If you’re a new driver in a Tier 1 country like the USA, UK, Canada, Australia, or Germany, one of your biggest first-year expenses will likely be car insurance—and full coverage isn’t cheap. Being a first-time driver means you’re considered high-risk, and that means higher premiums.
But don’t worry. This guide reveals how you can find the cheapest full coverage car insurance, what it actually includes, which companies offer the best rates, and proven strategies to help you pay less—without sacrificing the coverage you need.
What Does Full Coverage Car Insurance Include?
“Full coverage” is a bundled policy that typically includes:
Liability Insurance
Covers damage or injuries you cause to others. This is usually a legal requirement.
Collision Coverage
Pays for repairs to your car if you’re in an accident, regardless of who was at fault.
Comprehensive Coverage
Covers non-accident-related damage like theft, vandalism, fire, floods, storms, or falling objects.
Optional Add-Ons
Many providers also offer:
- Roadside assistance
- Rental car reimbursement
- Gap insurance
- Windshield repair
- Personal injury protection
Why Is Full Coverage Expensive for New Drivers?
Insurance companies calculate premiums based on risk. As a new driver, you lack experience—and statistics show new drivers are more likely to be involved in accidents. Other factors that drive up your rate include:
- Little to no driving history
- No prior insurance record
- Younger age (especially under 25)
- High-powered or expensive vehicle choices
Top Companies Offering Cheap Full Coverage for New Drivers
Here’s a breakdown of the top insurers known for affordable full coverage policies for first-time drivers across Tier 1 countries:
United States
GEICO
One of the cheapest for new drivers. Offers good student and multi-policy discounts, and a user-friendly mobile app.
State Farm
Their Steer Clear® program is designed for drivers under 25 and rewards safe habits.
Progressive
Snapshot® telematics program monitors driving behavior to offer lower premiums for cautious drivers.
Nationwide
Offers SmartRide® for personalized discounts and several bundling options.
Canada
TD Insurance
Flexible coverage for new drivers with good digital tools.
Belairdirect
Offers quick quotes and usage-based discounts.
Aviva Canada
Known for solid coverage plans and optional accident forgiveness.
United Kingdom
Direct Line
Doesn’t appear on comparison websites, but often offers the lowest quotes directly. Offers telematics-based DrivePlus for young and new drivers.
Admiral
Well-known for multi-car discounts and temporary coverage.
Aviva UK
Provides named driver discounts and reduced rates for safe driving courses.
Australia
Budget Direct
Frequently offers some of the lowest premiums. Recognized for customer satisfaction.
AAMI
Known for flexible excess options and young driver safety rewards.
Youi
Customizes pricing based on how you drive and what your car is used for.
Germany
HUK24
A digital-first insurer that consistently ranks among the cheapest.
Allianz
Reliable and established, with a broad range of coverage options and high service quality.
AXA Germany
Strong in urban areas with extensive coverage packages tailored to young drivers.
Average Full Coverage Premiums for New Drivers
Here’s a general look at what you might expect to pay for full coverage if you’re a first-time driver:
| Country | Estimated Annual Premium |
|---|---|
| USA | $2,000 – $3,500 |
| Canada | CAD $2,000 – $4,000 |
| UK | £1,200 – £2,500 |
| Australia | AUD $1,500 – $2,800 |
| Germany | €1,000 – €2,200 |
Note: Rates vary based on age, location, car model, and coverage level.
Ways to Lower Your Full Coverage Premium as a New Driver
Choose a Safe, Low-Cost Vehicle
Avoid sports cars or luxury models. Look for vehicles with excellent safety ratings and low repair costs.
Bundle Policies
If you also need renters, life, or home insurance, bundle them with the same provider for discounts.
Take a Defensive Driving Course
Many insurers reward you for completing a certified safety or driver education course.
Use Telematics Programs
Sign up for usage-based insurance programs that track how you drive and offer lower rates for safe habits.
Stay on a Parent’s Policy
If possible, being listed as an occasional driver under a parent’s full coverage policy can save hundreds per year.
Pay Annually, Not Monthly
Many insurers give a discount if you pay your premium in one annual payment instead of monthly installments.
Best Tips to Find the Cheapest Rates
- Always compare at least 3–5 quotes
- Look for direct-to-consumer companies like Direct Line or GEICO
- Ask about every available discount—student, new customer, online purchase, etc.
- Avoid making claims for small issues early on
- Build a clean driving record from day one
Ashish Rai is a professional automotive writer with four years of experience crafting reviews, features, and technical guides. Passionate about vehicles, he translates complex engineering concepts into engaging content. Covering market trends, EV developments, and driving experiences, Ashish delivers insightful, reader-friendly articles that ignite automotive enthusiasm worldwide consistently with integrity.
