Best Car Insurance Companies for New Drivers

We ranked the best car insurance companies for new drivers. Find out why American Family, Progressive, and Farmers top our list.

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Buying car insurance is hard for new drivers. 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 new drivers. American Family tops our list of the best car insurance companies for new drivers.

New drivers are often young (under 25), but this isn’t always the case. You’re a new driver if you fit into any of the following groups:

  • Teens
  • Immigrants
  • 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 new or teen drivers. Another important factor is how easy it is to add new drivers to your policy. Each company’s overall quality factors in as well.

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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 for new drivers. There are also many other discounts, unrelated to being a new driver, that can add up to massive savings. Here’s why AmFam is our number one choice for new drivers:

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.

Plenty of Other Discounts for New Drivers

AmFam doesn’t just have discounts for young drivers. There are many other discounts that any new driver can take advantage of. For instance, these 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 new 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.

Company 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 to new drivers. 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 coverages a new driver needs. The only snag with AmFam is that the company only offers insurance in 19 states.

Second-Best Insurance Company for New Drivers: Progressive

Progressive is the second-best car insurance company for new drivers. Like AmFam, Progressive has discounts meant for new 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 new drivers can get with Progressive:

Discounts for New Drivers

Progressive offers customers many ways to save. But there are special discounts that new drivers can qualify for:

  • Teen driver discount. Adding a driver who’s 18 or under to your policy can get you a discount.
  • Good student discount. Maintaining a “B” average or better can get you or your kid a discount.
  • Distant student discount. 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 discount. If you’re a new driver looking for your first policy, getting a quote online with Progressive can get you a discount.
  • Multi-car discount. Insuring more than one car in your household can get you a discount. This is perfect for families with new teen drivers!
  • Multi-policy. Bundling your home and auto insurance policies can get you a discount. New Progressive customers can save up to 20% by bundling their policies.

Other Benefits for New Drivers

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. There are several discounts that new drivers can qualify for to save money. Accident forgiveness and Snapshot are useful benefits as well. It’s also a plus that Progressive is available in all states.

Third-Best Insurance Company for New Drivers: Farmers

Farmers takes third place in our list of best car insurance companies for new drivers. Much like the top two companies, Farmers’ discount selection for new drivers helps set it apart from the competition. This includes a discount new drivers can get just for being below the age of 25. Here’s why we rank Farmers Insurance so high:

Discounts for New Drivers

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 new drivers:

  • Youthful discount. Adding a driver under the age of 25 can lower your rates.
  • Distant student discount. If your child attends school 100 miles or more away from home without their car, you’ll receive a discount.
  • Good student discount. 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 discount. 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 discount. You’ll get a discount if you insure more than one car per household with Farmers.
  • Defensive driver discount. If you’re a new driver who is 55 and over, you can get a discount 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. They offer a wide variety of discounts for new 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 Company for New Drivers

AmFam, Progressive, and Farmers top our list for being the best for new drivers. But there are plenty of other insurers that could be a better fit for your lifestyle. Below are four honorable mentions for best car insurance companies for new drivers:

State Farm

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 lower the rates for new drivers even further, 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

Travelers is another great insurer for new drivers. They offer many discounts to new drivers, including:

  • Multi-car discount
  • New car discount
  • Driver training discount
  • Good student discount
  • Student away discount

You can also enroll in the IntelliDrive program for even more savings. The IntelliDrive program analyzes your driving habits and rewards you for being safe. Keep in mind that unsafe driving habits can raise your rates as well.

Nationwide

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 for new drivers. You can also lower your rates with discounts, such as the good student multi-car discounts.

Liberty Mutual

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 new drivers because of its discounts:

  • Online purchase discount
  • Good student discount
  • Student away discount
  • Multi-car discount

Liberty Mutual also has the RightTrack program. This is a telematics device that tracks your driving behavior and rewards you for being safe. It’s a good way to pay less for insurance and encourage safe driving.

Compare the Best Car Insurance Companies for New Drivers

Below is a comparison table to help new drivers find the best car insurance.

Our RankProviderDiscounts for New Drivers
1American Family
  • Good student discount
  • TeenSafeDriver discount
  • Away at school discount
  • Young volunteer discount
  • Generational discount
  • Multi-vehicle discount
  • Low-mileage discount
  • Defensive driver discount
2Progressive
  • Teen driver discount
  • Good student discount
  • Distant student discount
  • Online quote discount
  • Multi-car discount
  • Multi-policy discount
3Farmers
  • Youthful discount
  • Distant student discount
  • Good student discount
  • Shared family car discount
  • Defensive driver discount
  • Signal app
4State Farm
  • Good student discount
  • Student away discount
  • Defensive driving discount
  • Multi-car discount
5Travelers
  • Multi-car discount
  • New car discount
  • Driver training discount
  • Good student discount
  • Student away discount
6Nationwide
  • Good student discount
  • Multi-car discount
7Liberty Mutual
  • Online purchase discount
  • Good student discount
  • Student away discount
  • Multi-car discount
Note: the information above is directly from each insurance carrier’s website. Some discounts may not be available in every state.

How We Made Our Decision for Best Company for New Drivers

We picked the best car insurance companies for new drivers based on a few different factors. First, we looked at what discounts a company offers that would specifically benefit new drivers. Then, we looked at additional benefits, such as accident forgiveness, telematics programs, and how easy it is to add a new driver to a policy. Finally, we considered a company’s overall quality and availability.

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