Cheap Car Insurance For First-Time Drivers

Choosing the right vehicle insurance policy is necessary to ensure financial safety. As a first-time driver, insurance bills will dent your spending. However, there are ways to minimize costs. Read on to learn all about cheap car insurance for first-time drivers.
cheap car insurance for first-time drivers
Cheap Car Insurance For First-Time Drivers
When buying a car, it is crucial to consider safety features and lower repair costs to get better insurance premiums. Let’s explore options for cheap car insurance for first-time drivers.
In this article

According to a report released by Statista, over 233 million people in the United States were reported to have a driver’s license in 2021. Insurance providers justify high insurance premiums for first-time drivers due to the risk of potential accidents.

However, these companies have been equipped to provide insurance coverage options for new and old drivers alike. Let us discuss the best policy providers and understand how to get the best rates when looking for cheap car insurance for first-time drivers. 

What Is The Best Insurance For New Drivers?

Here’s a corrected version of the sentence:

Most customers prefer to purchase a car and select an auto insurance policy when they’re 18 years old. This is a foundational step for the financial protection of new drivers. While there are various options in the market, making the right choice to obtain the required coverage options, discounts, and other features at affordable rates can be tricky. Let’s explore some of the best options for inexpensive car insurance for first-time drivers.

Top 8 Cheap Car Insurance For First-Time Drivers

Here are some of the best companies to consider if you are looking for cheap car insurance for first-time drivers. 

1. Beem

More than five million Americans trust Beem with their finances. Beem can help you get personalized car insurance quotes from industry-leading providers. It allows for a thorough comparison of auto insurance rates with custom quotes. 

You can also get discounts here without any hidden fees. Policy-seekers can save up to $1000 with Beem. Moreover, if customers showcase good driving skills, they can get excellent driving scores and up to 40% discount on their insurance. 

2. State Farm

State Farm is the largest auto insurance company in America. It offers numerous money-saving options curated for new drivers. The average premium prices for potential policyholders are $394 per month for teen drivers and $131 per month for adult drivers.

State Farm has multiple programs that come with discounts. 

The Drive Safe and Save Telematics policy rewards safe driving.

Drivers under 25 without any record of accidents or violations can get up to a 15% discount. They can get this offer after a Steer Clear driving course. 

You can get a Driving Training discount if you are under 21 and a student discount if you are under 25. 


USAA was rated among the best among various car insurance categories. These subtypes included trust, customer satisfaction, claims satisfaction, recommendation level, and online experience. 

There are numerous examples of USAA’s exceptional customer service and helping people through tough times. Users find USAA to be an affordable choice for first-time drivers. It offers a Teenager Monthly Premium Average of $282 and a New Driver (Adult) Premium Average of $124.

USAA has a limit for military personnel, veterans, and their families. It is not available for non-veteran residents. 

USAA does not provide local agents. Residents have to call the company for assistance. 


Here’s a corrected version of the sentence:

GEICO offers one of the most competitive premium car insurance options for new drivers, particularly supporting teenagers who often face high insurance rates in the market.

If an insurance seeker completes driver’s education or defensive driving courses, they can get discount benefits with GEICO.

Students who get good grades in school and those who own vehicles with safety features, such as safety belts and airbags, can also get discounts. 

Drivers need to maintain a claim-free record for five years to get accident forgiveness from GEICO. This duration is longer than what other insurance companies offer. 

5. Progressive

Progressive has a market share of 14+% in the United States. This insurance company has more customers than USAA, Farmers, and Nationwide. 

You can get auto and home insurance with Progressive. It provides bundled insurance policies for customers’ convenience. 

Discounts allow customers to save on premiums. Although the prices are higher than those of competitors, this company makes up for the difference in customer offerings. 

However, it does not ensure benefits for customers with homeowners insurance. 

6. Travelers

People know Travelers for its rich history of advancements in insurance policies. Travelers was a railroad passenger insurance company before becoming an auto insurance coverage platform. You can get diverse coverage options here at cheaper prices than its competitors. 

However, Travelers needs to get higher ratings on the customer satisfaction parameter. 

7. Nationwide

Here’s the corrected sentence:

“Nationwide is among the top choices for the best car insurance for young drivers. This company offers teenage drivers a monthly premium rate of $471 and adult drivers a monthly premium of $146.”

Benefits with Nationwide include body injury liability, property damage liability, personal injury protection, medical payments, collision coverage, etc. 

Discount offers available to residents here are multi-policy discounts, smart miles programs, safe driver discounts, anti-theft discounts, automatic payments, discounts, etc. 

Nationwide also evaluates customer driving habits and provides potentially accurate rates. 

8. Mercury

Mercury provides affordable coverage and operates in 11 states across America. It has fewer insurance policies compared to others. However, Mercury does offer commendable competitive rates. 

Mercury has an average premium coverage cost of $1,648. It also offers a smooth claims process. New drivers can benefit from this streamlined method for their first claim!

Tips for Getting Cheap Car Insurance for First-Time Drivers

If you are a new driver, you are likely to get an enormous car insurance bill. Let’s explore how we can lower this fee.

1. Research and Comparison

You should not go with the first company that provides auto insurance. Get quotes from numerous providers and compare them to determine which best suits your needs. 

2. Which car do you have?

Consider paying lower insurance premiums with less powerful and safer cars. Get a car with the required safety ratings. 

3. Finding discounts

Insurance providers offer numerous discounts. These offers are for people who take defensive driving courses, have clear records, and drive low mileage. 

4. Paying a Higher Deductible

Consider paying a higher deductible to lower your premium. This money is payable before the insurance premiums begin. The policy becomes more affordable with this technique. Finally, never miss out on your premiums. 

Comparing the Cheapest Car Insurance Companies for First-Time Drivers

Comparing car insurance companies can be daunting. You’ll have to check each company’s features, list the pros and cons, and find premium costs. While this task may seem cumbersome for many, a platform like Beem makes it simpler. On Beem, you can get custom insurance quotes from leading providers. Further, you can compare rates and discounts without leaving the platform! Beem is the ultimate car insurance stop-shop trusted by more than five million Americans. 


Where can I get cheap car insurance for new drivers under 21?

You can get cheap car insurance for new drivers under 21 on multiple platforms. Use Beem and compare the rates between the providers. You can get a personalized car quote as well here.

What car has the lowest insurance for a new driver?

If you can get a car that will cause the most minor accidents and has considerable safety, you can get the lowest insurance cost. It would be best to consider getting a smaller, less powerful car like a sedan or wagon.

Which car model has the cheapest insurance?

There is no perfect answer for the “cheapest” car model. Insurance rates change and may depend on model, manufacturing year, condition, and other factors. Avoid getting a sports car or any high-performance model. 

What car is the cheapest to insure for an 18-year-old?

While car models may vary, an 18-year-old can buy a small sedan. This car ensures safety and comes into the cheapest buying range. Get a car with a lower repair cost and lower performance. 

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Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.


This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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