Average Car Insurance Cost for an 18-Year-Old

According to our study, the average cost of full coverage auto insurance for people above the age of 18 is $7,396 per year or $616 per month. With an average annual premium of $3,173, Erie provides the lowest vehicle insurance for people above the age of 18.

We evaluated prices for people above the age of 18 based on characteristics such as age, gender, insurer, and state to help you with your search for auto insurance. Based on our study of hundreds of estimates from 29 insurers across the country, Erie, Geico, and USAA were the lowest firms. We recommend browsing around for quotes from multiple insurers to discover the best rates.

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What is the cost of auto insurance for 18-year-old drivers?

An 18-year-old driver's full-coverage vehicle insurance costs an average of $7,396 per year or $616 per month. We discovered a $7,551 differential in annual prices between Erie, the cheapest insurer, and Allstate, the most expensive insurer. Price disparities like this demonstrate why it's critical to compare insurance quotes to ensure you obtain the best prices.

• Erie has the lowest rates, at $3,173 a year, but it is only offered in 13 states.

• USAA had the second-lowest prices among the insurers we looked at, with an annual cost of $3,963. However, the company exclusively provides car insurance to current and past military personnel, as well as their families.

• Geico is the cheapest vehicle insurance carrier for people above the age of 18 that is widely available across the country, with an annual price of $4,224.

How do 18-year-old auto insurance prices compare to other ages?

Drivers under the age of 25 typically have higher insurance rates because they are deemed to be higher-risk drivers. Your insurance rates should begin to fall as you get older and have more years of driving experience. For example, someone turning 18 will see their annual rate drop by $1,445 on average.

The average cost of automobile insurance for male and female 18-year-old drivers

The average cost of automobile insurance for female 18-year-old drivers is less than that of male 18-year-old drivers. Female 18-year-old drivers pay an average of $7,030 per year, while male drivers pay $7,762.

According to the Centers for Disease Control and Prevention, the motor vehicle death rate for male drivers aged 16 to 19 is more than double that of female drivers in the same age group, putting male teens at a much higher risk to insurers. However, certain jurisdictions restrict insurers from using gender to calculate vehicle insurance prices, including California, Hawaii, Massachusetts, Michigan (in specific cities), Montana, North Carolina, and Pennsylvania. All else being equal, male and female drivers in these states should pay the same price for vehicle insurance coverage.

Do auto insurance prices decrease after the age of 18?

According to our research, most young drivers' insurance prices drop by 12% when they reach the age of 18. You pose less of a risk to insurers as an 18-year-old than freshly licensed 16- and 17-year-olds, and your prices reflect that. This rule does not apply to new drivers. If you are an 18-year-old new driver looking for auto insurance for the first time, you will most certainly spend more than a motorist who was licensed at 16 and has two years of driving experience.

State-by-state comparison of the cheapest vehicle insurance companies for people above the age of 18
According to our research, Geico is the cheapest insurance in three of nine states.

State-by-state comparison of the cheapest vehicle insurance for people above the age of 18

North Carolina is the cheapest state for an 18-year-old to purchase vehicle insurance, with an annual premium that is 54% less than the national average. Michigan is by far the most expensive state, with annual vehicle insurance prices nearly three times more than the national average for people above the age of 18.

Is it possible for an 18-year-old to have auto insurance?

An 18-year-old can get their own auto insurance policy. However, if possible, we advocate being added to your parents' coverage because it is less expensive than acquiring your independent policy. The average yearly cost of adding an 18-year-old to a parent's automobile insurance policy is $3,020, whereas the average annual cost of having their car insurance is $7,178.

When parents add a juvenile driver to their insurance, their rates are likely to rise, but by requesting discounts, they can help offset the extra cost. If the kid has a different car, for example, parents may be able to get a multi-car discount. In addition, If parents continue to insure their teen's vehicle with the same insurer, then may be awarded with a loyalty discount.

How to Get Cheap Car Insurance When You're 18

Aside from remaining on your parents' policy, the greatest way to obtain low-cost vehicle insurance quotes is to browse around. Prices might vary by thousands of dollars, so contact several insurers to compare rates. There are, however, several different techniques that 18-year-olds might employ to acquire auto insurance deals:

Examine your options for discounts. Many discounts are available from insurers, and you may be eligible for some of them. If you are an 18-year-old high school or college student, you can qualify for a good student discount on vehicle insurance if your GPA remains above a particular level. College students who leave their car at their parents' house throughout the academic year and attend a university more than 100 miles away are frequently eligible for an away-from-home student discount, as well as a low-mileage discount. Alternatively, if you are financially independent of your parents and live apart from them, you can save money on auto insurance by bundling it with renters or homeowners insurance.

Drive a low-cost vehicle. Expensive cars are more expensive to fix, which means they are also more expensive to insure. According to our analysis, the vehicles with the lowest insurance rates for people above the age of 18 include SUVs like the Subaru Outback and the Buick Encore, as well as safer sports cars like the Mazda MX-5 Miata and the Volkswagen Golf GTI.

Boost your deductible. A greater deductible is another option to reduce your insurance costs. However, if you file a claim, you will have to pay more out of pocket.

Make use of a telematics program. You can demonstrate that you're a safe driver worthy of lower premiums by Using a telematics tracking device, you can share your driving data with your vehicle insurer. If you're a typically safe driver, usage-based vehicle insurance allows you to earn big savings.

Rethink how much coverage you require. While 18-year-old drivers are significantly more likely to be in an accident, it's usually a good idea to acquire a full-coverage policy that includes both collision and comprehensive insurance. Minimum-coverage insurance, on the other hand, would work if, like many young drivers, you have an older car and repairs would cost more than the car is worth.

Obtain many quotes. To obtain the greatest prices and coverage, it's always a good idea to shop around and acquire quotations from multiple insurers.

Car insurance for people above the age of 18 on a short-term basis

Short-term automobile insurance is not sold by reputable car insurance firms. Don't be lured if you're an 18-year-old driver and see commercials for one-day, one-week, or one-month vehicle insurance. Insurance policies are often only available in six-month or one-year durations, with the option to terminate at any time and pay monthly.