Car insurance for 18 year olds

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The average price for car insurance for an 18 year old is $5,335 which is drastically more than the national average of only $1,555. Because most 18 year olds don’t have this kind of money readily at their disposal, it’s imperative that they pick the absolute best provider. To do this, they need to know what factors they should be looking for when shopping.

Here’s how to get the cheapest auto insurance as an 18 year old driver.

Cheapest car insurance for 18 year old drivers

Company Average annual rate
Erie $2,413
USAA $3,516
Geico $4,521
Travelers $4,731
AAA $4,868

Erie

Erie currently offers a national average for 18 years olds that is more than $1,000 cheaper than its closest competitor. This makes Erie the go-to insurance provider for many parents and younger drivers. It offers a number of discounts to help get premiums even lower, and has a top notch mobile app that allows you to pay your bill, file a claim and access ID cards.

USAA

USAA is a top tier auto insurance provider for anyone, regardless of his or her age. The downside to it is that it is only available to active and retired military and their immediate family members. However, if you qualify, it’s one of the best insurance providers on the market. If you’re suspicious, check out its J.D. Power and AM Best reviews. It most recently scored a 891 for overall customer satisfaction with JD Power (better even than the ‘official’ winner that didn’t have user requirements), and an A++ (superior) for financial strength with AM Best.

Geico

Geico is a household name for good reason— it offers great insurance products at great prices. It’s a good company for drivers of any age, but younger drivers can especially benefit from using Geico. Geico offers many discounts young drivers can take advantage of:

  • Good Driver
  • Defensive Driving
  • Good Student
  • Multi-Policy
  • Multi-Vehicle

Travelers

Travelers insurance may not offer the cheapest auto insurance for 18 year olds on this list, but it’s not far behind. Plus, you can lower your premium by taking advantage of all of the discounts that it offers. Compared to other national insurance companies, Travelers receives fewer complaints, suggesting it is on top of processing claims.

AAA

In order to gain access to AAA insurance, you first need to join your regional club. This isn’t free, but it’s worth it to gain access to AAA auto insurance. Like other providers, AAA offers numerous discounts (including safe driver discount and student discount). It has an A+ rating with AM Best, meaning it’s a financially strong company that is unlikely to fight you when you file a claim.

Cost of Car Insurance for an 18 Year Old

How much is insurance for an 18 year old? The national average is $5,335 (or $444 per month). Notice this is an average for both males and females. Traditionally, younger men pay more for car insurance. This means that men will pay more than the numbers below while women will pay less. Unfortunately, the discrepancy can be as great as $1,000 or more at times, but it depends on the state.

Average cost of car insurance for an 18 year old

State Average cost
Alaska $4,808
Alabama $5,157
Arkansas $4,569
Arizona $5,340
California $5,484
Colorado $5,632
Connecticut $6,764
District of Columbia $5,613
Delaware $6,594
Florida $7,128
Georgia $5,310
Hawaii $1,186
Idaho $3,320
Illinois $4,788
Indiana $3,141
Iowa $2,688
Kansas $4,262
Kentucky $5,340
Louisiana $7,218
Maine $2,668
Maryland $5,669
Massachusetts $4,941
Michigan $7,262
Minnesota $3,866
Mississippi $4,448
Missouri $4,986
Montana $4,159
Nebraska $3,712
Nevada $7,391
New Hampshire $4,811
New Jersey $7,647
New Mexico $4,216
New York $7,978
North Carolina $2,605
North Dakota $4,190
Ohio $3,294
Oklahoma $4,770
Oregon $4,448
Pennsylvania $4,800
Rhode Island $7,954
South Carolina $4,058
South Dakota $4,079
Tennessee $4,099
Texas $5,967
Utah $4,858
Vermont $3,518
Virginia $3,320
Washington $3,756
West Virginia $4,877
Wisconsin $4,364
Wyoming $4,146

How 18 year old drivers can save money on car insurance

There are a variety of ways a young driver can save money on car insurance each year. Most involve taking advantage of discounts offered by the car insurance company, but there are a few other strategies.

Here are the most common ways an 18 year old can save on car insurance:

Good Student Discount

Teens with good grades are statistically less likely to speed or drive recklessly. For this reason, many insurance providers reward good grades with a monthly discount. The amount of the discount depends on the provider, but most are usually in line with one another.

Usage Based Car Insurance

Usage based car insurance is exactly what you think it is. How much you pay for car insurance depends on how much you actually drive and how you drive it.

Data your provider will use to charge you includes:

  • Distance driven
  • Amount of time driving
  • Type of car driven
  • Location
  • Driving behavior

Defensive Driving Course

Some insurance providers, such as Geico, offer online defensive driving courses for a little over ten dollars. Though it costs money, taking the course often dramatically lowers your premium and pays for itself very quickly. You will want to speak with an agent before you commit to anything, because each state has different requirements for what qualifies as a defensive driving course.

Drive an Older Car

Older cars cost less to replace and therefore aren’t as expensive to insure. If you’re trying to lower how much you pay each month, you can save a lot of money by not driving a new car. Furthermore, the type of car you drive can affect your rates, too. A two seater sports car, for example, will have a higher premium than a minivan.

Opt for a High Deductible

The higher your deductible, the lower your premium. This is true regardless of the type of insurance. Just know that a higher deductible means you will have to shell out more cash should you get into an accident.

Utilize All Discounts

Many providers offer numerous ways to save on your premium. Take a look at what they offer and take advantage of as many discounts as you can. For example, some providers offer digital monitors that analyze how you drive. Drive safely each and every time, and you can receive big discounts (sometimes as high as 30%) on your premium.

Shopping Around

Not every provider weights the same metrics in the same manner— meaning it’s very possible to get dramatically different quotes from different insurance providers. Therefore, before you choose which insurance provider to use, shop around. Don’t just compare quotes but also compare discounts. One provider may appear to be more expensive, but may not be after you utilize all of the discounts you would be eligible for.

Frequently Asked Questions

Why do 18 year olds pay more for car insurance?

It boils down to statistics. Statistically, an 18 year old is more likely to speed, get into an accident and disregard essential safety procedures that seasoned drivers regularly practice. Therefore, an 18 year old is more of a financial risk than older drivers to insurance companies.

How much does car insurance cost for an 18 year old?

There are a variety of factors that influence this. These factors include such things as:

  • State
  • Type of car
  • Discounts
  • Insurance Provider

That said, the national average is currently $5,335.

Which insurance provider is the cheapest for 18 year olds?

Currently, the cheapest auto insurance provider for 18 year olds is Erie insurance with an average annual premium of $2,413.