Best Cheap Car Insurance for New Drivers

Travelers offers the cheapest car insurance for new drivers among major national insurers. While Travelers leads in nine states, GEICO dominates seven states and State Farm covers five. Regional insurers like Auto-Owners and Farm Bureau also provide competitive rates in select markets.

Travelers leads for full coverage at $232 monthly, followed closely by GEICO at $241. For minimum coverage, National General offers first-time drivers the lowest rates at $101 monthly, with GEICO at $105 and Travelers at $116. 

The gap between full and minimum coverage varies dramatically - Travelers costs $116 more monthly for comprehensive and collision, while National General jumps $150 monthly. First-time drivers can save over $1,500 annually by choosing minimum coverage, though this leaves them without protection for their own vehicle damage.

Regional insurers lead many state markets for first-time drivers. Auto-Owners offers the cheapest rates in five states, averaging around $190 monthly, while Farm Bureau claims four states with rates averaging approximately $160 monthly.

Travelers ranks as the cheapest option in nine states, aligning with our earlier findings that it's the cheapest major national insurer. GEICO follows with seven states, and State Farm claims five states. Since rates vary dramatically by location, first-time drivers should focus on finding the cheapest provider in their specific state rather than assuming national leaders offer the best local deals.

Travelers earns the top spot as the best car insurance for new drivers nationally, balancing competitive rates with strong customer service and coverage options. Our analysis weighs affordability most heavily at 60%, followed by customer experience and coverage variety. State-by-state, Travelers and Auto-Owners tie for the most wins with 14 states each, giving new drivers excellent options regardless of location.

Travelers claims the top spot for new drivers by combining the best affordability ranking with solid customer experience, scoring first in cost and second in customer satisfaction. GEICO follows closely in second place, matching Travelers' strong pricing but falling to seventh in customer experience. Amica rounds out the top three with exceptional customer service (ranked first) but weaker affordability at fifth place. 

MoneyGeek's ranking demonstrates that first-time drivers need to balance cost savings with reliable claim handling and customer support when selecting coverage.

Travelers and Auto-Owners tie for the most state wins with 14 each, demonstrating strong regional performance for first-time drivers. Erie Insurance follows with six states, while Progressive and State Farm each claim four states. New drivers should prioritize state-specific research over national rankings, as the best insurer varies dramatically by location. 

For example, Progressive ranks as the top choice in California but not neighboring states, highlighting how local market conditions affect both pricing and service quality. MoneyGeek recommends Auto-Owners for new drivers in its 14 coverage states - scroll down for our detailed review.

Here are some possible discounts that new drivers should look into when shopping around for car insurance:

• Good student discount: Good student discount: Most reputable cheap car insurers reward academic achievement with discounts for maintaining at least a B average. You'll need to provide report cards or transcripts as proof. This discount can save students 5% to 25% on their premiums.
• Bundled discount: Bundling your home/renters and auto insurance from the same company can often earn you a 10% to 20% discount.
• Defensive driver discount: Check with your insurance company before selecting a defensive driving course, as some have a pre-approved list. These classes often provide a 5% to 10% discount, but even without a discount, they teach valuable skills to help prevent accidents, making them a worthwhile investment.
• Pay-in-full discount: If you pay your premium all at once rather than making monthly payments, you may get a 5% to 10% discount.
• Low-mileage discount: If you drive infrequently, you may qualify for a low-mileage discount. Eligibility varies by company, with some offering discounts for driving under 7,500 miles annually, while others set the limit at 10,000 miles.
• Green/hybrid car discount: Some insurers offer a 10% discount for driving a hybrid or electric vehicle.

Every driver, including new car owners, must have insurance. Premiums are higher for new drivers because insurers consider them higher risk. Providers like Allied, Nationwide and GEICO offer competitive rates. Combining discounts for safe driving, defensive driving courses or good grades can help lower costs. Maintaining a clean driving record will gradually reduce premiums over time

MoneyGeek addresses the most common questions new drivers have about car insurance.

MoneyGeek evaluated more than 70 insurance companies nationwide to rank the best cheap car insurance for new drivers. We analyzed national carriers, regional providers and local insurers across all U.S. residential areas, with special focus on companies that offer competitive rates and strong support for first-time drivers.

Our research team combined rate analysis, customer feedback and coverage assessments to create comprehensive rankings specifically tailored to new driver needs. We rank the best car insurance companies for new drivers at both national and state levels using three key factors.

How we score each provider:

Affordability (60% of total score): We gathered car insurance quotes specifically for new drivers and compared prices across all states. Our main test profile focused on young drivers with clean records, but we also collected quotes for new drivers with various credit scores and driving histories to ensure our rankings work for all first-time insurance buyers.

Customer experience (30% of total score): We reviewed what real customers say about each company through Google reviews, J.D. Power ratings, AM Best financial strength scores and forum discussions, with particular attention to how well companies handle new driver questions and claims. We organized this feedback by state to see how companies perform in your area.

Coverage options (10% of total score): We evaluated each provider's range of coverage types and unique policy features that benefit new drivers, such as accident forgiveness programs, new car replacement and educational resources for first-time policyholders.