📋 Table of Contents
Overview
New drivers — whether teens, young adults, or anyone new to driving regardless of age — pay the highest average premiums of any group, since insurers have no driving history to price against. The gap between the cheapest and most expensive insurer is especially wide here, making comparison shopping unusually valuable.
- New drivers ages 16-25 pay an average of $6,024/year across all insurers
- GEICO and National General are cheapest nationally, averaging ~$4,030/year
- A 16-year-old pays roughly $7,962/year on average — the highest of any age
- Staying on a parent's policy typically saves $1,000+/year versus a standalone policy before age 23
Best Companies for New Drivers
Best for 18-year-olds and young adults
GEICO consistently ranks as the cheapest major insurer for new and young drivers, available in all 50 states and the cheapest option in 13 of them. It also offers a good student discount, driver's education discount, and a discount for students living 100+ miles from their car.
Strong discounts for staying on a family policy
State Farm offers one of the best good student discounts in the industry (up to 25% for a 3.0 GPA), plus its Steer Clear program provides additional savings for drivers under 25 who complete a training module — a strong choice if flexibility across life stages matters.
Other strong options: USAA (cheapest available if you qualify for military eligibility), Nationwide (best family-policy rates for adding a young driver), and Erie (lowest average teen rates where available, though limited to 12 states).
What New Drivers Actually Pay
| Age | Avg. Monthly (Full Coverage) |
|---|---|
| 16 years old | ~$664/mo |
| 18 years old | Higher end, insurer-dependent |
| 20 years old | ~$189/mo (State Farm individual) |
| 25 years old | ~$111/mo (GEICO individual) |
How to Lower the Cost as a New Driver
- Stay on a parent's policy if possible: Typically saves $1,000+/year versus a standalone policy before age 23.
- Maintain good grades: A B average or higher unlocks 5-25% discounts at most carriers.
- Enroll in a telematics program: State Farm's Drive Safe & Save and Progressive's Snapshot can save 20-30%, though Snapshot can also raise rates for risky driving patterns.
- Complete a defensive driving course: Often required for licensing in some states, and typically unlocks a discount even where it's optional.
- Choose a safe, moderately-powered vehicle: Cars with strong safety ratings and low theft rates cost meaningfully less to insure.
Frequently Asked Questions
Staying on a parent's policy is almost always cheaper — typically saving $1,000 or more annually compared to a standalone policy, especially before age 23.
Rates decrease noticeably at 21 and again at 25, as insurers have more driving history to price against and statistical risk decreases with age and experience.
Significantly — a car with strong safety ratings, moderate horsepower, and low theft rates costs meaningfully less to insure than a sports car or new-model-year vehicle, which cost more to repair or are more attractive to thieves.