Last reviewed: October 2026 · By the SmartCoverage Editorial Team · How we research
Insurers call you a new driver when you have no US insurance history, whatever your age. That includes teens, adults who learned to drive late, people who have just moved to the US and anyone returning after years without a policy. The best company depends on which of those you are: for adults with no insurance history, GEICO, USAA (military families) and Progressive were the cheapest in The Zebra’s 2026 data, while teens are usually best off on a parent’s policy.
Which kind of new driver are you?
What an adult new driver pays
For a 30-year-old with no insurance history, The Zebra’s 2026 analysis found these average full coverage prices:
| Insurer | Per year | Per month |
|---|---|---|
| GEICO | $2,225 | $185 |
| USAA | $2,517 | $210 |
| Progressive | $2,592 | $216 |
| State Farm | $2,964 | $247 |
| Nationwide | $3,106 | $259 |
| Farmers | $3,485 | $290 |
| Allstate | $4,200 | $350 |
The gap between the cheapest and most expensive company is almost $2,000 a year, which is why comparing at least three quotes matters even more when you have no history. Our best car insurance companies shortlist builder shows which insurers sell in your state.
Build your first policy, step by step
Your first-policy checklist
Choose the situation that fits you. The checklist adapts, and you can tick items off as you go.
A general guide, not a list of legal requirements. Licensing and insurance rules vary by state, so check your state DMV and confirm details with each insurer. Your ticks are not saved if you leave the page.
If you are new to the United States
Experience abroad rarely helps with price. Insurers cannot see your foreign driving record, so you start as a new US driver, often with no US credit history either. Some large insurers do accept foreign licenses or international driving permits, including Allstate, Erie, GEICO, Progressive, State Farm and Travelers, according to Insurance.com, but rules depend on the company and the state.
Most states expect new residents to get a local license within a short period after moving, so check your state DMV’s deadline. A state license usually opens up more insurers and better prices, and a few months of continuous coverage starts to build the history that lowers your price at renewal.
If you are returning after a gap in coverage
Insurers treat a lapse as a sign of risk. In MoneyGeek’s analysis of nine major insurers (May 2026), a lapse of 30 days or less raised the average annual price by about 10.6%, and a lapse of more than 30 days by about 22.4%. If you stopped driving because you had no car, say so: some insurers treat a period without a vehicle differently from simply letting a policy lapse.
Once you have a new policy, protect it. Set up automatic payments, and if you plan to switch insurers, buy the new policy before cancelling the old one so there is no gap. Our guide to getting comparable quotes explains how to switch without a lapse.
Mistakes that cost new drivers the most
- Buying only the state minimum to get the lowest price. One serious crash can cost far more than the limits pay, and you are responsible for the rest.
- Leaving a regular driver off the policy, such as a partner or roommate who uses the car. A claim can be refused.
- Letting the first policy lapse over a missed payment. It erases the history you have just started to build.
- Buying the car before getting quotes. Sports cars, some new models and cars that are often stolen can cost far more to insure.
- Never comparing again. Your first price is your highest. Shop at every renewal for the first few years.
Quick answers
Why is insurance so expensive for new drivers?
Insurers price on history. With no record of how you drive or whether you keep a policy, they assume a higher risk. Your price should fall after six to twelve months of continuous, claim-free coverage, so compare again at your first renewal.
Can I get car insurance without a license?
You can sometimes insure a car you own without being a licensed driver, for example if someone else drives it, but you cannot be listed as a driver. Ask the insurer to list you as an excluded driver or the car’s owner only.
Should a new driver buy full coverage?
If the car is financed or worth more than you could replace, yes. On an older car, compare the extra cost with the car’s value using our full coverage calculator.
Sources
- The Zebra: The cheapest and best insurance for new drivers (updated September 3, 2026)
- Insurance.com: Can I get car insurance with an international license?
- MoneyGeek: How much does a lapse in coverage affect insurance rates? (May 2026)
This guide is for informational purposes only and is not insurance or legal advice. Licensing and insurance requirements vary by state, and each insurer sets its own rules for new and foreign drivers. Confirm details with your state DMV and the insurer.