Best Insurance Companies

The best car insurance for new drivers under 25 years old is from companies like Allstate, Geico, Progressive, and Safeco. They are among the cheapest car insurance companies for drivers of all ages, both under 25 and older, according to WalletHub's Cheap Car Insurance Report. These companies provide a variety of coverage choices at affordable prices, along with numerous discounts applicable to drivers under 25.

Best Car Insurance For New Drivers Under 25

• Allstate
• Esurance
• Liberty Mutual
• Mercury
• Metromile
• Progressive
• Safeco
• State Farm
• Travelers
• USAA

Drivers under 25 typically pay higher insurance premiums than older drivers, so options for reducing those high costs are especially important. When shopping for auto insurance, new drivers under 25 should consider their state's car insurance requirements, as well as what coverage they will need to be fully protected on the road. Then, they should look into opportunities for discounts.

Many major insurance providers offer discounts that can help reduce the cost of premiums for young drivers. Companies like Geico and Allstate provide good student discounts for drivers under 25 years old who maintain at least a B grade-point average. Young drivers who take a driver's education course or a defensive driving course are eligible for savings, too.

Finally, some companies, like Metromile and Esurance, offer usage-based auto insurance policies that calculate premiums based on how much you drive. These policies can offer an affordable alternative for young drivers who don't drive frequently.

Once a driver turns 25, they are considered to be more experienced and less likely to be involved in an accident, thus their insurance premiums are likely to decrease. Estimates show that premiums decrease by approximately 10% for people with a good driving history once they turn 25.

The best car insurance companies for first time drivers over 25 years old are Erie Insurance, American Family Insurance and State Farm. When shopping for car insurance, first time drivers over 25 should look for the highest quality coverage at the lowest price, but they should also expect to pay more for coverage than other drivers their age. Although car insurance costs the most for new teen drivers, lacking experience at any age means that you're considered high-risk and will pay a higher premium.

Best Car Insurance Companies for First Time Drivers Over 25

• Erie Insurance
• American Family Insurance
• State Farm
• Geico
• Progressive
• Allstate
• Nationwide
• Liberty Mutual
• USAA

While most of these companies operate nationwide, Erie Insurance and American Family Insurance only operate in 12 and 17 states, respectively. Additionally, USAA is only available to military servicemembers and their families.

No matter which insurance company you choose, time is the best tool for new drivers over 25 who want to save money on their car insurance. Costs will usually begin to lower after three years of good driving, and the biggest drop in your premium will come after nine years of driving. Aside from your driving record, age is also going to help long-term costs. Insurance rates gradually decrease as drivers get older, until they reach senior status. 

The most popular car insurance companies are State Farm, Geico and Progressive, which service more than 120 million policies and have a combined market share of 43.1%. These companies are available in all 50 states and the District of Columbia.

Most Popular Car Insurance Companies

1. State Farm
2. Geico
3. Progressive
4. Allstate
5. USAA
6. Liberty Mutual
7. Farmers
8. Nationwide
9. American Family
10. Travelers

Together, these insurance providers were responsible for auto policies totaling nearly $185 billion in premiums during 2019, according to the Insurance Information Institute. They have been among the most used car insurance companies for at least the past five years.

The best car insurance for drivers with points is from USAA, AAA, and Progressive, according to quotes for different types of drivers with points. Drivers with points for serious violations are considered high risk, meaning that insurers consider them likely to file a claim, so they will be charged more as a result.

In order to find the best insurance for drivers with points, WalletHub commissioned quotes for a variety of offenses. All of these violations lead to a different number of points in each state, and these numbers represent the average of a wide range of locations. It's important to note that repeat offenses are even more alarming to insurance companies, since they indicate a failure to reform, so your rates will likely be higher if you have a record of multiple violations that lead to points.

Best Car Insurance for Drivers with Points, By Type of Violation

Points are assigned by most states to drivers who violate traffic laws on everything from speeding to drunk driving. States will suspend the driver's licenses of people with a certain number of points, or in some cases, drivers with a single serious infraction. As a result, drivers with points on their licenses should be prepared to pay more for insurance, and might even have trouble finding a policy. Drivers with points who are struggling to find affordable coverage or who are rejected by standard insurance companies can also look into high risk insurance. If you have so many points that you are repeatedly rejected by private insurers, consider joining your state's assigned risk pool. Even if your policy is expensive now, remember that points fall off your record eventually and your premiums will decrease as they do so. In addition, taking advantage of any point and insurance reduction programs can help your driving record – and your insurance costs. Finally, drivers with points should be especially willing to comparison shop, since insurance companies vary widely in how much they increase premiums for various violations.

The 4 main types of insurance coverage are life, health, auto, and home insurance. You will need auto insurance to finance or lease a car, home insurance to take out a mortgage, health insurance to avoid a fee in some states, and life insurance to protect your family if you pass away.

4 Main Types of Insurance

Life Insurance

This type of coverage is meant to provide for your family and cover funeral expenses after you've passed away. Life insurance can replace lost income, pay debts, and help pay for other costs your loved ones may incur. Generally, the younger and healthier you are, the cheaper this coverage is.

Health Insurance

This insurance covers your healthcare costs including medical and surgical expenses if you are sick or injured. Health insurance is usually included in employer contracts but can be purchased independently.

There is a monthly premium for health insurance along with a deductible, which is the amount you must pay out of pocket when making a claim. Some health insurance companies also charge co-pays for certain services.

Auto Insurance

This insurance generally covers liability claims filed against you. You can also add collision coverage to repair or replace your car in the event of a collision or comprehensive coverage to protect your car from non-collision damage. Auto insurance costs vary widely by location, age, and driving history.

Home Insurance

This coverage will protect your home, which is the most valuable asset for most families. Home insurance covers damage to your property as well as liability claims filed against you for injuries occurring on your property. Most lenders require a home insurance policy to take out a mortgage, but even if they don't, it is a good idea to have a policy regardless.

To learn more about your options, check out WalletHub's insurance comparison tool.