Best Car Insurance for New Drivers 2024

MoneyGeek recommends State Farm for new drivers under 21, GEICO for those under 25 and Allstate for new adult drivers.

For new drivers searching for car insurance, the best companies balance affordability and top-tier coverage. They also offer various discounts to cater to all kinds of drivers, ensuring that everyone finds value.

New drivers commonly face higher insurance rates due to their limited experience, which often translates to a perceived increased risk. To secure more budget-friendly rates, new drivers might consider enrolling in defensive driving courses, opting for safer vehicle models and bundling insurance products.

For 20-year-old drivers taking the wheel for the first time, the top insurance providers are:

• State Farm: MoneyGeek score of 85 out of 100 ($2,272 annually for full coverage)
• Travelers: MoneyGeek score of 85 out of 100 ($2,272 annually for full coverage)

Car insurance for new drivers is more expensive than for other demographics, but it provides crucial financial protection in the event of damage or injury. Leading car insurance companies offer various discounts to help drivers save.

To find the best insurance provider for your age group, toggle the age and coverage filters in the table below.

GEICO and State Farm offer the best insurance for newly licensed 24-year-old drivers:

• GEICO: MoneyGeek score of 86 out of 100 ($1,571 annually for full coverage)
• State Farm: MoneyGeek score of 85 out of 100 ($1,724 annually for full coverage)

Both GEICO and State Farm consistently offer great deals for young drivers.

To find the ideal insurance provider for new drivers under 25, adjust the filters in the table below based on your age and preferred coverage options.

If you've moved out for college yet still use the family home as your primary address, many car insurance companies offer "student away from home" discounts. However, if you've permanently moved out or purchased a car titled in your name, you need to get your own car insurance policy.

For those who have chosen to start driving later in life, you can find the best policies from Allstate and State Farm:

• Allstate: MoneyGeek score of 97 out of 100 ($2,790 for full coverage)
• State Farm: MoneyGeek score of 97 out of 100 ($2,977 for full coverage)

Selecting the right car insurance is a crucial step for new drivers, as it not only meets legal requirements but also provides financial protection in case of accidents.

Car insurance is often more expensive for new drivers due to their lack of driving experience. Without a track record of safe driving to go off of, insurers find it hard to assess their risk. Data consistently shows that new and younger drivers are more likely to be involved in accidents. When these drivers are involved in accidents, their limited experience can lead to more severe and expensive claims.

Choosing car insurance involves understanding your car's value, location and financing. Finding the best deal is also about finding ways to save without cutting corners on coverage. To save without sacrificing coverage, consider an insurer's service and reliability.

Every driver must meet their state's minimum car insurance requirements. However, factors like your car's value, where you live and whether you're leasing or financing dictate the need for more extensive coverage.

If you're financing or leasing, you'll typically need full coverage — which includes liability, collision and comprehensive insurance — and often, gap insurance, too.

Although auto insurance for new drivers tends to be pricey, there are several ways new drivers can lower their insurance costs:

Maintaining a clean driving record and improving your credit score can lead to lower insurance premiums over time. While these factors will gradually reduce your costs, being proactive in researching and comparing policies can help you secure the best coverage at an optimal price from the get go.

Selecting the right car insurance requires more than a glance at prices. Consider factors like your vehicle's value, where you live, your budget, risk preferences and the insurance company's reputation.

MoneyGeek answered commonly asked questions about car insurance for new drivers, offering straightforward answers to help you find the best insurance options to suit your needs.