(Updated on October 28, 2019)
New drivers are usually between the ages of 16 and 24 in the United States. It is always a difficult and stressful thing to learn how to drive for the first time. Once you obtain your driver’s license, it can be even more stressful trying to find a good deal on car insurance.
Most car insurance companies charge a higher monthly premium to new drivers because they have no established driving record yet. On top of that, younger drivers are statistically more likely to get into accidents. This is another reason for the higher premium costs.
There’s nothing that can really be done about it except to search for the best deals possible on car insurance.
Top 5 Car Insurance Companies for New or Young Drivers
Car insurance companies are basically worried about new drivers and their lack of experience. Even if you get a driver’s license, this doesn’t necessarily mean you’re a good driver. Insurance companies want to know that you’ve been well educated on how to drive.
After that, they want to see you demonstrate safe driving practices by establishing a track record of having no accidents. If you are able to achieve this, then you will receive generous discounts on your car insurance premiums.
Below are 5 of the best car insurance companies for a new driver in the United States. These companies offer the best discounts for new drivers under certain circumstances.
1) Erie Insurance
Eric Insurance is a smaller car insurance company which is available in a select number of states, such as Virginia, Pennsylvania, Ohio, New York, and Maryland. If you’re lucky enough to live in one of their approved states, then you can enjoy the biggest discounts available as a new driver.
Any driver who is under 21 years old and lives with their parents or guardians can receive a discount as high as 20%. The driver must also be enrolled in a driver’s education class and/or a competitive program which rewards students for demonstrating the safest driving practices.
2) American Family Insurance
American Family Insurance has some unique offerings available to student drivers. They have a “Teen Safe Driver” program which is free for student drivers to join.
After the driver completes 3,000 hours of the driving course or 12 months of the app-based driving course, they’ll be entitled to a maximum of 10% off their monthly insurance premiums.
The app is a new innovative tool which detects the behavior of the driver. If the driver does a good job, the app will relay this information to the insurance company.
3) State Farm
State Farm has two programs available which could help new drivers get discounts on their car insurance premiums.
The first program is called Steer Clear and the second program is Drive Safe & Save. These programs are only available in select states.
A new driver will qualify for a discount if they’ve demonstrated safe driving practices under the program. Students who are new drivers can also receive up to 25% off their premiums if they have a good academic record.
Geico is a car insurance company available in every state of the United States. New drivers can get discounts for lots of things, such as wearing their seat belt and have anti-theft protection, anti-lock brakes, and airbags in their vehicle.
More specifically, there is a Family Pricing Program where teenage drivers can get a lower premium if they remain on the insurance plan of their parents.
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Nationwide Insurance gives new drivers a few ways to save money on their insurance. One way is to participate in their SmartRide program, which is where the driving of the driver is constantly observed.
If the driver can prove they’re driving safely to the people watching them, then the driver may be entitled to huge discounts on their insurance premiums. Another way to save on insurance is by staying on your parent’s plan and/or taking a driver’s education class.