Average Cost of Car Insurance for 18-Year-Olds – ValuePenguin

October 19, 2022

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Average Cost of Car Insurance by State & Provider (2022)

how much does car insurance cost for 18 year old drivers?

Full coverage auto insurance for an 18-year-old driver costs an average of $7,396 a year, or $616 a month. We found a difference of $7,551 between the annual rates of the cheapest insurer, Erie, and the most expensive insurer, Allstate. Price differences like this show why it’s so important to compare insurance quotes to make sure you get the best rates.

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find the cheapest insurers for young drivers in each state

How do 18-year-old car insurance rates compare to other ages?

drivers under the age of 25 tend to have higher insurance rates because they are considered higher risk drivers. As you get older and have more years of driving under your belt, your insurance rates should start to drop.

Reading: How much does car insurance cost for 18 year olds

For example, someone who turns 18 will see, on average, their annual fee reduced by $1,445.

average cost of auto insurance for 18 year old male and female drivers

The average cost of car insurance for 18-year-old female drivers is cheaper than for 18-year-old drivers. for 18-year-olds, female drivers pay an average of $7,030 per year, while male drivers pay $7,762.

The Centers for Disease Control and Prevention found that the motor vehicle fatality rate for male drivers ages 16 to 19 is more than twice the rate for female drivers in that age group, which makes teenage boys a significantly higher risk to insurers.

However, some states (California, Hawaii, Massachusetts, Michigan (in certain cities), Montana, North Carolina, and Pennsylvania) prohibit insurers from using gender to determine car insurance rates. male and female drivers in these states must pay the same price for car insurance coverage, all things being equal.

do car insurance rates go down at age 18?

Our analysis found that most young drivers see their insurance rates drop 12% by the time they turn 18. At 18, you pose less of a risk to insurers than 16- and 17-year-olds who just got their license. and their rates reflect that.

new drivers are the exception to this rule. If you’re a new driver at age 18 and getting car insurance for the first time, you’ll likely pay more than a driver who was licensed at age 16 and has two years of driving experience.

cheapest auto insurance companies for 18 year olds by state

best cheap car insurance for 18 year olds by state

north carolina is the cheapest state for an 18-year-old to get auto insurance, with an annual premium 54% cheaper than the general average. Michigan is by far the most expensive state, with annual car insurance costs for 18-year-olds almost three times more expensive than average.

can an 18 year old get their own car insurance?

An 18-year-old can purchase his or her own auto insurance policy. however, we recommend that you add it to your parent’s policy if possible, as it is cheaper than purchasing your own separate policy.

Parents will likely see an increase in their rates when they add a teen driver to their policy, but applying for discounts can help offset the increased cost. if the teen drives a separate car, for example, the parents could get a multi-car discount. And if parents choose to stay with the same insurer for their teen’s car, they can be rewarded with a loyalty discount.

how to get cheap car insurance at 18

Besides staying on your parents’ policy, the best strategy for getting cheap auto insurance quotes is to shop around. prices can differ by the thousands, so it’s beneficial to get free auto insurance quotes from multiple insurers to compare rates.

However, there are a number of other strategies 18-year-olds can use to secure auto insurance deals:

explore discount opportunities. Insurers offer many discounts that you may be eligible for. If you’re an 18-year-old high school or college student, you can get a nice student discount on auto insurance, as long as you keep your gpa above a certain threshold.

College students who leave their car at their parents’ house during the academic year and attend a university more than 100 miles away can often get an out-of-home student discount and perhaps a low-mileage discount .

Alternatively, if you are financially independent of your parents and live apart from them, you can save on your auto insurance policy by combining it with your renters or homeowners insurance.

drive an affordable car. Expensive cars cost more to repair, which means they also cost more to insure. Cars with the cheapest insurance for 18-year-olds included SUVs like the Subaru Outback and Buick Encore, and safer sports cars like the Mazda MX-5 Miata and Volkswagen Golf GTI.

raise your deductible. Another way to lower your insurance rate is to choose a higher deductible. however, this means you will pay more out of pocket if you file a claim.

use a telematic program. By sharing your driving data with your auto insurer through a telematics tracking device, you can prove that you’re a safe driver worthy of lower premiums. Usage-based auto insurance allows you to get significant discounts if you’re a generally safe driver.

Reconsider how much coverage you need. Because 18-year-old drivers are statistically more likely to get into accidents, it’s generally wise to purchase a full coverage policy that includes both collision and comprehensive insurance. however, a minimum coverage policy might work if you, like many young drivers, have an older car and repairs would cost more than the car is worth.

get multiple rates. It’s always best to shop around and get quotes from multiple insurers to ensure you find the best rates and coverage.

short term car insurance for 18 year olds

Reputable auto insurance companies do not sell short-term auto insurance. If you’re an 18-year-old driver and you see car insurance ads for a day, a week or a month, don’t be tempted. insurance policies usually only come in terms of six months or a year, although you can usually cancel at any time and you can choose to pay monthly.

methodology

we collect auto insurance quotes for thousands of zip codes in nine of the most populous states in the us. uu. Our sample drivers were single 18-year-old men and women who drove a 2015 Honda Civic Ex and had a clean driving record.

We compare rates for full coverage policies with the following limits:

The analysis included 29 insurance companies, and rates were only added to our list of average prices and recommendations if their policies were available in at least three of the nine states.

Our analysis pulled insurance rate data from quadrant information services. The rates we collect were publicly obtained from insurer filings and should only be used for comparison purposes, as your own quotes may differ from our averages.