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Top 3 Auto Insurance Companies for New Drivers

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Statistics don’t lie. New, inexperienced people behind the wheel, and particularly younger drivers, are responsible for twice as many automobile accidents as any other group. Insurance rates for new drivers are typically higher no matter where you live. And the younger the person behind the wheel, the higher the premium. While other requirements vary state-to-state, every state but New Hampshire has minimum liability coverage requirements. Using affordability, coverage, availability, customer satisfaction and discounts as criteria, we searched across companies and found a few that stood out from the crowd. Please note that in each of the three companies we identify, the state you reside in has particular minimum requirements so quotes will vary accordingly.

Top 3 Insurance Companies for Newer Drivers

  • Esurance
  • USAA
  • Liberty Mutual

ESURANCE

This Allstate company was born online and is preferred by younger customers for the easy way you have 24/7 access to manage your policy and claims directly. With strong mobile app appeal, yet backed by the strength of the established industry leader, Esurance has a high rating for customer service and offers low competitive rates for new drivers. Discounts available include the Fast 5 (5 percent discount for getting a personalized online quote), Switch and Save (5 percent) and Good Student Discount amongt others. Customers appreciate using Coverage Counselor and Fuelcaster, and the Coverage My Way platform is built to impress.

Highlights

  • Focus is on online servicing which reduces rates, making it an especially good car insurance pick for young adults.
  • Multiple discounts affording 5-15% discounts for things like getting a quote, paid in full status, or 3.0 or greater GPA.
  • Easy accessibility to your policy and high raking customer service reviews.

USAA

Founded in 1922 by military officers to insure each others’ cars, USAA has become well known as the auto insurance company preferred by US military service members and veterans. Spouses, children and grandchildren of anyone who served honorably are eligible to become members. Your policy will provide the minimum liability required by your state, and much more. Offering low, reasonable rates, worldwide coverage, rental reimbursement and accident forgiveness, USAA also offers the Family Legacy discount in which a young driver may transition from the family policy onto one of their own, which can then be passed down to their children. USAA offers 24/7 policy and claims access through multiple apps. This insurance company also has some of the best ratings in customer service.

Highlights

  • Low basic rates and very high customer service ratings across all applications
  • Multiple discounts,  Family Legacy and safe driver/good student discounts
  • 24/7 customer service assistance from most devices, roadside assistance, worldwide coverage

Liberty Mutual

This company began in Massachusetts in 1922 and today ranks second in customer service. Each Liberty Mutual auto insurance policy begins with the minimal coverage required by your state to protect you against the costs associated with damages if you are legally responsible for an auto accident. Your individual policy is then carefully constructed to meet your needs. Accident Forgiveness, New Car Replacement and Better Car replacement are all additional coverage you may choose. Liberty Mutual offers discounts galore; Preferred Payment Methods, New To Liberty Mutual, Vehicle Safety Features and Hybrid Driver, Teen Driver, New Graduate and Good Student to name a few. Liberty Mutual prides itself on its customer service and loyal customers.

Highlights

  • This company is very generous with discounts to help you save money.
  • Very highly ranked in all aspects of Customer Service.
  • Creates a quote customized for each individual customer.

Conclusion

Insurance companies consider many factors in determining the rates they assign to new drivers. In addition to those identified above, make, model and year of the car you drive, level of coverage you are requesting, marital status and credit history, even your sex can be and regularly are considered contributing factors in establishing rates. In the case of new drivers under the age of 20, your best, most cost effective choice may very well be adding the new driver to the parent’s plan. Due diligence in identifying the coverage you require and careful evaluation of all offered plans should result in the best rate from the best insurance company for you now, and in the future.