10 Best Car Insurance for New Drivers of 2024: In-Depth Comparison And Verdict

How to compare the best car insurance companies？

When researching which are the best car insurance companies, it is important to consider several factors, including financial strength, customer service ratings and average premiums. Bankrate uses financial strength ratings from AM Best, Standard & Poor’s (S&P) and Moody’s, as well as customer experience ratings from J.D. Power and the National Association of Insurance Commissioners (NAIC), combined with 2020 average quoted premiums from Quadrant Information Services to assign an overall score to each company.

The Best Car Insurance Companies for 2024

1.Progressive

Progressive holds 12.2% of the industry market share and has more than 38,000 agents located across the entire country in addition to Canada. The company offers several types of vehicle insurance such as for ATV, classic cars, motorcycles and RVs. It ranks above average for auto insurance satisfaction in Texas, California and the Central region in the 2020 J.D. Power Auto Insurance Study.

Drivers can save up to $750 on average when signing up for an auto insurance policy through Progressive. The provider also offers multiple options for discounts, including unique ones such as its Snapshot program, which allows you to save an average of $145 a year the safer you drive.

Progressive offers the usual auto insurance choices, as well as other typical add-on options like roadside assistance and rental car coverage. Depending on your state, you can choose from:

1. Gap insurance, under which Progressive pays up to 25% above the value of your car if it’s totaled, to cover a loan or lease balance. You must purchase both comprehensive and collision coverage to buy gap insurance from Progressive.

2. Custom parts and equipment value, which pays to fix or replace custom accessories you add to your car.

3. Pet injury protection, included if you buy collision coverage. It pays veterinarian bills if your pet is injured in a car accident.

4. Deductible savings bank: If you have comprehensive and collision coverage, you can opt in to this program that reduces your deductible by $50 every six months you’re claim-free, all the way down to $0.

Rideshare insurance is available from Progressive but is not an option in all states. Typical insurance from ridesharing companies only covers the period between accepting a ride and dropping off a customer. This add-on insurance expands your personal auto policy anytime you have the app on, so you’re covered even between rides.

Progressive offers two types of accident forgiveness:

1. Small accident forgiveness: The company won’t raise your premium for claims under $500.

2. Large accident forgiveness: If you’ve been insured with Progressive for at least five years and accident-free for at least three, the company won’t raise your rate even for a large accident claim.

Progressive’s auto insurance discounts:

1. Multi-policy discount.

2. Multi-car discount.

3. Discount for continuous insurance (even if it was with another company).

4. Snapshot good driver program.

5. Discount for adding a teen driver.

6. Good student discount.

7. Distant student discount.

8. Discount if you get an online quote for car insurance.

9. Discount for signing your policy documents online.

10. Paperless discount.

11. Discount for paying your six-month policy upfront.

12. Discount for setting up automatic payments from a checking account.

Driver discounts

2.Geico

Geico offers insurance in all 50 U.S. states and Washington, D.C., with offices set up in more than 10 major cities. For each of the 11 U.S. regions examined within the 2020 J.D. Power Auto Insurance Satisfaction Study, Geico ranks within the top five for overall customer satisfaction, which is one of the key reasons we include among the best car insurance providers. When it comes to mobile apps, Geico provides one of the best user experiences compared to competitors, based on app scores. The Geico app allows policyholders to access mobile ID cards, roadside assistance, vehicle service history, vehicle damage estimates, safety recall updates and more.

Geico has five categories of auto insurance discounts, each of which contain two or more discount offerings. The provider has excellent offerings for military members and federal employees as these discounts can save qualifying drivers more than 10% on premiums or individual coverages.

In addition to typical car insurance coverage choices, Geico offers:

1. Mechanical breakdown coverage. This covers repairs to all mechanical parts of a new car, less than 15 months old and with less than 15,000 miles, except problems caused by wear and tear. There’s a $250 deductible. Mechanical breakdown coverage is renewable for up to seven years or 100,000 miles, whichever comes first, and does not pay for regular maintenance such as tuneups.

2. Rideshare insurance. If you drive for a rideshare company such as Uber or Lyft, or a delivery service like Instacart or GrubHub, this option allows you to have one policy that covers both personal and ridesharing use. You can replace your existing auto policy with this hybrid insurance on the ridesharing vehicle only. Geico’s ridesharing insurance is available in 40 states and the District of Columbia.

Geico’s auto insurance discounts：

Geico has a long list of car insurance discounts, so there’s a good chance you can find a price break that applies to you.

1. Having safety equipment like air bags, anti-lock brakes, daytime running lights or an anti-theft system.

2. Owning a brand new vehicle that is three model years old or newer.

3. Driving for five years with no accidents.

4. Using seat belts.

5. Completing a defensive driving course, or driver’s education for a young driver.

6. Having good grades, if you or someone on your policy is a full-time student 16 to 24 years old.

7. Participating in an emergency deployment with the U.S. military.

8. Being an active or retired military service member or a member of the National Guard or Reserves.

9. Being an active or retired federal employee.

10. Insuring more than one vehicle with Geico.

11. Buying a homeowners, renters, condo or mobile home policy through Geico.

12. Being a member of organizations such as alumni associations or sports groups.

3.Liberty Mutual

Liberty Mutual sells insurance in all 50 states and Washington, D.C., offering quotes online and through Amazon’s Alexa virtual assistant. Liberty Mutual’s mobile app lets you pay bills, track claims and get accident and roadside support.

Liberty Mutual’s auto insurance customers can add coverage for antique or classic cars, all-terrain and off-road vehicles, recreational vehicles and trailers. Liberty Mutual also sells a wide range of other coverage, including policies for homeowners and renters.

Liberty Mutual offers standard auto policies to which you can add several types of optional coverage, including:

1. Accident forgiveness. Your premium won’t increase as a result of your first accident if you’ve had no crashes or traffic violations for five years. This coverage is not available in California and may vary by state.

2. New car replacement. If your car is totaled in the first model year and first 15,000 miles, you’ll be reimbursed the cost of a new car, not just the depreciated value.

3. Better car replacement. This takes new car replacement a step further: If your car is totaled at any age or mileage, you’ll be reimbursed for a car one year newer and with 15,000 fewer miles on it than your totaled car.

4. Deductible fund. When you add this feature to your policy, Liberty Mutual creates a “fund” to lower your collision deductible. The insurer contributes $70 while you contribute $30 each year.

5. Gap insurance. If your car is totaled and you owe more on your loan or lease than it was worth, gap insurance will pay the difference.

Teachers’ Auto Insurance is a unique offering from Liberty Mutual. Although it may not be available where you live, it comes at no extra cost to teachers and includes:

1. Vandalism loss protection. No deductible if your vehicle is vandalized during school-related events or on school property. (In Pennsylvania, a $100 deductible applies.)

2. Personal property coverage. Liberty Mutual will reimburse you up to $2,500 per occurrence if your teaching materials or school-owned property are stolen or damaged while in your vehicle.

3. Collision coverage. There’s no deductible if your car is damaged in an accident while driving it for school business. (In Pennsylvania, a $100 deductible applies.)

Liberty Mutual’s auto insurance discounts:

1. Owning a home.

2. Being an active, retired or reserve member of the U.S. military.

3. Getting a Liberty Mutual quote before your current policy expires.

4. For students, earning good grades or leaving the car at home while living away at school.

5. Driving a hybrid or electric car.

6. Having safety features like anti-lock brakes, adaptive headlights and anti-theft devices.

7. Avoiding accidents and traffic violations.

8. Insuring multiple cars.

9. Having more than one Liberty Mutual policy, such as bundling home and auto coverage.

10. Paying your full premium up front or enrolling in automatic payments.

11. Buying a policy online.

12. Receiving paperwork electronically.

13. Being affiliated with certain employers, alumni associations or professional groups.

14. Being a new Liberty Mutual customer.

4.Allstate

Allstate sells auto insurance and a wide range of other products through agents in all 50 states and Washington, D.C. You can find an agent or get a quote on Allstate’s website; the company’s mobile app lets you manage your coverage, pay your bill and check on claims.

Discounts are available if you bundle your auto insurance with some of Allstate’s other policies. Coverage is available for homeowners, renters, landlords, boats, businesses and more.

Allstate offers the usual auto coverage choices, plus some optional features you can add (depending on your state) for an extra cost, including:

1. Accident forgiveness, which means your rates won’t increase because of one accident, even if it’s your fault.

2. Safe driving bonus: For every six months of accident-free driving with Allstate, you can receive a check.

3. Deductible rewards: For each year with no driving violations, you earn $100 off your collision deductible, up to $500 off. Allstate takes the first $100 off when you sign up.

4. New car replacement: If you total a new car within the first two model years, you can get a check for a new car, not just your car’s depreciated value.

5. Roadside assistance in three different options: Pay-per-use, as an add-on to auto policies or from Allstate’s Motor Club, which is a subscription service similar to AAA.

6. Rideshare insurance: Allstate’s Ride for Hire coverage is an add-on for customers who drive for ride-hailing services such as Uber and Lyft. This policy isn’t available in all states. Rideshare companies’ full coverage kicks in only while you’re carrying passengers, with limited coverage in between rides. Ridesharing insurance from Allstate is built into your regular policy and covers you the whole time your app is on.

Allstate’s auto insurance discounts :

1. New car discount.

2. Multiple policy (bundling) discount.

3. Good student discount.

4. Discount if your car has anti-lock brakes.

5. Anti-theft device discount.

6. Early signing discount.

7. Discount if you didn’t receive a cancellation notice for non-payment in the past year.

8. Discount for setting up automatic withdrawals.

9. Paperless discount.

10. Discount for paying upfront.

11. Safe driving discount

 Allstate Rewards points

1. Daily deals:Save up to 80% on daily merchandise deals；

2. Merchandise:Save up to 40% on brand-name products (apparel, tech, jewelry, etc.);

3. Gift cards:Get 10% off on over 100 brands, including dining and travel, through gift cards

5.State Farm

State Farm, the country’s largest car insurance company, offers policies nationwide except in Massachusetts and Rhode Island. Coverage is sold exclusively by captive agents, meaning they sell only State Farm products, but you can get a quote and manage policies online. There’s also a mobile app that lets you get quotes, submit claims and view your insurance card.

State Farm offers many other types of policies, including renters, business, home, boat, off-road vehicle and commercial auto insurance. In some cases, discounts are available for drivers who buy more than one type of policy.

State Farm auto insurance offers more than just standard car insurance. Here are a few State Farm coverage options available beyond liability:

1. Rental car reimbursement

2. Rideshare coverage

3. Emergency roadside assistance

4. Uninsured motorist

5. Medical payments

State Farm’s auto insurance discounts:

1. Accident-free discount.

2. Discount for taking a driver safety course.

3. Student away at school discount.

4. Good driving discount.

5. Discount if all operators of your vehicle under 21 complete an approved driver education course.

6. Good student discount.

7. Vehicle safety discount.

8. Passive restraint discount.

9. Discount for having an anti-theft device.

10. Multiple auto discount.

11. Multiple line discount.

6.Farmers insurance 

Farmers insurance has offered comprehensive coverage car insurance since 1933, when it was the first and only one to offer comprehensive coverage. Now, the company spans across the entire United States and offers additional coverage for things like customized equipment, spare parts and windshield and glass repair. The company has a J.D. Power score of 872 for auto claims satisfaction, which is on the higher end, compared to other insurance providers in the industry.

Out of all of Bankrate’s 2024 picks for best car insurance companies, Farmers offers the most ways to save. Drivers can find unique ways to save on premiums by using alternative fuel, having daytime running lights or sharing a family car. Discounts available will vary by state, but drivers are likely to find several that they qualify for.

Farmers offers standard coverage choices for auto insurance, in addition to several types of optional coverage, including:

1. New car replacement: If your new car is totaled within the first two model years and 24,000 miles of ownership, Farmers pays to replace it with a new one.

2. Accident forgiveness: One accident is forgiven, meaning your rate won’t go up if you have one, for every three years you drive without an accident.

3. Loss of use: When your car is in the shop or totaled after an accident, Farmers reimburses you for a rental, cabs, rideshares or public transit. Most companies’ coverage only pays for a rental car.

4. Customized equipment coverage: If you have custom parts installed in your car, such as chrome rims or a new stereo system, this option expands your policy to cover those parts if they’re stolen or damaged. You must have comprehensive and collision to buy this coverage.

5. Original equipment manufacturer (OEM) coverage pays for replacement parts from your car’s manufacturer if you’re in a covered wreck, rather than aftermarket parts, which are cheaper. You must have collision and comprehensive coverage to opt in, and your car’s model must be within 10 years of the current calendar year.

Farmers auto insurance discounts :

1. Good driver discount.

2. Multi-vehicle discount.

3. Multi-policy (bundling) discount.

4. Discount for being part of a professional group.

5. Good student discount.

6. Discount for driving an alternative fuel vehicle.

7. Discount for being a homeowner.

8. Discounts if your car has certain safety or anti-theft features.

9. Teen driver discount.

10. Discount for a driver under age 25 in your household.

11. Distant student discount for a child at school at least 100 miles away without regular access to your vehicle.

12. Discount for paying for your policy in full.

13. Electronic payments discount.

14. Continuous coverage discount for starting a policy with no recent lapses in auto insurance.

15. Discount for completing a driver safety course.

7.Auto Club of Southern California (AAA)

Auto Club of Southern California is one of several separate insurance companies that operate under the AAA brand. It may sound like a regional player, but the Auto Club of SoCal actually operates in about 20 states, ranging from California to Maine. To buy coverage, you’ll probably need an AAA club membership, which typically has an annual fee of about $40 to $165 per person.

Auto Club of SoCal gives discounts in some states for holding on to your coverage, having good grades or bundling policies. Good drivers can also save by using the AAA OnBoard app to monitor their driving. Discounts vary by state.

AAA offers the usual types of auto insurance coverage in addition to:

1. Gap insurance, which pays the difference between your car’s value and the balance of your loan or lease if the car is totaled or stolen

2. OEM exterior repair coverage, which pays for original equipment manufacturer parts for covered external body repairs.

3. New car replacement, which pays for a vehicle one to two years newer if your own car is totaled.

4. Rideshare insurance, which covers you during the period between rides, so you’re always covered during your rideshare job. Typical insurance from ridesharing companies only covers the period between accepting a ride and dropping off a customer.

5. Custom equipment coverage, which pays to repair items installed after purchase, like stereos, cameras or rims, if you’re in a covered crash.

AAA’s auto insurance discounts:

1. Education or occupation discount.

2. Anti-theft device discount on comprehensive coverage for approved theft prevention devices.

3. Loyalty discount.

4. Safe driver discount.

5. Good student discount.

6. New young driver discount.

7. Student away from home discount.

8. Discount for completing a driver training course.

9. Multiple-car discount.

10. Multiple-policy discount.

11. Discount for paying premium in full.

12. Discount for paying electronically and having automatic payments.

8.USAA

Although USAA sells insurance in all 50 states and Washington, D.C., it’s only available to active military, veterans and their families. For that reason, NerdWallet doesn’t rank USAA alongside other major auto insurance companies. But for customers who qualify, USAA often offers cheap rates.USAA consistently scores high in J.D. Power studies for insurance shopping, claims and overall customer satisfaction.

USAA offers many discounts, including some specifically for drivers in the military. For instance, you can get a discount for keeping your car in a garage on a military base. You can also get more general discounts in some states for taking defensive driving courses, earning good grades and insuring a new car.

USAA offers the usual types of auto insurance coverage and discounts to its customers in addition to:

1. Accident forgiveness: With this add-on coverage, which is free in some states after five years accident-free with the company, USAA won’t increase your auto insurance premiums after one at-fault accident.

2. Rideshare insurance: This optional coverage is available for customers who drive for companies like Uber or Lyft. Ridesharing companies generally pay for some liability when drivers are on their way to pick up a passenger and until drop-off, but not in between rides; this coverage fills that gap.

USAA’s auto insurance discounts:

1. Safe driver discount.

2. Defensive driving discount.

3. Discount for drivers younger than 21 who complete a basic driver training course.

4. Good student discount.

5. Discount if your car is 3 years old or less.

6. Multi-vehicle discount.

7. Discount if you drive relatively few miles in a year.

8. Vehicle-in-storage discount.

9. Family discount.

10. Length of membership discount.

11. Discount on comprehensive coverage when you garage your vehicle on a military base.

12. Multiple policy (bundling) discount.

9.Travelers

Travelers Insurance operates in 42 states and Washington, D.C.In J.D. Power’s 2020 study, Travelers ranked eighth among eight large insurers for customer satisfaction with buying insurance. Travelers ranked No. 19 out of 24 companies for customer claims satisfaction in 2020.

Travelers offers potential discounts in some states for using the company’s telematics program, a system that tracks your driving. Optional plans offer forgiveness for one accident and one minor violation every 36 months so your rates don’t go up after an incident.

Beyond the standard coverage options, Travelers has additional auto insurance options available.

1. Gap insurance protects your auto lease or loan. If your car is totaled before it’s paid off or the lease is up, Travelers pays the difference between your loan’s balance and the car’s value when it’s totaled.

2. Rideshare insurance is available from Travelers in Illinois and Colorado only for people who drive for companies like Uber or Lyft. Ridesharing companies usually pay for some liability when drivers are en route to pick up a passenger and until drop-off, but not in between rides.

3. IntelliDrive uses an app to track your driving speed, the time of day, and braking and acceleration habits for 90 days. It’s available in 38 states. At renewal, you can get a discount of up to 20% for good driving — or your rates could go up if you have risky driving habits (except in certain states).

4. Premier New Car Replacement can benefit you if your car is totaled and is five years old or newer. This coverage pays to replace the car with a brand new one, plus includes gap insurance to pay off any loan or lease balance when the car is totaled. If your car’s glass needs to be repaired, enrolling in this program means you could have a lower deductible.

5. Travelers’ Responsible Driver Program offers two types of forgiveness: One accident and one minor violation are forgiven every 36 months, so your rates won’t go up after a crash or ticket.

6. The Premier Responsible Driver Program includes the above accident and violation forgiveness perks, as well as a decreasing deductible ($50 off for every six months accident-free, up to $500 off your deductible). If your car is totaled, your deductible is waived in this program.

Traveler’s auto insurance discounts:

1. Multi-policy discount.

2. Multi-car discount.

3. Home ownership discount.

4. Safe driver discount.

5. Discount for having no gaps in coverage.

6. Discount for owning or leasing a hybrid car.

7. New car discount.

8. Discounts for paying electronically, upfront or on time..

9. Discount for getting a quote before your policy expires.

10. Discount for drivers in high school or college who maintain a “B” average or better.

11. Student away at school discount.

12. Driver training discount.

13. Affinity group discount for being a member of certain organizations.

10.Nationwide

Nationwide ranks above average in the 2020 J.D. Power Auto Claims Satisfaction Study and is located in 46 states and Washington, D.C. For drivers working to improve their skills on the road, Nationwide is a particularly appealing choice to consider among our best car insurance companies. Optional coverage is offered for accident forgiveness and personalized savings are possible with Nationwide’s SmartRide and SmartMiles program.

You can manage your policy through the company’s website or its mobile app, where you can also start claims or call for roadside assistance.Discounts are available if you bundle your auto insurance with some of the other policies Nationwide offers, such as home, life, condo, renters, motorcycle or boat insurance.

Nationwide offers all that you would expect from an auto insurer, plus a few additional options and perks:

1. Gap insurance pays the difference between the cash value of your car when it was totaled or stolen and the amount of money left on your loan or lease. This insurance may be required by your lender, and you must purchase comprehensive and collision coverage to get it.

2. Vanishing Deductible: This optional program allows you to chip away at your deductible by driving safely. For every year you don’t have an accident, your deductible goes down by $100, up to a $500 reduction.

3. On Your Side Review: Every year and after a major life event, you can take advantage of a free assessment by one of Nationwide’s agents to help you determine whether your insurance policies are right for you and go over any available discounts.

4. Accident forgiveness: This helps you avoid a rate increase after you or someone on your policy causes a crash. It’s not available in every state, and Nationwide will forgive one accident per policy only.

5. Total loss deductible waiver: If your car is totaled, this coverage lets you waive your comprehensive or collision deductible.

Nationwide’s auto insurance discounts :

1. Multipolicy discount.

2. Anti-theft discount.

3. Accident-free discount.

4. Good student discount.

5. Safe driver discount.

6. Paperless discount.

7. Discount if you sign up for automatic payments.

8. Affinity member discount for being part of groups like alumni associations or professional organizations.

9. Defensive driving discount for those age 55 and older who complete an approved safety course.

Common questions about car insurance

• 1.What is the best car insurance company?

The best car insurance company will vary depending on your own specific needs and circumstances. Your location, age, type of vehicle, credit score, choice of coverage and more variables all go into determining your premium. When shopping for car insurance, look for a financially strong company capable of providing the best coverage, service and value in your price range.

2.Who offers the cheapest auto insurance?

Car insurance premiums are determined by individual driver variables, so the “cheapest” is relative to each driver. Seeking out a company that offers discounts for which you qualify, purchasing the proper amount of coverage for your needs and comparing rates on an annual basis can help you keep your premiums reasonable.

3.How much is car insurance?

Because car insurance rates depend on so many factors (age, where you live, driving history), they will always vary from person to person.It’s best to understand what cost looks like for you by getting a quote you can customize.If you research average cost, keep in mind you’re seeing an average for the whole country, which includes the most expensive states, the least expensive states, and all kinds of drivers with different driving history. With so much variation, the help these numbers can provide might be limited, but they can give you a starting point.

4.What affects car insurance rate?

It can seem like there’s no rhyme or reason as to why your insurance rate is what it is, but there are several factors that help determine your coverage and price.

The basics:

• Your age
  

Statistics tell us that certain age groups are less likely to have good driving behavior, and are therefore a higher risk to insure.

• Where you live
  

From environmental factors to the number of cars on the road, where you live indicates a lot about what kind of risks you’re more likely to encounter. Even varying regional repair and medical costs determine this aspect of your rate.

• The kind of car you drive

The age, condition, and safety features your car has all contribute to what determines your rate.

• Your driving history

As you might guess, a good driving record can mean a better rate on your policy, whereas a history of accidents or other violations can mean a higher risk to insure.

5.How can I compare quotes from different car insurance companies?

• Look at similar policies

When comparing car insurance quotes, it helps to compare apples to apples; in other words, you want to be sure that the quotes you get are for identical - or at least very similar - auto insurance policies. Once you have a better idea of the type of coverage you’re looking for in a policy, this will be easy. To better understand coverage types, browse our car insurance coverages.

• Know what policy features are included

policy features help you understand exactly what's included in your quote, and which items may have an additional cost, such as towing or car rental coverages. When you compare car insurance, make sure you're getting the coverage you need and the features you want.

1. Comparing similar coverage, limits, and deductible amounts

2. Put simply: More coverage + lower deductible = higher premium

3. Less coverage + higher deductible = lower premium

4. Also, be sure you're comparing the same coverage period, usually a 6-month or 12-month term.

6.Why location matters when choosing car insurance

Auto insurance rates are based on several factors, and your specific city, state and ZIP code are among the most impactful. If you have moved recently, it may be a good idea to compare companies to ensure that your car insurance provider is still the best fit for your needs. This is especially true if you have moved across state lines, as auto insurance is not standardized across the country.

More Car Informatios:

10 Best Sites to Buy and Sell New and Second-hand Cars Online 2024

10 Best Online Stores to Buy Car Parts 2024 (Coupons + up to 4% Cashback)

Extrabux is an international cashback shopping site, offering up to 30% cashback from 10,000+ Stores!

Squarespace, SkinStore, MATCHESFASHION, The Wall Street Journal, NordVPN, Visible, Armani Exchange, Sam's Club, PUMA, AliExpress, Card Cash, NET-A-PORTER, Udacity, Udemy, Selfridges, LOOKFANTASTIC, Vimeo, Coach Outlet, lululemon, PrettyLittleThing, Booking.com, Ripley's Aquarium, iHerb, Groupon, etc.

Join to get $20 welcome bonus now! (How does Welcome Bonus work?)