Cheap Car Insurance for New Drivers under 25 | Updated

While driving is fun, getting involved in an accident is no fun! New drivers are always watchful since they haven’t mastered the wheels. Because of this, they are mandated to get car insurance.

Many insurance companies give discounts to new drivers under the age of 25. Have you received yours? It is time to check if you are getting the best insurance rates for your car.

Sadly, new drivers tend to pay more for car insurance because they have limited driving experience and are prone to more road hazard.

Truth is, you don’t have to pay more if you have the right information about the discounts you are eligible for. And this is what we have researched on your behalf.

This article has brought all the cheap car insurance for new drivers under 25.

Best and Cheap Car Insurance For New Drivers Under 25

There are so many companies that offer car insurance discounts for new drivers. But, we have brought the top companies that give the best offers.

They include the following:


The Geico spokesman is a little green lizard who we all love.

GEICO has the cheapest auto insurance for underage drivers in California. Other locations have great offers as well.

Plus get an additional 15% credit on a new auto, motorcycle, and RV policies for the full 6-month and 12-month insurance policy term.

Visit Geico

2. Progressive

This is one of the best car insurance for young adults under 25 when it comes to flexibility.

Progressive will help you find the best rates even if it is not in their company. For example, there is the name your price tool which tries to fit your insurance to your finances.

They are that cool!

There are discounts that include safe driving, multi-vehicle and policy, full payment, online policy purchase, good grades(students), and lots more.

Visit site.

3. State Farm

State farm is another cheap car insurane for new drivers under the age 25.

There is a service for young drivers called Steer Clear. If you have had your license for 3 years and recorded no accidents, you can earn up to a 15% discount on your policy.

Visit State Farm.

See Also: Get Paid To Drive Your Car | Up To $50 Per Hour The Wealth


USAA is a very cheap car insurance for new drivers. And they have great customer service.

There is an automatic license program for young drivers under 25. It is to encourage good driving by young drivers. Typically, you’d get a free adapter that plugs into the vehicle’s onboard diagnostics port and connects with your smartphone.

Their rates are quite cheap when compared to other companies.

Visit USAA

5. Liberty Mutual

Are you under 25, a student who has a GPA of 3.0? Then, use liberty mutual as your car insurance because they will offer the cheapest and best insurance to you.

Visit Liberty Mutual.

6. Esurance

Esurance is one of the cheapest car insurance companies in the industry. They also offer great services to new, young drivers and students under 25.

Among the many offers for the young driver is the PAC 12 discount which gives 15% discount to full-time students attending USC, UCLA, Stanford, Cal Berkeley, Washington, Washington State, Oregon, Oregon State, Arizona, Arizona State, Utah, and Colorado.

Visit Esurance

7. Allstate

Allstate doesn’t appear to offer the lowest rates for Drivers under 25 in most states, but they are a reputable insurance company you can trust.

They provide their auto insurance through Esurance. It offers various insurance policy discounts like Pac-12 college student alumni discounts, safe driving discounts, etc.

8. Metromile

This is the cheapest car insurance for young drivers who are behind the wheel only occasionally. You will save lots of money with  Metromile

Paying per-mile insurance is affordable for low mileage drivers.  If you don’t drive much, you shouldn’t pay much for auto insurance.

Visit Metromile

See ALso: Should I Buy a New Car or Used Car? – The Wealth Circle

9. Safeco

This is another cheap car insurance for new drivers.

Get coverage for everything and any type of automobile. It is quite affordable for students as their premium differs from others. Teens also have a special discount.

Visit Safeco

10. Mercury

Mercury has an insurance package for drivers of all types, including people with little driving experience or less-than-perfect driving records.

The company also offers 24/7 roadside assistance and an extra mechanical protection coverage option. This option is good for young people who love to explore.

Typically, Mercury offers cheaper prices for prospective clients with credit scores of lower than 580. 

Vist Mercury

11. Farmers

They started out as an insurance firm for farmers, but now offer lots of insurance policies.

Young drivers under 25 years can take advantage of their cheap car insurance services. Safe driving earns you a good discount.

Visit Farmers

12. Nationwide

Nationwide offers good student discounts to full-time students who maintain a B average.

They are also good with drivers who have had claims on their record.

Visit Nationwide

13. Travelers

Travelers is a very innovative company that has cheap car insurance rates for good drivers, new drivers, even those 19 and under.

Visit Travelers

14. Amica

Amica provides a good driving discount. You are eligible for this discount if you’ve got at least three years of driving experience without an at-fault accident or a moving violation.

The Good Student Discount can reduce your premium by as much as 25%. What’s more is that it will continue even after you graduate from college, up to age 25.

Visit Amica

Other Under 25 Car Insurance Packages

While all the companies mentioned above are good. Check out your regional options for auto insurance as well. Most of them offer great discounts to students and new drivers under 25.

  • MetLife
  • Kelly Klee
  • QuoteWizard

Regional Insurance Companies like

  • Erie Insurance
  • Cincinnati Insurance
  • Some of the local Farm Bureau companies
  • Central Insurance
  • Unitrin
  • Country Insurance

See Also: 5 Best Student Travel Insurance: What It Covers And Why


These are the cheap car insurance for new drivers under 25. When looking for an insurance plan, contact them. Be on the lookout for Regional Insurance options as well. They also offer great discounts to new drivers.

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