Cheap Auto Insurance for New Drivers Over 20 in 2024 (Save With These 9 Companies!)

When you need cheap auto insurance for new drivers over 20, Erie, Safeco, and Infinity have the lowest rates. That’s particularly true if you take advantage of usage-based (UBI) car insurance programs like Erie’s YourTurn.

At an average of $26 per month, Erie tops our chart for cheap auto insurance for drivers over 20. Erie makes finding car insurance for older drivers without driving experience easy by offering personalized help and an excellent UBI program.

Our Top 9 Company Picks: Cheap Auto Insurance for New Drivers Over 20

Explore our picks for the cheapest car insurance quotes for older drivers without driving experience. You can also enter your ZIP code above to compare rates from top providers for new drivers over 20.

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#1 – Erie Insurance: Best for Affordable Rates

Pros

• YourTurn: YourTurn is Erie’s usage-based insurance (UBI) program that tracks your driving habits. New drivers can earn money rewards for things like avoiding speeding and hard braking.
• Low Rates: Erie usually offers affordable insurance rates for all drivers, no matter how long they’ve been driving.
• Personalized service: As a smaller provider, Erie focuses on providing personalized service to their customers, making it easier to get the perfect policy.
• Excellent customer reviews: With its focus on service, it should come as no surprise that Erie’s customer reviews are generally positive. See what customers have to say in our Erie auto insurance review.

Cons

• Limited availability: Erie currently sells insurance in just 12 states, mainly in the eastern half of the U.S.
• No online quotes: Although it’s the cheapest option for new drivers over 20, Erie’s lack of online options doesn’t work for everyone. You’ll need to speak with a representative to get a quote.
• Limited discounts: Erie only offers eight discounts to help you save. However, the eight discounts available offer valuable savings.

#2 – Safeco: Best for Online Tool Options

Pros

• RightTrack program: The average driver saves $513 per year by signing up for Safeco’s UBI program and practicing safe habits. See if RightTrack is the best UBI program for you in our Safeco auto insurance review.
• Additional discounts: Safeco only offers 10 discounts, but most are easy to qualify for. Some of the most popular include savings for staying accident-free and paying for your policy in full.
• Online tools: Safeco makes managing your policy easy with its array of online tools.

Cons

• Limited local agents: While its online tools make managing your policy easy, it’s more difficult to find face-to-face help. Safeco has fewer local agents than many of its larger competitors.
• Mixed customer reviews: Many Safeco customers report satisfaction with their policies, but the company has mixed reviews for its claims resolution.

#3 – Infinity: Best for Flexible Payment Options

Pros

• Flexible payment options: Infinity makes it easy to manage your payments, which can be handy if you’ve got a tight budget. With an Infinity policy, you can choose your payment date and enjoy a late payment grace period.
• Accepts less-than-perfect drivers: Being a new driver is always considered a higher risk because they lack experience. However, Infinity offers affordable rates to drivers other companies might be wary of, including new drivers.
• Quick claims processing: Infinity is known for its fast claims processing, which means your car will be road-ready quickly if you need to use your insurance.

Cons

• Limited coverage options: Since Infinity covers high-risk drivers, it offers fewer insurance options to help keep rates low.
• Cancellation fees: Infinity typically charges a cancellation fee if you want to end your policy before your renewal date. Learn more about Infinity’s cancellation fees in our Infinity auto insurance review.

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#4 – Travelers: Best for Diverse Policy Options

Pros

• IntelliDrive: Enroll in Travelers’ IntelliDrive UBI program to earn up to 30% savings. As a bonus, the IntelliDrive app receives excellent customer reviews.
• Competitive rates: Travelers isn’t usually one of the cheapest options for insurance, but it offers competitive rates for inexperienced drivers, no matter how old they are. See more average rates in our review of Travelers auto insurance.
• Discount availability: With 15 available discounts, Travelers offers a way to save for just about everyone. New drivers under 25 in college can take advantage of Travelers’ good student discount if they have at least a 3.0 GPA.

Cons

• Complex policy options: Travelers offers a wide range of coverage options, which is great for drivers looking for customization. However, it can be confusing for new drivers unfamiliar with insurance.
• Fewer discounts for new drivers: Although Travelers offers a good number of discounts, new drivers might find it challenging to qualify for many.

#5 – American Family: Best for Young Volunteers

Pros

• Underwrites Costco insurance: Costco members might be able to save on their auto insurance by shopping at the warehouse. Costco’s insurance plans are underwritten by CONNECT, a subsidiary of American Family.
• KnowYourDrive: You can save up to 30% on your insurance by enrolling in American Family’s UBI program KnowYourDrive.
• Ample discounts: American Family offers 18 discounts. Some that might help new drivers over 20 include discounts for being a good student, staying accident-free, and volunteering for at least 40 hours per year while under 25.

Cons

• Availability lacking: American Family sells insurance in 19 states, but it writes Costco insurance policies through CONNECT in 44. See if you’re eligible for Am Fam coverage in our American Family auto insurance review.
• Limited discounts for minimum coverage: Although American Family offers a multitude of discounts, many don’t apply to drivers who purchase the minimum amount of insurance required in their state.

#6 – Nationwide: Best Vanishing Deductible Program

Pros

• Vanishing deductible: For every year you go without filing a claim, Nationwide will deduct $100 from your deductible. The maximum savings with this program is $500.
• SmartRide: Earn an initial 10% savings just for signing up for Nationwide’s UBI program SmartrRide. Save up to 40% total by practicing good driving habits.
• Driver’s education discounts: Nationwide offers a few discounts for completing a driver’s education course. Make sure to check with a representative before taking a class, as not all courses qualify. Explore more discount opportunities in our Nationwide auto insurance review.
• Affordable rates with bad credit: Most companies charge much higher rates if you have a bad credit score. If your credit score is on the low side, Nationwide might have the lowest rates.

Cons

• Limited local agents: Some areas have fewer local agents than others, meaning some Nationwide policyholders will have a more difficult time getting in-person help.
• Higher rates for some drivers: Nationwide is probably not the cheapest choice for drivers with a DUI on their record.

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#7 – Farmers Insurance: Best for Safe Drivers

Pros

• Signal app: Download the Signal app to participate in Farmers’ UBI program and save up to 15% on your insurance.
• Solid customer reviews: Farmers tends to get positive reviews from its policyholders, especially for its claims resolution and customer service.
• Large network of agents: Finding face-to-face help from Farmers is easy because the company has a large number of agents in most areas.
• Excellent discount options: Farmers offers plenty of discounts, including savings new drivers can take advantage of, like a discount for having certain safety equipment in your vehicle.

Cons

• No new policies in Florida: New drivers looking for coverage in Florida won’t be able to purchase a policy from Farmers as the company recently announced it would no longer sell policies in the Sunshine State.
• Lacking online options: Farmers doesn’t offer as many online tools to sign up for coverage and manage your policy as some of its competitors. Learn more about managing your policy in our Farmers auto insurance review.

#8 – Liberty Mutual: Best for Policy Customization Options

Pros

• RightTrack: Enrolling in Liberty Mutual’s UBI program can save you up to 30% on your total insurance if you consistently practice safe driving.
• User-friendly online tools: Liberty Mutual makes it easy to manage your policy online. The Liberty Mutual app generally receives positive reviews.
• Ample discounts: You can find plenty of discounts to help you save with Liberty Mutual, even as a new driver. Popular options include good student and safe driver savings.
• Diverse coverage options: Add-ons make your insurance cost more but they add valuable protection to your policy. Liberty Mutual offers a variety of add-ons, including better car and original parts replacement insurance. Learn more about Liberty Mutual’s insurance options in our Liberty Mutual auto insurance review.

Cons

• Average rates: Liberty Mutual usually isn’t the cheapest option for coverage. Some people don’t mind paying a little more for extra coverage, but new drivers looking for the cheapest policy will find lower rates elsewhere.
• Inconsistent customer service: Liberty Mutual receives plenty of positive reviews, but it also has left customers unsatisfied with their experience, especially when it comes to claims.

#9 – Dairyland: Best for SR-22 Insurance Requirements

Pros

• High-risk insurance: Dairyland specializes in high-risk auto insurance, which makes it easy for new drivers with less-than-perfect records to find coverage. Explore your high-risk insurance options in our Dairyland auto insurance review.
• SR-22 filing: If you need to file SR-22 with your state’s DMV, Dairyland can do it on your behalf. However, it will increase your rates.
• Easy online quotes: It’s easy to get an online quote from Dairyland, making it easy to see how much you’ll pay and compare rates with other companies.

Cons

• Standard companies are cheaper: Since Dairyland works with high-risk drivers, people with clean driving records will almost always find cheaper rates with standard companies.
• Negative customer service reviews: Dairyland receives more complaints from customers than other companies of similar sizes.

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Auto Insurance for Older Drivers Without Driving Experience

Most people agree that wisdom comes with age. As you get older, you’re able to base your ideas and opinions on life experiences that have shaped you as a person. Without experience, you can’t have wisdom.

Typically, older drivers pay less than younger drivers. However, those lower prices aren’t specifically linked to age. Instead, insurance companies charge drivers with more driving experience less. Few companies offer car insurance discounts for older drivers, but most offer savings for consistently practicing safe driving habits.

However, that doesn’t mean you’ll automatically pay high rates for your insurance. Average car insurance rates by age can vary significantly, but you can check below to see how much you might pay as a new driver over 20 for a minimum insurance policy.

New Drivers Over 20 Minimum Coverage Average Auto Insurance Rates

As you can see, insurance for first-time drivers over 21 is slightly cheaper than it is for 20-year-olds. Age and driving experience are only one part of your quotes, though — there are many factors that affect your auto insurance rates. As long as you keep your driving record clean, your rates will decrease as you get more driving experience.

How Age Affects Auto Insurance Rates

Even experienced drivers pay the price for aging when they renew their auto insurance every year. You’re not alone when you question why your rates are on the rise.

There are more than 38.6 million licensed drivers who are 65 and older who all have to pay a surcharged insurance rate just because they’re seniors.

To an auto insurance company, senior drivers pose the risk that they will lose revenues. Money that’s dedicated to claims settlements can be classified as lost revenues.

Read More:

• Cheap Auto Insurance for Drivers Over 60
• Cheap Auto Insurance for Drivers Over 80

Since older drivers account for more than 17 percent of fatality accidents and 37 percent of intersection crashes, there’s a huge likelihood that aging drivers will file a claim that the company has to pay.

How Driving Experience Affects Auto Insurance Rates

Age is one of those things that you can’t change. Unfortunately, if you want to drive into your golden years, you’ll pay the price because drivers in your age group tend to lose some of their driving skills in retirement.

Being an older driver isn’t the only reason your rates will be high, you’ll also pay the price because you’re inexperienced.

For some companies, age and experience are premium rating factors that go hand-in-hand. Other carriers will consider age and experience differently because not all people test for their license at 16. Like you, a lot of the population waits until later in life to get licensed.

Experience is generally a good thing. Since experience works in all drivers’ favor, it doesn’t help at all to be a senior driver who also isn’t getting credit for years of licensing experience.

Without these credits, you’ll be paying a high-risk rate similar to the rate that a teen driver with no actual behind-the-wheel experience pays. If you’re looking for coverage as a new, older driver, you might find the best auto insurance for seniors at another company.

Read More: Cheap Auto Insurance for Drivers Over 70

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How to Get Cheap Auto Insurance for New Drivers

All consumers looking for a low rate on their personal car insurance should shop around, but it’s even more important for recently licensed drivers to spend the time comparing rates.

Without doing a thorough review of what’s available on the market, you could pay more than an 18-year-old who has just bought their own car. However, one of the easiest ways to find affordable coverage is to pick a plan that just meets your state’s car insurance requirements.

Don’t worry if you don’t know the insurance requirements in your state. As you can see above, your ZIP code is one of the first things a company asks for when you request a quote. Insurance companies know how much coverage you need to drive legally in your state.

Premiums can range from very expensive to shockingly affordable. Just because a company gives you an all-time low quote doesn’t mean that it’s the carrier for you. Some companies offer low rates to build a big book of business that they won’t service.

You need to really commit to getting several quotes to see which respected carrier has fair pricing for older drivers.

Auto Insurance Discounts for New Drivers Over 20

You can get insurance from a carrier that serves all licensed drivers in the US, but you might be able to get group rates if you shop for coverage through an insurer that offers members of your organization special group rates.

Being a retired member of a professional organization is one way to get these discounted rates.

One of the most popular associations that all older drivers can join is the AARP. As a member of the AARP, you can get tons of senior discounts and also receive help navigating life through retirement.

One of the discounts you’ll get is on auto insurance through AARP-branded companies like The Hartford.

Retirement Discounts for Older Drivers

If you’re securing a license in retirement so that you can freely travel the globe, you could save off of your coverage because you don’t have a commute to the office. Here are some ways an older driver can save:

• Not having a daily commute: A pleasure rating is the lowest usage rating that you can receive.
• Not driving many miles: If you drive less than the average person on top of that, you’ll get a low-mileage discount.
• Senior discount: You’re not young enough to get credit for taking driver training as a newly licensed driver but it’s possible that you could get a different type of training discount. Most companies looking to insure the growing population of senior drivers offer some type of Mature Driver Discount.

To qualify for a Mature Driver Discount, you have to complete a short one-day course either in person or online. The course gives you tips on driving defensively. For learning new skills, the insurer will give you a discount for a whole three years.

If you have savings or other assets that you need to protect, you’ll need higher limits of liability than the average driver.

Get instant quotes for coverage online to start your comparison shopping. Enter your personal details in our quoting tool and you’ll be one step closer to savings.

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