Looking for affordable car insurance policies for new drivers? This guide is ready to give you complete information.
In ‘Best Cheap Car Insurance for New Drivers: Cost, Safety Resources A Complete Guide’ we have not only covered the top insurance companies but also given you tips to understand the cost of insurance and get the cheapest policy.
Plus, we’ll also discuss state-by-state affordable options, safety resources, and information new drivers need to know.
Best Cheap Car Insurance for New Drivers
If you are a new driver and looking for affordable insurance options, we have compiled a list of the top companies for you. This list is compiled based on their average monthly rates, which include both minimum-coverage and full-coverage.
With the help of the table given below, you can compare the options of different companies and choose the right policy as per your budget and needs.
| Best Cheap Car Insurance Company for New Drivers | Average Monthly Minimum-Coverage Rate | Average Monthly Full-Coverage Rate |
|---|---|---|
| USAA | $127 | $337 |
| Travelers | $141 | $336 |
| Geico | $150 | $366 |
| Nationwide | $222 | $383 |
| State Farm | $220 | $578 |
Options like USAA and Travelers can prove to be extremely affordable for new drivers. If you need broader coverage, consider Geico or Nationwide. This table makes it easier for you to decide and helps you compare rates from different companies.
Top Companies Offering Affordable Policies
Choosing the right car insurance can be challenging for new drivers. Here we have listed some of the top companies that offer affordable and reliable policies:
- Geico: Affordable option for new drivers, especially if you qualify for student discounts or safe driving discounts.
- State Farm: Great policy option for new drivers with a strong network and customer support.
- Allstate: Includes telematics programs that offer discounts based on safe driving.
- Progressive: It offers special discounts and customized policy options.
- Nationwide: The perfect choice for student discounts and new car protection.
By understanding the benefits and discounts included in the policies of these companies, you can choose the right option as per your needs.
Features to Look for in a Car Insurance Policy
he following features should be considered when choosing an insurance policy for new drivers:
- Discounts: Discounts on a new car, safe driving, or a multi-car policy.
- Liability Coverage: This compensates for damage caused to other persons or their property after an accident.
- Comprehensive and Collision Coverage: Covers damage caused due to vehicle theft, natural disaster, or accident.
- Telematics Program: Option to reduce premiums based on safe driving habits.
- 24/7 Customer Support: To help in any emergency.
- Add-on coverage: Such as roadside assistance and rental car coverage.
How We Chose the Best Cheap Car Insurance for New Drivers
Selecting affordable and effective car insurance can be a complicated process for new drivers. We have used solid and transparent criteria to prepare this guide so that you can choose the insurance option that best suits you.
Let us know how we evaluated the insurance providers.
Evaluation Criteria for Insurance Providers
When we selected affordable car insurance companies for new drivers, we prioritized the following aspects:
- Cost and coverage options
- Average monthly rates for Minimum Coverage and Full Coverage.
- Preference was given to plans that offer comprehensive protection at affordable rates.
- Discounts and Incentives
- Options like safe driving, student discount, and multi-policy discount.
- Companies that offered special discounts for new drivers were selected.
- Customer Reviews and Ratings
- Customer satisfaction ratings and user experience of insurance providers.
- Companies certified by JD Power, AM Best, and Better Business Bureau (BBB).
- efficiency of claims process
- Time taken to lodge and settle the claim.
- How simple and effective the process is for the user.
- Telematics Programs and Technical Features
- Telematics based discounts and mobile app facility.
- Programs that reduce premiums based on driver habits.
- Safety Resources
- Safety guides and resources provided by insurance companies for new and young drivers.
Best and Cheapest Car Insurance for New Drivers by State
Insurance rates vary from state to state. The table below shows the cheapest insurance companies for each state, including average monthly rates for minimum and full coverage. This guide will help you choose an affordable and suitable insurance policy for you.
| State | Best and Cheapest Car Insurance Company for New Drivers | Average Monthly Minimum-Coverage Rate | Average Monthly Full-Coverage Rate |
|---|---|---|---|
| Alabama | Country Financial | $79 | $289 |
| Alaska | Geico* | $146 | $389 |
| Arizona | Geico | $113 | $297 |
| Arkansas | Geico* | $121 | $440 |
| California | Geico* | $124 | $430 |
| Colorado | American National Insurance | $80 | $216 |
| Connecticut | Geico* | $207 | $451 |
| Delaware | Geico* | $215 | $438 |
| Florida | Geico | $148 | $433 |
| Georgia | Central Insurance | $140 | $330 |
| Hawaii | Geico* | $26 | $113 |
| Idaho | American National | $60 | $202 |
| Illinois | Travelers* | $151 | $349 |
| Indiana | Travelers | $93 | $322 |
| Iowa | Geico | $76 | $314 |
| Kansas | Travelers | $87 | $334 |
| Kentucky | Travelers | $117 | $345 |
| Louisiana | Southern Farm Bureau | $205 | $409 |
| Maine | Travelers | $61 | $198 |
| Maryland | Travelers* | $179 | $376 |
| Massachusetts | Plymouth Rock | $123 | $331 |
| Michigan | Auto-Owners | $108 | $398 |
| Minnesota | Travelers | $119 | $332 |
| Mississippi | Nationwide* | $147 | $340 |
| Missouri | Travelers | $82 | $303 |
| Montana | Nationwide* | $97 | $334 |
| Nebraska | Farmers Mutual of Nebraska | $74 | $269 |
| Nevada | Travelers* | $214 | $405 |
| New Hampshire | MMG Insurance | $96 | $223 |
| New Jersey | Geico | $117 | $317 |
| New Mexico | Central Insurance | $83 | $318 |
| New York | Geico | $326 | $455 |
| North Carolina | Progressive | $91 | $186 |
| North Dakota | American Family* | $87 | $255 |
| Ohio | Nationwide | $112 | $246 |
| Oklahoma | American Farmers & Ranchers | $87 | $322 |
| Oregon | Country Financial | $117 | $315 |
| Pennsylvania | Travelers | $103 | $338 |
| Rhode Island | Geico* | $256 | $452 |
| South Carolina | American National | $85 | $184 |
| South Dakota | Farmers Mutual of Nebraska | $56 | $247 |
| Tennessee | Tennessee Farm Bureau | $115 | $307 |
| Texas | Texas Farm Bureau | $97 | $213 |
| Utah | Geico | $148 | $368 |
| Vermont | Auto-Owners | $56 | $183 |
| Virginia | Virginia Farm Bureau | $110 | $226 |
| Washington | Travelers | $109 | $349 |
| Washington, D.C. | Erie Insurance* | $106 | $331 |
| West Virginia | Erie Insurance | $68 | $325 |
| Wisconsin | Erie Insurance | $73 | $341 |
| Wyoming | American National | $58 | $211 |
Note: *USAA is generally the cheapest option for military-affiliated individuals.
Regional Factors Affecting Insurance Rates
Insurance rates in the US depend not only on individual risk profile, but are also strongly influenced by your location. Let us know about these regional factors:
- Accident and Theft Rates:
- Insurance premiums are typically higher in states with high accident or vehicle theft rates.
- Rates in New York and Florida are higher than in other states.
- Legal Requirements (State Regulations):
- Minimum insurance coverage requirements vary in each state, which affects premiums.
- For example, in California, minimum coverage may be cheap but comprehensive coverage is expensive.
- Population Density:
- Densely populated areas (such as New York City) are more likely to have accidents and claims, leading to higher rates.
- Climate and Natural Disasters:
- Insurance premiums may be higher in states prone to natural disasters (such as hurricanes or floods).
- For example, higher rates are seen in Florida.
- Rural vs Urban Areas:
- Insurance premiums are generally lower in rural areas because there is less traffic and the chance of accidents decreases.
How Much Is Car Insurance for New Drivers?
The cost of car insurance for new drivers depends on many factors. These rates may vary depending on the risk assessment by insurance providers and regional requirements. Let us understand this in depth.
Factors Influencing the Cost of Insurance
The cost of car insurance for new drivers is based on these main factors:
- Age and Experience: Younger and newer drivers have less experience, which can lead to higher insurance premiums for them.
- Vehicle Type: Insurance costs are higher for sports cars or expensive models, while lower for cheaper and safer cars.
- Place: In crowded areas, such as cities, insurance rates are higher due to the risk of accident and theft.
- Driving Record: If you have a clean driving record, insurance rates may be lower.
- Type of Coverage: Minimum coverage costs less, but full coverage can be more expensive for more protection.
- Credit Score: Insurance providers often use credit scores to assess risk. A higher credit score may provide better rates.
Typical Cost Ranges for New Drivers by State
Insurance costs for new drivers vary from state to state. For example, the minimum monthly coverage rate in Vermont is $92, while in New York it can be as high as $496. Specific state requirements, accident rates, and insurance rules affect these costs.
| State | Average Monthly Minimum Car Insurance Rate | Average Monthly Full-Coverage Car Insurance Rate |
|---|---|---|
| Alabama | $199 | $407 |
| Alaska | $160 | $489 |
| Arizona | $302 | $610 |
| Arkansas | $184 | $499 |
| California | $166 | $627 |
| Colorado | $225 | $455 |
| Connecticut | $384 | $842 |
| Delaware | $344 | $666 |
| Florida | $383 | $611 |
| Georgia | $346 | $451 |
| Hawaii | $42 | $141 |
| Idaho | $130 | $411 |
| Illinois | $198 | $477 |
| Indiana | $143 | $445 |
| Iowa | $112 | $401 |
| Kansas | $208 | $566 |
| Kentucky | $250 | $450 |
| Louisiana | $380 | $745 |
| Maine | $124 | $379 |
| Maryland | $301 | $488 |
| Massachusetts | $202 | $596 |
| Michigan | $319 | $582 |
| Minnesota | $166 | $472 |
| Mississippi | $175 | $457 |
| Missouri | $182 | $458 |
| Montana | $155 | $551 |
| Nebraska | $150 | $447 |
| Nevada | $479 | $866 |
| New Hampshire | $163 | $440 |
| New Jersey | $424 | $620 |
| New Mexico | $201 | $467 |
| New York | $496 | $1,005 |
| North Carolina | $149 | $360 |
| North Dakota | $160 | $449 |
| Ohio | $134 | $364 |
| Oklahoma | $224 | $515 |
| Oregon | $302 | $470 |
| Pennsylvania | $243 | $564 |
| Rhode Island | $351 | $700 |
| South Carolina | $212 | $474 |
| South Dakota | $136 | $464 |
| Tennessee | $216 | $451 |
| Texas | $246 | $452 |
| Utah | $318 | $544 |
| Vermont | $92 | $323 |
| Virginia | $187 | $388 |
| Washington | $184 | $500 |
| Washington D.C. | $234 | $454 |
| West Virginia | $179 | $524 |
| Wisconsin | $189 | $442 |
| Wyoming | $78 | $368 |
Safety Resources for Teen Drivers
It is extremely important for new and young drivers to develop safe driving habits. The right safety resources can help them learn responsible driving and reduce risks on the road. Let us know about these resources in detail.
Educational Programs for New Drivers
Educational programs available for new drivers are designed to increase road safety awareness and teach better driving skills.
- Driver’s Education Courses:
- Are offered by schools and private driving institutes.
- Teach traffic rules, safety signs, and managing emergency situations.
- Graduated Driver Licensing (GDL) Program:
- It provides a phased approach for teens to gain driving experience.
- This includes practice driving, understanding traffic laws and night driving restrictions.
- National Safety Council Syllabus:
- It helps new drivers identify potential hazards and react to them.
- Teacher and parent involvement:
- Parent-Supervised Driving provides real-time experience to teenagers.
- In this, parents guide to ensure traffic rules and safety.
Apps and Tools to Encourage Safe Driving
Technological advancements have developed many useful apps and tools for teen drivers to promote safe driving.
- Smartphone Apps:
- DriveSafe.ly: Prevents you from answering texts and calls while driving.
- TrueMotion: Analyzes driving patterns and suggests improvements.
- LifeSaver: Limits phone usage and reduces the chance of an accident.
- Telematics based devices:
- Insurance companies, such as Geico and State Farm, encourage safe driving through telematics programs.
- These devices track vehicle speed, braking, and turning patterns and provide reports.
- Online Tools and Platforms:
- National Highway Traffic Safety Administration (NHTSA): Provides online resources for road safety and driving tips.
- SafeDrivingForTeens.org: Designed specifically for teens and their parents.
- Gamification based apps:
- Drowsy Driving Simulator and Virtual Driving Simulators help teens understand driving risks in an interactive way.
Conclusion
Choosing the cheapest and best car insurance for new drivers is not easy, but this guide will help you make the right decision.
We’ve done a detailed analysis of insurance companies, their policies, cost factors, and safety resources so you can not only save money but also stay safe on the road. Choosing the right insurance policy is important for both your finances and protection.