If you are looking for the best car insurance for new drivers, it’s crucial to consider affordability, coverage options, and available discounts. Several factors come into play when determining the most suitable insurance provider for your needs.
Choosing the right car insurance is a crucial decision for new drivers, as it not only provides financial protection but also ensures compliance with legal requirements. Our goal is to provide a comprehensive assessment that goes beyond pricing, aiding new drivers in making informed and well-rounded decisions.
Best car Insurance for new drivers
We have conducted thorough market research to identify the best car insurance options for new drivers. Here are some of the Best cheap car insurance for new drivers
Geico
Geico stands out as a top choice for new drivers due to its nationwide availability, affordable premiums, and various discounts. While it may lack new car replacement and pay-per-mile options, Geico compensates with good driver and good student discounts, making it an attractive option for those seeking comprehensive coverage at a reasonable cost.
Pros:
- Available in all 50 states and Washington, D.C.
- Good driver and good student discounts
- Accident forgiveness available
Cons:
- No new car replacement or pay-per-mile options
- Below-average J.D. Power rankings in some regions
Recommendation: Geico is an excellent choice for new drivers seeking a combination of nationwide availability, affordability, and discounts.
Nationwide:
Nationwide‘s comprehensive coverage, including new car replacement, makes it the best car insurance for new drivers. While it only applies to the first two years of a car’s life, this feature ensures that you receive a replacement equivalent to your original vehicle in the event of theft or total loss.
Pros:
- Comprehensive coverage includes new car replacement
- Affordable rates for adding a 16-year-old driver
- Fewer complaints than expected for its size
Cons:
- Second-lowest J.D. Power score among studied companies
- Not available in all 50 states
Recommendation: Nationwide is a solid choice for new drivers planning to purchase a new or nearly new vehicle.
- Fidelity Teenage Account| Terms and conditions
- Guide to Open Free Bank Account Online: Free Online Checking Account
- Biden’s Student Loan Forgiveness: From IDR to HEA Updates
American Family:
American Family excels in customer satisfaction, boasting a significantly lower complaint rate than expected for a company of its size. While it’s available in only 19 states, it’s a worthy alternative for those who prioritize positive customer service experiences and effective claims handling.
Pros:
- Good overall customer satisfaction rankings
- New car replacement and vanishing deductibles are available
- Pay-per-mile option
Cons:
- Available in only 19 states
Recommendation: Drivers valuing excellent customer service and parents seeking a helpful insurer for claims and policy changes may find American families appealing.
USAA:
USAA, with the highest overall customer satisfaction score, is an ideal choice for military members and their families. While its membership is limited, it excels in communication, claims experience, and competitive premiums.
Pros:
- Excellent customer support
- Top J.D. Power customer service ratings
- Good military discounts
Cons:
- Limited membership
- Few optional coverages
- Limited discounts for teen drivers
Recommendation: USAA is a superb option for military members prioritizing communication, positive claims experiences, and competitive premiums.
Progressive Snapshot:
Progressive Snapshot is a usage-based insurance initiative that monitors driving habits, encompassing factors like speeding, hard braking, phone usage while driving, and the time of day.
For responsible drivers, there’s a potential for discounts; however, those with risky driving behaviors may face increased costs during policy renewal.
- Monitors driving habits for safer driving.
- Offers discounts for good drivers.
- Free for Progressive policyholders.
- A small sign-up discount is available.
Cons:
- Poor driving habits may increase rates for 20% of drivers.
- Surcharges for less-than-ideal driving habits.
- Snapshot availability varies by state.
Erie:
Erie stands out as a cost-effective choice for auto insurance, particularly when adding a 16-year-old driver. While the surveyed insurers average an annual rate of $2,448 for this scenario, Erie offers a significantly lower average rate of $1,594.
Pros:
- Erie offers one of the lowest average rates at $1,594 when adding a 16-year-old driver.
- Tailored discounts for young drivers, including driver training and longevity discounts.
- Erie provides a forgiving policy for first-time accidents, offering financial protection.
- College students leaving their vehicles at home for school may qualify for additional discounts
Cons:
- Erie policies are available only in Washington, D.C., and 12 states, restricting coverage for some customers.
- Erie does not offer a pay-per-mile insurance option, limiting flexibility for certain drivers.
Recommendation
- Ideal for those seeking the most affordable rates and multiple discounts for new drivers.
- Best suited for individuals residing within Erie’s coverage area.
Best cheap car insurance for new drivers – Average Cost
According to Forbes Advisor, the average cost of car insurance for new drivers is $2,150 per year for full coverage and $467 per year for state minimum coverage.
However, these rates can vary based on age, location, driving history, and other factors.
According to Car and Driver, the average cost of full coverage cheap car insurance for new drivers is $5,827 per year or $486 per month. Teenagers and young adults tend to face higher premiums in comparison to older new drivers
What is the minimum car insurance required by law?
The mandatory car insurance requirements differ across states. Here are the minimum liability insurance standards for selected states:
- Alabama:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- Alaska:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- Arizona:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
- Arkansas:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- California:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- Colorado:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
It’s essential to note that the legally required minimum car insurance can vary based on factors such as the driver’s location and driving history. To determine the specific minimum coverage mandates in your area
Essential Car Insurance for New Drivers
- Liability Insurance: Legal Requirement
- Bodily Injury Liability: Covers medical expenses for others if you’re at fault.
- Property Damage Liability: Pays for repairs or replacements to another driver’s property in a collision.
- Additional Coverage for Financed or Leased Vehicles:
- Collision Coverage: Repairs or replaces your car after a covered accident, regardless of fault.
- Comprehensive Coverage: Protects against non-collision losses like fire, storms, or theft.