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
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:
$4,058 in North Carolina