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  • Writer's pictureAhsan Malyk

How Much is Car Insurance For an 18-Year-Old?

When children reach the age of 18, they are eager to experience adult freedoms. Many leave their childhood homes, enroll in college, and land their first job. Additionally, drivers under the age of 18 may be purchasing their own auto insurance plan.

For any driver in the US, the average annual cost of auto insurance is $1,555. Although 18-year-olds are legally considered adults, insurance companies nevertheless see them as inexperienced and young.

Insurance companies view 18-year-old drivers as "high risk" and demand exorbitant premiums as a result, even with only two years of driving experience. Actually, 18-year-olds pay more than three times as much as ordinary Americans.

It's crucial to know how much you may anticipate spending for vehicle insurance and which companies have the best deals if you recently turned 18 or are the parent of an 18-year-old.

Car Insurance for 18-year-olds

The average cost of auto insurance for an 18-year-old is $5,335 per year, or around $444 per month. Let's start with the bad news. The cost of insurance for 18-year-old drivers is instantly obvious when compared to the $1,555 national average rate.

There will be a significant cost rise for parents who join their 18-year-old child to their auto insurance policy, but not by nearly as much as an 18-year-old would pay as the primary policyholder. For a male and a girl, adding a young driver to an insurance coverage will typically cost $4,048 and $3,819, respectively.

There are a few elements that affect the cost of an 18-year-personal old's auto insurance coverage. Insurance companies primarily consider a person's state and zipcode, claim history, and the kind of vehicle they drive. The cost of the driver's auto insurance will begin to decrease as they age. They won't get a large premium cut, though, until they are well into their 20s.

Car Insurance Rates: Male vs Female

Many people, particularly younger people, are unaware that gender influences how much auto insurance costs. The average annual insurance cost for a female 18-year-old is $5,009, while the cost for a guy is $5,661; this is a sizable difference. Because women are statistically less likely to be involved in serious accidents or be charged with a DUI, their insurance rates tend to be lower.

The most expensive states for 18-year-olds to insure their cars

The following five states have the highest insurance costs for 18-year-olds:

  • $7,978 for New York

  • $7,954 Rhode Island

  • $7,647 for New Jersey

  • Nevada—$7,391

  • Michigan—$7,262

Why are premiums for insurance in certain places so high?

For drivers of all ages, these five states are among the most expensive for vehicle insurance.

As no-fault states, New York, New Jersey, and Michigan require drivers to carry personal injury protection (PIP), which is an additional expense. Due to the high population density in Rhode Island and Nevada, where many drivers share a small number of highways, large premiums are required of drivers in these states.

The least expensive states for 18-year-olds to insure their cars

Here are the states where auto insurance is cheapest for 18-year-olds:

  • Hawaii—$1,186

  • $4,058 in North Carolina

  • Maine—$2,668

  • Iowa—$2,688

  • Indiana—$3,141

These states all have low rates of uninsured drivers, which helps explain why they are the least expensive for auto insurance. According to the Insurance Information Institute, Maine has the fewest uninsured drivers in any state. The number of fatal car accidents is likewise comparatively low in Hawaii and Maine.

18-year-olds' car insurance rates by the insurance provider

The cost of insurance varies a little bit depending on the insurance provider. According to our sample quotes, Erie, USAA, and Geico have the most affordable rates for drivers under the age of 18. The Hanover, Farmers, and MetLife had the most expensive premiums in comparison.

We advise prospective 18-year-old drivers to investigate Erie and Geico. Drivers under the age of 21 can receive a discount from Erie, and every insurance includes accident forgiveness. Along with a lengthy number of other discounts, Geico provides a decent student discount depending on GPA.

Travelers, which has somewhat higher average premiums, also provides young individuals with some fantastic discounts, including as a good student discount, a student away at school discount, and a driving training discount.

We also advise researching USAA if either your spouse or your parent is a member of the armed forces. In addition to normally having reasonable rates, USAA also provides excellent customer service, a discount for driver education, and a decent student discount. Additionally, ROTC students and officer candidates in a commissioning program may purchase USAA insurance.

How to obtain affordable auto insurance while you're 18

As the information above amply demonstrates, 18-year-olds' vehicle insurance is far more expensive than the national average. Thankfully, there are always ways to cut costs and lower your rate. Here are several possibilities:

Raise your deductible

Your deductible is the sum of money you must fork up out of yourself before your insurance provider will pay you for a covered claim. Particularly with collision coverage, your monthly costs will be lower the greater your deductible. If you decide to go with this route, be sure to pick a deductible that you can pay in the event that you have to make a claim.

Utilize special offers

Make sure you are utilizing all of the savings you are qualified for because the majority of insurance providers offer reductions that can reduce your cost. Make sure your insurance provider is aware that your automobile has safety features like anti-lock brakes that are eligible for a discount. Additionally, find out if there are any unlisted discounts you can use. For instance, signing up for paperless billing could help you save some money.

Enroll in a driving safety course

Insurance companies frequently provide drivers who complete an authorized defensive driving course—or another type of driver safety class—a discount. Some insurance providers even offer to cover the cost. You will receive further savings on your premium even though the actual discounts differ by business.

Compare prices

The greatest approach to reducing the cost of your auto insurance is to compare rates from various service providers. By doing so, you'll be able to compare prices and choose which company will give you the greatest deal on the coverages you need. Compare the discounts each company gives as well because that can cut your charge even further.

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