What insurance group 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.
The Zebra's experts consider State Farm, USAA, and Nationwide the best insurance companies for new drivers thanks to their cheap rates, wide availability, and relevant discounts and programs. Read about the unique features offered by each company that especially suit first-time drivers.
- Volkswagen Polo.
- Hyundai i10.
- SEAT Arona.
- SEAT Ibiza.
- Skoda Fabia.
- Toyota Yaris.
- Ford Fiesta.
- Renault Clio.
Our insurance experts have found that Geico and State Farm are excellent options for car insurance for new drivers. Read on to learn more about these providers. We recognize Geico as one of the best overall insurance providers due to its wide range of coverage and discount options.
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.
Some of the cheapest insurance providers for 16-year-old drivers tend to be Geico, Allstate, Progressive, and State Farm . Car insurance for a teen driver can be costly, but parents can seek cheaper rates.
The cheapest major car insurance company for 18-year-old drivers is State Farm. A full coverage policy from State Farm costs around $344 per month. Regional companies like Erie, Farm Bureau and Auto-Owners tend to offer very affordable rates for 18-year-olds.
Group 1 is the lowest insurance group, which also means it's the cheapest insurance group. Group 50 is the most expensive. However, premiums aren't just based on insurance group. Other factors are taken into consideration, too.
- Kia Picanto.
- Volkswagen Up.
- Skoda Citigo.
- Seat Mii.
- Ford Ka+
- Nissan Micra.
- Smart Forfour.
- Seat Ibiza.
Parents are the number one influencer of their teens' attitudes and behaviors. Your choices can and do influence your teen's safety behind the wheel.
Is USAA a good insurance company?
USAA received an overall satisfaction score of 81 out of 100 by a pool of its customers in a NerdWallet survey conducted online in June and July 2023. To put that in perspective, the average score among seven insurers was 78, and the highest was 82.
Mercury has the best drivers in the year analyzed.
Mercury drivers had 15.82 incidents per 1,000 drivers nationally — less than half the rate of incidents among Ram drivers.
Which company offers the cheapest car insurance for a 16-year-old driver? In our survey of average premiums for 16-year-old teen drivers, we identified GEICO as the best auto insurance company for a typical 16-year-old driver, with Nationwide second.
Is USAA Only for Military? Yes, USAA is only available to active and retired military members and their families. This includes active-duty, former military, cadets, widows, current or un-remarried spouses, and children.
Some of the car insurance inflation in the US can be explained by a pause in premium increases during the pandemic and the widespread parts shortages that hobbled the entire auto industry. But much of the cost pressure for insurers is because vehicles have taken a high-tech turn.
At what age is car insurance the cheapest? If you keep a clean driving record, your insurance costs should continue to fall throughout your 30s, 40s, and 50s. But you won't benefit from the cheapest premiums until you're in your late 60s.
Erie, Farm Bureau and USAA have the cheapest insurance rates for 21-year-old drivers, starting at $167 per month. To get the cheapest rate, 21-year-old drivers should compare car insurance quotes and take advantage of young driver discounts.
| Age | Avg. full coverage premium in North Carolina | Avg. minimum coverage premium in North Carolina |
|---|---|---|
| Age 16* | $3,270 | $1,172 |
| Age 18 | $3,099 | $969 |
| Age 20 | $1,736 | $514 |
| Age 25 | $1,528 | $456 |
It is usually cheaper to have a child covered under a parent's policy than it is to purchase the child an individual policy. Cons Premiums are higher when young drivers are named on policies.
AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.
How much is car insurance for an 18-year-old USA?
How Much Is Car Insurance for 18-Year-Olds? According to our rate estimates, full-coverage car insurance for 18-year-olds costs an average of $4,958 per year or $413 per month. If you add an 18-year-old to your family policy, your rates will go up but you'll save money overall.
State Farm is the cheapest car insurance company overall according to NerdWallet's analysis, with an average rate of $39 a month for minimum coverage.
The Honda CR-V is the cheapest car to insure out of the top-selling vehicles, with an average monthly auto insurance cost of $238. This is 16% less than the average cost across all vehicles analyzed. The CR-V's insurance cost is $163 less per month than the cost for the most expensive car to insure — the Tesla Model 3.
Age Groups That Spend the Most on Car Insurance
Teenagers pay the most for car insurance because they are the riskiest age group to insure. Statistically, teenagers are more likely to get into car accidents than older drivers with more experience, so insurance companies charge more to cover them.
Richard advises keeping the engine size low, for example 1200cc or less, to keep the insurance and tax costs down. Age – brand new cars are often unaffordable for first time car buyers so if you're buying a second hand car, make sure you check the mileage.
