Finding the best car insurance for teens and new drivers could be tricky, as their premiums can be significantly more expensive than the average rates for more experienced drivers. Insurance companies consider young and new drivers a greater risk. Therefore we analyzed major providers to help you ace this process and find the best policy for you.
Our team scored out top picks for best car insurance for young drivers based on affordability, customer support, coverage options, customer satisfaction and pricing. Some of the companies that we have on our list are also a part of the Best Cheap Auto Insurance Companies and the best car insurance companies.
The 6 Best Car Insurance Companies for Teens & New Drivers
- Erie Insurance: Best for Affordable Premiums
- USAA: Best for Military Families
- Geico: Best for Digital Experience
- Progressive: Best for Discounts
- State Farm: Best for Adding Teen Driver to Premium
- Farmers: Best for Comprehensive Add-ons
Best Car Insurance for Young Drivers
| Average Annual Rate* | Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. | A.M. Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power Overall Customer Satisfaction J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Erie Insurance | $2,413 | 3.6 | A+ | 850/1000** | |
| Pin USAA | $3,516 | 4.4 | A++ | 890/1000** | |
| Pin Geico | $4,521 | 4.2 | A++ | 841/1000** | |
| Pin Progressive | $6,675 | 4.4 | A+ | 828/1000** | |
| Pin State Farm | $5,506 | 4.4 | A++ | 855/1000** | |
| Pin Farmers | $7,493 | 4 | A | 826/1000** |
Information accurate as of 10/14/2020.
* Data provided by Coverage.com, based on cost for an average 18-year-old.
** J.D. Power rates car insurance companies by region, and the score can vary. To make a fair comparison, we used the Mid Atlantic region scores.
Best for Affordable Premiums
Why We Chose It
Why we chose it
Pros
- Discounts to help you save more
- Good customer service
- Great add-on coverages for customizable policies
Cons
- Coverage limited to 12 states and D.C.
- Disappointing digital experience
Types of Coverage Offered
- New car protection
- Better car protection
- Non-owners insurance
Discounts Available
- Car safety features
- Safe and young drivers
- Reduced mileage
- Multi-policy and multi-vehicle
*J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid Atlantic region. Based on a 1,000-point scale.
Further Reading on Erie Insurance:
Best For Military Families
Why We Chose It
Why we chose it
Pros
- Personalized customer service
- Affordable policies
- Many discounts including good student and family discount
Cons
- Only available to active and retired military members
- Very few branch locations
Types of Coverage Offered
- Road assistance
- Rental car reimbursement
- Accident forgiveness
Discounts Available
- Safe driver
- Good student
- Family discount
- Driver training and defensive driving course
*J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid Atlantic region. Based on a 1,000-point scale.
Further Reading on USAA:
Best for Digital Experience
Why We Chose It
Why we chose it
Pros
- Intuitive website and mobile app
- Optional rideshare insurance
- Superior financial strength
Cons
- Fewer local agents
- Fewer than average discounts available
Types of Coverage Offered
- Personal injury protection
- Roadside assistance
- Mechanical breakdown coverage
Discounts Available
- Seat belt use and vehicle safety features
- Good driver
- Federal employee
- Emergency deployment
*J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid Atlantic region. Based on a 1,000-point scale.
Further Reading on Geico:
- Geico auto insurance review
- Geico homeowners insurance review
- Geico vs. Progressive Auto Insurance Review
Best for Discounts
Why We Chose It
Why we chose it
Pros
- Great discounts
- Fast and efficient claims handling
- Variety of add-on policies for customization
- Helpful digital tools
Cons
- Average customer service ratings
- Discounts vary by state
Types of Coverage Offered
- Custom parts and equipment
- Rideshare coverage
- Deductible savings bank
Discounts Available
- Continuous insurance
- Snapshot program
- Distant student
- Paperless billing and pay in full discount
*J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid Atlantic region. Based on a 1,000-point scale.
Further Reading on Progressive:
- Progressive auto insurance review
- Progressive renters insurance review
- Progressive home insurance review
Best for Adding Teen Driver to Premium
Why We Chose It
Why we chose it
Pros
- Extensive customer service network
- High claims satisfaction ratings
- Great discounts
Cons
- Expensive policies
- Fewer add-on coverages than competitors
Types of Coverage Offered
- Rental car and travel expenses coverage
- Roadside assistance coverage
- Rideshare driver coverage
Discounts Available
- Policy bundling
- Vehicle Passive restraint safety and anti-theft device
- Safe Driving Habits
- Accident-free
*J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid Atlantic region. Based on a 1,000-point scale.
Further Reading on State Farm:
Best for Comprehensive Add-ons
Why We Chose It
Why we chose it
Pros
- Nearly 20 add-on options
- Multi-policy discounts can be combined with homeowners, renters and life insurance
- Accident forgiveness
Cons
- Few discounts
- Prices that aren’t discounted tend to be higher than average
- Lower customer satisfaction
Types of Coverage Offered
- Towing and roadside assistance
- Loss of Use
- Guaranteed value, popular for classic and collector cars
Discounts Available
- Safe driving discount
- Multi-policy
- ePolicy discount
- Shared Family Car (Not available in California)
*J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid Atlantic region. Based on a 1,000-point scale.
Further Reading on Farmers:
How Much Coverage Do You Need?
Each state’s requirements can be different for newly-licensed drivers, but the most direct answer we can give you is that you should get as much coverage as you can afford. Following the state’s minimum requirements could leave you short in case of an accident, so we recommend increasing the liability coverage levels, asking for full coverage and thinking ahead by adding extra protection with an umbrella liability policy. When it has to do you an inexperienced driver, we prefer spending extra cash on the premiumium, rather than putting your family at risk if anything happens. We also suggest that parents and new drivers call insurance companies to understand precisely the protection needs and estimated costs.
[Suggested reading: When Not to File an Auto Insurance Claim]
Car Insurance Discounts for Teens
Car insurance for young drivers may be expensive, but there are some things you can do to lower the bill and providers may offer discounts specifically for teens and new drivers. Be on the look for:
- Special discounts such as good student discounts
- Shop around and compare rates if you are trying to save money and your policy is soon to be over
- Check for companies that offer great bundles
- Some insurers provide defensive driving course discounts for new drivers
- Ask your provider if they have a usage-based driving program to save some extra money
- New drivers with a cheap car can get a better rate
- If you are buying a new or used car, get one with high safety ratings and features
Can Teen Drivers Join Their Parent’s Insurance?
You can add a teen driver, but here are the things that you need to consider:
- Adding a teen driver to a parents insurance can increase the family’s premium 132%, but still, it will probably be cheaper than a teen and young driver buying a separate policy.
- Adding your daughter will cost you less than including your son in the premium.
- In some states, laws require teens to be covered once they get their driving license even if they are not going to be driving a car.
Methodology
To select the best car insurance for teens and new drivers, we analyzed affordability, customer support and satisfaction score, financial strength and coverage options for the biggest providers in the country. We develop a Reviews.com score for each company and compare those with a score of 3.5 or more to come up with our top providers’ list. We also select a superlative for each of the companies that made it to our list to make it easier to identify the best insurer based on your needs.
Furthermore, we use annual premium rates for auto insurance provided by Coverage.com.
FAQ About Car Insurance for Teens and New Drivers
About the Authors
Nina Rodríguez-Quirós is a feature writer for Reviews.com. Over the last year, she has covered insurance providers, claims handling, coverage and more. She has been featured in Allconnect.com and holds a Master’s Degree in Theory and Research of Communications from the University of Puerto Rico. Her favorite review is Millennials and Auto Insurance.
