Best Car Insurance for Inexperienced Drivers in 2024 (Top 10 Companies)
Best car insurance for inexperienced drivers is offered by top pick, Progressive, slowly followed by USAA and State Farm. With minimum rates of as low as $100/month, these companies offer tailored benefits and competitive premiums, making them the top choices for inexperienced drivers.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
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UPDATED: Oct 24, 2024
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Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 24, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
13,128 reviewsCompany Facts
Min. Coverage for Inexperienced Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
13,128 reviews
6,435 reviewsCompany Facts
Min. Coverage for Inexperienced Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
6,435 reviews
17,759 reviewsCompany Facts
Min. Coverage for Inexperienced Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
17,759 reviewsProgressive, USAA, and State Farm are the top companies that offer best car insurance for inexperienced drivers. Delve into our analysis for insights into premiums, benefits, and exclusive discounts tailored for this demographic.
When you’re under 25, car insurance is very expensive. Although it may feel like you’re being penalized for being young, you are really just paying the price for the risk that goes along with being an inexperienced driver.
Our Top 10 Company Picks: Best Car Insurance for Inexperienced Drivers
| Company | Rank | Monthly Rates | Multi-Policy Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | $120 | 20% | Online Efficiency | Progressive |
 | #2 | $128 | 15% | Military Families | USAA |
 | #3 | $139 | 25% | Personalized Assistance | State Farm |
 | #4 | $152 | 30% | Family Plans | Nationwide |
 | #5 | $163 | 20% | Drivewise Program | Allstate |
 | #6 | $176 | 25% | Signal App | Farmers |
 | #7 | $185 | 15% | KnowYourDrive Program | American Family |
 | #8 | $194 | 20% | Multi-Policy Discount | Esurance |
| #9 | $209 | 20% | IntelliDrive Program | Travelers |
 | #10 | $221 | 30% | TeenSMART Program | Liberty Mutual |
Accidents can occur at any time, to anyone, and anywhere. However, there are some accidents that can be avoided by experienced drivers.
Driving can be taught, but experience is the best teacher, which means the more you drive, the more skillful you will become.
An inexperienced driver may have a gut reaction to slam on the brakes in order to avoid an accident while an experienced driver may see the potential accident coming up a couple seconds sooner and have a difference reaction.
That means that if you’re under 25, car insurance is expensive; but there are ways to reduce your overall costs. Compare online car insurance quotes with just your ZIP code right now.
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#1 – Progressive: Top Overall Pick
Pros
- Online Efficiency: Streamlined online platform for easy policy management and claims processing.
- Competitive Discounts: Progressive car insurance review offers generous discounts, including those for bundling policies and safe driving.
- Innovative Tools: Provides tools like Snapshot for personalized rate adjustments based on driving behavior.
Cons
- Limited Military Discount: Progressive may not offer as high a discount for military families compared to some competitors.
- Moderate IntelliDrive Program: The discount offered through Progressive’s IntelliDrive program is not as high as some other companies.
#2 – USAA: Best for Military Families
Pros
- Exclusive Focus on Military Families: Tailors policies and services specifically for military members and their families.
- Generous Multi-Policy Discount: USAA car insurance review offers a substantial discount for bundling multiple insurance policies.
- Strong Financial Stability: Known for its financial strength and stability, providing peace of mind to policyholders.
Cons
- Limited Online Efficiency: USAA’s online services may not be as advanced or efficient as some competitors.
- Restricted Eligibility: USAA membership is limited to military members and their families, excluding a broader customer base.
#3 – State Farm: Best for Coverage Options
Pros
- Diverse Coverage Options: State Farm car insurance review offers a wide range of coverage options tailored to individual needs.
- Competitive Multi-Policy Discount: Provides a significant discount for bundling multiple insurance policies.
- Strong Customer Service: Known for personalized assistance and dedicated agent support.
Cons
- Limited Multi-Policy Discount: State Farm’s multi-policy discount may not be as high compared to some competitors.
- Potential Premium Costs: Despite discounts, premiums with State Farm car insurance review might still be relatively higher for certain coverage levels.
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#4 – Allstate: Best for Drivewise Program
Pros
- Drivewise Program: Allstate car insurance review offers the Drivewise program to monitor driving behavior and reward safe driving habits.
- Competitive Multi-Policy Discount: Provides a substantial discount for bundling multiple insurance policies.
- Nationwide Coverage: Offers insurance products and services across the United States.
Cons
- Limited Online Efficiency: Allstate’s online services may not be as efficient or user-friendly as some competitors.
- Potentially Higher Premiums: Despite discounts, premiums with Allstate might be relatively higher for certain coverage levels.
#5 – Nationwide: Best for Family Plans
Pros
- Family Plans Policies: Offers insurance solutions tailored to the needs of families, including bundled discounts.
- Competitive multi-policy discount: Provides a significant discount for bundling multiple insurance policies.
- Strong financial stability: Known for its financial strength and stability, providing confidence to policyholders.
Cons
- Limited Military Discount: Nationwide may not offer as high a discount for military families compared to some competitors.
- Moderate Drivewise Program: The discount offered through Nationwide’s Drivewise program is not as high as some other companies.
#6 – Farmers: Best for Signal App
Pros
- Signal App: Farmers car insurance review offers the Signal app to monitor driving behavior and potentially lower premiums.
- Competitive Multi-Policy Discount: Provides a substantial discount for bundling multiple insurance policies.
- Extensive Agent Network: Offers personalized assistance through a vast network of agents.
Cons
- Limited Military Discount: Farmers may not offer as high a discount for military families compared to some competitors.
- Restricted Eligibility for Signal App: The Signal app may not be available to all customers, limiting its impact.
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#7 – Liberty Mutual: Best for TeenSMART Program
Pros
- TeenSMART Program: Liberty Mutual car insurance review‘s TeenSMART program focuses on enhancing teen driver safety, potentially leading to lower premiums.
- Family Plans: Liberty Mutual offers family plans with up to 15% discount options.
- Competitive IntelliDrive Program: ‘s IntelliDrive program provides potential discounts for safe driving habits.
Cons
- Limited Applicability of TeenSMART Program: The TeenSMART Program may not be relevant for all customers, potentially limiting its impact.
- Potential Cost: Premiums with Liberty Mutual may be relatively higher for some customers compared to competitors.
#8 – Travelers: IntelliDrive Program Specialist
Pros
- IntelliDrive Program: Travelers car insurance review offers the IntelliDrive program to monitor driving behavior and potentially lower premiums.
- Competitive Multi-Policy Discount: Provides a substantial discount for bundling multiple insurance policies.
- Wide Range of Insurance Products: Offers various insurance products to cover diverse needs
Cons
- Limited Family Plans: Travelers may not offer family plans or discounts as competitive as some other companies.
- Moderate Military Discount: The discount offered for military families by Travelers may not be as high as some other companies.
#9 – Esurance: Best for Multi-Policy Discount
Pros
- Multi-Policy Discount: Provides a significant discount for bundling multiple insurance policies.
- Streamlined Online Platform: Offers an efficient online platform for policy management and claims processing.
- User-Friendly Mobile App: Offers a convenient mobile app for on-the-go policy management.
Cons
- Limited Military Discount: Esurance may not offer as high a discount for military families compared to some competitors.
- Potential Premium Costs: Despite discounts, premiums with Esurance might be relatively higher for certain coverage levels.
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#10 – American Family: Best for KnowYourDrive Program
Pros
- KnowYourDrive Program: American Family car insurance offers the KnowYourDrive program to monitor driving behavior and potentially lower premiums.
- Generous Good Student Discount: Provides a substantial discount for qualifying students.
- Extensive Agent Network: Offers personalized assistance through a vast network of agents.
Cons
- Limited Military Discount: American Family may not offer as high a discount for military families compared to some competitors.
- Moderate Online Efficiency: American Family’s online services may not be as advanced or efficient as some competitors.
Defensive Driving Education: Reducing Car Insurance Costs through Experience
The IPDE process is a four-stage method of defensive driving that is taught in some schools for new drivers. Whether you learn the IPDE process or another means of defensive driving, the basic concept is the same.
It is about being aware and being able to react quickly and appropriately.
IPDE stands for Identify, Predict, Decide, and Execute:
- Identify potential incidents
- Predict what is going to happen
- Decide the best course of action to avoid problems
- Execute your decision
While this sounds like common sense, the difficulty is in the overall timeframe you have to act. When it comes to driving a car, IPDE must take place within a matter of seconds.
If you are driving down a road surrounded by forest preserves, you should be aware of the dangers of wild animals crossing the street. This means you need to be extra attentive to your driving patterns, such as your speed, and you should be aware of your surroundings However, when a deer actually jumps out onto the road in front of your oncoming car, you now only have seconds to deliver IPDE.
As soon as you identify the deer has jumped in front of you, predict that it will freeze in its path instead, decide that you must steer clear of it, and execute that decision by checking your blind spots for clearance and maneuvering your car accordingly.
Any driver, whether inexperienced or not, may have a slow reaction time, not think the process through clearly, slam on the brakes without checking for other cars in the rearview mirror, or just panic and make a less-than-desirable decision.
Progressive stands out as the top choice for inexperienced drivers with monthly rates as low as $120, offering competitive premiums and tailored benefits.
Brad Larson Licensed Insurance Agent
However, an experienced driver is more likely that a young driver to react better automatically simply based on previous driving experience. Taking a defensive driving course that teaches you about IPDE or other methods can help you reduce your car insurance premiums.
Even if driver’s education is not required in your state if you are under 25, car insurance rates may be lower if you successfully complete a course in it. Be sure to check out the various car insurance rates available no matter what your age.
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Additional Savings Tips for Under 25 Car Insurance
You can also save money if you are in school and maintain good grades. Statistics show that if you are a good student then you are most likely a responsible person and that responsibility will carry over into others aspects of your life such as driving. To gain further insights, read our comprehensive guide titled “compare car insurance rates for college students“.
Therefore, car insurance companies consider you to be less of a risk and are willing to reduce your premium accordingly.
Whether you live at home or not, if you’re under 25 car insurance is going to be expensive. You may be able to get a better rate, however, if you are added to someone else’s insurance policy, such as your parents.
If you are married and under 25, car insurance may be cheaper also because statistics show that if you are married you are more likely to be responsible and therefore a lesser risk.
Case Studies: Innovations in Insurance Content
In today’s ever-evolving insurance landscape, companies strive to differentiate themselves by catering to the unique needs of their customers. Three standout case studies highlight how Progressive, USAA, and State Farm have leveraged technology, targeted services, and personalized assistance to provide exemplary insurance experiences. Let’s delve into these case studies to uncover how each company has successfully addressed the diverse requirements of their clientele.
- Case Study #1 – Progressive’s Online Efficiency: Alice buys car insurance from Progressive car insurance review‘s online platform, getting a competitive premium with a 30% discount. Their advanced tech saves time and positions them as industry leaders for tech-savvy customers.
- Case Study #2 – USAA’s Military Families: John, a military veteran, gets customized insurance from USAA with a 20% military discount. Their personalized service cements USAA as a trusted partner for military families, reflecting their commitment to serving those who serve.
- Case Study #3 – State Farm’s Personalized Assistance: Emily, a new homeowner, seeks personal attention in insurance. With State Farm, she gets tailored coverage at a 15% discount, guided by an understanding agent, strengthening her bond and showcasing State Farm’s commitment to personalized service in a competitive market.
In a competitive insurance market, standing out requires more than just offering standard policies. Progressive’s online efficiency, USAA’s dedication to military families, and State Farm’s personalized assistance demonstrate how innovation and tailored services can elevate the customer experience.
Progressive stands out as the top pick for inexperienced drivers, offering competitive rates with a 30% discount and user-friendly online efficiency.
Michelle Robbins Licensed Insurance Agent
By prioritizing convenience, understanding, and customization, these companies have not only earned customer loyalty but have also set a benchmark for excellence in the insurance industry. Find cheap car insurance quotes by entering your ZIP code below.
Going From Under 25 to Over 25 with Your Car Insurance
Twenty-five is not a magic number by any means when it comes to driving and car insurance. It is just a standard that is used by the majority of car insurance companies in determining an appropriate age cut-off for various types of coverage.
For example, most car insurance companies will automatically cover all drivers who are over 25 but exclude coverage for anyone under 25 unless they are directly added to your car insurance policy.
However, some car insurance policies may cite an age of 27, so you need to read your policy carefully to make sure your car insurance coverage is appropriate. Once you age past the insurance company’s inexperienced age consideration, be sure to request a new quote from your insurance company.
While there are many ways to save money, make sure you evaluate your car insurance. You may not know that you are paying too much and you could save a significant amount of money.
Whether you are over 25 or under, car insurance companies will offer you different rates, so shop around for multiple car insurance quotes now by entering your ZIP code in the box below.
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Frequently Asked Questions
Why is car insurance more expensive for inexperienced drivers?
Inexperienced driver insurance are higher because they lack the driving history and experience that insurers consider when assessing risk. Inexperienced drivers are more likely to be involved in accidents, leading to increased insurance premiums.
How can I reduce my car insurance costs as an inexperienced driver?
There are several ways to lower car insurance costs as an inexperienced driver. Consider taking a defensive driving course to demonstrate your commitment to safe driving. Maintaining good grades if you’re a student can also lead to discounts. Additionally, being added to someone else’s insurance policy, such as your parents’, or getting married may result in lower premiums.
For further insights, read our “How much do school grades affect car insurance rates?“
Is there a specific age when car insurance rates decrease for inexperienced drivers?
While 25 is commonly used as a standard age for lower car insurance rates, it varies among insurance companies. Some may consider 27 as the age threshold. Check your policy carefully to understand the age requirements for better rates. Once you reach the age threshold, it’s recommended to request a new quote to potentially reduce your insurance costs.
Delve into our “Compare 25-Year-Old Driver Car Insurance Rates” for more information.
How can I compare car insurance quotes to find the best rates?
To compare car insurance quotes and find the best rates, use our free quote tool by entering your ZIP code. By comparing quotes from multiple insurance companies, you increase your chances of finding affordable coverage. Remember, the more quotes you compare, the more likely you are to save on your car insurance.
Can completing a defensive driving course help me save on car insurance?
Yes, completing a defensive driving course can help reduce your car insurance premiums. Even if it’s not required in your state, insurers often offer discounts for successfully completing such courses. Defensive driving education teaches you important skills, such as the IPDE (Identify, Predict, Decide, Execute) process, which enhances your ability to react quickly and appropriately on the road.
What is the best insurance for a 20 year old?
Best Car Insurance Companies for 20-Year-Olds. Our top picks for the best car insurance for 20-year-olds are State Farm, USAA, Geico, Erie Insurance and Liberty Mutual. We’ve found these companies to be affordable on average for young drivers.
By entering your ZIP code below, you can get instant car insurance quotes from top providers.
At what age is car insurance most expensive?
The Insurance Institute for Highway Safety reports that teen drivers are four times more likely to get into a car crash than drivers 20 and older. As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.
What age has the lowest premium rate for vehicle insurance?
At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.
Learn more by reading our guide: “Average Car Insurance Rates by Age and Gender”.
What is the best car insurance for a 21 year old female?
The cheapest car insurance for 21-year-olds is USAA, which offers average rates of $134 per month. However, USAA is only available to military members, veterans and their immediate families. Geico is the cheapest company available to any 21-year-old driver, with average rates of $154 per month.
What is the cheapest insurance for a 16 year old?
Based on our research, Pekin Insurance is the cheapest car insurance provider for 16-year-olds, costing an average of $161 per month or $1,926 per year. Auto-Owners Insurance, State Farm and Geico are also affordable options for drivers.
Comparing quotes is the easiest way to find affordable car insurance. Simply enter your ZIP code below into our free comparison tool to see rates in your area.
What are the 3 levels of insurance?
The three key types of car insurance are liability insurance, collision coverage and comprehensive insurance. Liability insurance covers damages caused to other people, while collision and comprehensive coverage take care of repairs that must be done for your car.
Explore our guide titled “Compare Liability Car Insurance: Rates, Discounts, & Requirements”.
What are the 5 most common types of insurance?
Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.
What is the best insurance company for inexperienced drivers?
Our picks for the best car insurance for inexperienced drivers are Geico and State Farm. Both of these companies offer policyholders ways to save with student discounts and savings for insuring multiple cars.
Is USAA only for military?
You must be a member of an active-duty or veteran military household to purchase USAA auto insurance because USAA restricts its membership to just the military community.
Get the minimum car insurance coverage you need to drive legally by entering your ZIP code into our free quote comparison tool below.
Who has the cheapest auto insurance in California?
Geico, USAA, Mercury Insurance, Progressive and CSAA are the five cheapest car insurance companies in California, according to our research.
Who has the lowest insurance rates for new drivers?
Cheapest Car Insurance Companies for First-Time Drivers:
Travelers Insurance. Rating, 2 out of 5 646 Reviews (646)
USAA Insurance. Rating, 2.5 out of 5 3,362 Reviews (3,362)
Geico. Rating, 2.5 out of 5 2,235 Reviews (2,235)
State Farm. Rating, 3 out of 5 3,720 Reviews (3,720)
What car insurance is best for new drivers?
According to our data, Geico offers the best cheap car insurance for new drivers, with USAA, Erie, and Nationwide also making the list. The best cheap car insurance companies offer young and new drivers affordable premiums, numerous coverage options, responsive customer service, and an easy claims process.
What car is cheapest to insure for first time drivers?
Cheap cars to insure for new drivers:
Hyundai i10.
Kia Picanto.
MG 3.
SEAT Ibiza.
Skoda Fabia.
Toyota Aygo X.
Volkswagen Polo.
Volkswagen Up.
Which category of drivers pay the most in insurance premiums?
In general, car insurance companies charge male drivers more for coverage because they’re more likely to get into accidents. But while most states allow insurers to consider gender when setting rates, your age, location, insurance provider and driving record usually make a bigger difference.
How much is insurance for a new driver in NC per month?
Cheapest North Carolina Car Insurance for 16-Year-Olds State Farm tends to offer the lowest rates for 16-year-old drivers in North Carolina with an average estimate of $2,280 per year or $190 per month. The statewide average estimate for 16-year-old North Carolina drivers is $4,373 per year or $364 per month.
To learn more, read our article titled “Compare North Carolina Car Insurance Rates“.
What car has the highest insurance cost?
The most expensive car to insure in 2024 is the Maserati Quattroporte, with an average insurance premium of $6,166 per year, according to Insure.com’s data study. The Maserati Quattroporte Trofeo is the most expensive car to insure for young drivers, whereas the Chevrolet TrailBlazer is the cheapest car to insure.
Who pays most for car insurance?
On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates.
What are 5 factors that are used to determine the cost of insurance premiums?
Age. Age is a very significant rating factor, especially for young drivers. Driving history, This rating factor is straightforward. Credit Score, Years of driving experience, Location, Gender, Insurance history, Annual mileage.
What is the cheapest insurance for a 19 year old?
Cheap car insurance for 19-year-olds on their own policy USAA, Geico and Auto-Owners were the cheapest companies for 19-year-olds who are buying their own insurance, based on the companies in our analysis. *USAA is available only to members of the military, veterans and their immediate families.
Who has the cheapest insurance for a 17 year old?
Cheap Auto Insurance for 17-Year-Olds: The Bottom Line. Seventeen-year-olds with good driving records can find lower-than-average rates from providers like Erie, Auto-Owners, USAA, Geico and State Farm. We recommend comparing at least three car insurance quotes when you shop.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
