Cheapest Car Insurance for New Drivers (2024)

For younger drivers, specifically those 21 and under, Nationwide tends to offer the most affordable rates. If you've just reached your early 20s but are still under 26 years old, GEICO may be the cost-effective choice. Meanwhile, Nationwide also provides competitive pricing for those who are over 25 and new to driving.

For newly licensed drivers 21 and under seeking affordability, Nationwide and GEICO stand out as the two cheapest insurance providers.

• Nationwide: $2,178 annually on a family policy vs. $3,730 for an individual policy
• GEICO: $2,262 annually on a family policy vs. $3,302 for an individual policy

Young drivers often face high insurance premiums due to their inexperience on the road, which insurers view as an increased risk for accidents and claims. The lack of a driving record to gauge safety also contributes to higher costs.

Being added to an existing family policy is usually the best way for young drivers to find cheap car insurance. It's significantly more affordable than an individual policy and offers the convenience of a single policy for the family. It's also important to note that minors cannot legally purchase their own policy without a parent or guardian to co-sign.

For young drivers, particularly those 21 years old and younger, obtaining a driver's license marks the beginning of a new era of independence. However, it also introduces them to the realities of auto insurance costs.

Statistically, drivers under 21 typically face higher insurance premiums, with male drivers often paying more than their female counterparts. This cost disparity is due to the higher risk associated with younger, less experienced drivers, particularly young men, who data shows are more likely to engage in risky driving behaviors. Only six states do not allow gender as a rating factor: Michigan, California, Hawaii, Pennsylvania, North Carolina and Massachusetts.

Nationwide is one provider known to offer affordable rates to this age group, with an annual premium for a 16-year-old female added to an existing policy starting at $2,550 and an annual premium for a 16-year-old male added to an existing policy starting at $2,801.

Use the table below to filter by age and gender and find out which company offers the most affordable rates for you.

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 state with the most affordable state is Idaho, with an average annual premium of $689 when added to existing policy, while Louisiana has the highest average premium at $3,137 per year.

By selecting the state you reside in in the table below, you can discover the various car insurance providers that offer the most competitive rates for new, young drivers to help you secure an affordable policy tailored to your unique needs and local factors.

For young drivers aged 25 and under, GEICO and Nationwide offer the most affordable options for car insurance:

• GEICO: $1,481 annually for an individual policy vs. $1,518 added to a family policy.
• State Farm: $1,566 annually for an individual policy vs. $1,638 added to a family policy.

Drivers in this age bracket typically receive better rates than younger ones because insurers take into account their increased driving experience. This age group might find individual policies more economical than being added to a family plan. The savings can be significant and are worth considering for those looking for the cheapest car insurance.

Newly licensed drivers under 25 often face higher car insurance premiums due to their lack of driving experience, with young male drivers typically incurring the most expensive rates. MoneyGeek found that GEICO provides some of the most affordable car insurance options for budget-conscious young adults, but auto insurance costs for 25-year-olds vary based on many factors.

While including a young driver in a family policy can offer significant savings on car insurance, individual circumstances might lead to lower costs when opting for a separate policy. This is particularly true for drivers who qualify for specific discounts or have a driving record that varies greatly from their family.

To find the most affordable car insurance, filter the table below to display the companies offering the most competitive rates for your specific profile.

Your location significantly impacts your car insurance rates due to variations in state regulations, the likelihood of accidents and other geographical factors. Currently, Maine offers the cheapest car insurance for drivers aged 21–25, with an average annual premium of $660, while Louisiana has the most expensive average premium at $2,017.

Selecting your state from the table below will reveal the insurance providers that offer the most competitive rates in your area.

Nationwide and Allstate offer the most affordable insurance options for newly licensed adult drivers.

• Nationwide: $2,138 annually on a family policy vs. $3,730 for an individual policy
• Allstate: $2,790 annually on a family policy vs. $3,302 for an individual policy

Newly licensed adult drivers often face higher average car insurance costs because insurance companies see them as higher-risk clients. Unlike experienced drivers, new licensees haven't had the opportunity to establish a driving record that demonstrates safe driving habits. Additionally, statistical data indicates that newer drivers are more likely to be involved in accidents.

Newly licensed adults pay, on average, $3,131 for full coverage car insurance each year.

While older first-time drivers might pay more than those with years of driving experience, they generally enjoy more favorable rates than teens. It's also worth noting that rates can fluctuate based on factors like driving history, type of vehicle, location and more.

New drivers — especially young drivers — face higher car insurance rates. If you want to manage insurance costs as a new driver, there are several tips and strategies you can employ:

MoneyGeek addresses the most common questions new drivers have about car insurance. Get guidance on finding the most cost-effective options, ensuring you find the cheapest and most suitable car insurance for your needs.