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Best Auto Insurance for New Drivers of 2026
Erie, GEICO, USAA, Travelers, and State Farm offer some of the best auto insurance coverage for new drivers.
Best Value
Editor's Rating:
5/5
5/5Best for Safe Drivers
Editor's Rating:4.9/5
4.9/5Best for Military-Affiliated Drivers
Editor's Rating:5/5
5/5Last updated: August 3, 2026
Key Takeaways: Best Auto Insurance for New Drivers 2026
USAA and Erie offer the most affordable full coverage rates for new drivers.
Erie, GEICO, USAA, Travelers, and State Farm are the best auto insurance companies for new drivers in 2026.
USAA has the lowest average full coverage rate among top picks at $3,847/year; GEICO is the most expensive at $5,140/year.
New drivers can save significantly through telematics programs — Travelers offers up to 35% off at renewal.
Teens, recent immigrants, city dwellers new to driving, and those with coverage gaps all qualify as “new drivers.”
Summary of the Best Auto Insurance for New Drivers
- Best Value: Erie
- Best for Safe Drivers: GEICO
- Best for Military-Affiliated Drivers: USAA
- Best for Drivers Who Don’t Own Cars: Travelers
- Best for Teens: State Farm
Compare the Best Auto Insurance for New Drivers
| Company | Full coverage monthly average | Full coverage monthly average for teens | Minimum coverage monthly average | J.D. Power Claims Satisfaction1 |
|---|---|---|---|---|
| Erie | $153 | $348 | $47 | Above average |
| GEICO | $156 | $428 | $46 | Below average |
| USAA | $128 | $321 | $36 | Above average |
| Travelers | $153 | $377 | $57 | Below average |
| State Farm | $169 | $420 | $54 | Above average |
| National average | $196 | $505 | $60 | – |
Breaking Down the Best Cheap Auto Insurance for New Drivers
1. Erie - Best Value
5
Editor's Rating:
- Average Rate for Minimum Coverage
- $50 mo.
- Average Rate for Full Coverage
- $127 mo.
Cheapest average rates for teen drivers- Wide range of coverages
- Stellar customer service ratings
Agent-only- Fewer online features
Erie is a regional insurer that only operates in 12 states, but new drivers who live within its service area should consider getting a quote. It has the lowest average rates for teen drivers, on average, after USAA, at $4,177 per year — that’s 31 percent below the national average.
In addition to its affordable rates, Erie is a top-tier provider when it comes to customer service. It ranked first on J.D. Power’s 2025 Auto Claims Satisfaction Study and first in the three regions for which it was rated in the 2026 Auto Insurance Study.2 It also ranked fourth out of 91 insurers on the 2026 CRASH Network Report Card with an A- rating.3
Erie has several discounts specifically for young drivers, including its teenSMART driver training program, which can provide a discount of up to 20 percent. Other discounts include youthful driver and college student discounts. The company also has a unique Rate Lock feature that allows policyholders to lock in their premium and avoid periodic increases. However, new drivers may want to wait until they’ve lowered their premiums by maintaining a clean record before opting into a locked rate.
Who it’s best for
Those looking for the best rates, drivers who want to lock in their premium, people who live in one of the 12 states where Erie operates
Erie Pricing
| Erie | Full coverage | Minimum coverage | For Teens |
|---|---|---|---|
| Monthly | $153 | $47 | 348 |
| Annually | $1,833 | $565 | $4,177 |
| Difference from national average | -22% | -22% | -31% |
2. GEICO - Best for Safe Drivers
4.9
Editor's Rating:
- Average Rate for Minimum Coverage
- $46 mo.
- Average Rate for Full Coverage
- $156 mo.
- Affordable rates for young adult drivers
- Military and federal employee discounts
- Excellent rental and emergency assistance coverage
- Limited agent presence
- Doesn't underwrite home insurance
GEICO is one of the biggest insurers in the country and is known for offering affordable rates. Although new young adult drivers pay more on average than older drivers, GEICO offers an average rate of $5,140 per year for teens, which is 15 percent lower than the national average.
GEICO’s telematics program, called DriveEasy, is a great way for young drivers to save money, especially if they haven’t accumulated enough of a driving record to be eligible for safe driver discounts. DriveEasy works using the GEICO app, which will track your driving behavior and provide a discount of 5-15 percent based on how safely you drive. However, be aware that it may increase your rates if it detects unsafe driving.
GEICO is one of only a few car insurers that offers military discounts, including up to 15 percent off for service members, which can be useful for new young drivers who are in the military and don’t opt for USAA. GEICO also allows for quotes and policy purchasing entirely online, making the process simple and streamlined.
RELATED
Check out our comparison of GEICO vs. USAA auto insurance.
Who it’s best for
Young adults who prefer shopping for and managing their policy online, military-affiliated young adults who can benefit from discounts, safe drivers who can utilize GEICO’s telematics program
GEICO Pricing
| GEICO | Full coverage | Minimum coverage | For Teens |
|---|---|---|---|
| Monthly | $156 | $46 | $428 |
| Annually | $1,867 | $558 | $5,140 |
| Difference from national average | -21% | -23% | -15% |
3. USAA - Best for Military-Affiliated Drivers
5
Editor's Rating:
- Average Rate for Minimum Coverage
- $36 mo.
- Average Rate for Full Coverage
- $128 mo.
- Cheapest average rates for teens
- Excellent customer service
- Low-mileage telematics program
- Military eligibility required
- Limited to members
- Fewer branch locations
Why we chose it
USAA offers insurance and other financial products and services exclusively to the military community, which includes active duty military members, veterans, and their families. USAA has the lowest average rates for teen drivers, even beating Erie, at $3,847 annually, which is 36 percent cheaper than the national average for this age group.
Families who are already insured with USAA can easily add a teen to their existing policy. Young drivers can save money through USAA’s good student discount, which is available to full-time students who maintain an average of B or higher, as well as its driver education discount, which new drivers can get after completing a basic driving course.
In addition, new drivers can participate in one of USAA’s two telematics programs. SafePilot is a standard telematics program that tracks driving habits and can provide a discount of up to 30 percent for driving safely. SafePilot Miles offers even more savings for those who drive less than average. Teens whose parents have USAA can also save up to 10 percent when they start their own policy through the company’s legacy discount.
Who it’s best for
Young adults in the military, or teens who are eligible for USAA through their parents’ military affiliation
USAA Pricing
| USAA | Full coverage | Minimum coverage | For Teens |
|---|---|---|---|
| Monthly | $128 | $36 | $321 |
| Annually | $1,533 | $436 | $3,847 |
| Difference from national average | -35% | -40% | -36% |
4. Travelers - Best for Drivers Who Don’t Own Cars
4.1
Editor's Rating:
- Average Rate for Minimum Coverage
- $57 mo.
- Average Rate for Full Coverage
- $153 mo.
- Affordable non-owner insurance
- Special discounts for hybrid/electric cars
- Good for carshare
- Average satisfaction scores
- Limited agent density in some regions
Why we chose it
Travelers is an affordable option for new drivers, with cheap average rates overall. It also offers non-owner car insurance, which can be useful if you recently got your license but don’t own a car. Some situations where you might consider getting this type of policy include if you frequently drive rental or Zipcar vehicles, need an SR-22, borrow vehicles from different friends or family members (though if you frequently borrow the same person’s car, consider getting added to their policy), or take care of someone you don’t live with and drive their car.
Most non-owner insurance is liability only, meaning that it only covers the other party’s bodily injuries and property damage in an accident. Travelers’ non-owner insurance can include additional coverages to give you extra protection, like roadside assistance.
For new drivers who have purchased new cars, Travelers offers a new car discount for vehicles that are less than three years old, as well as new car replacement coverage. If you total a new car within the first five years of owning it, Travelers will replace it with a new vehicle of the same make and model.
Who it’s best for
People who rent or borrow cars often, drivers who own new cars, people who drive a hybrid or electric vehicle, as they’ll get a discount
Travelers Pricing
| Travelers | Full coverage | Minimum coverage | For Teens |
|---|---|---|---|
| Monthly | $153 | $57 | $377 |
| Annually | $1,837 | $684 | $4,520 |
| Difference from national average | -22% | -5% | -25% |
5. State Farm - Best for Teens
4.9
Editor's Rating:
- Average Rate for Minimum Coverage
- $54 mo.
- Average Rate for Full Coverage
- $169 mo.
- Telematics program for young drivers
- Rideshare coverage
- Great customer service
- Must complete quotes by phone
- No accident forgiveness
State Farm is a well-known insurance company and has consistently high customer satisfaction scores across industry reports. It earned a spot on the list of our best auto insurance companies for teens and offers affordable rates for teens being added to a family policy, which is key to saving money, as the cost of insuring teen drivers is higher than for any other age group.
STATS
According to the National Highway Traffic Safety Administration, young people comprise only 5 percent of all licensed drivers, but account for 9 percent of drivers involved in fatal crashes.4
State Farm has two telematics discount programs, Drive Safe & Save and Steer Clear. The latter is designed specifically for young drivers under the age of 25 and includes both training modules and tracking of driving behavior. Once the training is completed, drivers must log five hours of driving in at least 10 trips. It also offers several other young driver discounts, including good student, distant student, and driver education discounts.
If you got your license in order to drive for a service like Lyft or Uber, it’s a good idea to purchase rideshare coverage. State Farm’s rideshare coverage extends the protections of your personal auto policy to the periods that the rideshare company doesn’t cover. You can add this coverage to an existing policy, or buy it with a new policy.
Who it’s best for
Households with teen drivers, drivers who prefer to work with a human agent, those who value customer service
State Farm Pricing
| State Farm | Full coverage | Minimum coverage | For Teens |
|---|---|---|---|
| Monthly | $169 | $54 | $420 |
| Annually | $2,030 | $650 | $5,044 |
| Difference from national average | -14% | -10% | -17% |
Frequently Asked Questions
The cost of monthly insurance for new drivers varies greatly depending on factors like age, location, and coverage levels; however, on average, a new 18-year-old driver pays over $500 for full coverage and about half that for minimum coverage. Insurance is less expensive for new drivers who are older — for example, a 30-year-old new driver pays around $200 for full coverage.
USAA, Erie, and Auto-Owners offer some of the cheapest car insurance for new drivers. To find the best deal, get quotes from at least three companies, drive a less expensive car, and make sure your agent applies all available discounts.
For eligible teens, USAA has some of the cheapest car insurance rates — both for teens on their own policy or a household policy. For those not affiliated with the U.S. military, Erie, Auto-Owners, and Country Financial all have competitive rates for teens.
GEICO, USAA, and Progressive offer the cheapest car insurance for drivers in their early to mid twenties, all below the national average of $2,781.
The best insurance companies for new drivers over age 30 are Nationwide and GEICO. They offer some of the lowest average premiums to older drivers with no insurance histories.
Methodology
We evaluated companies on four metrics to identify the best auto insurance for new drivers:
- Pricing (40%): We analyzed average annual premiums for new drivers. We looked at provider discounts that don’t rely on driving history, but rather on other factors like payment, driving habits, grades, and more. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): Whether you’re a new or veteran driver, you want a company that will fairly and efficiently handle a claim. We looked at industry ratings like J.D. Power’s claims satisfaction scores and CRASH Network’s Insurer Report to evaluate a company’s claims process.
- Customer Experience (25%): We assessed companies’ customer service using third-party data from J.D. Power, the BBB, and the National Association of Insurance Commissioners.
- Coverage Options (10%): In addition to typical coverages, we value when insurers offer add-ons, especially those of interest to new drivers, like accident forgiveness, diminishing deductible, rental reimbursement, and more.
Sources
Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, J.D. Power Finds. JD Power. (2025, Oct 27).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyAuto Insurers Struggle to Maintain Seamless Interactions Across Channels, JD Power Finds. JD Power. (2026, Jun 09).
https://www.jdpower.com/business/press-releases/2026-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2026. Crash Network. (2026).
https://www.crashnetwork.com/irc/Traffic Safety Facts 2023 Data- Young Drivers. National Highway Traffic Safety Administration. (2025, Jul).
https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813736.pdf
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