Cheapest Car Insurance for New Drivers — State by State Guide
Hey y’all — if you’re a new driver (or helping one), you know the drill: first car, first major policy, first real hit to your wallet. But don’t sweat it — we’re gonna dive into how you can save big on car insurance as a new driver in every state, unpack what’s driving the costs, and give you super-practical tips to slam that premium down.
Imagine you’re sitting at your favorite burger spot, chatting with a friend who just passed their test — that’s the vibe here. Let’s roll.
Why New Drivers Pay More (and why that’s totally unfair, but real)
New driver = more risk in insurers’ eyes.
- No established record → higher chance of “oops” moments.
- Younger drivers tend to commute more/drive at odd hours.
- Insurance companies bake all that into your rate.
According to MoneyGeek’s recent update: for new drivers full-coverage, monthly averages can hit ~$200-$300+ depending on state. (MoneyGeek.com)
So let’s get ahead of that.
Snapshot: Average Car Insurance Rates by State
Before we zoom into “new drivers” specifically, here’s what average full-coverage rates look like (so you’ve got a baseline). According to The Zebra:
- Lowest full-coverage 6-month average: Vermont ~$654. (The Zebra)
- Highest: Florida ~$1,819 (6-month). (The Zebra)
That’s wild — nearly 3x difference depending on where you live.
The Real Deal: Cheapest Car Insurance for New Drivers by State
Alright, let’s get into the meat. These are new driver specific cheap rate examples, state by state, pulled from MoneyGeek’s recent data. (Yes, even if you’re 35 and newly licensed — this still applies.) (MoneyGeek.com)
Here are some standout numbers:
| State | Cheapest Monthly Full-Coverage Rate (New Driver) |
|---|---|
| Alabama | ~$152/mo (~$1,818/yr) |
| Alaska | ~$179/mo (~$2,152/yr) |
| Arizona | ~$196/mo (~$2,352/yr) |
| Arkansas | ~$148/mo (~$1,773/yr) |
| California | ~$149/mo (~$1,791/yr) |
| Colorado | ~$168/mo (~$2,011/yr) |
| Idaho | ~$125/mo (~$1,495/yr) |
| Illinois | ~$164/mo (~$1,973/yr) |
| Indiana | ~$127/mo (~$1,520/yr) |
| Iowa | ~$142/mo (~$1,706/yr) |
| Kansas | ~$149/mo (~$1,788/yr) |
| Maine | ~$121/mo (~$1,454/yr) |
| Massachusetts | ~$109/mo (~$1,308/yr) |
| Michigan | ~$125/mo (~$1,503/yr) |
| Minnesota | ~$142/mo (~$1,709/yr) |
| Mississippi | ~$138/mo (~$1,662/yr) |
| New York | ~$98/mo (~$1,178/yr) — yes, seriously! |
| North Carolina | ~$89/mo (~$1,067/yr) — lowest major number |
| Ohio | ~$116/mo (~$1,395/yr) |
| Pennsylvania | ~$140/mo (~$1,678/yr) |
| Vermont | ~$102/mo (~$1,224/yr) |
| Virginia | ~$117/mo (~$1,405/yr) |
(Note: These are averages for full-coverage policies for new drivers, and the actual rate depends heavily on your vehicle, location, driving record, etc.)
Cheapest car insurance for new drivers — full table (state → insurer → monthly / annual → quick discount tips)
I pulled MoneyGeek’s state-by-state results (their November 6, 2025 update) and combined that with vetted guidance on common discounts (NerdWallet / Insurance.com) to build a full, 50-state table just for new drivers (full-coverage averages).
The table shows MoneyGeek’s cheapest insurer in each state for new drivers, the average monthly & annual full-coverage premium MoneyGeek reports for that insurer, and quick, region-specific discount tips (real, practical moves you can use today). All state rate/provider data below comes from MoneyGeek’s analysis. Discount tips are standard, proven savings strategies backed by NerdWallet and Insurance.com. (MoneyGeek.com)
Quick note: MoneyGeek’s numbers are averages for new drivers under their methodology (example base profile: 100/300/100 liability and $1,000 comp/collision deductible). Your actual quote will vary by vehicle, ZIP, age, driving history and coverage choices — so treat these as realistic benchmarks, not guarantees. (MoneyGeek.com)
| State | Cheapest insurer (MoneyGeek) | Avg monthly (full cov)* | Avg annual | Quick discount tips (what actually saves $) |
|---|---|---|---|---|
| Alabama | Country Financial | $152 | $1,818 | Join family policy, good-student, defensive driving. (MoneyGeek.com) |
| Alaska | GEICO | $179 | $2,152 | Multi-policy bundle, anti-theft device, compare regional carriers. (MoneyGeek.com) |
| Arizona | Travelers | $196 | $2,352 | Good-student, telematics / usage-based discounts, safe-car picks. (MoneyGeek.com) |
| Arkansas | Farm Bureau | $148 | $1,773 | Farm/affiliate discounts, multi-car, defensive driving. (MoneyGeek.com) |
| California | State Farm / Progressive (state entries vary) | $149 (State Farm row) / $209 (Progressive row) | $1,791 (State Farm) | Good-student, low-mileage, drive-safe telematics (many CA insurers). (MoneyGeek.com) |
| Colorado | American National / Auto-Owners (MoneyGeek shows both in different lists) | $168 / $186 | $2,011 / $2,232 | Good student, defensive driving, multi-policy. (MoneyGeek.com) |
| Connecticut | GEICO / Amica entries | $256 | $3,068 | Bundle home+auto, low-mileage/garage discounts. (MoneyGeek.com) |
| Delaware | GEICO | $308 | $3,695 | Multi-policy, good-student, shop regional brokers. (MoneyGeek.com) |
| DC | Erie Insurance | $227 | $2,721 | Multi-policy, telematics, urban risk mitigation (lower commute miles). (MoneyGeek.com) |
| Florida | Travelers | $252 | $3,022 | Bundle, hurricane / storm prep discounts (where offered), anti-theft. Florida often runs high — shop aggressively. (MoneyGeek.com) |
| Georgia | Auto-Owners | $218 | $2,610 | Multi-vehicle, good-student, defensive driving. (MoneyGeek.com) |
| Hawaii | GEICO / Island/State-specific insurer | $70 | $834 | Very low averages in HI — still get multiple quotes; consider island/region insurers. (MoneyGeek.com) |
| Idaho | State Farm / Auto-Owners | $125 | $1,495 | Good-student, safe-driver telematics, bundle. (MoneyGeek.com) |
| Illinois | Auto-Owners | $164 | $1,973 | Multi-policy, good-student, shop local/regional companies. (MoneyGeek.com) |
| Indiana | Indiana Farmers | $127 | $1,520 | Defensive driving discounts, low-mileage, family policy. (MoneyGeek.com) |
| Iowa | Travelers | $142 | $1,706 | Good-student, multi-car, driving courses. (MoneyGeek.com) |
| Kansas | Travelers | $149 | $1,788 | Good-student, multi-policy bundles, low-mileage. (MoneyGeek.com) |
| Kentucky | Travelers | $202 | $2,419 | Defensive driving, multi-vehicle, choose safer car model. (MoneyGeek.com) |
| Louisiana | Safeway Insurance | $317 | $3,803 | High state costs — bundle, anti-theft, raise deductible if feasible. Shop regionals. (MoneyGeek.com) |
| Maine | Auto-Owners | $121 | $1,454 | Low overall state risk — good-student, multi-car, defensive driving to stack. (MoneyGeek.com) |
| Maryland | State Farm / Erie entries | $262 | $3,146 | Multi-policy bundling, telematics, shop local agents. (MoneyGeek.com) |
| Massachusetts | Plymouth Rock | $109 | $1,308 | Good-student, safe driving programs, multi-policy. (MoneyGeek.com) |
| Michigan | GEICO / Auto-Owners | $125 | $1,503 | Michigan has special rules — compare insurers yearly; telematics programs help. (MoneyGeek.com) |
| Minnesota | Auto-Owners | $142 | $1,709 | Defensive driving, multi-car, anti-theft. (MoneyGeek.com) |
| Mississippi | Farm Bureau | $138 | $1,662 | Good-student, multi-policy discounts, drive-safe telematics. (MoneyGeek.com) |
| Missouri | Travelers | $178 | $2,136 | Good-student, safe-driver programs, bundle. (MoneyGeek.com) |
| Montana | State Farm | $146 | $1,758 | Multi-car, low-mileage, defensive driving. (MoneyGeek.com) |
| Nebraska | Farmers Mutual Ins Co of NE | $110 | $1,314 | Regional mutuals often give discounts; good-student, low-mileage. (MoneyGeek.com) |
| Nevada | Country Financial / Travelers entries | $200 | $2,401 | Shop multiple carriers, telematics for safe drivers, bundle. (MoneyGeek.com) |
| New Hampshire | MMG Insurance / Auto-Owners | $127 | $1,525 | Good-student, safe-driver course, multi-policy. NH often has lower rates regionally. (MoneyGeek.com) |
| New Jersey | NJM Insurance / Amica | $202 | $2,429 | Multi-policy, defensive driving, good-student. (MoneyGeek.com) |
| New Mexico | Central Insurance | $167 | $2,001 | Good-student, multi-car, consider regional mutuals. (MoneyGeek.com) |
| New York | NYCM Insurance | $98 | $1,178 | Surprisingly low for new drivers on average — bundle, good-student, shop local/NY insurers. (MoneyGeek.com) |
| North Carolina | Progressive | $89 | $1,067 | One of the lowest averages — consider telematics and multi-policy bundles. (MoneyGeek.com) |
| North Dakota | American Family / Auto-Owners entries | $115 | $1,379 | Defensive driving, low-mileage discounts, bundle. (MoneyGeek.com) |
| Ohio | GEICO / Erie entries | $116 | $1,395 | Good-student, multi-policy, telematics programs. (MoneyGeek.com) |
| Oklahoma | American Farmers & Ranchers | $136 | $1,638 | Multi-policy, good-student, safer car choices. (MoneyGeek.com) |
| Oregon | Country Financial / Travelers | $112 | $1,343 | Good-student, defensive driving, low-mileage. (MoneyGeek.com) |
| Pennsylvania | Travelers / Erie entries | $140 | $1,678 | Defensive driving, bundling, telematics. (MoneyGeek.com) |
| Rhode Island | State Farm / Amica entries | $200 | $2,401 | Good-student, multi-vehicle, keep an eye on local mutual insurers. (MoneyGeek.com) |
| South Carolina | Farm Bureau | $128 | $1,540 | Good-student discounts, defensive driving, multi-policy. (MoneyGeek.com) |
| South Dakota | Farmers Mutual Ins Co of NE | $92 | $1,108 | One of the cheaper states — low-mileage, multi-car savings. (MoneyGeek.com) |
| Tennessee | Travelers / Auto-Owners entries | $191 | $2,287 | Good-student, bundle, defensive driving. (MoneyGeek.com) |
| Texas | GEICO / State Farm entries | $215 | $2,575 | Multi-policy, safe-driver telematics, shop regional agents. (MoneyGeek.com) |
| Utah | Auto-Owners | $254 | $3,046 | Defensive driving, telematics, multi-policy. (MoneyGeek.com) |
| Vermont | Co-operative Insurance / Auto-Owners entries | $102 | $1,224 | Very low state averages — good-student, drive-safe programs. (MoneyGeek.com) |
| Virginia | Farm Bureau / Auto-Owners entries | $117 | $1,405 | Good-student, multi-policy, defensive driving. (MoneyGeek.com) |
| Washington | American Family / Travelers entries | $186 | $2,228 | Multi-policy, anti-theft, telematics for safe drivers. (MoneyGeek.com) |
| West Virginia | Erie Insurance | $185 | $2,221 | Defensive driving, multi-car, good-student. (MoneyGeek.com) |
| Wisconsin | Erie Insurance / Travelers entries | $144 | $1,734 | Good-student, telematics, bundle home+auto. (MoneyGeek.com) |
| Wyoming | American National / State Farm entries | $126 | $1,507 | Low population = lower risk in places — defensive driving, multi-policy. (MoneyGeek.com) |
*MoneyGeek’s table is the data source for all monthly/annual premium numbers and state-by-state cheapest insurer assignments (MoneyGeek: “Cheapest Car Insurance for New Drivers”, updated Nov 6, 2025). See MoneyGeek for methodology and the underlying provider breakdown. (MoneyGeek.com)
How I picked the discount tips (short, practical logic)
- Good-student discounts, defensive-driving courses, bundling, telematics / usage-based programs, multi-car policies and higher deductibles are repeatedly shown in NerdWallet and Insurance.com as the most reliable ways new drivers save money. I used those proven categories and matched them to each state’s practical context (e.g., high-cost states: emphasize bundling & telematics; college-town states: emphasize good-student/away-at-school). (NerdWallet)
Short, no-fluff recommendations (what you should do next)
- Start with MoneyGeek’s state benchmark above so you know whether a quote is decent. If your quote is way above the state average, shop more. (MoneyGeek.com)
- Get 3–5 quotes (national + 1–2 local/regional carriers). Use the same exact profile for each quote to compare apples-to-apples. (MoneyGeek.com)
- Stack discounts: good-student + multi-policy + telematics usually stacks and can cut the price substantially. Ask each insurer what combos they allow. (NerdWallet)
- If you can join a family policy, do it — that’s usually the single biggest savings move for a new driver. (MoneyGeek.com)
- Re-shop annually — your “new driver” haircut on price fades with a clean 12-month record, and better deals show up. (MoneyGeek.com)
Sources
- MoneyGeek — Best Cheap Car Insurance for New Drivers (State-by-state cheapest insurer & avg monthly/annual new-driver rates). Updated Nov 6, 2025. (MoneyGeek.com)
- NerdWallet — “Car insurance discounts” / young-driver discount guides (good-student, defensive driving, telematics). (NerdWallet)
- Insurance.com — “Auto insurance discounts guide” (discount types and typical savings; defensive driving savings). (Insurance.com)
Why Some States Are Cheaper for New-Driver Insurance
Let’s unpack why the numbers above vary so wildly:
- State regulations & required minimums: Some states require more coverage, which pushes up cost. (E.g., no-fault states). (Wikipedia)
- Population density & traffic risk: Big cities = more accidents/theft = higher rates.
- Claim costs, repair costs, weather risks: If your state has lots of storms/hail/floods, expect higher premiums.
- State minimum coverage vs full coverage: If you go beyond minimum, cost goes up.
- New driver factor + vehicle type + ZIP code: If you’re in an urban ZIP, driving a flashy car, you’ll pay more.
At the end of the day — location = big deal.
Smart Hacks to Slash the Premium (Yes, you can)
Here’s where you get actionable. Think of this like a cheat sheet for your first policy.
- Join the family policy: If you can be added to your parent’s or guardian’s policy, you often save big compared to getting your own.
- Pick a safer, modest car: A mid-tier sedan > sports car for your first ride. Cheaper to repair, less tempting target for thieves.
- Drive defensively + keep clean for year one: No tickets, no accidents = reward later.
- Check for new-driver/student discounts: Good student grades, driver safety courses — many insurers offer.
- Raise your deductible (if you can manage): Bigger deductible = lower premium if you can cover that cost in a pinch.
- Compare quotes — EVERY year: Just because you got a rate doesn’t mean it’s still the best. Rates change.
- Check regional / local insurers: Sometimes smaller insurers in your state give better deals than the national giants. (MoneyGeek found that) (MoneyGeek.com)
State-by-State Snapshot (Selected States)
Let’s pull a few states you might be in (or considering moving to) and zoom in.
California
- Estimated cheapest new-driver full-coverage: ~$149/month (~$1,791/yr). (MoneyGeek.com)
- Why so “reasonable” (relatively)? It’s competitive, big market, lots of insurers.
- Tip: In CA, check for low-emission vehicle discounts or safe-driver telematics.
New York
- Estimated cheapest: ~$98/month (~$1,178/yr). (Yes, under $100 a month for full-coverage for a new driver) (MoneyGeek.com)
- That’s amazing. But make sure your vehicle and coverage type align with what the data assumed.
- Tip: In NY, avoid overly expensive cars and definitely bundle if you can.
North Carolina
- Estimated cheapest: ~$89/month (~$1,067/yr). (MoneyGeek.com)
- Out-East vibe: lower cost state for new drivers.
- Tip: If you pay monthly, see if annual pay gets you a discount; also check for “good student” promos.
Florida
- Estimated cheapest: ~$252/month (~$3,022/yr) for a new driver in full-coverage. (According to MoneyGeek) (MoneyGeek.com)
- Yup — Florida is expensive. Hurricanes + high theft + large retiree/driver variability = higher risk = higher premiums.
- Tip: Try opting for a higher deductible and lower optional coverage if it makes sense — but make sure you’re still adequately covered.
What To Do Right Now (Your 5-Step Checklist)
- Get three quotes online (minimum). Use the same car, same driver age/ZIP for comparison.
- Ask about discounts: Good student, multi-car, driver ed course, safe car features.
- Decide coverage level: Do you go full-coverage right now, or maybe start with a solid liability + collision if budget is tight?
- Pick your car wisely: For your first ride, don’t pick something flashy—it’ll cost you.
- Re-shop every year: After your first year, your “new driver” label starts to fade — might mean better rates.
Quick Recap
- New drivers pay more — it’s just how the insurance game works.
- Location matters a lot. A new driver in one state could pay half what they’d pay somewhere else for the same profile.
- Use smart strategies: join family policy, pick safe car, stack discounts, compare.
- Some states offer really competitive rates for new drivers (hello, New York and North Carolina!). Others (looking at you, Florida) are on the higher side.
- You’re not stuck — you’ve got options and control.
Final Word
Alright — you’ve got this. You’re not just “the new driver who’s pinned for insurance” anymore. You’re the savvy person reading this, ready to beat the system (in a totally legal, above-board way). Pick the right car, pick the right state of mind, shop around, and you’ll be cruising, covered and confident—without draining your wallet.
Here’s to fewer “Oh no” moments and more “That’s how I saved” stories. Safe driving—and go get that quote!
