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Some of the best car insurance for 18-year-olds is from Erie Insurance, with premiums starting at $241 a month or $2,888 a year for full coverage.
Car Insurance For New Drivers 18
Author: Daniel Robinson Author: Daniel Robinson Author Daniel is a writer for The Guide Team and has published articles in the U.S., U.K. and has written for several automotive news websites and dealerships in Australia, specializing in the topics of vehicle financing and vehicle maintenance. Daniel is the Guide Team’s authority on auto insurance, loans, warranty options, auto services and more.
How Much To Add A Teenager To Car Insurance?
Edited by: Rashawn Michener, Edited by: Rashawn Michener Managing Editor Rashawn Michener is a Guides team editor with over 10 years of experience covering personal finance and insurance topics.
Car insurance for 18-year-olds is expensive, whether you add a teenager to your policy or they buy an individual policy. That’s why the best car insurance for 18-year-olds should be as affordable as possible.
At The Guides Team we’ve compared rates from multiple providers to see who offers the cheapest car insurance for teenagers. Our overall best choice is Geico with full payment rates of $263 per month or $3,161 per year. We’ll cover our top picks and storage options here.
Car Insurance for Teens, Best Car Insurance for New Drivers, Cheap Car Insurance for Kids, Average Cost of Car Insurance
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The Guide team is committed to providing reliable information to help you make the best decisions about paying for your car insurance. Because customers trust us to provide targeted and accurate information, we have developed a comprehensive rating system to create our list of the best car insurance companies. We collected data on multiple auto insurance providers to rank companies based on a variety of ranking factors. After 800 hours of research, the final result was an overall rating for each provider, with the highest-scoring insurers on the list.
Based on our estimated rates, comprehensive car insurance for 18-year-olds costs an average of $4,958 per year or $413 per month. If you add an 18-year-old child to your family policy, your rates will increase but overall you will save money. Older drivers also generally receive lower rates than 18-year-old drivers.
The cost of car insurance for 18-year-olds is affected by a variety of factors including gender, driving history, location and credit score. Premium differences due to gender are particularly pronounced for teenagers and young adults, with men aged 18 often paying higher prices than women of the same age. However, some states do not allow auto insurers to use gender as a factor when calculating auto insurance rates.
Car insurance rates are more expensive for young drivers because they have less driving experience and are more likely to get into car accidents. Even an 18-year-old with a clean driving record will pay more for car insurance than drivers in their 30s or 40s.
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According to the AAA Foundation for Traffic Safety, 18- and 19-year-olds are more than twice as likely to be involved in an accident as drivers ages 30 to 39. Below, you can see the number of crashes by every 100 million miles driven by age group.
The average cost of insurance closely follows accident rates by age. Below, you can see that 18-year-olds pay more than twice as much as 35-year-olds on average for comprehensive car insurance.
The cheapest car insurance for 18-year-olds is Erie Insurance, with an average of $2,888 per year or $241 per month for full individual insurance policies. USAA offers similar rates for about $2,897 per year or $241 per month.
*Car insurance estimates are based on full coverage policies with $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident and collision coverage with a $500 fee for detailed payment.
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Geico, Aerie, USAA, and State Farm are the cheapest options nationwide for 18-year-olds, but different carriers may be cheaper in your state. Based on the estimated coverage rate, each state and Washington, D.C. Below are the cheapest providers for 18 year olds in the UK.
Eighteen-year-olds in Hawaii, Ohio, and Iowa pay, on average, the cheapest rates in the country. The state of Hawaii does not allow age to affect car insurance rates.
On the other hand, the average rates for private car insurance policies for 18-year-olds in Michigan, Connecticut, and Florida can be more expensive.
Some of the best car insurance for 18-year-olds comes from Geico, USAA, State Farm, Erie Insurance, and Auto-Owners Insurance. Each score awarded is based on factors such as cost, coverage, features, availability and customer experience:
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Geico is our top pick for the best car insurance for 18 year olds. Considering that Erie is only available in about a dozen states and USAA is only available to military, veterans and their families, Geico is the cheapest company available nationwide. Our estimates show that Geico’s average rates for 18-year-olds are about 36% cheaper than the national average. Geico also offers driver education and great student discounts that can lower rates for young drivers.
USAA is another affordable option for 18-year-old drivers, with an average rate that’s about 42% lower than the average cost of car insurance for this age group. Your teenager may qualify for USAA if one of you is an enlisted or military veteran. If you are a USAA member you can also bypass eligibility as a parent.
In addition to affordable rates, USAA offers reliable customer service. It has an A+ rating from the Better Business Bureau (BBB) and received the highest score in the U.D. Claims Satisfaction Survey. Power 2021 U.S. ℠ with 909 points out of 1,000.
State Farm makes our list of the best car insurance for 18-year-olds because of its student and youth discounts. For example, the Steer Clear® program is an education course for young drivers that offers a discount upon completion. And State Farm’s big student discount of up to 25% applies until drivers turn 25. Our estimates show that State Farm’s average rates for 18-year-olds are about 33% cheaper than the national average.
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Erie Insurance serves 12 states and Washington, D.C. It offers affordable coverage. Our estimates show that its average rates for 18-year-olds are about 42% cheaper than the national average. Like USAA, Erie has a J.D. It scored well in the Power Auto Claims Satisfaction Survey, scoring 901 out of 1,000 points.
Operating in 26 states, Auto Owners offers a variety of service options, including discounts for young drivers. A generous company student discount applies if your 18-year-old child maintains a B average or better, offering discounts of up to 20%. Young drivers can also receive a driver monitoring waiver if they use a GPS device while driving. Our rate estimates show that auto owners on average are priced about 41% lower than the national average for 18-year-olds.
Car insurance for teenagers is expensive, but not everything is out of your control. Some things you can do to save money include adding an 18-year-old driver to your family policy, making frequent purchases, and looking for special discounts.
If you live in the same household, you can add a teen driver to your family policy to save hundreds or thousands of dollars a year. This will not work if the 18-year-old has the car registered in their own name, in which case they will need their own policy.
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Also, it may not make sense if the parents have a bad driving record or a very bad credit score. In these cases an 18-year-old can get cheaper rates on their policy.
Car insurance discounts can make a big difference in getting good rates for young people. Young drivers can qualify for student discounts, and parents can save when their kids go to school more than 100 miles away without cars.
Bundling can also be a good idea if you have other types of insurance policies, such as renters. Some car insurance companies offer safe driving discounts for people with short driving histories, while others require four or five years of claim-free driving to qualify.
Companies with the best car insurance for 18-year-olds offer different discounts. Look for the following discounts when you compare car insurance prices:
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Your level of coverage and deductibles have a direct impact on your car insurance rates. Think about how much protection you want in the event of an accident, and reduce your coverage to that amount to save money. You can also increase your down payment amount to take on more risk and lower your total premium. A car insurance policy with low coverage will be the easiest option.
If you’re looking to get a family car for your 18-year-old to drive around, consider paying cash for an inexpensive used sedan or midsize SUV. Without a car loan, you won’t need comprehensive or collision coverage on the car.
You will only need all the bodily injury and property damage coverage rates required in your state. Some states require more coverage, but companies are not allowed to sell you less than the base amount.
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