If you're a new driver—whether you’re a teenager or a young adult just starting out—finding affordable and comprehensive car insurance in 2025 can feel daunting. Here’s your ultimate guide to the best car insurance quotes and companies for new drivers in the U.S., featuring average rates, discounts, and smart tips to save big.
Why New Drivers Pay More (and How to Cut Costs)
New driver insurance is expensive because insurers view inexperienced drivers as a higher risk. But you can still find competitive coverage with the right company and discounts:
Good student discounts
Driver training program participation
Usage-based discounts (telematics apps)
Multi-policy savings (e.g. bundling auto + renters/home)
Top Car Insurance Companies for New Drivers in 2025
✅ Geico
Best for affordability: Among the lowest premiums for new drivers.
Teens: ~$2,485/year at age 19
Age 21: ~$1,844/year
Offers Good Student discounts, Driver’s Ed discounts, and the DriveEasy tracking program for additional savings.
✅ State Farm
Best customer satisfaction & local support
Average for new adult driver: ~$1,632/month cheaper than average at $244/month for full coverage
Offers Steer Clear safe driver program, Good Student discounts, and loyalty through Drive Safe & Save.
✅ USAA
Best for military families—lowest rates among eligible new drivers (~$320/month for teens; ~$124/month for young adults)
Offers accident forgiveness, new car replacement, and strong service.
✅ Progressive
Known for flexibility and Snapshot™ usage-based discounts (up to ~30%)
Provides the Name Your Price tool and multi-policy discounts.
✅ Allstate
Offers the Drivewise™ program, Smart Student discounts, and accident forgiveness
Slightly higher premiums but strong analytics and reward programs.
✅ Nationwide
Offers up to 40% off via SmartRide telematics
Includes vanishing deductible and continuous insurance discounts
More pricey than top tier, but noticeably generous for safe drivers.
✅ Regional Specialty Picks
Root Insurance: Telematics-based rates—great for low-mileage, safe new drivers (up to 30% discount)
Clearcover: AI-driven pricing 15–20% lower than big companies for digital-savvy, low-risk drivers
Erie Insurance: Known for Rate Lock, accident forgiveness, with high claims satisfaction (available in ~12 states)
Auto-Owners Insurance: Great for high-risk or teen drivers; strong student discounts and local agent support
Plymouth Rock/Savings Pass: Northeast-focused; annual cash-back for safe driving over time
Estimated Average Car Insurance Rates for New Drivers
Based on The Zebra’s 2025 data for full coverage and drivers without prior history:
| Company | Teen Driver (monthly) | Young Adult (monthly) |
|---|---|---|
| USAA | ~$320 | ~$124 |
| State Farm | ~$394 | ~$131 |
| Geico | ~$442 | ~$140 |
| Nationwide | ~$471 | ~$146 |
| Allstate | ~$569 | ~$190 |
| Progressive | ~$654 | ~$171 |
Best Picks for Different Needs
For teens on a budget:
Geico offers some of the most affordable rates with strong student and driver education discounts.
State Farm is next best, with the added advantage of local agents and excellent customer service.
For young adults buying a policy:
USAA is unbeatable if eligible (military-connected).
State Farm and Geico remain among the lowest-cost options otherwise.
If safety matters most:
Progressive Snapshot, Nationwide SmartRide, Root, and Clearcover reward safe and low-mileage drivers.
For long-term stability & claims satisfaction:
Erie, Auto-Owners, and Allstate shine for consistent service, forgiveness perks, and lower rates after incidents.
Money-Saving Tips for New Driver Quotes
Take advantage of student and driver-education discounts
Enroll in usage-based programs like Drive Safe & Save or Snapshot
Bundle with other insurance types (renters, home) for multi-policy discounts
Increase your deductible moderately to reduce premiums by up to 20%
Shop quotes annually, especially after gaining driving experience
Maintain a clean record, and renew safe mileage programs for ongoing discounts
Real Driver Feedback (from Reddit)
“Quoted between $600–1000+ per month—even for used cars. Seems ridiculously high, even brokers were shocked.”
“No way to get a personal bank loan without salary transfer—same frustration as new drivers seeing high quotes.”
(While off-topic, reflects broader frustration with hidden costs and barriers.)
Geico: Best overall affordability and discount options.
State Farm: Balanced mix of service, discounts, and steady pricing.
USAA: Ideal if you’re eligible—lowest rates across the board.
Progressive, Nationwide, Root, Clearcover: Best for safe, tech-savvy drivers.
Erie, Auto-Owners, Allstate: Excellent long-term service and forgiveness perks.