Average Cost of Car Insurance for 18-Year-Olds: The Ultimate Guide

Average Cost of Car Insurance for 18-Year-Olds The Ultimate Guide

Most 18-year-old drivers have two years of driving experience, which starts to pay off in lower auto insurance rates. So, what is the average cost of car insurance for 18-year-olds?

For a full coverage policy with their own policy, an 18-year-old pays an average of $5,565 annually for auto insurance.

The national average for drivers 40 years old is $1,682, so this rate is $3,883 higher. However, the price for 18-year-old drivers is significantly less than that for 16- and 17-year-old drivers, who must pay $7,625 and $635 annually and respectively.

Car Insurance for Teens: How Much is Insurance for 18-year-olds?

Cost for car insurance for an 18-year-old with their own policy per year:

  • State minimum coverage: $1,786
  • Liability limits of 50/100/50: $2,149
  • Liability limits of 100/300/100, with comprehensive and collision coverage and a $500 deductible: $5,565

How much you pay to insure your teen driver will vary depending on factors like

  • Your insurance company
  • Whether the teen has his or her own policy or is added to yours
  • State of residence
  • Type of car driven
  • Coverage limits

How much does an 18-year-old’s monthly car insurance cost?

Car insurance costs an average of $454 per month for an 18-year-old male driver, based on a 2022 Rate analysis from CarInsurance.com. The monthly cost for the same coverage for female drivers under 18 is $410.

Average Cost of Car Insurance for 18-Year-Olds The Ultimate Guide
Average Cost of Car Insurance for 18-Year-Olds: The Ultimate Guide

Can An 18-year-old Get Their Own Car Insurance?

A person who has reached the age of 18 can purchase their own auto insurance. However, if at all possible, we advise adding yourself to your parents’ insurance policy. Typically, it costs a lot less than getting your own separate policy.

For full coverage, it typically costs $271 per month to add an 18-year-old to a parent’s auto insurance policy. That is $139 a month less than what an 18-year-old would typically pay for their own auto insurance. Full coverage car insurance is a great choice especially choosing car insurances.

When adding a teen driver to their policy, parents typically notice an increase in their premiums. By requesting discounts, they can help offset the higher price. A good student discount or a multi-car discount, for instance, might be available to parents if their teen maintains a 3.0 GPA or drives a separate vehicle.

Read about How Much is Car Insurance for a 16-year-old

How to Get Cheap Car Insurance at 18 Years Old?

The best way to find affordable auto insurance quotes, besides continuing on your parents’ policy, is to comparison shop. Comparing auto insurance quotes from various insurance providers is beneficial because costs can vary by thousands of dollars annually.

There are a number of other ways 18-year-olds can find deals on car insurance, including:

  • Research discounts. Many discounts are offered by insurance companies, and you may be eligible for some of them. If you are a high school or college student who is 18 years old and have good grades, which are typically indicated by a B average or 3.0 GPA, you may be eligible for a good student discount on car insurance.

College students who attend a university more than 100 miles away and leave their cars at their parents’ house during the school year frequently qualify for an away-from-home student discount in addition to a low-mileage discount.

If you live apart from your parents and are financially independent, you can save money on your auto insurance by combining it with your renters or homeowners insurance.

  • Drive an affordable car. Since expensive cars require more repairs, their insurance costs are also higher. Furthermore, the cost of insurance for safer vehicles like sedans and SUVs is typically lower than that for sports cars.
  • Increase your deductible. By selecting a higher deductible, you can also reduce the cost of your insurance. However, this means that if you submit a claim, you will have to pay more out of pocket.
  • Sign up for a safe driver program. You can demonstrate that you’re a safe driver deserving of lower rates by sharing your driving information with your auto insurance provider through a plug-in tracking device or app. If you drive safely, such as by obeying the speed limit, you can receive significant discounts from your usage-based auto insurance policy. However, if you have poor driving habits, some programs will increase your rates.
  • Lower your coverage limits. A full-coverage policy is a smart choice for 18-year-old drivers. In an accident, young drivers are more likely to be involved, and full coverage insurance helps cover your own vehicle’s damage. A minimum coverage policy, however, is much less expensive. If your car is older than 10 years old or is only worth $10,000, minimum coverage might be appropriate for you. Full coverage car insurance is a great choice especially choosing car insurances.
  • Compare multiple quotes. To ensure you find the best prices and coverage, it is always best to comparison-shop and obtain quotes from several companies.

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Average Cost of Car Insurance for 18-Year-Olds
Average Cost of Car Insurance for 18-Year-Olds: The Ultimate Guide

Must An 18-Year-Old Have Complete Coverage?

There is no law ensuring that underage drivers receive the maximum compensation. Although the lender might demand that you have total coverage, including comprehensive and crash insurance, if the vehicle is being driven is rented or insured.

To drive safely, you only need the minimum liability insurance required by your state, which pays for other people’s damages and injuries in accidents you cause. That does not safeguard your own car. To be safe, it is advisable to keep a close eye on the car your teen drives because they are still young and more likely to sustain injuries than more experienced drivers.

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We recommend the following conditions when choosing a full coverage policy:

  • Ensure that there is collision coverage, regardless of the blame of a collision, to pay for damage to the vehicle
  • Make sure your vehicle is covered completely so that it can be repaired if it is stolen and for damage from hail, storms, fire, arson, animal strikes, and other events.

Always spend the extra cash to be completely covered when your teen is operating your vehicle. If not, you will be obligated to pay out of your own pocket for even minor injuries that exceed a basic insurance policy. For peace of mind, it only costs $139 a month to upgrade your insurance for an 18-year-old daughter from the state’s minimum to the maximum coverage. When compared to the state minimum for an 18-year-old son, the additional cost of purchasing the maximum benefits for him under your package is $1,884, or $157 per month.

You may want to know What Age Does Car Insurance Go Down?

When Are You Expected to Add a Teen to a Parent’s Policy?

18-year-olds are considered minors by most states. They have to buy their own insurance. But it’s possible that wasn’t a wise move. Teenagers may attempt to sever ties with their parents frequently, but it is frequently a good idea to integrate them into the family structure. It is typically less expensive to do this than to allow a teen to obtain a different policy. Read more: Average Cost of Car Insurance

The price breaks that an adult receives are not available to an 18-year-old. Parents may be qualified for loyalty, multi-policy, and multiple vehicle discounts. Even with these benefits, however, adding an 18-year-old driver to the parent’s policy would undoubtedly result in a price increase. You can find the most affordable deal even if you compare prices. Each auto insurance company has a different system for calculating your costs. As a result, quotes from different insurance companies for the same driver’s coverage will vary greatly. Without a comparison shop, you won’t be able to determine how much money you can save by purchasing the policy at the most affordable price. But, Why is Car Insurance So Expensive?

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Which Insurance is Best for Young Drivers?

One feature of auto insurance is liability protection. That protects against the losses a teen might cause in an accident to people or property. States offer the bare minimum in liability insurance. Usually, it isn’t enough. Hospital expenses and property damage will quickly add up. You don’t want to be accountable for out-of-pocket costs. Make sure the standard liability coverage extends to the properties. In addition to raising the value of your liabilities, once you reach basic caps, purchase an umbrella policy that improves liability insurance. It might be appropriate to have an umbrella with a security of $1 million or more.

If you plan to finance the vehicle, comprehensive protection and crash provisions are crucial. However, once the car has been paid off, you will know whether or not you prefer these extra security measures. Accept higher deductibles when choosing collision and comprehensive coverage to reduce your premium. You will need to pay for minor repairs after an injury, of course. Insurance policies for collision and comprehensive damage are typically not completely expensive.

Questioning how long does GAP insurance last?  Maybe you’re curious about your GAP Coverage’s cancellation or refund options. We’ll address all of your GAP Insurance questions in the paragraphs that follow. Read Now!

Average Cost of Car Insurance for 18-Year-Olds The Ultimate Guide
Average Cost of Car Insurance for 18-Year-Olds: The Ultimate Guide

Discounts on Auto Insurance for 18-Year-Olds

Instead of cutting corners on coverage, it makes sense to maximize discounts. Discounts differ according to the organization and the jurisdiction. Here are common discounts for teenagers on auto insurance:

  • Good student: Drivers who maintain a 3.0 or “B” grade in the classroom may be eligible for discounts of up to 15%. Students in both high school and college are included in this.
  • Driver education: You are entitled to a 5% discount once your adolescent has successfully completed a driving school. As a prerequisite for receiving a license, a state might demand the class.
  • An insurer may grant a discount of up to 5% to teenagers who sign a driving contract with their parents, which may include restrictions on the number of passengers and the number of hours spent on the road.

How does car insurance work? The purpose of having auto insurance is to safeguard your finances in the event of an accident. Auto insurance can assist in paying for repairs to your car and medical care for your injuries if a tree falls on your car or you are the victim of a hit-and-run. It also provides liability coverage, in case you are at fault for an accident that causes injury or property damage to others.

See also How to Get Car Insurance Before Buying a Car?

Frequently Asked Questions

How Much is An Insurance Policy for An 18-year-old?

Our analysis indicates that insurance for an 18-year-old costs, on average, $411 per month, or $4,931 annually. Male drivers aged 18 pay an average of $439 per month for car insurance, compared to $383 for female drivers of the same age.

Is First-time Car Insurance for 18-year-olds More Expensive?

While the cost of car insurance for 18-year-olds is typically lower than for 16-year-olds, it will always be higher for new drivers. This is so that rates can be determined by driving records by insurance companies. Rates will be high until you gain more experience if you don’t have a driving record. How Much is Car Insurance for a 16-year-old

Can You Get Car Insurance at 18 Years Old?

It is true that you can purchase car insurance at age 18. Although it is often less expensive to join an existing policy, 18-year-olds are no longer considered minors and can purchase their own auto insurance without parental consent. Check for What Age Does Car Insurance Go Down?

Can I Get Cheap Insurance on Rideshares?

You can add rideshare insurance to your current policy from a number of auto insurance providers. Typically, this adds an additional $15 to the monthly cost. Why is Car Insurance So Expensive? If you frequently use your car for ridesharing, it is a wise decision. We advise you to look into other insurance options that get you a more complete package if your auto insurer does not offer this add-on. Remember that you might need to buy a commercial insurance policy if your state does not permit rideshare insurance. Check for How to Get Car Insurance Before Buying a Car?

Is Cheap Car Insurance More Accessible to Homeowners?

Yes, homeowners do tend to get the cheapest car insurance deals on offer. This is especially true given that the majority of insurance providers offer special rates for policies that combine auto and home insurance. Combining policies not only simplifies the payment process but also makes it simple to manage coverage and claims. We suggest getting some great car insurance deals from your insurance agent or insurance company if you own a home and have a spotless driving record.

Should I Compare Car Insurance Rates When Moving States?

Numerous individuals have a propensity to ignore this. The kind of insurance premiums you pay for greatly depends on the state in which you reside. Make sure to compare car insurance prices online if you find yourself moving between states for more effective money management.

18-Year-Old Car Insurance 101

An 18-year-old teen driver typically pays $464 per month for auto insurance for a full coverage policy, or $5,565 annually. Full coverage car insurance is a great choice especially choosing car insurances.

18-year-old female drivers pay $4,918 on average, $647 less than men of the same age. In contrast, 18-year-old male drivers spend, on average, $5,565 annually on their personal auto insurance policies.

From the beginning, teenage drivers raised red flags for insurance brokers and companies. Teenagers make the most insurance claims of any age group, whether it be due to their inexperience behind the wheel or their propensity for risky on-road behavior. But don’t give up; there’s still hope. Simple safe driving techniques can help you access lower insurance rates while also lowering your teen’s risk while driving.

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