Insurance Companies Cheap For Young Drivers - It's no wonder young teenage drivers pay more for car insurance. A young driver's inexperience and limited driving experience can be dangerous for car insurance companies, which is why they charge more for new driver insurance. But how much will a new driver pay? We've crunched the numbers to find out the cost of UK car insurance for an 18-year-old driver in England by major city, so you know what to expect depending on where you live. Prices will be the same for 17 and 19 year olds.
If price is your priority, you'll probably choose one of the cheapest plans available. The team collected more than 400 insurance quotes from young drivers in 10 cities in England and calculated that the average premium for cheap comprehensive insurance for an 18-year-old driver was £1,752 a year. But rates varied significantly by region, with young drivers in Liverpool, Birmingham, Bradford and Manchester being charged more than £2,000 a year. Young drivers in Sheffield and Bristol pay the least in our research, at just over £1,100 a year. This means that young drivers in some regions pay almost twice as much as young drivers in other regions.
Insurance Companies Cheap For Young Drivers
Despite the high cost of insurance and the average driver spending over £1,000 on driving lessons (at £23 for an hour long driving lesson), being a young driver is not cheap.
Compare Car Insurance Rates: Get Quotes (2022)
To find out how much a young driver would typically pay for comprehensive car insurance, we've put together quotes for the example of an 18-year-old driver with a full UK license driving a 2016 Ford Fiesta, the UK's most popular car. (For more information on how insurance costs vary by car make and model, see our article 'How much does it cost to insure the UK's most popular vehicles?') Together we've collected over 400 quotes from drivers living in London, Birmingham, Leeds, Sheffield, Bradford, Manchester, Liverpool, Bristol, Newcastle and Sunderland that drive less than 5,000 miles per year. Quotes included free car, breakdown, accident and legal cover. Plan quotes were collected from the following auto insurance companies:
The recommendations on this website are based on our own analysis and are intended to help you identify your options and narrow down your choices. We do not advise or suggest which product to buy; do your own due diligence before entering into any deal. Read our full disclosure here.
Advertiser Disclosure: Authorized and regulated by the Financial Conduct Authority (FCA), FCA FRN 797621. This is a personal finance research website. Reviews posted on this website are based on our own analysis and opinion, focusing on product features and price, not service. Some of the offers that appear on this website come from companies that receive compensation. This compensation may affect how and where offers are displayed on this website (eg, the order in which they appear). For more information, see our Advertiser Disclosure Notice. The Website may not review or include all companies or all products available. Although we make every effort to provide comprehensive and up-to-date product information, prices and terms may change after publication, so always check with the supplier for details. Users should ensure that they carry out their own due diligence before entering into any agreement. Regional insurers are also an affordable option, as companies like Erie and Country Financial can offer even lower rates than State Farm.
According to an analysis of thousands of offers from many states, joining a parent's insurance can save you a significant amount of money — an average of 62%. Comprehensive car insurance for an 18-year-old driver on their own policy costs an average of $4,917 per year.
Car Insurance Costs For 50 Year Olds (and Those Over 50)
We've collected tens of thousands of quotes from every zip code in the nation's three largest states, Illinois, Pennsylvania and Georgia, to find the cheapest rates for teens and their parents. The sample of drivers included an 18-year-old male, a 50-year-old male with no children, and an adult with an 18-year-old child on the policy.
Factors that helped determine the top picks 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 per year, which is 29% cheaper than the national average of $4,917.
While not an option for everyone, Country Financial, Erie, and USAA tend to be the cheapest insurance companies. Erie is only available in 12 states and Washington, DC, while Country Financial is available in 19 states. USAA only offers policies to active and former military members.
Cheapest Car Insurance For Teens (and Their Parents)
Teen drivers almost always pay much more because they are less experienced drivers and more prone to dangerous behavior. A teenage driver pays three times more than a 50-year-old for comprehensive insurance.
If you're a parent and want to add your teenager to your policy, Auto-Owners is the cheapest option at just $1,832 a year for a 50-year-old and an 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.
Keeping your teen on your policy saves a family an average of $3,108 a year — a 62% reduction in auto insurance costs — compared to the cost of the same 18-year-old with his own policy.
Cheap Insurance Rates In Texas
Car owners are 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 to add 16, 17 and 18 years and the second cheapest for 19 years after the US.
However, rates from other companies can vary significantly depending on the age of the young driver who joins the policy. For example, adding a 19-year-old to an insurance policy in the US costs $1,395 less per year compared to a 16-year-old.
If you, as a young driver, are forced to purchase a policy on your own, State Farm can help reduce your costs. Among the insurers widely available, State Farm's average rate of $293 per month is one of the best you'll find.
You can lower this even further with discounts such as a good student discount or the Steer Clear program, which allows young drivers to reduce their rates by taking a safety course. However, the company does not offer accident forgiveness or gap insurance, which can be important to avoid costs after an accident.
Cheap Car Insurance For Young Drivers
Discounts are a key tool in reducing the high rates charged to teen drivers, and Erie offers a good array of discounts for young drivers.
Erie has some of the lowest rates we've seen, at $3,067 a year for a lone teen driver and $2,088 for an older driver adding a junior to their policy. However, the company only offers coverage in 12 states.
Young drivers, as a rule, are more reckless than their older counterparts, and forgiving the car owner allows them to avoid the first incident. The company offers the option of paying more for accident forgiveness, which means your rates won't go up after one accident.
Some companies require drivers to be repeat customers to receive this benefit. Auto-Owners also offers cheaper-than-average single teen coverage and the lowest rates we've seen for adding a young driver to a parent's policy. One of the disadvantages is that you will have to work through an agent and you cannot manage your policy online.
Cheap Car Insurance: Learn How To Save
There are a few key ways young drivers can lower their car insurance rates and save money.
The first is to get discounts, as most major insurance companies offer discounts that young drivers can take advantage of.
You can also find out 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 if this happens the savings will be significant.
Collision insurance is expensive for teenage drivers because this demographic is statistically more likely to get into an accident and file an insurance claim than more experienced drivers.
Young Driver Car Insurance
It is important to remember that if a teenage driver is at fault in an accident without accident coverage, they will have to pay for the repairs themselves. Unless your car is older and costs several thousand dollars, we recommend that you have collision coverage.
Has built a unique group of professionals spanning diverse fields of expertise to help break through complex topics and empower you to make smarter financial decisions.
Do you think that parents who have their teenage children take responsibility for a major purchase, such as a car, provide a learning moment that is worth the financial outlay? 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 age 25. These are also skills
Age And Motor Insurance
Top insurance companies for young drivers, best insurance companies for new young drivers, cheap car insurance companies for young drivers, best car insurance companies for young drivers, top car insurance companies for young drivers, best insurance companies for young drivers, good insurance companies for young drivers, best auto insurance companies for young drivers, cheap insurance companies for young drivers, car insurance companies for young drivers, insurance companies for young drivers, good car insurance companies for young drivers
