Finance & accounting · Ranked by price to features
9 Best Car Insurance for Young and New Drivers of 2026
By the Rankozo research desk · Updated November 11, 2026 · Next review December 26, 2026
State Farm is the best first car insurance for young and new drivers in 2026, because its Good Student Discount saves up to 25% and its Steer Clear program adds a discount for drivers under 25; USAA suits military families with SafePilot savings of up to 30% at renewal, and Progressive suits drivers in their 20s who want a benchmark, with an average rate of $221.22 for ages 21 to 22. The cheapest advertised option is Lemonade Car, as low as $30 a month based on your driving profile.
- Tools ranked
- 9
- With free plan
- 0
- Cheapest paid plan
- Lemonade Car, $30
- per month
Comparison table
| Tool | |||||
|---|---|---|---|---|---|
| State Farm | 01 | 9.2 | 9.2 | Check price | No |
| USAA | 02 | 9.0 | 9.3 | Customaverage yearly savings when switching, premium by quote | No |
| Progressive | 03 | 8.9 | 8.8 | Customaverage rate for ages 21 to 22, premium by quote | No |
| Erie Insurance | 04 | 8.7 | 9.0 | Check price | No |
| American Family Insurance | 05 | 8.6 | 8.6 | Check price | No |
| Allstate | 06 | 8.4 | 8.0 | Customaverage savings when switching, premium by quote | No |
| Root | 07 | 8.3 | 8.4 | Custommonthly savings for best drivers, premium by quote | No |
| Travelers | 08 | 8.2 | 8.2 | Check price | No |
| Lemonade Car | 09 | 7.9 | 8.0 | $30per month | No |
Click a column to sort. Prices are the cheapest paid plan quoted from each vendor's US pricing page; "Check price" means the US price check is pending.
How this ranking works
One method for every tool. We compared documented features and published prices; we did not run hands-on tests. Value carries the most weight.
Full methodThis list is for drivers in their teens and 20s buying a first policy, whether that means being added to a parent's policy or buying one of your own. Young drivers pay the highest rates of any age group, so the discounts an insurer offers for grades, training, driving behavior and distance from home matter more than for anyone else. We compared documented features, young-driver discounts and published price figures on each insurer's own pages in November 2026. Rankozo weights value at 40%, features at 35% and ease of use at 25%. Insurers price by state, age, record and vehicle, so the figures shown are published averages, savings claims and entry prices, not your quote. Get at least three quotes at the same coverage limits.
The verdict
State Farm is the best first quote for most young drivers: a Good Student Discount of up to 25% that can last until 25, the Steer Clear program for drivers under 25 and Drive Safe & Save telematics add up to the most complete set of young-driver savings we found. USAA is the best value for anyone eligible for membership, thanks to SafePilot and a 10% family discount when a young adult moves to their own policy. Progressive is the most transparent, publishing average rates for every age bracket under 30. Erie and American Family are strong agent-based picks, with Erie's teenSMART discount of up to 20% and American Family's discounts for young adults buying alone. Allstate adds Accident Forgiveness, Root and Lemonade Car suit careful or low mileage drivers who want an app, and Travelers fits a first newer car.
- 01Top value
State Farm
9.2/10Largest agent-based US auto insurer with two programs built for drivers under 25.
- Free plan
- No
- Value (40%)
- 9.2
- Features (35%)
- 9.2
- Ease of use (25%)
- 9.0
Best forTeens and drivers in their early 20s who want good-grade savings, a training program and a local agent.
State Farm has the most complete set of discounts aimed squarely at young drivers. Its Good Student Discount saves up to 25% when a full-time high school or college student keeps good grades, and State Farm says the savings may last until the driver turns 25. Steer Clear is a separate program for drivers under 25 with a valid license and a clean three-year record: participants finish five training modules and log five hours of driving across at least 10 trips in the app, then send the certificate to an agent. Friends or family can act as mentors and track progress. On top of those, Drive Safe & Save gives an enrollment discount and up to 30% based on driving, a Driver Training Discount covers operators under 21 who complete driver education, and the Student Away at School Discount helps college students under 25 who leave the car at home. The trade-off is that State Farm publishes no average rate, so you need an agent quote to see the price.
- ✓Highest published good student discount on this list, up to 25%
- ✓Steer Clear is designed for new drivers and can be completed on a phone
- ✓Good-student savings may last until the driver turns 25
- ✕No published premium or average rate to compare before quoting
- ✕Steer Clear requires no at-fault accidents or moving violations in the past three years
- ✕Discount amounts vary by state, with New York capped at 30%
- Good Student Discount:
- Up to 25%
- Steer Clear age limit:
- Under 25
- Drive Safe & Save:
- Up to 30% based on driving
- Steer Clear requirement:
- 5 training modules and 5 hours of driving over at least 10 trips
Bottom line: State Farm is the best first policy for most young drivers because it stacks a 25% good student discount, Steer Clear and telematics savings. Get a quote from an agent and compare it with Progressive's published age averages.
- 02
USAA
9.0/10Auto insurer for military members, veterans and their families with teen and student discounts.
Price
Customaverage yearly savings when switching, premium by quote
No premium published; USAA says members who switched saved an average of $840 a year
“A survey showed that our members saved an average of $840 per year when they switched to USAA Auto Insurance.” Quoted from the pricing page, November 11, 2026.
- Free plan
- No
- Value (40%)
- 9.3
- Features (35%)
- 9.0
- Ease of use (25%)
- 8.6
Best forYoung drivers whose parents or who themselves are eligible for USAA membership.
USAA is the strongest choice for any young driver who qualifies for membership, which is limited to military members, veterans and eligible family. The teen driver page lays out the path clearly: add the teen once they bring home a learner's permit, earn a Good Student Discount of up to 10% for full-time students under 25 who meet a grade standard such as a B average or 3.0 GPA, and add a driver training discount for a basic course. SafePilot, the telematics program, gives up to 10% at enrollment and up to 30% off the premium at renewal for safe driving. When the young driver moves out, USAA moves them to their own policy, and children whose parents have a USAA auto policy may qualify for a 10% family discount, a useful break on a first standalone policy. A USAA survey says members who switched saved an average of $840 a year. The limits are eligibility and the lack of a published rate.
- ✓Family discount helps when a young adult buys a first policy of their own
- ✓SafePilot can cut up to 30% off the renewal premium for safe driving
- ✓Members who switched saved an average of $840 a year, per a USAA survey
- ✕Only available to people eligible for USAA membership
- ✕Good Student Discount is not offered in Hawaii or North Carolina
- ✕No published average premium for young drivers
- Good Student Discount:
- Up to 10%
- SafePilot:
- Up to 10% at enrollment, up to 30% at renewal
- Family discount:
- 10% for children of USAA auto policyholders
- Average savings when switching:
- $840 a year (USAA member survey)
Bottom line: If you can join USAA, it belongs on every young driver's quote list because of SafePilot and the family discount. Drivers without a military connection cannot buy it.
- 03
Progressive
8.9/10National insurer that publishes its average rates by driver age, including every age bracket under 30.
Price
Customaverage rate for ages 21 to 22, premium by quote
No fixed price; Progressive's age table shows an average rate of $221.22 for drivers aged 21 to 22
“21-22 Rate & change $221.22 (-12%)” Quoted from the pricing page, November 11, 2026.
- Free plan
- No
- Value (40%)
- 8.8
- Features (35%)
- 9.0
- Ease of use (25%)
- 9.0
Best forYoung drivers who want to see a benchmark price by age before they request a quote.
Progressive is the most open insurer on what young drivers actually pay. Its rates-by-age table, built from Progressive Personal Auto policies sold countrywide from September 2025 to August 2026, shows an average of $289.16 at age 18, $252.07 at 19 to 20, $221.22 at 21 to 22 and $193.09 at 23 to 24, and Progressive says rates drop by an average of 10% at 19, 5% at 20 and 6% at 21. That gives a first-time buyer a real benchmark. Discounts for young drivers include a good student discount of about 5% in most states for a B average, a teen driver discount for drivers 18 or younger when the household has been insured for at least 12 months, a multi-car discount and Snapshot, which prices on how you drive. Progressive notes that adding a teen to a parent's policy is usually cheaper than a separate policy. The smaller good student discount is the main weakness.
- ✓Shows average rates for ages 18, 19 to 20, 21 to 22 and 23 to 24
- ✓Rates drop by an average of 10% at 19, 5% at 20 and 6% at 21
- ✓Online quotes and several discounts available without an agent
- ✕Good student discount is about 5%, lower than State Farm or USAA
- ✕Its own table shows 18-year-olds paying the highest average rate, $289.16
- ✕Snapshot is not available in all states
- Average rate, age 18:
- $289.16
- Average rate, ages 21 to 22:
- $221.22
- Average rate, ages 23 to 24:
- $193.09
- Good student discount:
- About 5% in most states
Bottom line: Progressive is the best place to start for drivers in their 20s who want a price benchmark by age. Use its averages to judge every other quote you get.
- 04
Erie Insurance
8.7/10Regional agent-based insurer known for stable rates, with a crash reduction program for teens.
- Free plan
- No
- Value (40%)
- 9.0
- Features (35%)
- 8.6
- Ease of use (25%)
- 8.4
Best forFamilies in Erie's states who want a large teen discount and rates that hold steady.
Erie Insurance is worth a quote for any young driver living where it sells. Its teenSMART crash reduction program, run by ADEPT, is open to customers aged 16 through 20, and those who complete it may be eligible for a discount of up to 20%, applied at the policy's next renewal. Erie also lists a young drivers discount among its featured savings. The bigger long-term benefit is ERIE Rate Lock: rates change only if you add or remove a vehicle or driver or change where the car is parked, which helps a new driver keep a predictable bill. Other features include a deductible that drops $100 for each claims-free year up to $500, personal item coverage up to $350 and locksmith costs up to $75. Erie says more than 87% of customers stay year after year and it has more than 14,500 agents. It is not available in all states and publishes no price.
- ✓teenSMART discount of up to 20% is one of the largest teen program discounts here
- ✓Rate Lock protects a young driver's budget from routine increases
- ✓More than 14,500 agents for in-person help
- ✕Not available in all states
- ✕teenSMART discount applies only at the next renewal after completion
- ✕No published premium or average rate
- teenSMART discount:
- Up to 20%, ages 16 through 20
- Diminishing deductible:
- $100 per claims-free year, up to $500
- Agents:
- More than 14,500
- Multi-policy discount:
- 15% to 25% depending on state
Bottom line: Erie is the best value pick for teens who will finish a training program and families who want rates that stay steady. Check that it sells in your state first.
- 05
American Family Insurance
8.6/10Agent-based insurer with the widest set of discounts for teens and young adults buying on their own.
- Free plan
- No
- Value (40%)
- 8.6
- Features (35%)
- 8.8
- Ease of use (25%)
- 8.4
Best forYoung adults buying their own first policy, especially those whose parents already insure with American Family.
American Family stands out for discounts that fit drivers in their late teens and early 20s who buy a policy of their own. It says it offers a variety of discounts for families with teen drivers or for young adults purchasing insurance on their own. The Generational discount helps if Mom or Dad is an American Family customer. The Young Volunteer discount applies to drivers under 25 who complete 40 hours of volunteer work a year for a nonprofit, and the Away at School discount covers students under 25 who are more than 100 miles away with the car parked at home. There is also a Good Student discount. For everyday driving, DriveMyWay sets a personalized rate on driving habits with savings between 10% and 35%, and MilesMyWay gives up to 25% to those who drive under 8,000 miles a year. Most young-driver discount amounts are not published and you set them up through an agent.
- ✓Discounts aimed at young adults buying insurance on their own, not only teens on a parent's policy
- ✓Young Volunteer discount is unusual among large insurers
- ✓DriveMyWay savings range from 10% to 35%
- ✕Most discount amounts are not published
- ✕Works mainly through agents
- ✕No published premium or average rate
- DriveMyWay:
- 10% to 35% savings
- MilesMyWay:
- Up to 25% for under 8,000 miles a year
- Young Volunteer:
- Under 25 with 40 hours of volunteer work a year
- Away at School:
- Under 25, more than 100 miles away
Bottom line: American Family is a strong pick for a young adult leaving a parent's American Family policy. The DriveMyWay range of 10% to 35% rewards careful new drivers.
- 06
Allstate
8.4/10National insurer with a dedicated teen driver program, student discount and accident forgiveness.
Price
Customaverage savings when switching, premium by quote
No premium published; Allstate says drivers saved an average of $900 by switching
“Drivers saved an average of $900* by switching to Allstate.” Quoted from the pricing page, November 11, 2026.
- Free plan
- No
- Value (40%)
- 8.0
- Features (35%)
- 8.6
- Ease of use (25%)
- 8.6
Best forFamilies adding a teen who want accident forgiveness and roadside help on the same policy.
Allstate is a good fit for families who expect a teen to make a mistake or two. Its teen driver page lists a smart student discount for drivers 19 or younger who are full-time students in high school or an academic home study program with records showing at least a B- average. College students can be covered as household members under a parent's policy. The most useful feature for new drivers is Accident Forgiveness, which keeps rates from going up after an accident even if the teen is at fault, and rental reimbursement helps cover a rental while the teen's car is in the shop. Allstate's 24/7 roadside providers handle towing, tire changes and jump starts, with GPS tracking of arrival time. Allstate says drivers saved an average of $900 by switching. It does not publish what a young driver pays or how large its student discount is, so compare it against Progressive's published averages.
- ✓Accident Forgiveness protects the policy from a teen's first at-fault crash
- ✓Clear eligibility rules for its teen student discount
- ✓Drivers who switched saved an average of $900, per Allstate
- ✕Teen student discount requires a B- average and age 19 or younger
- ✕Accident Forgiveness and rental reimbursement are add-ons
- ✕No published premium or discount percentage
- Teen student discount:
- 19 or younger, at least a B- average
- Average savings when switching:
- $900 (Allstate)
- Roadside:
- 24/7 network with GPS arrival tracking
- Founded:
- Insuring young drivers since 1931
Bottom line: Allstate suits families who value protection after a teen's first accident over the lowest price. Price Accident Forgiveness against the base quote.
- 07
Root
8.3/10App-based insurer that prices drivers mainly on how they drive.
Price
Custommonthly savings for best drivers, premium by quote
No premium published; Root says its best drivers save up to $109 a month
“Our best drivers save up $109 a month.” Quoted from the pricing page, November 11, 2026.
- Free plan
- No
- Value (40%)
- 8.4
- Features (35%)
- 7.6
- Ease of use (25%)
- 9.0
Best forCareful drivers in their 20s with a clean record who want to buy entirely on a phone.
Root suits young drivers who are confident in their habits and want an insurer that weighs how they drive. Root says drivers who share their driving data could qualify for a better rate, and that its best drivers save up to $109 a month. That model can help a driver in their 20s whose age and short history would push up a standard quote. Everything happens in the app: you enter your license number, address and vehicle details, get a quote and bind a policy in under five minutes, view insurance cards and start a claim in about three minutes. A referral program rewards friends who take the test drive and get a quote. The limits matter: Root is not available in all states, telematics is not used in California or Maryland, and a driver with hard braking or phone use during the test drive will not see the savings. Root publishes no base premium.
- ✓Safe driving can matter more than age or a thin insurance history
- ✓Fully digital buying and claims
- ✓Root says its best drivers save up to $109 a month
- ✕Not available in all states
- ✕Telematics is not used in California or Maryland
- ✕Risky driving during the test drive works against you
- Time to get a policy:
- Under 5 minutes
- Claim filing:
- About 3 minutes in the app
- Best-driver savings:
- Up to $109 a month
- Telematics:
- Not used in California or Maryland
Bottom line: Root is the best app-only option for careful drivers in their 20s. Get a standard quote too, because the savings depend on how you drive.
- 08
Travelers
8.2/10Large national insurer with student, driver training and telematics discounts.
- Free plan
- No
- Value (40%)
- 8.2
- Features (35%)
- 8.2
- Ease of use (25%)
- 8.0
Best forStudents and young drivers who also qualify for early quote, new car or hybrid discounts.
Travelers covers the standard young-driver discounts and adds a few that suit first-time car buyers. Policyholders with drivers fully enrolled in high school or college who keep a B average or better may get a Good Student Discount, students who go to school at least 100 miles away and do not drive the family cars may qualify for the away-at-school discount, and drivers who complete an approved driver education course earn a Driver Training Discount. A young driver buying a car less than three years old may get the new car discount, a hybrid or electric car earns its own discount, and getting a quote before your current policy expires can earn an early quote discount. IntelliDrive and IntelliDrive 365 reward safer driving through an app in listed states. Travelers publishes no amounts, and several discounts are not offered in California or New York.
- ✓Covers all three common student discounts: grades, away at school and driver training
- ✓Early quote discount rewards shopping before a policy expires
- ✓New car discount fits young drivers buying a car under three years old
- ✕IntelliDrive is limited to listed states
- ✕Several discounts are not available in California or New York
- ✕No published discount percentages or premiums
- Good Student Discount:
- B average or better
- Away at school distance:
- At least 100 miles
- IntelliDrive 365 states:
- AZ, IN, KY and UT
- New car discount:
- Cars less than three years old
Bottom line: Travelers is a solid quote for a young driver buying a newer or hybrid car. Its value depends on how many discounts you can stack in your state.
- 09
Lemonade Car
7.9/10App-based car insurance priced partly on mileage and driving, with an advertised low entry price.
Price
$30per month
As low as $30 a month, based on your driving profile
“As low as $30/mo, based on your driving profile” Quoted from the pricing page, November 11, 2026.
- Free plan
- No
- Value (40%)
- 8.0
- Features (35%)
- 7.2
- Ease of use (25%)
- 8.8
Best forYoung drivers who drive little, such as city students, and want a fully digital policy.
Lemonade Car is the cheapest advertised entry point on this list, as low as $30 a month based on your driving profile, and it fits young drivers who use their car only a few times a week. Lemonade says its prices factor in how much you drive, so safe, low mileage drivers pay less. Everything runs in the app, and Lemonade notes that in some states not using the app can affect your price. A young renter can bundle car with renters insurance, which starts at $5 a month, and the bundle discount applies automatically. Rideshare coverage is available in select states with certain companies, useful for students who drive for Uber or Lyft. Lemonade also plants trees based on your mileage. It has no published student or teen discounts, and coverage is not available in all states, so many young drivers will not be able to buy it.
- ✓Lowest advertised entry price on this list at $30 a month
- ✓Low mileage drivers pay less
- ✓Bundle with renters insurance from $5 a month
- ✕Not available in all states
- ✕Not using the app can affect the price in some states
- ✕No discounts aimed specifically at students or teens
- Advertised price:
- As low as $30 a month
- Renters bundle:
- Renters from $5 a month
- Rideshare coverage:
- Select states and companies
- Pricing basis:
- Includes how much you drive
Bottom line: Lemonade Car is the cheapest place to start for a low mileage young driver in a state where it sells. Compare it with State Farm once good student savings are applied.
What to check before you pay
Compare joining a parent's policy with buying your own
Progressive says adding a teen to an existing policy is usually cheaper than a separate policy, because the parent's driving history helps the rate. Once you move out or own the car, you need your own policy. Ask about USAA's 10% family discount or American Family's Generational discount if a parent already insures there.
Claim every grades and training discount
Good student discounts range widely: up to 25% at State Farm, up to 10% at USAA and about 5% at Progressive, usually for a B average or 3.0 GPA. Driver education and training programs add more, such as State Farm Steer Clear for drivers under 25 and Erie teenSMART for ages 16 to 20, worth up to 20%.
Let your driving set the price
Telematics programs reward careful new drivers. USAA SafePilot gives up to 30% at renewal, State Farm Drive Safe & Save up to 30% and American Family DriveMyWay between 10% and 35%. Root prices mainly on driving data. Risky driving can reduce or remove the savings.
Know what normal looks like at your age
Progressive's own table shows average rates of $289.16 at 18, $252.07 at 19 to 20, $221.22 at 21 to 22 and $193.09 at 23 to 24. Rates fall as you gain experience and avoid tickets, so requote every year in your early 20s.
Use student and low mileage discounts at college
If you go to school more than 100 miles away and leave the car at home, State Farm, American Family and Travelers offer away-at-school discounts. If you keep the car but drive little, Lemonade Car prices on mileage and American Family MilesMyWay gives up to 25% under 8,000 miles a year.
FAQ
What is the best first car insurance?
State Farm is the best first car insurance for most young drivers in 2026. Its Good Student Discount saves up to 25%, Steer Clear adds a discount for drivers under 25 and Drive Safe & Save rewards careful driving with up to 30%. USAA is better if you are eligible for membership.
Who is best for first-time car insurance?
For a teen on a parent's policy, State Farm and USAA offer the largest documented student discounts, up to 25% and 10%. For a young adult buying alone, Progressive publishes average rates by age, and American Family and USAA offer discounts when a parent already insures with them.
What is the best car insurance for people in their 20s?
Progressive is a good starting point because it publishes average rates of $221.22 for ages 21 to 22 and $193.09 for ages 23 to 24. State Farm's discounts run until 25, and careful drivers can try Root, which says its best drivers save up to $109 a month.
What is the best insurance for first-time car buyers?
State Farm is the best overall pick for first-time car buyers, with Travelers worth a quote if the car is less than three years old because of its new car discount. Lemonade Car advertises the lowest entry price, as low as $30 a month based on your driving profile.
Is it cheaper to stay on my parents' policy?
Usually yes. Progressive says adding a young driver to an existing policy is usually more affordable than a separate policy, because the parent's established history helps the rate.
Questions or corrections: editorial@rankozo.comSee our disclosure. Prices change; confirm on the vendor page before buying.
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