Affordable Auto Insurance For Teen Drivers: What's The Deal?

Car insurance for 18-year-olds can be expensive, with rates varying based on factors such as gender, location, and whether they are on their parents' policy or have their own. The average cost of car insurance for 18-year-olds in the US is $266 per month for minimum coverage and $414 per month for full coverage. However, rates can differ significantly depending on the insurance company and individual circumstances.

Cheapest car insurance companies for 18-year-olds

Car insurance for 18-year-olds can be expensive, as they are considered high-risk drivers due to their lack of experience on the road. The average cost of full coverage car insurance for 18-year-olds is $485 per month, while minimum coverage costs an average of $202 per month. However, there are insurance companies that offer more affordable rates for this age group.

Erie Insurance is known for offering very affordable rates for 18-year-olds, with an average monthly premium of $257 for full coverage. However, it is only available in 12 states and Washington, D.C. State Farm is another affordable option with an average monthly rate of $344 for full coverage and is available in more states.

USAA, a company that serves military members and their families, offers minimum-coverage car insurance for 18-year-olds at an average monthly rate of $120. GEICO is also a budget-friendly option, with an average monthly rate of $256 for minimum coverage.

Farm Bureau and Auto-Owners Insurance are other companies known for their competitive rates for 18-year-olds, but their availability may vary by state.

Tips for Finding Cheap Car Insurance as an 18-Year-Old

To find the cheapest car insurance, it is recommended to compare quotes from multiple companies, as rates can vary significantly. Staying on your parents' policy, if possible, can also result in substantial savings.

Taking advantage of discounts is another effective way to lower your insurance rates. Many insurance companies offer good student discounts, defensive driving discounts, and distant student discounts. Additionally, opting for a higher deductible can reduce your premium, but make sure you can afford the out-of-pocket expense in the event of a claim.

How to get the best insurance for 18-year-olds

Auto insurance rates for 18-year-olds can be very expensive. This is because insurance companies consider young drivers to be "high-risk" due to their relative lack of experience behind the wheel. The good news is that there are ways to get cheaper insurance for 18-year-olds. Here are some tips to get the best insurance rates for 18-year-olds:

Compare Quotes from Multiple Companies

The first step to getting the best insurance rate is to shop around and compare quotes from multiple companies. Prices can vary significantly from one company to another, so it's important to do your research. Some companies that are known for offering affordable rates for young drivers include State Farm, Erie, GEICO, and USAA.

Stay on Your Parents' Policy

If possible, consider staying on your parents' insurance policy as this can result in significant savings. On average, 18-year-old drivers can save $214 per month on full coverage insurance by sharing a policy with their parents.

Look for Discounts

Insurance companies offer various discounts that can help lower your premium. If you're a high school or college student, you can get a good student discount if you have good grades, typically a B average or a 3.0 GPA or higher. You may also be eligible for a defensive driver discount if you've taken a defensive driving course. Additionally, if you're a college student who leaves their car at home during the academic year, you may qualify for an away-from-home student discount if your university is more than 100 miles away.

Drive an Affordable and Safe Car

The type of car you drive can also impact your insurance rate. Expensive cars, especially sports cars, tend to be more costly to insure. Instead, opt for a safer and more affordable vehicle, such as an SUV or a sedan.

Increase Your Deductible

Another way to lower your insurance rate is to choose a higher deductible. However, keep in mind that this means you'll have to pay more out of pocket if you're in an accident.

Sign Up for a Safe Driver Program

By enrolling in a safe driver program, you can share your driving data with your insurance company and prove that you're a safe driver worthy of lower rates. These programs typically use a plug-in tracking device or an app to monitor your driving habits.

Lower Your Coverage Limits

While it's recommended for young drivers to have full coverage insurance, you may consider opting for minimum coverage if you have an older car or a car that's worth less than $5,000. Minimum coverage costs significantly less but make sure to check the minimum insurance requirements in your state.

Choose Your Location Carefully

Insurance rates can vary greatly depending on where you live. For example, Hawaii is the cheapest state for an 18-year-old to get car insurance, while Rhode Island is the most expensive.

By following these tips and comparing rates from different companies, you can find the best insurance rates for 18-year-olds and save money on your car insurance.

How to save on car insurance at age 18

Car insurance for 18-year-olds can be expensive, as they are considered high-risk due to their lack of driving experience. However, there are ways to save money on your insurance as an 18-year-old. Here are some tips to help you get cheaper car insurance:

Compare Insurance Rates

Firstly, shop around and compare insurance rates from multiple companies. Prices can vary significantly, so it's worth getting quotes from a range of insurers to find the best deal. For example, Erie and State Farm are known for offering the cheapest car insurance for 18-year-olds, but they may not be available in your state.

Stay on Your Parents' Policy

If possible, consider staying on your parents' car insurance policy. Sharing a policy with your parents is usually much cheaper than having your own separate policy. On average, 18-year-old drivers can save $214 per month on full coverage insurance by being on a joint family policy.

Look for Discounts

Insurance companies offer various discounts that can help reduce your premium. If you're a high school or college student, you can often get a good student discount if you have good grades (usually a B average or 3.0 GPA or above). Some companies also offer discounts for defensive driving courses, being a student away from home, or having low mileage.

Choose a Higher Deductible

You can lower your insurance rate by choosing a higher deductible. However, keep in mind that this means you'll have to pay more out of pocket if you do have an accident.

Drive a Safe and Affordable Car

The type of car you drive can impact your insurance rate. Expensive cars, particularly sports cars, tend to be more costly to insure. Instead, opt for a safer and more affordable vehicle, such as an SUV or sedan.

Sign Up for a Safe Driver Program

You may be able to get a discount on your insurance by participating in a safe driver program. These programs track your driving behaviour through an app or a plug-in device, and if you demonstrate safe driving habits, you can earn rewards or discounts on your insurance.

Lower Your Coverage Limits

While it's recommended that young drivers have full coverage insurance due to the higher risk of accidents, you may consider opting for minimum coverage if you have an older or less valuable car. Minimum coverage costs significantly less but may not provide adequate protection in the event of a major accident.

Take Advantage of Student Discounts

If you're a full-time student, many insurance companies offer discounts for students who live away from home and don't drive their cars regularly. This is typically available if you attend a university more than 100 miles away from your permanent residence.

By following these tips and comparing rates from different insurers, you can find ways to save money on your car insurance as an 18-year-old. Remember that your insurance rate will also depend on other factors such as your gender, location, driving record, and credit score.

How much is car insurance for 18-year-olds?

Car insurance for 18-year-olds can be expensive, with rates varying depending on factors such as gender, location, and whether the 18-year-old opts for their own policy or remains on their parents' plan.

Average Costs

The average cost of full coverage car insurance for 18-year-olds in the US is $485 per month, while minimum coverage costs an average of $202 per month. However, these rates can differ significantly depending on the insurance company and location. For example, in Rhode Island, the average monthly cost of full coverage is $887, whereas in Hawaii, it is $145.

Costs by Gender

On average, male drivers pay more for car insurance than female drivers. For 18-year-olds, men pay $565 per month for full coverage, while women pay $490. This difference is because male drivers are statistically more likely to engage in risky driving behaviours, leading to more accidents. However, as drivers age, the difference in premiums between genders narrows.

Costs on Parents' Policy vs. Own Policy

18-year-olds can choose to stay on their parents' car insurance policy or purchase their own separate policy. Staying on a parents' policy is significantly cheaper, with average costs of $271 per month for full coverage and $1,305 for minimum coverage. In contrast, having their own policy costs an average of $4365 for full coverage and $1962 for minimum coverage annually.

Cheapest Insurance Companies for 18-Year-Olds

• State Farm: State Farm is consistently ranked as one of the cheapest insurance companies for 18-year-olds, with average monthly rates of $344 for full coverage.
• Erie: Erie is another affordable option, with rates as low as $257 per month for full coverage. However, it is only available in 12 states and Washington, D.C.
• Farm Bureau: Farm Bureau offers competitive rates, with an average monthly cost of $156 for full coverage.
• USAA: USAA is a good choice for military members or their families, with rates as low as $120 per month for minimum coverage.
• GEICO: GEICO is also known for providing cheap insurance for 18-year-olds, with average monthly rates of $256 for minimum coverage.

Average cost of car insurance for 18-year-old males vs. females

The cost of car insurance for 18-year-olds varies depending on factors such as gender, location, and the insurance company. On average, 18-year-old drivers pay $356 per month for car insurance, but this can range from $202 for minimum coverage to $485 for full coverage. The cheapest companies for 18-year-old drivers are Erie and State Farm, with rates as low as $257 and $344 per month, respectively. However, Erie is only available in 12 states and Washington, D.C.

When it comes to gender, male drivers tend to pay more for car insurance than female drivers. On average, 18-year-old male drivers cost 15% more to insure than their female counterparts. This is because male teens are three times more likely to die in car crashes than female teens, according to the CDC. As a result, the average cost of car insurance for 18-year-old female drivers is 13% cheaper than for males, with women paying $490 per month for full coverage, while men pay $565. However, some states, such as California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania, prohibit the use of gender as a rating factor, so rates may be similar for males and females in these states.

To find the cheapest rates, it is recommended to compare quotes from multiple companies, as prices can vary significantly. Additionally, 18-year-olds can save money by staying on their parents' policy, which can reduce their insurance costs by $214 per month. Other ways to get cheaper insurance include taking advantage of discounts, such as good student and driver training discounts, and improving their credit score.

Frequently asked questions