Inexpensive Car Insurance For Young Adults - It's no surprise that young and teenage drivers pay more for car insurance. A young driver's inexperience and limited driving history are potentially risky for car insurance companies, so they charge more to insure new drivers. But how much will a new driver pay? To work out the cost of UK car insurance for an 18-year-old driver in the UK by major city, we've rounded up the figures so you know what you have to pay based on where you live. Rates will be similar for 17 and 19 year olds.
If your priority is price, you will probably choose one of the cheapest plans available to you. The team collected more than 400 insurance quotes for young drivers in 10 UK cities and calculated that the average premium for cheap global insurance for an 18-year-old driver is £1,752 a year. However, rates varied considerably by region; Young drivers from Liverpool, Birmingham, Bradford and Manchester were being paid more than £2,000 a year. Junior drivers in Sheffield and Bristol paid at least over £1,100 a year in our study. This means that young drivers in some regions pay almost twice as much as young drivers in other regions.
Inexpensive Car Insurance For Young Adults
With the high cost of insurance, the average driver spends over £1,000 on driving lessons (at a cost of £23 an hour), being a young driver doesn't come cheap.
Average Cost Of Car Insurance For Young Drivers 2022
To work out how much a young driver would typically pay for comprehensive car insurance, we collected quotes for an 18 year old male driver with a full UK license driving the most popular car in the UK UK, Ford Fiesta 2016. (For more information on how insurance costs vary by car make and model, see our article How much does it cost to insure the most popular vehicles in the UK?) Over 400 total quotes for a driver based in London, Birmingham, Leeds I collected. , Sheffield, Bradford, Manchester, Liverpool, Bristol, Newcastle and Sunderland cover less than 5,000 miles per year. Offers included a courtesy car, breakdown, personal accident and statutory insurance. Prices are from the plans of the following car insurance companies:
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Advertiser Disclosure: Authorized and regulated by the Financial Conduct Authority (FCA), FCA FRN 797621. is a research and data driven personal finance website. The reviews that appear on this site are based on our own analysis and opinions focused on product features and prices, not services. Some of the offers that appear on this site are from companies that receive compensation. This compensation may affect how and where offers appear on this site (eg, the order in which they appear). Please see the Advertiser Disclosure for more information. The Site may not review or include all companies or products available. While we do our best to be complete and up-to-date with product information, prices and terms are subject to change after publication, so always check with the supplier for details. Consumers should ensure they do their own due diligence before entering into any transaction. Regional insurers are also an affordable option, as companies like Erie and Country Financial can offer even lower rates than State Farm.
Participating in 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 several states. Full coverage auto insurance for an 18-year-old driver averages $4,917 per year on his own policy.
Australia's Cheapest Car Insurance? That's Tricky, But Start With These Award Winners
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 includes an 18-year-old, a 50-year-old man with no children, and an 18-year-old adult on their policy.
Factors that help determine the best choices include low prices, youth-focused discount options, and ease of getting accident forgiveness. complete methodology
A State Farm policy for an 18-year-old costs an average of $3,518 per year, which is 29 percent cheaper than the national average of $4,917.
While not an option for everyone, Country Financial, Erie and USAA are generally the cheapest insurers. Erie is only available in 12 states and Washington, D.C., while Country Financial is available in 19 states. USAA only offers policies to current and former military members.
Cheap Car Insurance For Young Drivers
Young drivers are almost always paid much more because they are less experienced behind the wheel and more prone to risky behavior. A young driver pays three times more for full coverage than a 50-year-old driver.
If you're a parent looking to add your child to your policy, Car Owners is the cheapest option at just $1,832 a year for a 50-year-old and an 18-year-old.
That's just $501 more than not having a teenager on your 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 the child on the policy saves families an average of $3,108 per year—a 62 percent reduction in auto insurance costs—compared to the cost for the same 18-year-old to get their own policy.
Compare Car Insurance Companies For Young Drivers
Car owners is often the cheapest option for parents adding a young driver, in part because the company has a flat fee for drivers under 19. It is the second cheapest carrier for a 16, 17 and 18 year old and a 19 year old after USAA.
However, other companies' rates can fluctuate significantly depending on the age of a young driver's participation in the policy. For example, adding a 19-year-old to a USAA policy costs $1,395 less per year compared to a 16-year-old.
If you are able to purchase a policy on your own as a young driver, State Farm can help lower your costs. Among the widely available insurers, State Farm's average monthly rate of $293 is one of the best you can find.
You can reduce this further with discounts, such as a good student discount or the Steer Clear program, which allows young drivers to lower their prices by taking a safety course. However, the company does not offer accident amnesty or absence insurance, both of which can be crucial to avoiding expenses after an accident.
Finding The Cheapest Car Insurance For Under 25 Drivers
Discounts are an important tool in reducing the high rates that young drivers pay, and Erie offers a good set of discounts for young drivers behind the wheel.
Erie has some of the lowest rates we found, at $3,067 per year for a single young driver and $2,088 for an older driver who adds a younger driver to their policy. However, the company only offers coverage in 12 states.
Young drivers are more likely to act recklessly than their older counterparts, and accident forgiveness by car owners provides recovery from the first incident. The company offers the option of paying more for accident forgiveness, which means your rates won't go up after an accident.
Some companies require drivers to be long-time customers to get this benefit. Car Owners also offers cheaper-than-average coverage for a teen on their own, and the lowest rates we've found for adding a teen driver to a parent's policy. One downside is that you have to work through an agent and you can't manage your policy online.
Cheap Car Insurance
There are several important ways that young drivers can lower the price of their car insurance and save money.
The first is to qualify 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 if this happens the savings will be substantial.
Accident insurance is expensive for younger drivers because this demographic is statistically more likely to get into an accident and file an insurance claim than more experienced drivers.
Best Cheap Car Insurance For 17 Year Olds (2022)
It is important to note that if a young driver is at fault in an accident without coverage, they will have to pay for the repair themselves. Unless your car is older and only worth a few thousand dollars, you may want to consider getting collision insurance.
We have assembled a dedicated group of professionals spanning a wide range of specialties to help examine difficult issues and enable you to make smarter financial decisions.
Do you think that parents taking on the responsibility of a big purchase like a car for their young children provides a teaching moment that is worth the cost of money? Why or why not?
Many traits that make up what it means to be responsible, such as self-control and delayed gratification, are still developing during adolescence and early adulthood. In fact, the prefrontal cortex, the part of the brain responsible for these processes, is still maturing until the age of 25. These are also skills.
Average Cost Of Car Insurance For 25 Year Olds In 2022
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