comprehensive coverage:
    This insurance
    allows you to file a claim if your vehicle is stolen or damaged by something other than a car accident, such as severe weather or vandalism. 
The minimum coverage included in your auto policy will depend on your state’s laws. In some states, you can purchase a liability-only policy with no additional coverage for the cheapest possible insurance. In other states, all insurance policies automatically include some amount of: 
  • Uninsured/underinsured motorist coverage: If you’re in a crash with a driver whose insurance can’t cover your bills,
    can cover some of your costs that would normally be covered by the other driver’s liability insurance. 
  • Personal injury protection (PIP): In no-fault states,
    supplements health insurance and pays for medical bills and other health-related expenses for you and your passengers after an accident. 
  • Medical payments (MedPay): In
    , all car insurance policies include
    , which pays for medical bills after a car accident. 
Finally, there are certain insurance add-ons that might be worthwhile for new drivers: 
  • Roadside assistance: Cars break down. If yours does while you’re away from home,
    roadside assistance
    gives you free access to towing and other services. 
  • Accident forgiveness: This coverage ensures your rates won’t go up after an accident. Some insurers award
    accident forgiveness
    automatically to drivers who maintain a clean driving record with no at-fault accidents for a certain period of time. 
Don’t forget your deductible: With liability insurance, you don’t have to pay anything to make a claim. But other types of insurance—especially collision and comprehensive insurance—there’s a set amount called a
that you have to pay before your coverage kicks in. The higher your deductible, the cheaper your policy will be. 

Do I need more than minimum coverage? 

The short answer: Yes. Collision and comprehensive coverage are required for financed and leased cars, and it’s always a good idea to carry more than your state’s required liability limits. 
The longer answer: If you can afford it. Finding cheap car insurance as a first-time driver can be challenging, so some drivers end up sticking to minimum coverage while they gain experience. If you don’t drive often or don’t own an expensive car, this is a risky but reasonable approach. 

Your rates will drop as you prove yourself

The best way to save on car insurance as a new driver is to become a good driver—and prove it to your insurance company. 
Usage-based insurance programs can help with that, but the rest takes time. After three to five years without accidents or violations, you’ll likely be paying a much lower rate than when you first started driving. 


What are the car insurance requirements for new drivers?

New drivers have the same car insurance requirements as other drivers: state-mandated liability insurance along with additional coverage required by law and full coverage for financed or leased vehicles.

What is the minimum coverage required by law?

Every state sets different minimum coverage requirements for car insurance. Learn about your state’s requirements

Is it cheaper to pay monthly for insurance or annually?

In many cases, it’s cheaper to pay for car insurance in a single annual payment. Many insurers offer a discount for policyholders who pay their bill in full each year. 
However, choosing a monthly payment reduces the upfront cost of car insurance, making it easy to get
very cheap car insurance with a low down payment

What is the best car insurance for a first time driver?

Because new drivers are more likely to get into an accident, you’ll be best protected if you purchase liability coverage with limits of at least $50,000 per person and $100,000 per accident of bodily injury liability and at least $50,000 of property damage liability. If you drive a newer car, you may also want to invest in full coverage—and if you have a car loan, full coverage is likely required by your lender.

How do you buy car insurance for the first time?

When you start shopping for car insurance, compare quotes and coverage options from several companies to be sure you’re getting the best deal. When you find a policy you like, be ready to provide your personal information, like your driver’s license number, address, and birthdate.

What is the cheapest car insurance for an 18-year-old?

Why is first-time car insurance so expensive?

Car insurance is more expensive than average for new drivers because of their inexperience behidn the wheel, which makes them more likely to get into an accident. To help save on your car insurance costs, compare auto insurance quotes from several companies before you buy a policy.


Jerry’s editorial team analyzed over 34,000 real quotes from drivers insured through Jerry to determine the average rates paid by drivers with varying levels of driving experience.

Meet our experts

Amy Bobinger
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Licensed Insurance Agent — Expert Insurance Editor
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. As a car owner herself, Amy is passionate about creating content that helps consumers navigate challenging and sometimes difficult processes relating to car ownership and achieve financial success in areas relating to cars.
A lifelong writer with over 10 years of experience as a freelance editor, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
Sarah Gray
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Licensed Insurance Agent — Expert Insurance Writer and Editor
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car.
Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.

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