Best Cars For Young Drivers To Insure - Regional insurers are also an affordable option, as companies like Erie and Country Financial can offer even lower rates than State Farm.
Joining a parent's car insurance can save a significant amount of money - an average of 62%, according to an analysis of thousands of quotes from multiple states. Full coverage auto insurance for an 18-year-old driver on their own policy costs an average of $4,917 per year.
Best Cars For Young Drivers To Insure
We collected tens of thousands of quotes from every zip code in three of the country's largest states, Illinois, Pennsylvania and Georgia, to find the cheapest rates for teenagers and their parents. Sample drivers were an 18-year-old man, a 50-year-old man without children and an adult with an 18-year-old child on their policy.
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Factors that helped determine the best choices include low prices, youth-oriented discount options and ease of accident forgiveness. Complete methodology
A State Farm policy for an 18-year-old costs an average of $3,518 a year, which is 29% cheaper than the national average of $4,917.
Although not an option for everyone, Country Financial, Erie and USAA are generally the cheapest insurers. Erie is only available in 12 states and Washington, DC, while Country Financial is in 19 states. USAA only offers policies to current and former military members.
Teenage drivers are almost always charged much more, because they are less experienced behind the wheel and more prone to dangerous behaviour. A teenage driver pays more than three times as much as a 50-year-old for full coverage.
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If youare a parent looking to add your teenager to your policy, Auto-Owners is the cheapest option at just $1,832 per year for a 50-year-old and 18-year-old.
That's only $501 more than without a teenager on the policy, a savings of thousands of dollars. Erie, Farm Bureau and State Farm are cheaper than average options for adding a teenager to your policy.
By keeping your teenager on your policy, families save an average of $3,108 a year – a 62% reduction in car insurance costs – compared to the cost of the same 18-year-old getting their own policy.
Car Owners is often the cheapest option for parents adding a young driver, in part because the company has a flat rate for drivers under 19. It is the cheapest company for adding a 16, 17 and 18 years old and the second cheapest for a 19 year old, behind USA.
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However, the rates of other companies can vary significantly, depending on the age of a young driver participating in a policy. For example, it costs $1,395 less per year to add a 19-year-old to a US policy compared to a 16-year-old.
If you're in a position to purchase a policy yourself as a young driver, State Farm can help keep your costs down. Among widely available insurers, State Farm's average rate of $293 per month is one of the best you'll find.
You can lower that further with discounts such as a good student discount or the Steer Clear program, which allows young drivers to lower rates by taking a safety course. However, the company does not offer accident forgiveness or gap insurance, which can be essential to avoid costs after an accident.
Discounts are an important tool for reducing the high rates teenage drivers pay, and Erie offers a good set of them for young drivers behind the wheel.
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Erie has some of the lowest rates we've seen, $3,067 per year for a lone teenage driver and $2,088 for an older driver who adds a teen to their policy. However, the company only offers coverage in 12 states.
Young drivers tend to be more reckless than their older counterparts, and forgiveness from car owners for accidents saves them from a first incident. The company offers the ability to pay more for their accident forgiveness, which means your rates won't go up after one accident.
Some companies require drivers to be long-time customers to earn that benefit. Car Owners also offers a cheaper than average service for a lone teenager and the lowest rates we've seen for adding a young driver to a parent's policy. One disadvantage is that you have to work through an agent and you cannot manage your policy online.
There are several important ways young drivers can lower the price of their car insurance and save money.
How To Get Cheaper Car Insurance For Your Teenage Driver
The first is by qualifying for discounts, as most major insurers offer discounts that young drivers can take advantage of.
You can also see if your insurer offers accident forgiveness at a reasonable price. It will cost more in the short term, but young drivers are prone to accidents, and the savings will be significant if they do.
Collision insurance is costly for teenage drivers because this demographic is statistically more likely to get into an accident and file an insurance claim than more experienced drivers.
It is important to remember that if a teenage driver is at fault in an accident without collision coverage, they will have to pay for repairs themselves. Unless your car is older and worth a few thousand dollars, we recommend that you carry collision insurance.
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Has assembled a unique panel of professionals, across diverse areas of expertise, to help dissect difficult topics and empower you to make smarter financial decisions.
Do you feel that parents who have their teenage children take responsibility for a large purchase, such as a car, provide a teachable moment that is worth the financial cost? Why or why not?
Many of the characteristics that are part of what it means to be responsible, such as self-control and delay of gratification, are still developing in adolescence and early adulthood. In fact, the part of the brain responsible for these processes, the prefrontal cortex, is still maturing until about 25 years of age. These are also skills that can be trained and improved with practice, making the teenage years a great time to work out those self-control muscles, so to speak. Taking more responsibility and autonomy with a car can give adolescents many opportunities to build their self-control and delayed gratification skills. There is also a phenomenon called the endowment effect, where we value things more if they belong to us or if we have a sense of ownership over them. Having your teen pay for their own car (or at least contribute their own money towards it) should increase the value they place on it, leading to safer and more responsible behavior.
Some states prohibit the use of gender to determine insurance rates, even though the motor vehicle death rate for males aged 16 to 19 is nearly twice that of females of the same age. How do teenage males and females pose different levels of risk to insurers?
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The research is quite clear that men have more risky behavior than women, including wearing seat belts less often and running yellow lights more often. Women see a higher chance of negative consequences and enjoy these actions less than men, which leads to fewer risks behind the wheel. I expect that these findings will play out with teenage boys and girls as well. That said, statistical averages cannot predict the actions of a particular individual; teenagers of all genders can be reckless and adventurous, and there are many teenage boys who are extremely safe drivers.
The North Carolina Department of Transportation has the right under the law to suspend the driving privileges of teenagers if they drop out of school or fail at least 70% of their courses. Should academics play a strong role in the competence of teenagers to drive? Why or why not?
The reasons why driving privileges are revoked are usually safety-related (underage possession of alcohol, speeding or reckless driving, etc.). In this case, if there is no strong link between dangerous driving and poor academic performance, then linking the two in terms of policy does not seem particularly effective. Academic performance is related to other health risk behaviors (such as violence and drug use), but this is one of those cases of correlation that is not the same as causation: being academic and engaging in health risk behaviors, but skipping school does not
What is the psychological difference between learning in the classroom and learning "on the road" as a driver?
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Something that comes up again and again in research with young people is a big difference in behavior between "cold" settings (emotional, intellectual contexts like a laboratory or classroom) and "hot" settings (situations that are emotional in the real world, especially as peer and social pressure). A young person can make perfectly rational and safe decisions in class (or if there is a driving instructor in the car), but takes risks on the road if the presence of their friends "presses" them more.
Country Financial, a regional insurer, offers the cheapest overall rates we found for teenage drivers, while State Farm has the lowest rates for national insurers. Car owners had the lowest rates for parents with teenagers on their policies.
Teenage drivers with their own
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