Car Insurance For Young Adults - Erie, Geico, and USAA were the cheapest companies in an analysis of thousands of auto insurance quotes for 18-year-old drivers from 29 companies across the country. Get quotes from multiple companies to find the cheapest rates.
Full coverage auto insurance for 18-year-old drivers averages $7, $396 per year, or $616 per month. They found a $7,551 difference between annual rates for Erie, the cheapest insurer, and Allstate, the most expensive insurer. This price difference shows why it's important to compare insurance quotes to get the best rates.
Car Insurance For Young Adults
Drivers under the age of 25 have higher insurance premiums because they are considered more dangerous drivers. As you get older and have more driving time under your belt, your insurance premiums should begin to decrease.
Pay Less For Car Insurance For Teens & New Drivers
For example, someone turning 18 will reduce their annual rate by $1,445 on average.
The average car insurance cost for an 18-year-old female driver is lower than for an 18-year-old male driver. At age 18, a female driver pays an average of $7,030 per year and a male driver pays $7,762 per year.
The Centers for Disease Control and Prevention found that male drivers between the ages of 16 and 19 were twice as likely to die in motor vehicles as female drivers, suggesting teenage males pose a greater risk to insurers.
However, some states such as California, Hawaii, Massachusetts, Michigan (in some cities), Montana, North Carolina and Pennsylvania prohibit insurers from using gender to determine car insurance premiums. In this state, male and female drivers pay the same price for auto insurance, all else being equal.
Young Adult Man Wearing Jeans And Shirt Making Photos On His Cell Phone For Insurance Inspector Of Damaged Vehicle After Car Stock Image
Our analysis shows that for most young drivers, their premiums drop by 12% when they turn 18. When you turn 18, your risk to the insurer is less than that of newly licensed 16- and 17-year-olds. Reflect on it.
New drivers are the exception to this rule. If you're an 18-year-old new driver getting auto insurance for the first time, you'll pay more than a 16-year-old licensed driver with two years of driving experience.
USAA is not included in these recommendations because USAA's policy is only available to current or former military personnel and their families. If USAA were included, it would offer the cheapest 20-year car insurance in Illinois, Michigan, New York and Texas.
North Carolina is the cheapest state for 18-year-olds to get auto insurance, and annual premiums are 54% lower than the overall average. Michigan is the most expensive state, with annual car insurance costs nearly three times higher than average for an 18-year-old.
Which Car Insurance Is Best For Young Adults?
18 years old can buy their own car insurance. However, since it is cheaper than signing up for yourself, it is recommended that you purchase your parents' insurance if possible.
The average cost of adding an 18-year-old to a parent's auto insurance is $3,020 per year, but the average cost of an 18-year-old getting their own auto insurance is $7,396 per year.
Parents may see rates increase when adding teen drivers to their policy, but asking for a discount can help offset the increased cost. For example, if a teen drives a separate car, parents may qualify for a multi-car discount. And if parents choose the same insurer for their teen's car, they can be rewarded with a loyalty discount.
Aside from following your parents' policies, the best strategy to get cheap auto insurance quotes is to shop around. Prices can vary, so it's a good idea to get free auto insurance quotes from different insurers and compare rates.
Tips For Young Adults Who Are Choosing A Car Insurance Provider
Explore discount opportunities. Insurance companies offer many discounts that you can get. If you're an 18-year-old high school or college student, keeping your GPA above a certain level can get you a good student discount on car insurance.
College students who leave their cars at their parents' house during the school year and attend college more than 100 miles away can often receive home student discounts and possibly small mileage discounts.
Alternatively, if you are financially independent and living apart from your parents, you can save by bundling car insurance with renter's or homeowner's insurance.
Drive a cheap car. Expensive cars cost more to maintain, so insurance premiums are also higher. Cheapest cars to insure under 18 include SUVs like the Subaru Outback and Buick Encore, and safer sports cars like the Mazda MX-5 Miata and Volkswagen Golf GTI.
Top Tips On How Young Drivers In Edinburgh Can Save Hundreds On Their Car Insurance
Increase your deductible. Another way to lower your premium is to choose a higher deductible. However, this means that you will pay more if you file a claim.
Use a telematics program. By sharing driving data with auto insurance companies through telematics tracking devices, you can prove you're a safe driver who qualifies for lower premiums. Consumption-based car insurance can usually give you significant discounts if you're a safe driver.
Reconsider how much coverage you need. 18-year-old drivers are statistically more likely to be in an accident, so it's usually wise to get comprehensive insurance that includes both collision and comprehensive insurance. However, if you have an older car, like many young drivers, and the cost of repairs exceeds the value of the car, a minimum warranty policy may work for you.
Get multiple rates. It's always best to shop around and get free insurance quotes online so you can compare rates from the best companies and get the best rates and coverage.
Cheapest Car Insurance In Michigan (november 2022)
Reputable auto insurance companies do not sell short term auto insurance. If you're an 18-year-old driver and see ads for daily, weekly, or monthly auto insurance, don't fall for the temptation. Insurance policies are usually only offered on 6 month or 1 year terms, but you can usually cancel at any time and choose to pay monthly.
We've compiled auto insurance quotes for thousands of zip codes in the nine most populous states in the United States. The sample drivers were a single 18-year-old male and female driving a 2015 Honda Civic EX and with a clean driving record.
The analysis included 29 insurance companies and added average prices and rates to the list of recommendations only if those policies were available in at least 3 of the 9 states.
Our analysis pulled premium data from Quadrant Information Services. The rates we collect are publicly available in insurer documents and should be used for comparison purposes only, as your estimate may differ from our average.
Reasons Why An Insurance Company Is More Expensive
As an 18-year-old, you can expect to pay an average of $616 per month for full coverage car insurance. Erie offers the lowest rates at $264 per month.
Yes, 18-year-olds can get auto insurance on their own. However, you can pay up to 60% less if you share your insurance with a parent or older driver.
To get an insurance quote by phone (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! Companies like Erie and Country Financial can offer much lower rates than State Farm, so local insurers are also cheaper options.
Buying parental auto insurance can save you an average of 62%, analyzing thousands of quotes across states. Full coverage auto insurance for 18-year-old drivers averages $4,917 per year.
Car Insurance For Teen Drivers
We've collected tens of thousands of quotes from all zip codes in the three largest states in the United States (Illinois, Pennsylvania, and Georgia) to find the cheapest rates for teens and their parents. Sample drivers include 18-year-olds, 50-year-olds, and 18-year-olds.
Factors that help determine the best choice include low prices, teen-focused discount options, and the ease with which you can be forgiven. Complete methodology
State Farm premiums for 18-year-olds averaged $3,518 per year, 29% lower than the national average of $4,917.
Not everyone has a choice, but Country Financial, Erie, and USAA are the cheapest overall insurers. Erie is only available in 12 states and Washington DC, and Country Financial is available in 19 states. USAA only offers policies to active and former military personnel.
The Great Car Insurance Confusion
Teen drivers almost always charge more because they have less driving experience and are more prone to risky behavior. Teen drivers pay three times more than 50-year-old drivers for full insurance.
If you're a parent looking to add teenagers to your insurance, Auto-Owners is the cheapest option at $1,832 per year for ages 50 and 18.
This can save you thousands of dollars, up to $501 more than if you didn't have teen insurance. Erie, Farm Bureau, and State Farm are other low-cost options for adding teens to your policy.
Insuring your teen can save you an average of $3,108 per year. That's a 62% savings on auto insurance costs.
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