Auto Insurance Options For Georgia Teens

Yes, 18-year-olds can get car insurance in Georgia, but it is expensive. The average cost of full-coverage car insurance for 18-year-olds in Georgia is $7,622 per year, compared to a national average of $2,311. The cheapest car insurance for 18-year-olds in Georgia is offered by Farm Bureau, at $111 per month for full coverage. However, 18-year-olds can save money by being added to their parents' insurance policy.

Average cost of auto insurance for 18-year-olds in Georgia

The average cost of auto insurance for 18-year-olds in Georgia varies depending on various factors, including the driver's gender, location, and driving history. Here is an overview of the average costs and factors affecting auto insurance rates for 18-year-olds in Georgia:

Average Monthly and Annual Costs:

On average, 18-year-old drivers in Georgia pay approximately $458 per month or $5,496 annually for full-coverage car insurance. However, the cost can vary significantly depending on the insurance company, with rates ranging from $223 to $618 per month. The cheapest option is Country Financial, while Amica is the most expensive.

Cost Comparison by Gender:

The average monthly cost of car insurance for 18-year-old female drivers is $490, while male drivers pay $565. This difference is due to insurance companies considering male teens a higher risk, as they have a higher motor vehicle death rate than female drivers of the same age.

Cost by Location:

The cost of car insurance for 18-year-olds also varies by state. Hawaii is the cheapest state, with an average monthly rate of $164 for full coverage, while Louisiana is the most expensive, with a monthly rate of $1,053.

Cost of Staying on a Parent's Policy:

18-year-old drivers can save money by staying on their parents' policy. The average cost of adding an 18-year-old to a parent's car insurance policy in Georgia is $271 per month for full coverage, which is $139 less than the average cost of a separate policy.

Factors Affecting Costs:

Several factors influence the cost of auto insurance for 18-year-olds in Georgia:

• Age and Experience: 18-year-old drivers pay lower insurance rates than 17-year-olds due to their additional year of driving experience. However, newly licensed 18-year-olds will pay more than those who have been driving since they were 16.
• Gender: Male drivers typically pay higher insurance rates than female drivers due to higher accident and fatality rates. However, some states, including California, Hawaii, and Massachusetts, prohibit the use of gender as a factor in determining insurance rates.
• Location: Insurance rates vary by state and even by city within Georgia. For example, Athens-Clarke has cheaper full coverage at $864 per year, while Atlanta's full coverage costs around $1,282.
• Driving Record: A clean driving record can result in lower insurance rates, while accidents, speeding tickets, or DUIs will increase premiums.
• Credit Score: A good credit score can lead to more affordable insurance rates, as insurers view it as an indicator of reliability.
• Vehicle Type: The make, model, and age of the vehicle can impact insurance costs, with high-performance or luxury cars typically costing more to insure.
• Coverage Level: Opting for full coverage or adding comprehensive and collision coverage will increase premiums but provide more protection.
• Deductible Amount: Choosing a higher deductible can lower insurance costs, but it means paying more out-of-pocket when filing a claim.

Cheapest auto insurance companies for 18-year-olds in Georgia

Overview:

Auto insurance for 18-year-olds in Georgia can be expensive, with an average cost of $2,446 per year for minimum coverage and $5,801 per year for full coverage. This is because young drivers are considered high-risk due to their lack of driving experience and higher crash rates. However, there are still ways to find cheaper insurance options.

USAA:

USAA offers the cheapest rates overall for 18-year-olds, with minimum coverage costing an average of $50 per month. However, USAA is only available to current and former military members and their families.

State Farm:

Among companies available nationwide, State Farm has the cheapest minimum coverage for 18-year-olds, with rates averaging $153 per month.

Erie:

Erie offers the cheapest minimum-coverage insurance for 18-year-olds, with rates averaging $107 per month. However, Erie is only available in 12 states and the District of Columbia.

Country Financial:

Country Financial has the cheapest full-coverage insurance for 18-year-olds, with rates averaging $186 per month.

Other Options:

Other companies with relatively cheap rates for 18-year-olds in Georgia include Geico, Mercury, and Auto-Owners Insurance.

Tips for Cheaper Insurance:

To get cheaper insurance as a young driver, consider adding a young driver to a parent's policy, improving your driving record, or taking advantage of discounts for good grades, driver training, or safe vehicles. Shopping around and comparing quotes from multiple companies can also help you find the best rates.

Discounts for 18-year-olds in Georgia

There are several ways to save on auto insurance for 18-year-olds in Georgia. Here are some tips to get discounts and lower rates:

Shop Around for the Best Rates

It is important to compare quotes from multiple insurance companies to find the cheapest rates and best coverage for 18-year-olds. Rates can vary significantly between companies, so shopping around can help you find the best deal.

Stay on Your Parent's Policy

If possible, it is usually much cheaper for 18-year-olds to be added to their parent's car insurance policy rather than getting their own separate policy. The average cost of adding an 18-year-old to a parent's policy in Georgia is $4,245 per year for full coverage, which is 27% cheaper than the cost of stand-alone full coverage.

Good Student Discount

Many insurance companies offer a good student discount for young drivers who maintain good grades, usually a B average or a 3.0 GPA. This can result in significant savings on car insurance premiums. According to Value Penguin, State Farm offers the cheapest rates for good students, with a minimum coverage policy costing $71 per month or $848 per year, a 17% savings.

Driver's Education Discount

Taking a certified driver's education course can also help lower insurance rates. In Georgia, under Joshua's Law, new drivers under the age of 18 are required to complete a 30-hour driver education course approved by the Georgia Department of Driver Services to obtain a Class D driver's license. Insurance companies often offer discounts for completing these courses, such as a 10% discount over three years, saving around $300 on average.

Choose a Safe and Inexpensive Vehicle

The type of vehicle you drive can also impact your insurance rates. Safer vehicles with better safety ratings from the Insurance Institute for Highway Safety (IIHS) may qualify for lower premiums. Additionally, choosing a less expensive car can also help reduce your insurance costs.

Away-at-School Discount

If you are a student who attends school out of state and does not drive your car for most of the year, you may qualify for an away-at-school discount. This recognizes that you are a lower-risk driver due to reduced driving time.

Monitor Your Driving Behaviour

Safe driving behaviour can also help lower your insurance rates. This includes obeying traffic rules, staying focused on the road, and avoiding distractions such as using a mobile phone while driving.

Other Discounts

In addition, there are other discounts that may be available from various insurance companies, such as safe-vehicle discounts for vehicles with anti-lock brakes and airbags, and multi-policy discounts if you bundle your auto insurance with other types of insurance, such as renters or homeowners insurance.

Average cost of adding an 18-year-old to a parent's policy in Georgia

The cost of car insurance for an 18-year-old in Georgia varies depending on whether they are added to a parent's policy or take out their own insurance. According to ValuePenguin, the average cost of full-coverage car insurance for an 18-year-old in Georgia is $458 per month, or $5,496 per year. However, if an 18-year-old is added to a parent's policy, the average cost of full coverage drops to $271 per month, or $3,252 per year. This represents a saving of $139 per month, or $1,692 per year, compared to an 18-year-old having their own policy.

The cost of adding a teenager to a parent's car insurance policy in Georgia can increase the rate by 70% to 150%. According to CarInsurance.com, the average cost of adding an 18-year-old to a parent's policy in Georgia is $3,607 per year. This is slightly higher than the average cost of adding a teenager to a parent's policy in other states, which is $3,726 per year.

The cheapest companies for 18-year-old drivers in Georgia, based on full-coverage auto insurance quotes, are Country Financial, Erie, and State Farm. Country Financial offers the cheapest rates at $223 per month, or $2,676 per year, for full coverage. However, it is only available in 19 states. Erie has the second-cheapest rates at $247 per month, or $2,964 per year, but is only available in 12 states and Washington, D.C. State Farm, which is widely available across the country, offers the cheapest rates at $272 per month, or $3,264 per year.

Legal requirements for auto insurance in Georgia

Auto insurance is mandatory for all drivers in Georgia. The state has established minimum auto insurance requirements that drivers must meet to legally operate a vehicle. These requirements are in place to protect drivers and their families financially in the event of an accident.

Minimum Coverage Requirements

Georgia law requires drivers to carry liability insurance, which includes two types of coverage: bodily injury and property damage. The minimum coverage limits are as follows:

• Bodily Injury Liability: $25,000 per person and $50,000 per accident.
• Property Damage Liability: $25,000 per accident.

Drivers are encouraged to purchase more coverage than the minimum if they can afford it, as the minimum coverage may not be sufficient in the event of a serious accident.

Uninsured/Underinsured Motorist Coverage

In addition to liability insurance, Georgia requires drivers to carry uninsured/underinsured motorist coverage. This protects drivers in the event they are hit by a driver who does not have insurance or does not have sufficient insurance. The limits for these types of liability coverage are set by the state.

Personal Injury Protection (PIP) and Collision Coverage

Depending on their circumstances, drivers may also be required to carry Personal Injury Protection (PIP) and Collision Coverage. If a driver has a clean record with no previous accidents or claims, PIP may be sufficient. However, if a driver has a history of accidents resulting in injuries or property damage, Collision Coverage may be necessary.

Proof of Insurance

Car owners in Georgia must show proof of insurance when registering their vehicles. Failure to provide proof of insurance can result in fines, suspension of the driver's license, and even jail time.

Optional Coverage

While the above-mentioned coverages are mandatory, drivers can also choose to add optional coverages to their policies, such as comprehensive and collision coverage, gap coverage, roadside assistance, medical payments, and more. These additional coverages can provide further protection and peace of mind.

Frequently asked questions