Car insurance for 18-year-olds

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

Navigating car insurance at 18 can be a complex journey, with costs varying significantly based on whether you're branching out with your own policy or staying under the protective wing of your parents' plan. For 18-year-olds venturing into insurance independence, premiums are on the higher side, with the average full coverage policy now standing at $6,488 annually and minimum coverage at $1,952. Opting to remain on a parents' policy softens the financial blow, bringing the average down to $4,258 for full coverage and $1,273 for minimum coverage annually.

This stark difference in costs can be attributed to the relative inexperience of young drivers. With less time behind the wheel, 18-year-olds are viewed through a lens of higher risk by insurance providers. This perspective is backed by actuarial data, as drivers aged 16 to 19 are more prone to accidents than any other age group. Despite this, sticking to a parents' policy can offer a financial reprieve, with 18-year-olds benefiting from slightly lower rates than their slightly younger counterparts, indicating a small but notable decrease in premiums as teens edge closer to adulthood.

The gravity of this situation is underscored by statistics from the National Highway Traffic Safety Administration (NHTSA), which reveal a concerning trend: car crashes remain the leading cause of death for teenagers in the United States, with 2,608 young lives lost in 2021 alone. These sobering figures highlight the critical nature of adequate insurance coverage, as insurers price policies to reflect the elevated risks associated with insuring young drivers.

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

Gender can be used as a rating factor in all but six states — California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania. Male drivers can typically expect to pay higher car insurance premiums compared to female teen drivers, on average. Why? Male drivers statistically engage in riskier driving behaviors, which can lead to a greater number of and more severe accidents.

The table below breaks down the average cost of both full coverage and minimum coverage car insurance for 18-year-old males and females on their own policies. It is important to note that in the six states that ban the use of gender as a rating factor, men and women pay close to the same amount for insurance if all other rating factors are equal.

Cheapest car insurance companies for 18-year-olds

One of the easiest ways to save money on your car insurance is to choose a company with low average premiums. Bankrate’s insurance editorial team obtained average premium information for the largest carriers by market share in the country. We then analyzed the premiums to find the companies that offer low average car insurance for 18-year-olds. Based on our findings, the cheapest car insurance companies are USAA and Nationwide for 18-year-old drivers, both on their parents’ policy and on their own.

When looking for a car insurance company, whether for yourself or your family, it’s important to find a carrier with strong financial strength ratings, dependable customer service and options that you want to personalize your policy. The table below shows the cheapest car insurance rates for 18-year-old drivers for both scenarios, but keep in mind that the rates are averages, and individual premiums will vary based on multiple rating factors like vehicle make and model, driving record and claims history.

Average car insurance cost for 18-year-olds by state

Location is often an important factor when it comes to car insurance. Whether you’re moving to another city or another state, you can expect that your car insurance rate may be affected. However, some states ban the use of ZIP codes, such as Michigan, while another, like California, limits how they can be used.

How 18-year-old-drivers can save money on car insurance

There are a variety of ways that young drivers may be able to save money on car insurance. Taking advanced driver training programs, like teenSMART offered by Allstate, is just one option. Most involve taking advantage of the best car insurance discounts available, but there are a few other strategies.

If you’re an 18-year-old driver looking for ways to save on your car insurance, you may want to look into these tips.

Good student discount

Teens enrolled in high school or college with good grades are statistically less likely to speed or drive recklessly. For this reason, many insurance providers reward good grades with a discount. You will likely only be eligible for this discount if you are a full-time student, and you will probably need to provide a copy of your most recent grade card to prove that your grades qualify. Every insurance company will have its own underwriting regulations, but many providers require you to be under 25 and maintain a GPA of at least 3.0.

Distant student discount

If you plan to go to college without taking a vehicle, you might qualify for a “distant student” discount. However, this option is typically only available if you are insured on your parents’ policy. Usually, you will still be covered to drive when you are home on breaks, but you may want to check with your company to determine its specific rules.

Usage-based car insurance and telematics discounts

Many companies offer discount programs that track your driving habits via a mobile app or telematics device and award you a personalized discount. Usage-based programs, like Nationwide’s SmartMiles, track your mileage and allow you to pay based on the number of miles you drive because being on the road less means you are at a lower risk of getting into an accident. Other telematics discounts, like Progressive’s Snapshot or State Farm’s Steer Clear, track your habits behind the wheel as well as your mileage, speed, hard braking and rapid accelerations to award discounts based on your driving performance.

Opt for a higher deductible

If you have full coverage, your policy likely has two deductibles: one for comprehensive coverage and one for collision coverage — there is no deductible for a liability claim. If you file a claim for damage to your vehicle, you will pay the appropriate deductible, and the insurance company will pay the rest of the claim. Generally, increasing your deductible lowers your premium because you are willing to pay more out of pocket in the event of a claim, which saves the company money. However, you should make sure you can afford to pay the deductible if you do file a claim.

Utilize discounts

While many insurers offer common discounts for good grades or safe driving, 18-year-olds can explore additional savings avenues that might not be as well known. If your vehicle is equipped with advanced safety features, you might qualify for further reductions. Additionally, aligning your insurance provider with your parents' could present loyalty discounts. Moreover, consider bundling a renters insurance policy with your auto insurance for potential savings, a strategy that not only simplifies your insurance landscape but can also lead to a more favorable rate.

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

Securing car insurance at 18 doesn't have to be difficult, even if you are a first-time buyer. However, it's essential to navigate this task with care, especially in light of the 26 percent increase in average full-coverage auto insurance rates across the U.S. in 2024. This spike underscores the need for diligent research and a deep dive into the intricacies of the insurance market before committing to a policy. Before you shop, it might help to do the following:

• Understand how to read a quote: Car insurance policies include several coverage types. Understanding what those coverage types are and what they mean might help you to choose the options that fit your needs.
• Think about your individual needs: Do you want a company that offers a mobile app? Are you looking for ridesharing coverage for your Uber or Lyft job? How much money can you spend on your car insurance? Knowing what factors are important to you could simplify your shopping process.
• Get quotes from several companies: Once you know what factors matter to you, you can get quotes from several companies that fit your needs. This will allow you to compare the premiums, coverage options, discounts, policy features and third-party scores. Just make sure you’re getting quotes for the same coverage types and limits from each company to compare rates accurately.
• Take advantage of discounts: Many insurers offer a variety of discounts that might not be automatically applied to your policy. Engaging with a company representative or your insurance agent could uncover additional savings opportunities that you may be eligible for.

If you are completely new to purchasing auto insurance, talking to a licensed agent when you begin to shop for coverage might be helpful. A licensed insurance professional can help you decide what type of coverage is best for your situation.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.