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Best Car Insurance for 18-Year-Olds in 2024

A study found that the average car insurance cost for an 18-year-old is a staggering $4,958 per year. But don’t worry. Here are some tips to secure affordable car insurance for 18-year-olds. Read on to know more.
car insurance for 18-year-olds
Best Car Insurance for 18-Year-Olds in 2024
Discounts are the way to go when looking for the best car insurance for 18-year-olds. These could be student discounts, low-mileage discounts, or accident-free driving discounts.
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Finding affordable car insurance for 18-year-olds can be daunting. With limited driving experience and a higher risk profile, insurance premiums for young drivers can be significantly higher than those for experienced drivers. A study found that the average car insurance cost for an 18-year-old is a staggering $4,958 per year. 

Many factors contribute to this high cost, but there are also ways for to save money on car insurance

This blog post will help us explore affordable car insurance for 18-year-olds. 

8 Best Car Insurance For 18-Year-Olds

While there is no one-size-fits-all answer to which car insurance company is best for 18-year-olds, some companies are generally more affordable for young drivers than others. Here are eight options to consider:

1. Beem

Best Car Insurance For 18-Year-Olds - Beem

Beem is a platform that offers the cheapest car insurance options for 18-year-olds. Beem offers a variety of car insurance discounts for young drivers, including good student discounts, low mileage discounts, and accident-free driving discounts. Additionally, by comparing quotes via Beem, you can save significantly on your annual car insurance premium.

2. USAA (United Services Automobile Association)

Best Car Insurance For 18-Year-Olds - USAA

USAA (United Services Automobile Association) is another good option for young drivers, with average annual rates of around $3,200. USAA membership is limited to current and former military members and their families, but it’s worth considering if you qualify.

3. GEICO

Best Car Insurance For 18-Year-Olds - GEICO

GEICO is a popular choice for drivers of all ages and offers competitive rates for young drivers. Its average annual rate for 18-year-olds is around $3,500. GEICO It’s recognized as the top choice for affordable auto insurance and also offers the best car insurance for high-risk drivers.

4. State Farm

Best Car Insurance For 18-Year-Olds - State Farm

State Farm is another major insurer that offers the best car insurance for young and first time drivers. Its average annual rates for 18-year-olds are around $3,800.

5. Allstate

Best Car Insurance For 18-Year-Olds - Allstate

Allstate is a popular option that offers various coverage options for young drivers. Its average annual rate for 18-year-olds is around $4,000.

6. Nationwide

Best Car Insurance For 18-Year-Olds - Nationwide

Nationwide is another major insurer that offers competitive rates for young drivers. Its average annual rates for 18-year-olds are around $4,200.

7. Auto-Owners Insurance

Best Car Insurance For 18-Year-Olds - Auto-owners insurance

Auto-Owners Insurance is a regional insurer that offers competitive rates in many states. Its average annual rates for 18-year-olds vary depending on location but are generally lower than the national average.

8. American Family Insurance

Best Car Insurance For 18-Year-Olds - American Family Insurance

American Family Insurance is another regional insurer that offers competitive rates in many states. Its average annual rates for 18-year-olds vary depending on location but are generally lower than the national average.

Tips for Finding Affordable Car Insurance for 18-Year-Olds

Many youngsters and college students have an interest in getting car insurance. Even if you choose one of the companies on the list above, there are still some steps you can follow to lower your car insurance rates:

1. Comparison shop

Don’t just go with the first company you get a quote from. Get quotes from several different companies before making a decision.

2. Take advantage of discounts

Many companies offer discounts on auto insurance for young drivers. These include good student discounts, low mileage discounts, and accident-free driving discounts. Be sure to ask about all the discounts you may be eligible for.

3. Opt for higher deductibles

The deductible is the amount you must pay out of pocket before coverage kicks in. A higher deductible often translates to lower monthly premiums. However, it’s important to choose a deductible you can afford to pay in an accident.

4. Consider usage-based insurance

Usage-based insurance programs track how much you drive and how safely you drive. These programs can be a good option for young drivers who don’t drive very often or who have a clean driving record.

How Much Is Car Insurance for 18-Year-Olds?

The average cost of auto insurance for 18-year-olds is $4,958 per year. However, the actual cost of vehicle insurance can vary depending on several factors, including:

Location: Car insurance rates are typically higher in urban areas.

Driving record: Young drivers with a history of accidents can have a higher cost of car insurance. 

Why Is Car Insurance So Expensive for 18-Year-Olds?

There are several reasons why car insurance is so expensive for 18-year-olds:

1. Lack of driving experience

Statistical data shows that young drivers are more likely to meet with accidents. This is due to a combination of factors, including inexperience behind the wheel, a higher propensity for risk-taking behavior, and, often, distractions like passengers. Insurance companies often consider young drivers to be a higher risk. This, in turn, is reflected in their premiums.

2. Age

In addition to lack of experience, simply being young is a factor that insurance companies consider. Teenagers are generally seen as less responsible than adults, which can lead to higher premiums.

3. Vehicle choice

Young drivers are more likely to choose sporty or high-performance vehicles, which are typically more expensive to insure than sedans or minivans.

Conclusion

Getting vehicle insurance can be a significant expense for 18-year-olds. However, young drivers can find affordable coverage through thorough research, taking advantage of discounts, and choosing an inexpensive car to insure. There are resources available to help young drivers find affordable car insurance. 

Additionally, Beem can be a valuable tool in the quest for affordable car insurance for 18-year-olds. By leveraging technology and focusing on young drivers, platforms like Beem offer competitive rates and help young adults get on the road safely.

FAQs

Should my 18-year-old have their own car insurance?

Yes, all drivers must have car insurance. If your 18-year-old will be driving their own car, they will need their own insurance policy. 

How much is insurance for an 18-year-old in Texas?

The average cost of car insurance for 18-year-olds in Texas is around $2,932 per year.

Why is insurance so high for 18-year-olds?

The high cost of car insurance for 18-year-olds is due to a combination of factors, including lack of driving experience, age, and vehicle choice.

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Author

Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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