Buying car insurance is hard when you first get your license. It’s expensive, and some insurers may even turn you away. That’s why it’s so important for drivers with less experience to shop around. We ranked the major insurance companies by what they offer beginning motorists. American Family tops our list of the best car insurance companies for new drivers.
- Adults who’ve never driven
- Drivers who haven’t driven in a long time
This page examines the best car insurance companies for new drivers. We rank them based on what discounts they offer novice or teen drivers. Another important factor is how easy it is to add first-time drivers to your policy. Each company’s overall quality factors in as well. For a breakdown on which insurers are the best overall, be sure to visit our article on the best companies in the country.
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Best Car Insurance Company for New Drivers: American Family
American Family (AmFam) is our winner for the best car insurance companies for new drivers. This is mainly because of the huge number of discounts tailored directly to them. There are also many other rewards that can add up to massive savings. Here’s why AmFam is our number one choice for beginning motorists:
Discounts for Young Drivers
It’s no question that most new drivers are teens. But car insurance for teens is very expensive. This makes it tricky for parents looking to add their kids to their policy. Luckily, AmFam has a whole category of discounts meant to lower young drivers’ rates. These are American Family’s young driver discounts:
- Good student. Achieving good grades in school will get young drivers a discount.
- TeenSafeDriver. You can get a discount for enrolling in this program and driving safely.
- Away at school. Students under the age of 25 and living on campus without their car at least 100 miles away from home can get a discount.
- Young volunteer. Drivers under the age of 25 who complete 40 hours of volunteer work each year may get a discount.
- Generational. You can get a discount if your parents are AmFam policyholders.
More Savings for People New to Driving
AmFam doesn’t reward younger customers. There are many other savings that anyone beginning their driving career can take advantage of. For instance, these auto insurance discounts also apply to new drivers:
- Multi-vehicle. If you insure more than one car in your household, you can get a discount.
- Low mileage. Driving less than 7,500 miles each year can get you a discount.
- Defensive driver. If you’re a first-time driver who’s over the age of 55, you can get a discount for enrolling in and completing a defensive driving course. Note that this discount isn’t available in all states.
AmFam Ranks Well Overall
Not only does AmFam provide lots of ways for new and young drivers to save money, but the company, overall, is also good. In J.D. Power’s 2022 mid-size insurer rankings, AmFam had higher than average customer satisfaction ratings. The company also has an A (stable) rating for financial strength from A.M. Best.
Final Word on American Family
AmFam is the best option for new drivers because of the many discounts available. Young drivers have several discounts available to them that will go a long way in lowering rates. Also, American Family is a high-quality insurance company with a great reputation and all of the ne necessary coverages. The only snag with AmFam is that it only offers insurance in 19 states.
Second-Best Insurer for New Drivers: Progressive
Progressive is the second-best auto insurer for new drivers. Like AmFam, Progressive has discounts meant for rookie and teen drivers to lower their rates. Progressive is also available in every state and is the third-largest insurer in the country. Below is a breakdown of what Progressive offers:
Discounts for Beginner Motorists
Progressive offers customers many ways to save. But there are special discounts that drivers with their first driver’s license can qualify for:
- Teen driver. Adding a driver who’s 18 or under to your policy can get you a discount.
- Good student. Maintaining a “B” average or better can get you or your kid a discount.
- Distant student. Students who are 22 or younger can get a discount if they live on campus more than 100 miles away without their car.
- Online quote. If you’re looking for your first policy, getting a quote online can snag you a discount.
- Multi-car. Insuring more than one car in your household can get you a discount. This is perfect for families with teen drivers!
- Multi-policy. Bundling your home and auto insurance policies can get you a discount. Progressive customers can save up to 20% by bundling their policies.
Besides discounts, Progressive offers other benefits to new drivers. The insurer provides small accident forgiveness (claims less than $500) for all policyholders. Large accident forgiveness isn’t available until you’ve been accident-free with Progressive for five years, however.
You can also take advantage of the Progressive’s Snapshot device to lower your rates. Snapshot is a telematics device that records your driving habits to fairly set your rates. It can help encourage safe driving for you or your teen.
Final Word on Progressive
Progressive is a great choice if you’re a new driver, with many discounts to help keep rates affordable. Accident forgiveness and Snapshot are useful benefits as well. It’s also a plus that Progressive is available in all states.
Third-Best Car Insurance for New Drivers: Farmers
Farmers takes third place in our list of best car insurance companies for brand new drivers. Much like the top two companies, Farmers’ discount selection helps set it apart from the competition. This includes a discount just for being below the age of 25. Here’s why we rank Farmers Insurance so high:
New Driver Discounts
The major reason why Farmers is in our top three is because of its discounts for new drivers. This includes a discount you can get just for being below the age of 25. The following Farmers auto insurance discounts can be of help to people new to driving:
- Youthful discount. Adding a driver under the age of 25 can lower your rates.
- Distant student. If your child attends school 100 miles or more away from home without their car, you’ll receive a discount.
- Good student. Farmers will give you a discount if your teen driver maintains a 3.0 or better GPA, is on the honor roll/dean’s list, or is in the top 20% of standardized testing (SAT, ACT, etc.).
- Shared family car. If there are multiple drivers in the household and at least one is age 20 or under, Farmers will apply a discount to the policy.
- Multi-car. You’ll get a discount if you insure more than one car per household with Farmers.
- Defensive driver. If you’re 55 and over, you can get better rates for completing a defensive driving course.
- Signal app. Using the telematics device, Signal, can help lower your rates if you maintain safe driving habits.
Final Word on Farmers
Farmers Insurance is a good choice for new drivers. It offers a wide variety of discounts for beginning or teenage drivers. This helps ensure you have the lowest rates possible at a time when they’ll be high by default. Keep in mind that Farmers doesn’t provide insurance in every state.
Compare Quotes From the Best Companies for New Drivers
Now that you know which companies are the best for new drivers, all you need to do is get a quote to find out which one has the lowest rate.
Honorable Mentions for Best New Driver Auto Insurance
AmFam, Progressive, and Farmers top our list for being the best auto insurance option for newer drivers. But there are plenty of other carriers that could be a better fit for your lifestyle. Below are four honorable mentions for best providers for inexperienced motorists:
State Farm has many benefits for new drivers. They’re also widely known to offer some of the cheapest car insurance rates, on average. State Farm also has discounts that can further lower premiums, such as:
- Good student discount
- Student away discount
- Defensive driving discount
- Multi-car discount
Another benefit of State Farm is the Steer Clear program. Steer Clear is a six-month safe driving program for teens and young adults. Completing the program will get you or your teen a discount on car insurance.
Travelers is another great insurer for new drivers. They offer many auto discounts to entice your business, including:
- New car
- Driver training
- Good student
- Student away
You can also enroll in the IntelliDrive program for even more savings. This program analyzes your driving habits and rewards you for being safe. Keep in mind that unsafe driving habits can raise your rates as well.
If you’re a new driver, Nationwide is a solid choice. The company offers benefits, such as accident forgiveness and SmartMiles, which can be helpful when you’re just starting to drive. You can also lower your rates with discounts, such as the good student multi-car.
Completing our list of best car insurance companies for new drivers is Liberty Mutual. Liberty Mutual is one of the largest insurers in the US. The company is a good choice for novice motorists because of its discounts:
- Online purchase
- Good student
- Student away
Liberty Mutual also has the RightTrack program, which uses a telematics device to track your driving behavior and reward you for being safe. It’s a good way to pay less for insurance and encourage defensive driving.
Car Insurance for New Drivers by Company
Below is a comparison table to help newer drivers find the best car insurance:
|Discounts for New Drivers
How We Picked Our Winners
We picked our winners for the best auto insurance companies for new drivers based on a few different factors. First, we looked at what discounts a provider offers that would specifically benefit them. Then, we looked at additional benefits, such as accident forgiveness, telematics programs, and how easy it is to add a novice driver to a policy. Finally, we considered an insurer’s overall quality and availability.