What is the best car insurance for first time owners?

Asked by: Aletha Wilderman  |  Last update: August 3, 2025
Score: 4.8/5 (34 votes)

The Zebra's experts consider State Farm, USAA, and Nationwide the best insurance companies for new drivers thanks to their cheap rates, wide availability, and relevant discounts and programs. Read about the unique features offered by each company that especially suit first-time drivers.

What car is cheapest to insure for a first-time driver?

Cheapest cars to insure 2025: the shortlist
  • Hyundai i10.
  • Volkswagen Polo.
  • Skoda Fabia.
  • Kia Picanto.
  • Toyota Aygo X.
  • VW Caddy.
  • Fiat 500.
  • Dacia Sandero.

What is the best insurance for a beginner driver?

State Farm has the best car insurance for drivers under 25. Full coverage from State Farm costs young first-time drivers around $276 per month. That's about half the average monthly rate, which is $544. This makes State Farm the best car insurance company for new drivers.

What is the best insurance group for a first car?

Group 1 insurance cars can be a great option for younger drivers as they're usually the cheapest to insure and are among the cheapest to buy and repair. They also tend to have less powerful engines. If you have a large family, you might need something bigger, as group 1 cars tend to be small hatchbacks.

What is the best insurance for a new driver?

Black Box Insurance can help young drivers save money as it allows them to prove they are safe behind the wheel when they have little to no driving history. The technology tracks driving behaviours which means that insurers can better judge the level of risk and price the premium more accurately.

Tips For First-Time Car Insurance Buyers

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How to get car insurance as a first time driver?

Ready to get car insurance as a new driver?
  1. Go online. Customize your policy's coverages, limits, and deductibles. Quote car insurance online.
  2. Call us. Talk to a licensed representative who will guide you through every step of the process.
  3. Ask an agent. Get expert advice from an independent agent near you.

Who normally has the cheapest car insurance?

Geico, Nationwide and Travelers are among the least expensive for car insurance. Americans are paying a lot for car insurance these days: Average annual rates for a full coverage policy are up to $2,638 per year, while minimum coverage averages $767 per year.

Who is #1 in auto insurance?

State Farm is the largest auto insurance company in the U.S. based on written premium, or the total amount it bills customers. Progressive is the second-largest car insurance company, followed by Geico and Allstate.

Who gives best car insurance?

According to our research, California drivers pay an average car insurance premium of $2,973 per year for full coverage and $715 for minimum coverage. Bankrate's insurance editorial team determined that Geico, State Farm, Progressive and Mercury are among the best car insurance companies in California.

What is the least expensive car to insure?

What cars have the lowest insurance rates? Typically, compact SUVs with high safety ratings and low MSRP have the lowest average insurance rates. Vehicles like the Subaru Outback, Honda CR-V and Toyota RAV4 all fit this model and have some of the lowest average premiums out of all the vehicles Bankrate reviewed.

What is the most basic car insurance?

Basic car insurance is a policy that only includes liability coverage. It helps cover the damage you may cause to other people and their property. That can include medical bills, repair or replacement of property and legal fallout. Almost every state has minimum basic auto insurance limits for their drivers.

Why is insurance expensive for first time drivers?

The lack of experience and driving history plays a major role in determining insurance rates. Young drivers are seen as more prone to accidents due to inexperience, making them riskier clients for insurers. This can result in higher premiums and even difficulty obtaining insurance coverage.

What insurance is the best for new drivers?

Progressive, Geico, Auto-Owners, State Farm and Nationwide tend to offer low average premiums and robust coverage options for young drivers. If you're a young adult, searching for carriers that offer discounts you qualify for can potentially help lower your rate.

At what age is car insurance cheapest?

Experienced drivers are less likely to have accident claims, which means they cost less to insure. At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.

Which car is best for a first time driver?

What are the best cars for new drivers? The best cars for new drivers might include the 2023 Acura Integra, Honda Civic and Accord, Hyundai Sonata, Mazda 3, Toyota Corolla and Camry, and Subaru Legacy and Outback — these are all included in IIHS-HLDI's 2023 Top Safety Picks for small and midsize cars.

How do I get lower car insurance?

Nine ways to lower your auto insurance costs
  1. Shop around. ...
  2. Before you buy a car, compare insurance costs. ...
  3. Ask for higher deductibles. ...
  4. Reduce coverage on older cars. ...
  5. Buy your homeowners and auto coverage from the same insurer. ...
  6. Maintain a good credit record. ...
  7. Take advantage of low mileage discounts. ...
  8. Ask about group insurance.

Who is cheaper than Progressive for car insurance?

Both Geico and Progressive offer competitive average premiums for drivers, but if you're wondering if Progressive is cheaper than Geico, Geico has the edge. Its average rates tend to be cheaper than the average rates offered by Progressive, and the company's extensive discount list may help you save even more.

What is the most trusted car insurance company?

Amica and USAA tied in Bankrate's analysis as the two best auto insurance companies overall. Geico ranks as the best car insurance company for high-risk drivers. Nationwide and Liberty Mutual are some of the best auto insurance companies for discounts and bundling.

Which is better, Allstate or Liberty Mutual?

Compared to Liberty Mutual, Allstate provides cheaper average coverage for different driver profiles. Allstate earned an above-average score in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study. It also earned higher average customer satisfaction scores than Liberty Mutual in the J.D. Power 2023 U.S.

Who is State Farm's biggest competitor?

State Farm main competitors are USAA, MetLife, and American Family Insurance. Competitor Summary. See how State Farm compares to its main competitors: MetLife has the most employees (49,000).

Is Allstate cheaper than GEICO?

GEICO is much cheaper and has better ratings than Allstate. Your experience with GEICO and Allstate will vary based on individual rating factors.

Can I ask for cheaper car insurance?

Much like a utility service such as electricity or gas, you cannot negotiate a lower monthly car insurance payment. What you can do, however, is compare rates. Read on to learn more about the smart steps you can take to lower your car insurance rates.