Car insurance is one of the most important financial responsibilities for anyone living in the United States. For new immigrants, the process of getting affordable car insurance can feel confusing and expensive. Most insurance companies use factors like driving history, credit score, and prior insurance records to set premiums—things that new immigrants often don’t have in the USA.
However, there are insurance companies that offer affordable car insurance for new immigrants without requiring an established credit history or long driving record. This detailed guide will help you understand how car insurance works, the requirements for immigrants, and the 10 cheapest car insurance companies for new immigrants in the USA.
By the end of this article, you’ll know which companies provide the best rates, what documents you need, and tips for saving money on your policy.
Why Do New Immigrants Pay Higher Car Insurance Rates in the USA.?
Car insurance rates for new immigrants are usually higher because most insurers see them as high-risk drivers. This is due to:
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Lack of U.S. driving history: Insurance companies cannot verify your driving experience from other countries unless you have an international driving permit and records.
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No U.S. credit score: Credit history is a major factor in determining insurance premiums. New immigrants usually start with no score, which can raise costs.
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Limited insurance history: If you have never had car insurance in the USA, insurers may consider you a higher risk.
These factors often result in premiums that are higher than those of U.S. citizens or long-term residents.
Documents New Immigrants Need to Get Car Insurance in the USA.
Before applying for car insurance, make sure you have the following documents ready:
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Driver’s license: A U.S. state-issued driver’s license or an international driving permit (IDP).
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Proof of residence: Lease agreement, utility bill, or any official document showing your U.S. address.
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Vehicle registration: If you own a car, you need to provide proof of registration.
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Passport or immigration documents: To verify identity and legal status.
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Driving records from your home country (optional): Some insurers may accept these for a discount.
Summary Table: Top 10 Cheapest Car Insurance Companies for New Immigrants in the USA
| Insurance Company | Average Monthly Premium for New Immigrants | Coverage Options | Special Features |
|---|---|---|---|
| GEICO | $90–$120 | Full & Liability | International license accepted, strong discounts |
| Progressive | $95–$130 | Full & Liability | Flexible payments, online tools |
| State Farm | $100–$140 | Full & Liability | Local agents for personalized help |
| Allstate | $110–$145 | Full & Liability | Accident forgiveness and multi-policy discounts |
| Nationwide | $105–$135 | Full & Liability | Safe driver rewards and roadside assistance |
| Farmers Insurance | $115–$150 | Full & Liability | Broad coverage options and good driver discounts |
| Liberty Mutual | $110–$145 | Full & Liability | Multi-policy savings, 24/7 claims support |
| Travelers | $100–$135 | Full & Liability | Usage-based insurance option for savings |
| Esurance | $95–$125 | Full & Liability | Digital-first experience and instant quotes |
| The General | $120–$160 | Full & Liability | Works with drivers with no prior insurance |
Detailed Reviews of the Cheapest Car Insurance Companies for New Immigrants in the USA.
GEICO
GEICO is one of the most affordable car insurance companies for new immigrants.
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Average monthly premium: $90–$120
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Why it’s ideal for immigrants: GEICO accepts international driver’s licenses and offers multiple discounts, including for safe driving, multi-vehicle policies, and anti-theft devices.
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Coverage highlights: Liability, collision, comprehensive, and optional roadside assistance.
Progressive
Progressive is known for competitive pricing and excellent online tools.
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Average monthly premium: $95–$130
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Why it’s ideal for immigrants: Progressive allows flexible payment options and has a Snapshot program that rewards safe driving, which can help reduce premiums for new drivers.
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Coverage highlights: Liability, comprehensive, collision, rental reimbursement, and gap coverage.
State Farm
State Farm is the largest car insurer in the USA, with a strong network of local agents.
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Average monthly premium: $100–$140
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Why it’s ideal for immigrants: Local agents can guide new immigrants through the insurance process, and State Farm offers discounts for bundling with renters or homeowners insurance.
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Coverage highlights: Full coverage options plus ride-share coverage for drivers working with Uber or Lyft.
Allstate
Allstate offers comprehensive coverage and useful add-ons.
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Average monthly premium: $110–$145
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Why it’s ideal for immigrants: Allstate provides accident forgiveness, which prevents rates from increasing after your first accident—a helpful feature for new drivers.
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Coverage highlights: Liability, collision, comprehensive, roadside assistance, and deductible rewards.
Nationwide
Nationwide is well-known for rewarding safe drivers.
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Average monthly premium: $105–$135
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Why it’s ideal for immigrants: The SmartRide usage-based program can significantly reduce rates for careful drivers, even without a long U.S. driving history.
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Coverage highlights: Full coverage plus accident forgiveness and vanishing deductibles.
Farmers Insurance
Farmers offers a wide variety of coverage options and discounts.
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Average monthly premium: $115–$150
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Why it’s ideal for immigrants: Farmers offers good driver discounts and provides policies even for drivers with limited driving history.
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Coverage highlights: Liability, comprehensive, collision, rideshare insurance, and glass repair coverage.
Liberty Mutual
Liberty Mutual is another great option for immigrants who want affordable car insurance with flexible policy options.
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Average monthly premium: $110–$145
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Why it’s ideal for immigrants: Liberty Mutual offers a “Better Car Replacement” program and savings for bundling multiple policies.
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Coverage highlights: Full and liability coverage, accident forgiveness, and roadside assistance.
Travelers
Travelers has one of the longest histories in the insurance industry and offers competitive rates for new immigrants.
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Average monthly premium: $100–$135
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Why it’s ideal for immigrants: Travelers’ IntelliDrive program lets you lower your premium by driving safely, which can be useful if you have no prior U.S. driving record.
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Coverage highlights: Liability, comprehensive, collision, roadside assistance, and gap coverage.
Esurance
Esurance is a digital-first car insurer owned by Allstate.
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Average monthly premium: $95–$125
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Why it’s ideal for immigrants: Esurance makes it easy to get quotes and manage policies online, ideal for tech-savvy immigrants who prefer minimal paperwork.
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Coverage highlights: Liability, comprehensive, collision, rental car coverage, and customizable deductibles.
The General
The General is best for immigrants who may not qualify for traditional insurers.
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Average monthly premium: $120–$160
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Why it’s ideal for immigrants: The General accepts drivers with no previous insurance history or poor credit.
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Coverage highlights: Basic liability, comprehensive, and collision coverage.
How to Get Cheap Car Insurance as a New Immigrant in the USA.
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Shop around: Get quotes from at least three different insurance companies.
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Bundle policies: Combine auto insurance with renters or homeowners insurance to get discounts.
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Consider usage-based programs: Companies like Progressive, Nationwide, and Travelers offer programs that lower premiums if you drive safely.
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Ask about discounts: Many insurers offer discounts for defensive driving courses, multi-vehicle policies, or even for having anti-theft devices.
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Build your credit history: Over time, a good credit score can help you qualify for cheaper premiums.
State-Specific Considerations for New Immigrants in the USA.
Car insurance requirements vary by state. Some states like Florida and Michigan have higher average premiums, while states like Maine and Ohio are more affordable.
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Minimum liability coverage: Each state sets its own minimum requirements for bodily injury and property damage liability.
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No-fault states: In states with no-fault insurance laws (e.g., Florida, Michigan), you must also purchase personal injury protection (PIP).
Make sure you research your state’s requirements before buying a policy.
FAQs: Car Insurance for New Immigrants in the USA
1. Can I get car insurance with an international driver’s license?
Yes. Companies like GEICO and Progressive accept international licenses, although you may be required to switch to a U.S. license within a set period.
2. Is car insurance more expensive for new immigrants?
Yes, due to the lack of U.S. driving history and credit score. But shopping around and using discounts can help reduce costs.
3. Can I transfer my driving history from my home country?
Some insurers may accept official driving records from your home country, which can help lower rates.
4. Do I need a Social Security Number (SSN) to get car insurance?
Not always. Some companies allow you to apply with an Individual Taxpayer Identification Number (ITIN) instead.
5. How soon should I get car insurance after arriving in the USA?
Immediately. You cannot legally drive a car without insurance in most states.
6. Which state has the cheapest car insurance for immigrants?
States like Maine, Idaho, and Ohio have the lowest average car insurance premiums for all drivers, including immigrants.
7. Are there special car insurance plans for immigrants?
Not specifically, but companies like The General and GEICO are more flexible for drivers with limited U.S. records.
8. Can I add family members to my car insurance policy?
Yes, as long as they live in the same household and have valid driver’s licenses.
9. Will my car insurance get cheaper over time?
Yes. As you build a driving history and improve your credit score, you can qualify for lower premiums.
10. Do I need full coverage as a new immigrant?
It’s recommended, especially if your car is financed or you want protection against theft and accidents.
Conclusion
Finding affordable car insurance as a new immigrant in the USA can seem overwhelming, but companies like GEICO, Progressive, State Farm, and Nationwide make it easier by offering competitive rates and flexible options.
To secure the cheapest car insurance for new immigrants, compare multiple quotes, ask about discounts, and consider usage-based programs to reduce costs. Over time, as you build a U.S. driving record and credit history, your premiums will naturally decrease.
Start by requesting online quotes from at least three of the companies listed above to find the best coverage for your budget. Protecting yourself and your vehicle with the right insurance is the first step to financial security as you begin your new life in the USA.