How Much Does Car Insurance Cost for an 18-Year-Old?
Teens and adults alike are looking for the best car insurance rates. Teens, however, are entering the indemnity global with a blank slate, which means they have no driving commemorate to review. Because of this, they are given the highest possible rates to compensate for potential claims. While rates vary from state to state, nationally, it costs an median of $ 2,867 per year to add an 18-year-old driver to a kin policy and $ 3,997 for an 18-year-old to have an individual policy. expensive, yes, but adding an 18-year-old to a family policy can save an average of $ 1,130 a year.
Annual Car Insurance Premium for a 18-Year-Old
Added to a Family Policy average annual premium $ 2,867
Individual Policy modal annual premium $ 3,997An individual policy is : $ 1,130 more This is 39 % more expensive.
Cheapest Car Insurance for 18-Year-Old Males and Females
While some states don ’ thyroxine permit indemnity companies to set rates for teens based on sex, many places in the U.S. take gender into history when determining your rate. When it comes to 18-year-old drivers, males have higher rates because they typically have higher accident rates and file more indemnity claims. nationally speaking, 18-year-old females pay $ 2,686 average per annum, while 18-year-old males pay $ 3,048, reflecting an average remainder of $ 362 based on gender .
Annual Car Insurance Rates for Males and Females
18-Year-Old Female median annual premium $ 2,686
18-Year-Old Male average annual agio $ 3,048Rates for males are : $ 362 more This is 13 % more expensive.
Cheapest Car Insurance Companies for 18-Year-Old Drivers
policy companies have their formulas for determining rates, which means that the same driver could get quotes from multiple companies with significant price differences. The car insurance for an 18-year-old driver added to a family policy can range from an average of $ 2,526 to $ 3,687, which is a 32 % deviation in price. Keep in heed that this is a national average. Depending on the express you live in and other rate factors, your premium could be importantly more or less than either of these extremes.
Cheapest Companies for 18-Year-Olds Added to Family Policy
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- company annual premium
- 1. express farm $ 2,890
- 2. GEICO $ 3,446
- 3. Allstate $ 3,521
- 4. nationally $ 4,212
- 5. progressive $ 6,280
Adding a adolescent to a family policy is one direction to save a meaning amount of money on indemnity premiums. Because policy companies typically offer discounts for having multiple cars on a policy and bundling policies, an 18-year-old who is added to a family policy policy benefits from all of those discounts.
CHEAPEST COMPANIES FOR A 18-YEAR-OLD’S INDIVIDUAL POLICY
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- company annual bounty
- 1. state farm $ 2,890
- 2. GEICO $ 3,446
- 3. Allstate $ 3,520
- 4. nationally $ 4,212
- 5. progressive $ 6,280
Car Choice Matters When Insuring a Young Driver
One of the best ways for teens to keep indemnity costs low is to choose their vehicle wisely. expensive, high-performance vehicles will drive up rates, and lenders require that financed vehicles carry comprehensive examination and collision coverage. Selecting a practice Toyota or alike fomite over a new muscleman car can save you quite a bit of money on car insurance.
Teen Car Insurance Rates by Vehicle Type
Teen Car Insurance Rates by Vehicle Type
Camry average annual premium $ 2,867
Mustang GT median annual agio $ 4,171Driving a Mustang could cost : $ 1,304 more This is 45 % more expensive.
Strategies to Save Money on Car Insurance for an 18-Year-Old
There are many ways to save money on insurance for your 18-year-old driver. As mentioned above, adding your adolescent to your family policy offers significant savings over having an individual policy. This international relations and security network ’ t the lone way to save money on indemnity for adolescent drivers, however.
Compare Quotes for the Best Policy for Your Family
Comparing quotes from multiple car policy companies is one of the most effective ways to save money on car policy. Getting multiple quotes will help you find the lowest available rates for an 18-year-old driver, with our studies showing price differences of up to 40 % between the cheapest and most expensive policies for teens.
Monitor Your Teen Driver to Ensure a Clean Driving Record
A clean drive record is absolutely necessary to keep adolescent policy rates a low as potential. A single ticket or accident can cause their insurance rates to increase significantly. A relatively newfangled way to save money on car indemnity for teens is to sign up for a tug tracker. many indemnity companies immediately offer a assortment of devices and mobile phone apps that can monitor your driving habits and honor you for safe drive. This only saves money for teens who are safe drivers, though, thus consider this option carefully.
Find Companies That Offer Teen Discounts
Some car insurance discounts alone apply to teen drivers. For exemplar, most policy companies offer good student discounts. GEICO offers this discount for students who have a B average or higher. still, each company has its own standards, so it is substantive to check with your insurance company to determine precisely what the requirements are for the effective student dismiss. Another coarse deduction offered by many policy companies is an “ Away At School ” discount. This rebate could apply if your 18-year-old is going to college at least 100 miles away from home plate and leaving their cable car behind. If they take their cable car with them to school, the dismiss does not apply. safe drive courses can besides earn your adolescent driver a rebate on their insurance. Beyond the immediate rebate, taking a safe drive naturally can help reduce accident rates, which will save your family money over time. You will need to check with your policy company to make sure they offer this discount rate before you sign up your adolescent for the class.
Lower the Coverage Amount
When thinking about what cable car to choose for a adolescent driver, an older, more low-cost vehicle can help you save money on your cable car policy. If you can afford to replace the car out of pocket, a liability-only car policy policy can be an excellent way to save money on your indemnity. MoneyGeek analyzed dozens of car policy companies across hundreds of cities and all 50 states to find the cheapest liability-only car indemnity companies. If you buy a newfangled fomite with a loanword, the lender may require that you carry comprehensive and collision coverage. In contrast, a vehicle that costs several thousand dollars to replace in the event of an accident may need to carry full coverage flush if you aren ’ metric ton dealing with a lender. Choosing a bum, older mannequin can let you use liability-only coverage to keep insurance costs low.
Choose a Sedan Over a Sports Car
Choosing the right fomite for your adolescent can save you hundreds of dollars each year. A sports cable car or lavishness vehicle might be fun to drive, but these cars will importantly increase policy costs for a fresh driver. A dependable, simple sedan is often the cheapest fomite to insure for a adolescent. For model, the monetary value of insuring a Toyota Camry for an 18-year-old is, on average, $ 2,867 each year. On the other hand, the monetary value of insuring a Mustang GT is about $ 4,171 each year. You can save an average of $ 1,304 annually by choosing a Camry over a Mustang.
Why Is Car Insurance So Expensive for an 18-Year-Old?
car insurance for 18-year-old drivers is expensive because policy companies use your driving history to determine your indemnity rates. If you have no drive experience, they mechanically default to a presumption that you will file a title. Insurers besides do a fair total of research into statistical groups, with years of records indicating that adolescent drivers are more probably to be heedless behind the roulette wheel than drivers in other age groups.
Traffic Statistics for 18-Year-Old Drivers
Rating drivers on these factors may seem tenuous, but the number of fateful crashes, injuries and other accidents don ’ deoxythymidine monophosphate lie. According to the chart below, 16- and 17-year-old drivers were involved in 3.75 black crashes for every 100 million miles drive. The numbers show that 18- and 19-year-old drivers were merely involved in 2.47 fateful crashes, while 20- and 21-year-old drivers were involved in 2.15 fateful crashes. Driving does get safer as you get older and have more drive experience.
Accidents per 100 Million Miles Driven
| Driver Age | fateful Crashes | injury Crashes | All Crashes |
|---|---|---|---|
| 16–17 | 3.75 | 361 | 1,432 |
| 18–19 | 2.47 | 197 | 730 |
| 20–24 | 2.15 | 157 | 572 |
While there are fewer adolescent fatal accidents per head, there are importantly higher rates of adolescent drivers involved in fatal accidents per miles drive. Older drivers outnumber younger drivers by a significant total, but for the number of miles they drive, teens are involved in more accidents. The number of fateful accidents among teens is higher than among adults. In some instances, teens have double or triple the total of automobile fatalities of other age groups .
States With the Highest Car Insurance Cost for a 18-Year-Old
car insurance rates are determined at the state of matter level. This means that the like person could see a meaning deviation in their indemnity rates by moving from one state to another. Teens in Michigan, Louisiana and New York will have some of the highest indemnity rates in the state.
Top 10 Most Expensive States for 18-Year-Old
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- state annual agio
-
MI
$8,607
-
NY
$7,930
-
LA
$7,028
-
MD
$5,249
-
FL
$4,541
-
RI
$4,533
-
GA
$4,179
-
NV
$3,657
-
NJ
$3,635
-
PA
$3,502
Some states have much lower rates for teens. sometimes this is because the legislature doesn ’ t allow insurance companies to rate customers based on old age. other times, it is because the population of an area is much lower, reducing the likelihood that a driver of any age will be in an accident. Hawaii and Iowa are the states with the lowest rates for 18-year-old drivers.
Cheapest Car Insurance Company by State
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- state company
-
AK
GEICO
-
AL
GEICO
-
AR
Allstate
-
AZ
GEICO
-
CA
Allstate
-
CO
Allstate
-
CT
GEICO
-
DC
GEICO
-
DE
GEICO
-
FL
GEICO
-
GA
Allstate
-
HI
State Farm
-
IA
GEICO
-
ID
Allstate
-
IL
Progressive
-
IN
GEICO
-
KS
Progressive
-
KY
Allstate
-
LA
State Farm
-
MA
State Farm
-
MD
Allstate
-
ME
Allstate
-
MI
Progressive
-
MN
State Farm
-
MO
Allstate
-
MS
Allstate
-
MT
State Farm
-
NC
State Farm
-
ND
Progressive
-
NE
Progressive
-
NH
Progressive
-
NJ
GEICO
-
NM
Progressive
-
NV
Allstate
-
NY
Allstate
-
OH
GEICO
-
OK
Allstate
-
OR
GEICO
-
PA
Allstate
-
RI
State Farm
-
SC
GEICO
-
SD
Allstate
-
TN
GEICO
-
TX
State Farm
-
UT
GEICO
-
VA
Progressive
-
VT
Allstate
-
WA
GEICO
-
WI
GEICO
-
WV
State Farm
-
WY
Allstate
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Methodology
MoneyGeek collected data for 18-year-old drivers to determine average rates for car policy. Because insurance rates are based on a kind of personal factors, your rates may be higher or lower than those listed in this article. You can see the information used to determine these averages on our methodology and disclaimer page.
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About the writer
Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour and Cracked. She has besides worked in the policy industry for more than a ten, earning her P & C license in all 50 states and her Life, Health and AD & D license in New York and the surrounding states.