Great Insurance For Young Drivers - Erie, Geico and USAA were the cheapest companies based on our analysis of thousands of auto insurance quotes for 18-year-old drivers from 29 companies nationwide. Get quotes from multiple companies to find the cheapest prices for you.
Comprehensive car insurance for an 18-year-old driver costs an average of $7,396 per year, or $616 per month. We found a difference of $7,551 in annual rates between the cheapest Erie insurance company and the most expensive Allstate insurance company. This difference in price shows why it's so important to compare insurance quotes to get the best rates.
Great Insurance For Young Drivers
Drivers under the age of 25 tend to have higher insurance rates because they are considered more vulnerable drivers. As you get older and have more years of driving, your insurance rates should start to drop.
Affordable Car Insurance For Young Drivers
For example, a person who turns 18 will reduce the interest rate by an average of $1,445.
The average cost of car insurance for 18-year-old female drivers is cheaper than for 18-year-old male drivers. For 18-year-old drivers, women pay an average of $7,030 a year, while men pay $7,762.
The Centers for Disease Control and Prevention found that the death rate for male drivers ages 16 to 19 is more than double the death rate for female drivers in that age group, making teens a much higher risk for insurance companies.
However, some states — California, Hawaii, Massachusetts, Michigan (in some cities), Montana, North Carolina and Pennsylvania — prohibit insurance companies from using gender to determine auto insurance rates. Male and female drivers in these states must pay the same price for auto insurance, other things being equal.
Building Safe Driving Habits For Teen Drivers
Our analysis found that most young drivers see their insurance rates drop by 12% when they turn 18. At 18, you're less of a risk to insurance companies than newly licensed 16- and 17-year-olds, and your rates reflect that.
New drivers are an exception to this rule. If you're a new driver at age 18 and getting car insurance for the first time, you'll likely pay more than someone who got their license at age 16 and has two years of driving experience.
We did not include USAA in these recommendations because its policies only apply to active or former military members and their families. If you include USAA, it would offer the cheapest car insurance for 20-year-olds in Illinois, Michigan, New York and Texas.
North Carolina is the cheapest state for an 18-year-old to get car insurance, with annual premiums 54% lower than the overall average. Michigan is by far the most expensive state, with the cost of annual car insurance for 18-year-olds nearly three times the average.
Average Cost Of Car Insurance For 18 Year Olds
An 18-year-old can buy his own car insurance. However, we recommend adding your parents' policy if possible as it is cheaper than taking out your own separate policy.
The average cost of adding an 18-year-old child to a parent's auto insurance policy is $3,020 per year, but the average cost of an 18-year-old child getting their own auto insurance is $7,396 per year.
Parents will likely see their rates increase by adding a teen driver to their policy, but by claiming a discount they can help offset the increased costs. For example, if a teenager drives their own car, parents can get a multi-car discount. And if parents choose to stay with the same insurance company for their teen's car, they can get a loyalty discount.
In addition to keeping your parent's policy, the best strategy for getting cheap auto insurance quotes is to shop around. Prices can vary by thousands, so it's a good idea to get free car insurance quotes from multiple insurance companies to compare prices.
Best Insurance Companies For Young Drivers
Check out discount options. Insurance companies offer many discounts that you may be eligible for. If you're an 18-year-old high school or college student, you can get a good student discount on car insurance, provided your GPA is above a certain threshold.
College students who leave their car at their parents' house during the school year and attend a university 100 miles away can often get a student discount from the comfort of their home, and possibly a low-mileage discount.
Also, if you are financially independent from your parents and live apart from them, you can save on car insurance by combining it with renter's or homeowner's insurance.
Drive an affordable car. Expensive cars are more expensive to repair, and so is insurance. The cars with the cheapest insurance for 18-year-olds included SUVs like the Subaru Outback and Buick Encore, and safer sports cars like the Mazda MX-5 Miata and Volkswagen Golf GTI.
Tips For Saving With Teen Driver Discounts
Increase your deductible. Another way to reduce the price of insurance is to choose a higher deductible. However, this means that you will pay more out of pocket if you file a lawsuit.
Use a telematics program. By sharing your driving data with your auto insurance company through a telematics tracking device, you can prove you're a safe driver worthy of lower premiums. Usage-based car insurance allows you to get significant discounts if you are a generally safe driver.
Reevaluate how much coverage you need. As 18-year-old drivers are statistically more likely to be involved in accidents, it is generally advisable to purchase a comprehensive policy that includes both collision and comprehensive coverage. However, a minimum coverage policy can work if, like many young drivers, you have an older car and the repairs will cost more than the car is worth.
Get more quotes. It's always best to search for free online insurance quotes to compare quotes from leading companies and make sure you get the best rates and coverage.
Inflated Car Insurance Premiums Deflating Young Drivers
Reputable auto insurance companies do not sell short-term auto insurance. If you're an 18-year-old driver and you see an ad for car insurance for one day, one week or one month, don't be tempted. Policies are usually only valid for six months or a year, although you can usually cancel at any time and choose to pay monthly.
We've collected auto insurance quotes for thousands of zip codes in the nine most populous states in the United States. Our sample drivers were single men and women 18 years of age who drove a 2015 Honda Civic EX and had impeccable driving records.
The analysis covered 29 insurance companies, and rates were added to our list of average rates and recommendations only if their policies were available in at least three of the nine states.
Data from Quadrant Information Services were obtained for our analysis. The rates we have collected have been obtained from insurance companies and should be used for comparison purposes only, as your own rates may differ from our averages.
Pay Less For Car Insurance For Teens & New Drivers
An 18-year-old can expect to pay an average of $616 per month for comprehensive auto insurance coverage. Erie offers the cheapest rates at $264 per month.
Yes, 18-year-olds can take out auto insurance on their own. However, you can pay up to 60% less if you share a policy with a parent or senior driver.
To get an insurance quote over the phone, call: (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! Car insurance companies consider a number of factors to determine rates, including driving experience. First-time drivers pay higher premiums because they are more likely to get into an accident. For insurance purposes, new drivers are newly licensed teenagers, immigrants and foreign nationals, older drivers who have never held a license, or those with a gap in driving or insurance coverage.
We've collected tens of thousands of auto insurance quotes from all zip codes in Texas to find the lowest rates. The rates applied to new drivers aged 16, 17, 18, 21, 25, 35, 45 and 55, as well as a 16-year-old on the policy of two 50-year-old parents.
How To Get Cheap Car Insurance For Young Drivers
Allstate offers the cheapest car insurance rates with minimum coverage for first-time drivers under the age of 25. On average, new drivers can pay $2,743 a year for insurance. However, the Allstate policy costs 56% less at $1,205 per year.
New drivers looking to purchase comprehensive coverage can find the best rates at State Farm, where a policy costs $3,308 per year or $276 per month. The average cost of comprehensive coverage is nearly double the State Farm rate at $6,527 per year.
Minimum liability policies are usually the cheapest form of insurance because they provide the lowest level of coverage you can legally have in your state. Reasonable rates can make car insurance with minimum coverage the best option, but if you're involved in an accident, you could end up paying more out of pocket in the long run.
Beginner drivers over 25 can find the cheapest car insurance with minimum coverage at Allstate. The company charges $395 per year, which is 62% less than the average cost we received.
The Best Insurance Policy For Young Drivers
State Farm has the lowest rates for a full coverage policy. New drivers pay $1,398 a year, making State Farm's policy $1,000 less than the average.
There is no age limit for sharing car insurance with your parents, so if you live in the same house you can share a policy. When you leave, you
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