The cheapest car insurance policies for first-time drivers can save new drivers as much as 319% compared to the more expensive options, so it is very important to shop around. Overall, the cheapest car insurance companies for first-time drivers are Travelers, USAA, and Geico, according to WalletHub’s analysis.
Cheapest Car Insurance Companies for First-Time Drivers
New drivers usually pay more for car insurance than mature drivers with more experience, but it’s still possible to get a good deal on your coverage. The key to finding the cheapest car insurance for first-time drivers is to compare quotes from multiple companies.
Cheapest Car Insurance Companies for First-Time Drivers Comparison
|Company||Average Cost||WalletHub User Rating|
|Travelers||$1,325 per year||2.2|
|USAA||$1,384 per year||2.8|
|Geico||$1,484 per year||2.5|
|State Farm||$1,573 per year||3.5|
|Mercury||$1,648 per year||2.1|
|Grange||$1,776 per year||4.1|
|Progressive||$1,780 per year||2.7|
|Auto-Owners||$1,800 per year||2.5|
|AAA||$1,931 per year||2.4|
|Allstate||$2,349 per year||3.0|
Average Cost of Car Insurance for First-Time Drivers
The cost of car insurance for a first-time driver depends mostly on their age. On average, a policy for a 16-year old driver costs $3,192 per year. Premiums are usually the highest for teenagers compared to other age groups, but good drivers will see their rates drop by 12% to 20% once they turn 25 years old.
|16||$3,192 per year|
|17||$2,647 per year|
|18||$2,325 per year|
|19||$1,623 per year|
|20||$1,569 per year|
|21||$1,217 per year|
|22||$1,094 per year|
|23||$1,013 per year|
|24||$952 per year|
|25||$815 per year|
6 Tips for Getting Cheaper Car Insurance for First-Time Drivers
1. Shop around for coverage
Each car insurance company has its own method of calculating insurance premiums, so the first quote you get might not be the lowest price available. In general, it’s a good idea to get quotes from three different insurers before purchasing coverage.
For first-time drivers getting car insurance for the first time, it’s important to consider not only the company’s price, but also coverage options, available discounts, and overall reputation. Even after you’ve bought your policy, you should still compare quotes every 6-12 months to make sure you’re getting the best deal.
2. Consider joining an existing policy instead of purchasing your own
Adding a teen driver to an existing car insurance policy raises the policyholder’s premiums by an average of 140% to 160%. But considering how expensive car insurance is for new drivers, this might be a more cost-effective option than having them purchase their own policy.
3. Look for discounts
Most major insurance companies offer a variety of discounts for young drivers who are new to the road. For example, good student discounts allow high school and college students to save if they have at least a “B” grade point average. Young drivers can also get a discount if they attend school at least 100 miles away from where the insured car is garaged.
4. Purchase less coverage
You should always purchase as much car insurance as you can afford in order to minimize risk. But if you’re struggling to find an affordable policy, you should think about what types of coverage you actually need. If you decide that you don’t need additional types of coverage like collision or comprehensive, you could save on your premium by only purchasing the minimum amount of car insurance required by your state. You can also decline optional coverage add-ons like rental reimbursement insurance and roadside assistance.
5. Choose a higher deductible
One quick way to lower your rate is to raise your deductible, which is the amount that you’re responsible for paying if you file certain types of claims. The higher your deductible, the lower your premium will be. But you should avoid choosing a deductible that’s more than you can afford just so you can get a lower rate.
6. Stay safe on the road
As a first-time driver, the best way to lower your rates long-term is to avoid moving violations and at-fault accidents. Once you’ve had a few years of safe driving experience, your rate will gradually go down.
Video: Cheapest Car Insurance for First-Time Drivers
WalletHub’s analysis of the cheapest car insurance companies for first-time drivers is based on data from the state DMVs and Quadrant Information Services. Using that data, WalletHub compared quotes for drivers aged 16-25 years old with a clean driving record, minimum coverage, and good credit.