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How Much Is Car Insurance for an 18-Year-Old? Ultimate Guide

Young drivers are considered risky because of their lack of experience on the road and doubts over their ability for responsible driving. Here’s how much does car insurance for an 18-year-old cost!
how much is car insurance for an 18 year old
How Much Is Car Insurance for an 18-Year-Old? Ultimate Guide
Although an 18-year-old can get a separate car insurance policy, adding their insurance to the parent's policy is recommended. Here's what you need to know about car insurance rates for an 18-year-old!
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The cost of car insurance for an 18-year-old averages $411 per month in price. This comes to $4,931 per year, which is $3,279 more expensive than the average insurance premium for older drivers (i.e., those between the ages of 30 and 45).

This is because young drivers are considered risky because of their lack of experience on the road and doubts over their ability for responsible driving. According to the Department of Transportation, between 2011 and 2020, 18-year-old drivers were responsible for 9,500 fatal crashes.

Can an 18-year-old Get Car Insurance?

Although an 18-year-old can get a separate car insurance policy, adding their insurance to the parent’s policy is recommended. This way, it is much cheaper. For complete coverage, it typically costs $271 per month to add an 18-year-old to a parent’s auto insurance policy. That’s $139 less per month than getting their car insurance. Parents will typically see their rates increase while adding a teen driver to their policy, but the difference will still not be as much. Moreover, they can help offset the increase by various other methods.

How Much Does Car Insurance Cost for an 18-year-old?

18-year-olds pay less for auto insurance than 16-year-olds. The costs go down by 37% from 16 to 18 years old. However, 18-year-olds pay some 198% more on average than people in their 30s, 35s, and 45s. Car insurance rates for 18-year-olds are significantly higher compared to older drivers. It is because they’re more likely to drive recklessly, get tickets for poor driving, cause accidents, and file claims than more experienced drivers.

Compared to drivers with slightly more driving experience, insurance for an 18-year-old remains relatively expensive. According to analysis, the average rates for a 21-year-old are $2,223 less per year than for an 18-year-old, which is a difference of 45%.

What Factors Impact Car Insurance Cost for an 18-year-old?

A couple of other factors impact the monthly car insurance rates for an average 18-year-old. Rates tend to vary according to state. For instance, Hawaii has the cheapest car insurance for 18-year-olds in any state, as it prohibits insurance companies from determining premiums based on age. The most expensive state for 18-year-old drivers is Louisiana, where the average monthly premium for vehicle insurance for this age group is $748.

Also, many states determine their insurance rates partly by gender. Male drivers aged 18 typically pay more than their female counterparts in car insurance. Find out if you can make any of these factors work in your favor to bring down your car insurance premiums as an 18-year-old driver.

Ways to Lower Car Insurance Rates at the Age of 18

Even though car insurance rates for 18-year-olds are high, it’s still possible for young drivers to find affordable car insurance coverage. You can avoid paying too much in car insurance for teenage drivers by following these measures:

Not Getting a Separate Policy

Adding an 18-year-old to an existing one is expensive, but getting them a separate car insurance policy costs much more.

Looking for Discounts

Companies sometimes offer discounts for young drivers if they have good grades (usually a B average or 3.0 GPA) and completed a new driver course. Students who attend a university more than 100 miles away and keep their cars at home for the school year are frequently eligible for an away-from-home student discount and a low-mileage discount. Students who are financially independent and live separately from their parents can save on their car insurance policy by bundling it with renters or homeowners insurance.

Considering Usage-based Programs

Such programs monitor driving habits to help lower insurance costs for 18-year-olds if they are found to be safe drivers. Switching to per-mile insurance may also be less expensive than a conventional policy.

Ensure Not to Get Too Much Insurance

If the young driver is driving an older car, getting comprehensive collision coverage may not be necessary. In such cases, a minimum coverage might be enough.

Sign up for a Safe Driver Program

You can demonstrate that you’re a safe driver deserving of lower rates by sharing your driving information with your vehicle insurance provider via a plug-in tracking device or app. However, some programs will increase your rates if you exhibit poor driving habits.

Conclusion

So how much does car insurance for an 18-year-old cost? As long as 18-year-old drivers maintain a clean driving record, their rates will decrease significantly with age and level off around age 25 when they exit the age group with the highest risk. It’s best to shop around and compare multiple quotes to find the best rates and coverage.

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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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