What Are the Best Car Insurance Companies for First-Time Drivers?

What Are the Best Car Insurance Companies for First-Time Drivers?

We consider many things while buying a new automobile, but one of the most important things is insurance.

You might be wondering why should you be paying a monthly or annual premium to the insurance company to purchase a yearly plan. There is also a probability that you may never need to claim the insurance for your vehicle. Under this scenario, the insurance company refunds the premium amount.

Well, ensure to get your vehicle insured because it helps in mitigating any risk or expenditure that would occur in case of an accident. Generally, the cost of repairs and part replacements for cars is high, and it would put a financial burden on you.

Now if you are purchasing a car for the first time and are not much aware of the insurance companies and policies available in the market, then let us introduce you to the top 3 car insurance companies in the market. You can choose the most suitable one among them by comparing them on several parameters, including coverage, premium amount, claim settlement ratio, and other additional benefits.


  • Though present in only nine states, Erie is the 13th largest automobile insurance company of the United States. It beats state average by 28%, making it one of the cheapest insurers in the market for all the first time drivers.
  • If you have a minimum of 3 years of good and safe driving history with Erie, your rates would not shoot up at the first incident of accident
  • You also get a windshield repair on subscribing for this insurance policy
  • Erie will pay entirely for the upgraded model of the car, in case a new car replacement has to take place
  • You will also get roadside assistance along with this insurance. This also covers all your rental car expenses
  • In case your pet gets hurt during the car accident, Erie covers the same


  • The second most demand and second last when it comes to being the cheapest, Geico car insurance is available in all the states of the United States. It also beats the state average by 28%.
  • It saves you 15% or more on your car insurance amount as per its online insurance quote model
  • Good customer service support through both online and offline mediums. This also includes the popular social media networking platform Twitter
  • For as many as safety equipment like airbags, anti-lock brakes, daytime running lights and anti-theft alarming system you have in your car, Geico provides you a discount on the insurance policy
  • If you are a teen driver or a college student, you can claim a discount on the policy on the basis of your academic grades
  • There is a discount offered to the military services and federal employees also on the purchase of insurance policy by Geico


  • USAA has earned a name for providing one of the best customer services in the United States and for being associated with the US Military. You can be a USAA member if you are a service member or veterans, or you are a spouse, child or grandchild of anybody who has served in the US armed forces.
  • If you have a good driving history of at least five years, then you will be eligible for a Safe Driver discount
  • Undertaking an approved driving training course as well as approved defense driving course gets you some additional cut on your policy amount
  • If you are a student who has continuously maintained a higher GPA on your scorecard, then you can also claim a discount in your premium amount
  • For those purchase multiple USAA products or getting the family members to sign up for USAA account, there is a special discount provided on purchase of the car insurance policy
  • If you choose comprehensive insurance coverage and have a garage for your car on military premises, then you can ask for a special discount

State Farm

  • State Farm is a recognizable insurance brand with exciting discounts
  • Protects people and property through the insurance coverage
  • The discounts are for good students, good driving habits, defensive driving, and more than one owned automobiles
  • The website has a handy tool to give a clear estimation of the rise and fall of your premiums


  • User-friendly website with easy navigation and compassionate features
  • Discounts are for good driving habits, multi-vehicle, safe-driving, and good student
  • There are discount on premium if you enroll for automatic withdrawal of premium every month
  • Premium discounts are also available based on the type of vehicle you own
  • Friendly and customizable options to buy a perfect auto insurance policy