Car Insurance for New and young Drivers in USA


Car Insurances for New & Young Drivers in USA

15 Cheap Car Insurances for New & Young Drivers in USA


Trusting a teenager or young college students with their very first car can very well turn into a living nightmare for parents, neighbours and most of all Insurance Companies especially when a young driver does not possess any kind of insurance. To avoid further complications, there are now numerous cheap car insurances for new and young drivers.

Since young drivers have less experience behind the wheel, they often tend to get into more trouble and that is when a cheap car insurance policy comes handy. Promoting young drivers with a safe drivers etiquette can go a long for you and the insurance companies. Having a clean drivers license, an accident free record, driving within speed limit and choosing what time of the day you drive are all important factors at play while applying for insurance.

Choose wisely and take your time to explain your current role and financial status to your insurance agent so they can help you in selecting the right insurance plan for you and your young driver.
Young drivers can add another experienced like a parent driver to their policy to reduce the premiums or save through the no-claim bonus.

Finding cheap car insurance for new and young drivers is easy to locate and apply for just by following a few simple driving etiquette's as follows: 


Choose your car wisely: the type of car you decide to buy decides what kind of insurance policy you up for if you purchase a smaller car, your premium will be lower and vice-versa. Check with local insurance companies about the various policies they offer and what kind of cars they cover to make an informed decision.

Secure your car: secure your car from any kind of damage with a security device provided by the insurance company that tracks your driving habits and works like an alarm. Young and new drivers are advised to allow the device in their car, as it will make you eligible for a cheaper quote on your insurance policy.

Follow good driving habits: it is important to keep a good driver's reputation by following good driving habits like keeping your license clean, keep the driving miles under the policy terms and if you are a new driver adding someone with driving experience like a parent on your policy could lower your insurance premium.

Now that you are familiar with the good driving habits that can help you in getting a better deal on your car insurance, you may want to browse through all the options you might have before finalising anything.

To make your job a bit easier, we have combined for you a list of 15 cheap car insurance companies for new and young drivers: 

1. Liberty Mutual

One of the topmost insurance companies that meet the needs of your teens and their families by providing 24-hour roadside assistance, 24-hours claims assistance, new car replacement and a lifetime repair guarantee. As a parent no matter what the age of your child, you are always worried and even more so when they are young and reckless and can easily cause damage to their car or someone else's property, good insurance is a lifesaver.

2. State Farm

Also awarded with the title of best customer service is one of the best car insurance company. With attractive features like a good student, student-away-at school, crash-free driving and the state farm’s Steer Clear Program young drivers are liable for heavy discounts on their premiums.

State Farm may not be a cheap insurance company, but there are ways which can help you reduce your premiums in half. Complete the 5 hours of practice driving and safe driving course online at the State Farm office or app, keep a low mileage and enroll in the Drive Safe & Save Program which automatically makes you eligible for a 5% just for signing up.

3. NationWide

An insurance company with a deserving Honorable Mention, is known to promote safe driving for teens. While offering good students discount, people who practice good and safe driving habits can benefit a lot of discounts from NationWide.

By enrolling for the SmartRide program you agree to install a device in your car that monitors how many miles you've driven, driving skills and how safe you drive that helps you earn credit and you get a 10% discount just for signing up. NationWide also provides a Family Plan that helps you secure a reasonable rate for your teen and all members of the family can share the discounts. If you are approved for a multi-policy or accident-free discount, these discounts will also add to their savings and reduce the monthly premium.

4. AllState

Working effectively toward safe teen driving since 1931, by offering policy benefits and discounts to safe and responsible drivers. This helps enforce safe driving among teens in order to get a good deal on their car insurance and be motivated to stay in school.

From services like accident forgiveness, reimburse your auto claim, in case your car is in the workshop after an accident AllState helps you cover car rental, towing, tire changes, jump starts and 24/7 roadside providers are some of the many attractive services provided by AllState. Introducing perks in their insurance policy is an attractive way for teens to opt for safe and responsible driving, which is a relief for a lot of parents.

5. USAA

A lot of insurance companies are being flooded by worried parents as soon as their teen arrives home with their driver's license and the next step is to get insured with the lowest premiums. Insurance companies now not only offer ways to reduce your premiums but also put in an effective method for teens to drive safely and responsibly.

Your teen is in safe hands with USAA as they offer services that can help you get discounts on your premiums like Roadside Assistant, Accident Forgiveness Protection, completing basic driver training under 21, maintaining a safe driving record for five years, good student discount for getting excellent grades and multi-vehicle discount.

6. GEICO

It is ranked Best Overall as it offers low rates and discounts that no other insurance company can match. GEICO is one of the best options for teens and students as they can reap maximum benefits and discounts with safe and responsible driving and staying in school while maintaining a B or above grade.

Things you can do to gain maximum discounts are: limiting the number of miles you drive especially on a ”high-performance” car, air-bags, anti-lock brakes and daytime running lights can save you even more on your premiums. Special offers by GEICO are: covering all basics, mechanical breakdown coverage and accident forgiveness that stops your premium rates from going high in your first-at-fault accident.

7. Progressive

Another insurance company with a deserving Honorable Mention does justice to its name by actually providing progressive offers to teen drivers. A rare coverage offered only by Progressive is the GAP insurance which in cases of a totalled car provides coverage between the difference of the car value and amount left to pay your loan. A perfect way to get insurance covers for a new car driven by a teen.

8. Bell

An insurance company that offers its services specifically to BlackBox/telematic insurance providers. Their services include multi-car insurance, breakdown cover and car warranty cover, services that are useful for teens and new drivers.

The telematics Black Box is installed in your car for three months that keeps a track if the driver is driving safely, there are no curfews or miles to maintain for a discount in the premium rates. The Bell will send a feedback on your driving performance and suggest an improvement in your driving score and a drop in your premium within 12 weeks.

9. Co-op Young Driver

An insurance company that offers limited but beneficial discounts and rewards for its young drivers. Services like no curfew, no limited mileage, a 22.5% discount on your remaining premium should you clear the safer driving score are some of the many benefits for young drivers.

Every 90 days your score is reviewed based on your driving patterns like the time you choose to drive, how often your brake and accelerate, speed of the vehicle and how you handle corners. This is one of the most effective ways to keep a check on young drivers even when they are driving alone.

10. DirectLine

It is the best insurance company for drivers under 25 and enables young drivers to drive more cautiously which turns into benefits for your premium. The BlackBox monitors your driving patterns like speed, speed and force of brakes and accelerators and safe driving. Telematic helps you pay fairly based on your driving performance and young drivers can constantly monitor their driving skills.

11. Admiral Little Box


As opposed to other insurance companies, Admiral does not hold back it’s young drivers based on lack of experience to secure a more affordable first-time insurance. The little box is the Black Box or telematic installed in your car that helps monitor the driving patterns of young drivers and help them make up for their lack of No-claim Bonus. After the completion of 5 years, the No-claim bonus can save you up to 60-75%.

12. Tesco Bank

The Tesco Black Box in your car allows insurance companies to monitor your driving styles and habits and rewards you on your premium accordingly. Tesco also offers numerous discounts for its young drivers such as 24/7 helpline, bonus miles for safe driving, driving performance and a no-claim discount for making no claim every year. For young drivers between 21 and above, Tesco offers Standard Car Insurance.

13. RAC

An insurance company that makes sure to provide the best affordable insurance policy for young drivers. The many ways to reduce your insurance premium is to install a BlackBox, drive safely and responsibly, add a second driver and safety of the car when not driving and free break down cover (if you are selected)

14. Churchill

An insurance company that offers upfront discounts and promotes the use of the DriveSure app to avail more benefits. To install DriveSure you must below 26 years of age and you just need to download the app on your android or apple phone and let the app do the rest. The app will monitor your driving skills though it is not mandatory to have the app, a good driving score can bring you hefty discounts during the renewal of your premium.

15. Marmalade


Insurance for a young driver can be a nightmare especially when they are inexperienced drivers. Young and new drivers tend to be reckless and therefore require more protection and coverage for things they may or may not do. Marmalade offers special features for it's new drivers especially more when they have installed a Black Box.

Earning No Claims Discount, get insured even if you have a learners license and the premium won't go up after you pass the drivers test, no curfews and freedom to drive 24/7 are some of the many features offered by Marmalade to new and young drivers. The Black Box monitors your driving skills and rewards you accordingly.

Since we cannot be in the passenger seat with our young driver all the time, Black Box is a revolution for young and new drivers as it allows them to receive insurance premiums based on their current driving skills and safety measures.

Black Box monitors young drivers driving patterns, how they brake and accelerate, hours of driving as night hours are more prone to attracting trouble.

Promoting are driving among teens through insurance companies is a great idea as it benefits everyone from the driver to the worried parents to the insurance company. Discounts like accident forgiveness, low premium rates, rental cover, reimbursement etc are some of the many features of new insurance companies that attract young and new drivers while making sure they are driving safely.

Promote safe driving with your young children as they are in the phase of learning how to drive and selecting a new. Insurance is the last thing on a new drivers mind, hence it is important we instil good driving habits in new drivers.

Author: Johannah Singh
Johannah is a writer, a trained Graphologist and a nomad, more appropriately-The Nomadic Graphologist! who travels solo to the remotest part of India to reconnect to her true self! A wild life lover and a hippie by heart, she is playing a vital role in introducing the nomadic culture in India, especially among young women.