You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the technical advice and tools needed to succeed throughout life ’ s fiscal journey. Bankrate ’ s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow rigid guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. then, whether you ’ re reading an article or a review, you can trust that you ’ re getting credible and dependable information. We respect your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial subject to ensure the information you ’ ra reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive address recompense from our advertisers. Bankrate follows a rigid editorial policy, so you can trust that we ’ re putting your interests first gear. Our award-winning editors and reporters create honest and accurate content to help you make the right fiscal decisions. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we ’ ra putting accuracy first. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — thus you can feel confident about which provider is right for you. Bankrate follows a rigid column policy, so you can trust that we ’ re putting your interests first. All of our capacity is authored by highly qualify professionals and reviewed by topic matter experts, who ensure everything we publish is objective, accurate and worthy of your trust. Founded in 1976, Bankrate has a long track phonograph record of helping people make smart fiscal choices. We ’ ve maintained this repute for over four decades by demystifying the fiscal decision-making summons and giving people confidence in which actions to take future. While we adhere to strict editorial integrity, this station may contain references to products from our partners. here ‘s an explanation for how we make money. This content is powered by HomeInsurance.com ( NPN : 8781838 ). For more data, please see our Insurance disclosure. The average 18-year-old driver on a separate policy from their parents pays $ 5,243 per annum for full coverage car policy and $ 1,652 per annum for minimum coverage, according to Bankrate ’ south survey of quoted annual premiums. On average, car insurance rates for 18-year-olds are a lot higher than the average monetary value of car policy in the nation as a whole. youthful drivers have less drive know on the road and are generally viewed by policy companies as more probably to cause accidents. Understanding how your car indemnity rates are calculated and what you can do to lower your premium might help you learn how to handle your cable car insurance .
How much is car insurance for 18-year-olds?
by and large, 18-year-olds give relatively high premiums for car indemnity, with the average wide coverage policy costing $ 5,243 per year and minimum coverage costing $ 1,652 per year. This is due in large separate to the fact that 18-year-olds have not been driving for long. Drivers between the ages of 16 and 19 are at a higher risk for being involved in drive fomite accidents than any other historic period group. additionally, statistics from the National Highway Traffic Safety Administration ( NHTSA ) show that car accidents are the leading campaign of adolescent deaths in the nation, with over 2,000 young drivers between ages 15 and 19 killed in 2018 alone. To offset these increased risks, indemnity companies charge more for young drivers .
Average cost of car insurance for 18-year-old males vs. females
sex can be used as a military rank factor in every state except California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania. Male drivers can typically expect to pay higher car policy premiums, on average. Why ? male drivers statistically engage in riskier drive behaviors, which can lead to a greater number of and more dangerous accidents. The table below breaks down the average price of both full coverage and minimum coverage car indemnity for 18-year-old males and females on their own policies. It is authoritative to note that indemnity laws vary by express and that there are states which ban the use of sex as a rat gene. In these states, men and women pay close to the same amount for insurance if all other factors are equal .
| Average annual full coverage premium | Average annual minimum coverage premium | |
|---|---|---|
| Male | $5,646 | $1,753 |
| Female | $4,839 | $1,551 |
Cheapest car insurance companies for 18-year-olds
One of the easiest ways to save money on your car policy is to choose a company with low average premiums. Bankrate ’ s insurance editorial team obtained average premium data for the largest carriers by market plowshare in the state. We then analyzed the premiums to find the companies that offer low average car indemnity rates for 18-year-olds. The median full coverage premium for each of these companies is good below the national average for 18-year-olds with broad coverage, which is $ 5,243 per year. The cheapest company on our number for entire coverage indemnity is Erie, coming in at alone $ 2,950 per year. however, keep in mind that the car indemnity rates below are averages and your individual premiums will vary based on your individual characteristics such as fomite make and model, driving criminal record and claims history .
| Company | Average annual full coverage premium | Average annual minimum coverage premium |
|---|---|---|
| Erie | $2,950 | $903 |
| USAA | $3,361 | $1,046 |
| Auto-Owners | $3,529 | $1,086 |
| Geico | $3,672 | $1,010 |
| Country Financial | $3,821 | $1,166 |
Erie
Erie is a regional carrier and international relations and security network ’ triiodothyronine available countrywide, but if you live in one of the 12 states where it is available, you may want to consider getting a quotation. The carrier has the lowest average rate for both full coverage and minimum coverage for 18-year-olds, according to our research. Erie besides offers numerous optional coverage types, a well as respective discounts that teen drivers might be able to take advantage of. Erie besides received the second-highest official score in the 2021 J.D. Power U.S. Auto Claims Satisfaction Study, indicating that customers are by and large satisfied with its claims military service. Learn more: Erie Insurance review
USAA
USAA systematically receives high scores from J.D. Power, although the policy company is not eligible for official ranking due to its eligibility restrictions. USAA ’ south coverage is alone available to active and retire military and qualifying family members. If your parents have had USAA car indemnity, you might get a deduction for family commitment. If you have taken a drive aim course or you maintain good grades, you might save even more. Learn more: USAA Insurance review
Auto-Owners
Auto-Owners, like Erie, is a regional carrier and is presently available in 26 states. The company offers three specialize adolescent discounts : thoroughly student, student away at school and adolescent driver monitoring rebate. In summation to those discounts, you might save by paying in full, having another policy with Auto-Owners or signing up for a paperless policy. Auto-Owners besides receives a low ailment index from the National Association of Insurance Commissioners ( NAIC ). A score of 1.00 indicates that the NAIC received an average number of complaints. Auto-Owners personal car product has a seduce of 0.86, meaning the NAIC received fewer complaints about Auto-Owners than the industry baseline. Learn more: Auto-Owners Insurance reappraisal
Geico
Geico is systematically one of the cheapest car insurance companies. Although its premiums are not the lowest for 18-year-olds on a national-average basis, the company could provide competitive rates in your sphere. Geico is besides known for offering a hanker list of discounts that might help you keep your premium down. You could save by having a car with sealed vehicle condom features, being a good student and flush wearing your seat belt. Learn more: Geico Insurance review
Country Financial
Country Financial may not be as familiar to you as some of the other companies on our list, but the company does offer average premiums that are far less than the national average cost of car indemnity for 18-year-olds. Country Financial entirely sells policy in 19 states, and if you are eligible for coverage, you may want to get a quote. The ship’s company offers a good scholar discount and driver aim deduction, a well as more traditional discounts like safety features and defensive driver. Learn more: Country Financial Insurance review
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 policy. Most involve taking advantage of the best car indemnity 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 with good grades are statistically less likely to speed or drive recklessly. For this reason, many policy providers reward good grades with a discount. You will likely only be eligible for this deduction if you are a full-time student, and you will credibly need to provide a copy of your most recent grad menu to prove that your grades qualify. Every indemnity caller will have its own regulations, but many providers require you to be below the age of 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 “ distance scholar ” deduction. however, this option is typically merely available if you are insured on your parents ’ policy. normally, you will placid 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 are offering dismiss programs that track your driving habits and award you a personalized rebate. Usage-based programs, like Nationwide ’ randomness 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 gamble of getting into an accident. other telematics discounts, like Progressive ’ sulfur Snapshot, track your habits behind the wheel adenine well as your mileage, like your speed, hard brakes and rapid accelerations, to award discounts based on your performance .
Opt for a higher deductible
If you have broad coverage, your policy likely has two deductibles : one for comprehensive coverage and one for collision coverage. 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 bounty, because you are volition to pay more in the consequence of a claim, which saves the company money. however, you should make indisputable you can afford to pay the deductible if you do file a claim .
Utilize discounts
Most policy companies offer discounts, and taking advantage of vitamin a many as you can might help you save. On crown of good scholar, distant student and telematics discounts, you may be able to save by having a vehicle with base hit features like anti-lock brakes, getting insurance with the lapp company as your parents and buying a renters indemnity policy from the lapp company as your car indemnity .
How to get the best insurance for 18-year-olds
Although you may be purchasing car insurance for the foremost time as an 18 class old, finding the right coverage for you does not have to be a unmanageable process. It does, however, require a bite of research and sympathize. Before you shop for indemnity, it might help to :
- Understand how to read a quote: Car insurance policies compile 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: Not all discounts are applied automatically. Talking to a representative could help you find additional ways to save.
If you are wholly fresh to purchasing car policy, talking to an agent might be helpful. A accredited policy professional can help you decide what type of coverage is best for your position .
Frequently asked questions
Should I get my own coverage or stay on my parents’ policy?
If you still live at home, you may be able to stay on your parents ’ car insurance policy. broadly, this is going to be a less expensive option. however, if you live on your own or own your car without a parent as a co-signer, you will typically need your own policy .
What is the difference between minimum coverage and full coverage?
minimum coverage refers to purchasing entirely your department of state ’ s minimal ask car insurance coverage and levels. These will vary by express. Full coverage refers to adding comprehensive examination and collision coverage, which adds coverage for price to your own vehicle. Some car insurance companies may besides consider policies that include uninsured motorist coverage and roadside aid a wax coverage policy .
How do I know how much coverage to buy?
How much car policy you purchase is a personal decisiveness. When you buy coverage, you will have to purchase at least your submit ’ south minimum limits — cable car indemnity companies will not let you purchase less. however, most indemnity agents recommend that you buy higher liability limits to provide better fiscal protection in case you cause an accident. If you have a loan or lease, your lender will probably require you to carry full coverage. Your coverage limits, deductibles and the optional coverage types you choose will depend on your alone situation .
At what age does car insurance get cheaper?
In about all states, your historic period and gender play a huge function in how much you pay for car indemnity. Premiums tend to peak for 18-year-olds and then begin to drop. average indemnity rates drop until around age 70, when they can start to creep up again. however, age and gender aren ’ t the only factors that impact your premium. Your choice of fomite, the coverage types and levels you buy, your driving history and the submit you live in will all impact how much you pay .
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on an 18-year-old male and female driver with a clean drive record, good credit and the follow wax 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 minimal coverage limits, Bankrate used minimal coverage that meets each submit ’ s requirements. Our base profile drivers own a 2019 Toyota Camry, change five days a week and drive 12,000 miles per annum.
Read more: Can I Buy Temporary Car Insurance?
These are sample rates and should only be used for comparative purposes. Age: Rates were calculated by evaluating our base profile with the ages 18-60 ( al-qaeda : 40 years ) applied. Depending on age, drivers may be a renter or homeowner. Age is not a lend rate factor in Hawaii and Massachusetts. Gender: The be states do not use gender as a determining factor in calculating premiums : California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania .