Cheap Car Insurance for 18-Year-Olds

Entering adulthood? Find new ways to save on your auto insurance.

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Cheap car insurance for an 18-year-old


Turning 18 is a significant milestone in a person's life, as many legal thresholds become nonexistent. In terms of car insurance, the burden of high rates still remains present, but the monthly premium is not so staggering. If you're still on your parents' policy, you should expect your annual premium to drop by an average of $667. While this is a considerable drop, 18-year-olds still pay $3,413 on a personal policy more than the national average. So, despite all obstacles, what are some ways your child can save as an 18-year-old driver? Let's break it down by your car insurance company, your age, your gender, your location, and by vehicle.


How to find car insurance for an 18-year-old
  1. By Company
  2. By Age
  3. By Gender
  4. By Location
  5. By Vehicle
  6. What are some ways to save?
  7. Car Insurance for 18-year-olds: Summed Up




Your company and premium


In a survey we conducted to find which car insurance company provided the cheapest rates for teens, we discovered that Geicoprovided the lowest rate with all other metrics constant, with Progressive coming in second. Our profile was a 17-year-old added to their parent's policy across 5 zip codes in the US. Considering we are focusing on you and your 18-year-old, you should consider what we discuss as a starting point, but continue to research your specific profile across multiple companies.


Our Findings: Car Insurance for 17-year-olds

Insurance CompanyAverage Premium
LocationAverage
State Farm$2,999
Allstate$2,295
Geico$987
Progressive$1,231
Liberty Mutual$1,676




Your age and your premium


For any driver between the ages of 16-85, 16-19-year-olds pay the most for auto insurance, sometimes as much as 3 times the national average. At the end of the day, being 18 means your insurance company sees you as an adult, but not THAT much of an adult to discount your premium. But, take comfort in the fact that as time goes on, your age becomes less of an impact on your car insurance rating. The data referenced below is rating an accident-free 18-year-old on their 50-year-old parent's policy with two standard 2012 vehicles.


Average Premium on Family Plan
AgePremium
16$2,617
17$2,485
18$2,315
19$2,037
20$1,906
21$1,720
22$1,643
23$1,571
24$1,528
25$1,452




Your gender and premium


Your gender can affect your premium just like your age. When evaluating risk, insurance companies see young males as statistically more likely to take unsafe driving risks than young female drivers. Because of this, they are more expensive to insure. On average, 18-year-old males are $269 more per 6-month policy period to insure. Still, it's worth considering that as you age, the difference between men and women becomes less significant. And in fact, some states don't use gender as a metric for determining car insurance rates at all.

Average Premiums for 16-19-year-olds

AgeMaleFemaleDifference
16$2,794$2,440$354
17$2,645$2,325$320
18$2,449$2,180$269
19$2,154$1,191$235
Average$2,511$2,216$295




Your state and your premium


Your premium is at the mercy of state laws and regulations, meaning it will vary based on where you live. By federal law, most states require a mandatory minimum coverage for your bodily injury and property liability, but the monetary amount of this coverage will also vary. If you live in a state like Michigan, where the minimum amount of coverage needed is well above the national average, you're going to be paying much more for auto insurance than other states.

Moreover, the number of people in your state can also impact your auto insurance rate. States with a lesser population, such as Ohio, tend to have lower premiums than states with a greater population. Keeping with the idea of risk management, the more drivers your state has, the more likely you are to be in an accident and insurance companies have to cover that additional risk.


Annual Premium for the Most Expensive States for 18-Year-Olds

StatePremium
Louisiana$10,791
Michigan$8,669
Texas$8,168
Delaware$6,566
New York$6,091




Your car and premium


Just as your vehicle affects your insurance, it also impacts your teen's. A teenager driving a brand new Super Duty Ford F-150 is going to be much more expensive than driving a pre-owned Mazda 3. This is because vehicles, with high MSRP, are capable of serious pickup power, as well as having the ability to go off-road. In simplest terms, because your insurance company sees the cost of having to replace or fix your teen's vehicle as high, they will charge more if it takes more money to do so. A more moderate vehicle, like a sedan, is the better way to go when choosing a vehicle for your teen.





How can I save?



Now that we’ve talked about why it's so expensive to insure 18-year-olds, let’s talk about ways to save.


Good Student Discount

If your child has above a 3.0 (or B) average, insurance companies will return some savings to you for what they see as a responsible and, therefore, less risky client. Combined with a Defensive Driver Discount mentioned below, you can save quite a bit of premium!


Average Savings for Good Student and Good Driver Discount

AgeMaleFemale
16$439$248
17$348$222
18$338$197
19$278$160

Defensive Driver Discount

Young drivers who have taken a professional driving course are less likely to receive a citation or get into an accident. Like the Good Student Discount, your insurance company will usually require proof of this such as a receipt. Not every insurance company offers this discount, so ask your insurance company beforehand!



Student Away from Home Discount

If your young driver is going to be more than 100 miles away from the residence listed on your policy, you can receive what is called a Student Away From Home Discount. You will have to inform your insurance company about this change and they may require proof your teen lives away from home. With this discount, your teen is seen as an infrequent driver and thus the probability of them getting into an accident declines. The amount varies per insurance company, so consult them for details.



Use caution when filing a claim

While having a teen driver on your policy is expensive, it is even more expensive to have a teen driver with a bad driving record on your policy. For an adult, an at-fault accident can raise a car insurance premium an average of $582 per year! Now, most insurance companies will continue to charge you for this at-fault accident for three years. So that $582 will stretch to cost you over $1700 in additional premium. Broken down below, you can see what this would look like on an average premium in the US.


Year After AccidentAverage Annual Premium
0 - No Accident$1,427
1 Year Later$2,009
2 Years Later$2,591
3 Years Later$3,173

Because young drivers are already more likely to receive a citation or be at-fault in an accident, it's crucial that they keep out of trouble so you can maintain a low insurance rate. Reckless driving, texting while driving, or racing other cars can seriously affect your premium. If your teen driver has been in an accident and you're thinking about filing a claim, follow our guide below:

  • Get an estimate for the repairs at a local repair shop
  • Use The Zebra's State of Insurance report to see by how much an at-fault accident would raise your rates in your state. Imagine tacking this figure onto your premium for three years: that is how long most insurance companies will charge you.
  • Compare the out-of-pocket costs to the premium increase you would receive plus your deductible. If it is cheaper to file a claim, do that.

Keep in mind, you will probably still have to report an accident to your insurance company, regardless if you file a claim. Moreover, there will be times when you'll have to file a claim. Here are the cases:


  1. Someone is injured: the costs of bodily injury claims can skyrocket and you will most likely need your liability insurance
  2. If you or your teen driver is the at-fault party and the not-at-fault party does not want to be paid out of pocket.
  3. If you suffer a total loss. Which you can determine above


Shop Around

Although it is exceedingly expensive to insure a teen driver, it isn't impossible. By shopping around with as many insurance companies as possible, you are able to see all of your options and make the best and cheapest choice for you. Enter your zip code below and start shopping with hundreds of local and national insurance companies at once!




Compare over 200 insurance companies at once!

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Summary: Car Insurance for 18-year-olds


The ugly truth of the car insurance for 18-year-olds, or any teen for that matter, is that it's going to be a pricey purchase. The high probability for a filed claim and risky practices make insurance companies nervous about insuring these clients. And any time an insurance company is nervous, you can expect them to ease their nerves with high premiums. But, if you consider companies like Geico and Progressive, as well as purchasing a moderate car, ensuring your child is a good student, and taking defensive driving courses, you and your teen can save on car insurance. However, the absolute best way to save on car insurance is to look for rates every 6 months. Only with the The Zebra can you shop over 200 car insurance companies at once.





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