fbpx

Best Car Insurance for New Drivers

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Did you recently get your license? Congratulations! Now it’s time to learn more about car insurance. Finding the right car insurance company can help you save a lot of money over the coming years, so let’s get right down to it.

Explore All Car Insurace Quotes
Tip: compare 2-3 companies

Best Auto Insurance for New Drivers:

Car Insurance Quotes for New Drivers

When you start shopping for car insurance, the first thing you’ll want to do is get quotes from car insurance providers. These quotes will give you an idea of how much you can expect to pay for your car insurance. You can compare quotes from different companies to decide which one can offer you the best coverage at the lowest price. Here are some quotes Benzinga has found for new drivers who also happen to be teens

AgeGenderCompanyQuote
16 FemaleDairyland$305/month
17FemaleThe General$302/month
18FemaleFreedom National$237/month
16MaleDairyland$347/month
17MaleThe General$314/month
18MaleFreedom National$229/month

Best Auto Insurance for New Drivers

Unfortunately, as a new driver, it might be more difficult for you to find good car insurance. If you’re a new driver, insurance companies will consider that you pose more risk than an experienced driver would. An insurance company may think that you’re more likely to have a car accident because you’re a less experienced driver. Because of this, some insurance companies won’t insure new drivers at all. Others will charge higher payments from newer drivers to make up for the increased risk. 

To save you some time, Benzinga has put together a list of insurance companies that do offer insurance to new drivers. Take a look at some of these options, and consider getting a quote for yourself to see which company is the best fit for you.

1. Best Overall: Dairyland

Dairyland is one of few auto insurers that does not turn away young or first-time drivers. It offers a mobile app to help you manage your policy on the go. You can also reach Dairyland’s customer service team 24/7, which can be helpful if you do end up getting into an accident in the middle of the night. You can receive discounts from Dairyland to reduce the cost of your policy as well. One of its most common discounts is for taking and passing a defensive driver course. 

Let’s face it — a lot of first drivers are teens. And many teens end up moving out of state for one reason or another, whether it be to start college, a job or just to try something new. Dairyland offers auto insurance policies in most states, which can make it easy to transfer your policy if you happen to move.

2. Cheapest: Freedom National 

We all know that getting car insurance can be expensive, especially if you’re a new driver. So we’re sure you’re interested in getting your hands on some cheap car insurance. As you can see from the quotes for teen drivers, Freedom National does offer competitive rates, even if you’re a young or new driver. Freedom National’s commitment to insuring high-risk drivers at a low cost also comes with other benefits. It offers flexible payment options, roadside assistance and online account management to make accessing your policy simple. 

Like many insurance providers, Freedom National also offers additional discounts to lower your monthly payments even further. One of the discounts includes remaining claims-free, which can prove that you’re a good driver who isn’t getting into accidents. You can also get discounts for paying your insurance in full and being a good student. Overall, these discounts from Freedom National can add up to a 20% savings on your insurance rate.

3. Best for Customizable Policies: The General

The General specializes in offering auto insurance to high-risk drivers. High-risk drivers include young drivers and drivers who have never been insured before. Of course, as a new driver, you’ve certainly never needed an auto insurance policy before now! The General realizes that high-risk driver policies can be more expensive than other types of policies. That’s why it is dedicated to working with its customers to put together a policy that will work for your needs and for your budget. It offers a painless and easy process to put together your policy, and that starts at getting a free quote to see what it can offer you.

The General offers discounts to help you save on your policy, including discounts for taking and passing a driver’s course and for being a good student. You may also qualify for a discount if you are a military member.

4. Best for Family Insurance Policies: GEICO

If you’re a teen driver, or if you’re a parent who is reading this to try to help your teen driver, GEICO is a great company to look into. GEICO is committed to helping families manage their policies in an educated and affordable way. Parents can add new teen drivers to their current policy to give their teens a more affordable policy. When the time is right, parents can move their children to their own policy. Since GEICO already knows which discounts the driver qualifies for, it applies those to the new policy.

The GEICO website offers a number of resources for new drivers to understand what you need in your policy. You’ll also find general tips on safe driving and how to qualify for discounts.

GEICO offers assistance from local agents, as well as a virtual assistant online and a dedicated phone number. No matter what you need, GEICO’s dedicated license agents are sure to help you navigate the world of purchasing an auto insurance policy for a new driver.

5. Best for Student Discounts: State Farm

State Farm is another major auto insurance company that offers plenty of benefits to young new drivers. While many insurance companies do offer discounts for good drivers, State Farm might be the insurer who offers the best discount. You can save up to 25% on your insurance payments just for being a good student. Even better, you can benefit from this discount even after you finish college up to age 25. If you don’t use your car when you’re at college, you can also receive a discount from State Farm to help you manage the cost of keeping up on your insurance while you’re away. 

State Farm also offers a number of other discounts to help you save on your auto insurance. Other discounts include safe driver discounts for remaining accident-free, passing a defensive driving course and having certain safety features in your car. State Farm also offers a 24/7 phone line to its customers who need emergency road service. You can also benefit from other dedicated lines for paying your insurance and filing an insurance claim. 

Tips to Lower Car Insurance for New Drivers

Even though you’re a new driver, there are some things you might be able to do to lower your car insurance rate. Take a look at these tips and consider using them to save money all throughout the year.

Take a Safe Driving Course

Taking a driving course can benefit you in a number of ways. You can even find affordable driving courses that can be completed online. Taking a driving course can help you become more familiar with the rules of the road and ways to avoid accidents. Being prepared with this information can help you avoid fender benders and other accidents that can come from being a new driver.

If you reduce your chance of accidents, you’ll reduce your chance of having to file a claim with your insurance company. Most insurance companies will also give you a discount for completing a safe driver course. This shows insurance companies that you take road safety seriously, which is something your insurer will be glad to see.

Take It Slow

Getting your license is an exciting time, no matter what age you are. But it’s important to remember that just because you can drive, it doesn’t mean that you should be eager to get on the road 24/7. When you’re first getting used to driving, it’s worth taking it slow. If possible, stick to routes and roads that you’re familiar with when you first start driving. It’s a good idea to avoid getting into stressful traffic situations where your chance of having an accident is higher. 

No matter when or where you’re driving, be sure to take it slow and be aware of your surroundings at all times. If you can build your driving skills and show your insurance company that you’re a safe driver, you may be eligible for discounts when you renew your insurance. By avoiding accidents, you’ll also benefit from avoiding costly claims that can cause your insurance rate to go higher. 

Carefully Review Your Coverages

Don’t feel like you need to accept the first policy you see. Speak with your insurance agent to get auto insurance coverage recommendations for your specific needs.

You may want to consider raising the deductible on your policy. Your deductible is the amount of money you’ll need to pay out-of-pocket for your claims before the insurance company will take over the costs. If you raise your deductible, you can probably save money on your monthly insurance payments.

Be sure to carefully consider all of your options to make sure you pick a policy that gives you the coverage you need while also fitting your budget.

Next Steps

The right car insurance for you depends on a number of factors. If you’re a teen, it might be best to get on your parent’s insurance policy. If you’re an adult driver, you’ll need to look at individual policy options. It’s also important to remember that you’ll need to make sure the insurance company you choose covers your state. 
The best way to find the right coverage for you is to get a quote. Getting a quote is fast, free and personalized.

Benzinga's #1 Breakout Stock Every Month

Looking for stocks that are about to breakout for gains of 10%, 15%, even 20% potentially or more? The only problem is finding these stocks takes hours per day. Fortunately, Benzinga's Breakout Opportunity Newsletter that could potentially break out each and every month. You can today with this special offer:

Click here to get our #1 breakout stock every month.

Hire a Pro: Compare Financial Advisors In Your Area