The Best Auto Insurance for No-License Drivers of 2025

State Farm is a great option for teen drivers with a permit working up to becoming fully licensed drivers. State Farm is easy to contact, offers a wide range of coverages, and provides significant discounts for those learning to drive.

Apps That Can Save You Money

Safe driving habits will save you money now and in the future when these practices result in a clean record. State Farm offers two apps to encourage and reward safe driving habits, one of which is specifically designed for young drivers.

While you must have a valid driver’s license to enroll in these programs, families who add teens to a State Farm policy while they’re learning to drive can plan to take advantage of these discounts once the teen passes their driver’s test:

• Steer Clear app: Available to drivers younger than 25, the Steer Clear app gives you an opportunity to track your driving hours. You and your driving mentors can access the app to prepare for your driver’s test. The app offers a safe driving certification for finishing five safe driving training modules. Once you receive your certificate, send it to your State Farm agent to apply the discount.

• Drive Safe & Save app: This app tracks quick acceleration, hard braking, fast cornering, speeding, and distracted driving as you hit the road. The safer you drive, the higher your discount.³

Large Local Agent Network 

Walking through the insurance process on your own can be challenging when you’re a new driver. State Farm has 19,000 local agents across the country that teens and their families can meet with in person, online, or over the phone to discuss their options.

Progressive is one of the largest standard insurance companies in the U.S., with a strong reputation and financial stability. It also happens to be one of the best insurers for drivers with DUIs, offering some of the most affordable average rates and generally offering coverage to many high-risk drivers.

Drivers who have had their license suspended due to a DUI may find good coverage options with nonstandard insurers like Direct Auto and Acceptance as well, so it’s worth it to get a quote from multiple companies if they’re available to you. A major benefit of Progressive is that it operates in all 50 states.

Snapshot Telematics Program

Drivers with violations pay more for auto insurance on average than drivers with clean records. If you’ve had your license suspended, you can likely expect your auto insurance rate to increase. However, once your license is reinstated, you can take advantage of Progressive’s telematics discount program, Snapshot.

Snapshot will track your driving — including braking, acceleration, amount of night driving, miles driven, and phone use — via the Progressive mobile app or a plug-in device in your vehicle. You can get a discount just for signing up and an additional discount depending on how safely you drive, though Progressive doesn’t advertise the maximum discount amount.

However, be aware that in some states, Progressive may increase your rates if it detects unsafe driving. Especially if you have a history of violations, make sure you work to improve your driving habits to avoid a rate hike.

Bundling Property Insurance

Although Progressive doesn’t offer as many bundling options as some other standard insurers, it does offer discounts for purchasing an auto policy along with either a homeowners or renters policy. This can be beneficial for high-risk drivers who also need one of these types of property insurance. Although Progressive doesn’t advertise its average bundling discounts, these types of discounts are usually around 10 to 20 percent.

USAA insures 13 million military customers throughout the U.S. It’s a great choice for unlicensed military members who need coverage while storing or shipping their cars. Additionally, it’s a great provider for retired military members who own cars but have someone else drive them.

Great Discounts

Not only does USAA have fantastic prices for service members and their families, but it offers a variety of discounts to lower your cost even further. You could attain a discount if you fall into  one of these scenarios:

• You garage your vehicle on a military installment.
• You store your insured car in a garage.
• You download and participate in USAA’s SafePilot app.
• You are under 25 and hold a clean driving record as a former dependent of a USAA member.

Bundling Options and Perks

Great auto insurance options are only a small part of the benefits USAA offers. It also provides these policy options:

• Homeowners insurance
• Renters insurance
• Life insurance
• Umbrella insurance
• Small business insurance
• Medicare plans
• Health insurance
• Vision insurance
• Dental insurance

Additionally, USAA offers its members several perks.

• Bank loans: You can manage a bank account, take out loans, or obtain a mortgage through USAA.
• Investment options: Not only does USAA provide financial planning, but you can also set up a mutual fund, IRA, or a 529 education plan through the company.
• Travel deals: Just for being a USAA member, you get discounts on rental cars, hotels, theme parks, and flights.
• Online shopping: TurboTax, Active & Fit Direct, and a handful of other businesses partner with USAA to give you great deals.
• Entertainment discounts: Certain phone plans, streaming services, and amusement parks are all discounted for USAA members.

Check if you qualify to be a USAA member by taking the qualification quiz on the company’s website.⁴

Like Acceptance, Direct Auto specializes in providing nonstandard auto insurance to drivers who may be considered high risk or need SR-22 certifications. If you’ve been convicted of a serious driving violation and your license has been suspended, Direct Auto will help you file for an SR-22 certification and provide you with the insurance coverage you need. As such, it may be more likely to cover certain high-risk drivers than standard carriers like Progressive.

Direct Auto is a particularly good option for drivers with suspended licenses who need non-owner coverage, as the company provides coverage for this situation as well. The company offers flexibility with pay schedules and prices, convenient contact options, and various inclusive discounts.

Non-Owner Coverage

Direct Auto offers non-owner coverage to drivers who don’t own a vehicle, including those who have had their license suspended. In many cases, if you’d had your license suspended due to a serious violation like a DUI, you’ll need to file an SR-22 in order to get it reinstated — even if you don’t own a vehicle.

Drivers in this situation can get a non-owner policy through Direct Auto and file an SR-22 with the help of the provider. Non-owner policies typically include bodily injury and property damage liability, which cover you if you cause an accident while driving a car you don’t own.

Flexible Payment Options

When working with Direct Auto, you can customize both when and how you pay. Not only can you choose your payment date, but you can also choose how often you pay, your monthly amount, and how you want to pay, using these options:

• Cash at your local Direct Auto or a partner payment location
• Online payments with a credit or debit card
• Autodraft
• E-checks

Acceptance Insurance prides itself on providing coverage for all types of drivers. The company started as a single desk in Texas in 1969 and now serves 200,000 customers in 15 states. It has over 700 agents ready to help you throughout more than 300 neighborhoods.

Acceptance is an excellent option for unlicensed individuals because of its focus on nonstandard drivers and its long list of other policy types with which you can bundle. It also has a roadside assistance program that can refund your traffic tickets.

Options for Nonstandard Drivers

There are many reasons someone might be a nonstandard driver — including teens, seniors, drivers who have had their license suspended or revoked, and people with excessive driving violations or DUI convictions.

Not every insurance company accepts nonstandard drivers, but Acceptance focuses on them. It doesn’t turn away motorists often and advertises specific discounts for bad-credit drivers, high-risk drivers, non-owners, seniors, SR-22 drivers, and teen drivers.⁶ The company even offers discounts for favorable behaviors.

• Good grades: If you have a B average or higher in school and are between the ages of 16 and 24, the good grades discount is a viable option.
• Loyalty: The loyalty discount is great for all types of nonstandard drivers — the longer you stay with Acceptance, the greater your discount.
• Safe driver: While no-license drivers can’t take advantage of this discount, if someone else in your household is driving your vehicle and has a good record, it can help you save on your policy.

Bundling Options

Need more than just auto insurance? You may be looking to bundle your insurance options. In that case, Acceptance offers a handful of other protections.

• Renters insurance: If you’re renting a home or living space, renters insurance offers personal property and liability coverage. Personal property covers the cost of repairing or replacing any of your personal items, such as clothing or furniture. Liability covers the cost of damage to the landlord’s property or a guest’s medical bills if you’re liable for their injuries.
• Homeowners insurance: Homeowners insurance covers the cost of damages caused by fires, theft, vandalism, smoke, and floods. Acceptance offers coverage for your personal belongings as an add-on, such as an engagement ring, to a homeowners insurance policy.
• Vehicles for sport: Acceptance provides coverage for motorcycles, snowmobiles, travel trailers, off-road vehicles, and water vehicles. Customize your outdoor vehicle insurance plan to your needs by choosing the Saver, Plus, or Elite plan, which include a selection of various coverages depending on the plan, such as safety apparel, towing, and accident forgiveness.
• Life insurance: Acceptance offers term life insurance and whole life insurance. Term life insurance is ideal because it lasts for a set period of time, while whole life insurance is typically more expensive and covers you for your lifetime.
• Mexico tourist auto insurance: If you take your vehicle across the Mexican border, your regular auto insurance won’t follow you. However, Mexico tourist auto insurance guarantees coverage for your car, truck, motorhome, travel trailer, RV, ATV, or UTV while you drive in Mexico.
• Commercial insurance: Acceptance offers many types of commercial insurance, including commercial liability umbrella, commercial vehicle, general liability insurance, inland marine, professional liability insurance, business owner’s policy, property insurance, surety bonds, and worker’s compensation.
• Pet insurance: Humans are not the only ones who need insurance coverage. Acceptance boasts three policy types for your four-legged friends, plus add-ons. Coverage options include medical treatment, vaccinations, and cancer treatments, among others.

This bundling can be useful, as nonstandard drivers typically have higher premiums.