Cheapest Car Insurance for New Drivers (2023)
MoneyGeek analyzed the cheapest car insurance companies for new drivers of any age. Nationwide is the most affordable provider overall, but rates will vary depending on your age and other factors.
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By, Freelance Writer
By, Director, Corporate Communications, Insurance Information Institute
For younger drivers, specifically those under 21, State Farm tends to offer the most affordable rates. If you've just reached your early 20s but are still under 25, GEICO may be the cost-effective choice. Meanwhile, Nationwide provides competitive pricing for those who are over 25 and new to driving.
Cheapest Car Insurance For New Drivers
State Farm, GEICO and Nationwide provide the most affordable rates for new drivers, depending on age.
Especially for young drivers, joining a family insurance policy can lead to more affordable rates. However, once they move out of the family home or purchase their own vehicle, it's typically necessary to secure an individual policy.
To manage insurance costs, consider driving a less expensive vehicle, utilizing insurance discounts and routinely comparing insurance quotes to guarantee consistent savings.
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Cheapest Car Insurance for New Drivers Under 21
MoneyGeek found that Nationwide and GEICO offer the cheapest coverage for newly licensed 16-year-old drivers:
- Nationwide: $2,718 annually on a family policy vs. $5,108 for an individual policy
- GEICO: $2,936 annually on a family policy vs. $5,463 for an individual policy
Young drivers face higher insurance rates due to inexperience and a higher risk of accidents, but rates decrease as they age and gain more experience. For example, a 16-year-old pays an average annual premium of $3,732 for full coverage, while a 20-year-old pays around $2,272.
You can usually find cheap car insurance for young drivers on a family policy rather than an individual policy. And if you are under 18, in most cases, legally, you must have the written consent of a parent or guardian to get a car insurance policy.
Toggle the table below to find the cheapest insurance provider by age and your preferred coverage amount.
Young drivers living at home can join the family's policy for more affordable insurance. Even if you head to college, you can usually remain on your parent's policy as long as your family's home is still your permanent residence.
Cheapest Car Insurance for New Drivers Under 21 by State
No drivers pay more for car insurance than new drivers under 21 years old, especially teens.
Your state of residence is among the rating factors insurers use to determine your premium. A young driver in one state might pay more or less than a similarly experienced young driver in another.
The table below shows the most affordable auto insurers by state, along with their average premiums, for different ages, genders and coverage levels.
As long as you live with your parents or their home is your primary residence, you can stay on their policy. But if you move out permanently, you will need to buy your own policy.
Cheapest Car Insurance for New Drivers Under 25
For a full coverage policy, the following providers offer the cheapest insurance for a newly licensed 24-year-old driver:
- Nationwide: $1,565 annually on a family policy vs. $1,743 on an individual policy
- GEICO: $1,579 annually on a family policy vs. $1,452 on an individual policy
A multi-car policy can give you cheaper insurance if you live with family or a domestic partner or spouse. However, this can increase their premium, so it's a good idea to look for providers offering the best deals and discounts.
Change the filters below to find the cheapest insurer according to age and coverage amount.
Cheapest Car Insurance for Drivers Under 25 by State
Young drivers in Massachusetts pay the least for new driver insurance — the state does not allow age as a rating factor for auto insurance. In contrast, drivers under 25 in Louisiana pay the most for a full coverage policy. Use the table below to compare rates in your state.