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Some of the best car insurance for 18-year-olds comes from Erie Insurance, with a premium of $241 per month or $2,888 per year for full coverage.
Affordable Car Insurance Rates
By: Daniel Robinson, By: Daniel Robinson Author Daniel is a senior team writer and has written for numerous news sites and business companies in the US, UK and Australia, specializing in car finance and maintenance. Daniel is a leading team in auto insurance, loans, insurance options, auto services and more.
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Car insurance for 18-year-olds is expensive, whether you add a teen to your policy or buy a separate policy. This is why the best car insurance for 18 year olds should be as cheap as possible.
We at Guides have compared rates from dozens of providers to find out who offers cheap car insurance for teenagers. Our top pick is Geico, with a full coverage rate of $263 per month or $3,161 per year. Here we take a look at our top picks and how to save.
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Our management team is committed to providing reliable information to help you make the best car insurance decision. Because customers rely on us to provide accurate and truthful information, we have created a comprehensive rating system to rank us among the best auto insurance companies. We collected data on dozens of auto insurance providers to rank companies based on a variety of factors. After 800 hours of research, the final result is an overall score for each provider, with the insurers with the most points at the top of the list.
According to our estimates, comprehensive car insurance for an 18-year-old costs $4,958 per year or $413 per month. If you add an 18-year-old child to your family policy, your premiums will go up, but you’ll save money overall. Also, older drivers often get lower rates than 18-year-olds.
Car insurance rates for 18-year-olds are affected by a variety of factors, including gender, driving history, location and number. Differences in premiums due to gender are particularly pronounced for teenagers and young adults, with 18-year-old males often paying significantly higher premiums than females of the same age. However, some states do not allow auto insurers to use gender as a factor when calculating auto insurance rates.
Car insurance rates are more expensive for young drivers because they have less driving experience and are more likely to be involved in car accidents. Even an 18-year-old with a clean driving record can pay more for car insurance than a 30- or 40-year-old driver.
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According to the AAA Foundation for Traffic Safety, 18- and 19-year-olds are twice as likely as 30- to 39-year-old drivers. Below you can see the number of accidents per 100 million kilometers traveled by age group.
The cost of insurance closely follows the accident rate for the year. You can see below that an 18-year-old pays on average more than double what a 35-year-old pays for comprehensive car insurance.
The cheapest car insurance for 18-year-olds is Erie Insurance, which averages $2,888 per year or $241 per month for an individual life policy. USAA offers the same rate of $2,897 per year or $241 per month.
* Auto insurance estimates are based on comprehensive coverage policies with $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident, and $500 deductible for collision coverage and comprehensive coverage .
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Geico, Erie, USAA, and State Farm are affordable options nationwide for 18-year-olds, but other providers may be cheaper in your state. Below are the cheapest providers for 18-year-olds in all states and Washington, D.C., based on our estimated full coverage rates.
Eighteen-year-olds in Hawaii, Ohio, and Iowa pay the lowest rates in the nation. Hawaii does not allow age to affect the state’s auto insurance rates.
On the other hand, the average rate for 18-year-olds in Michigan, Connecticut, and Florida can be more expensive for each auto insurance policy.
Some of the best auto insurance for 18-year-olds are from Geico, USAA, State Farm, Erie Insurance, and Auto-Owners Insurance. Each score awarded is based on factors such as price, reach, popularity, availability and customer experience:
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Geico is your best choice for the best car insurance for 18 year olds. Given that Erie is only available in about a dozen states and USAA is only available to military, veterans and their families, Geico is the cheapest company with the ability to do nationwide. Our estimates show that Geico’s average rate is about 36% lower than the national average for 18-year-olds. Geico also offers good driver education and student discounts that can lower rates for young drivers.
USAA is another affordable option for 18-year-old drivers, with rates about 42% lower than the cost of car insurance for this age group. Your child may qualify for USAA if you are active duty military or a veteran. You can also send your parent’s license if you are a USAA member.
In addition to low prices, USAA offers reliable customer service. It has an A+ rating from the Better Business Bureau (BBB)and received the highest score in the JD Power 2021 US Automotive Claims Satisfaction Study ℠ with a score of 909 out of 1000.
State Farm places it on the list of best car insurance for 18-year-olds because of its student and teen discounts. For example, the Steer Clear® program is a youth driver course that offers a discount upon completion. And State Farm’s great student discount of up to 25% applies until the driver turns 25. Our estimates show that the average rate at State Farm for 18-year-olds is about 33% cheaper than the national average.
Car Insurance Costs By State
Erie Insurance offers affordable coverage in 12 states and Washington D.C. Our estimates show that the average score for 18-year-olds is around 42% cheaper than the national average. Like USAA, Erie scored well at J.D. Power Auto Claims Satisfaction Study, scored 901 out of 1,000.
Operating in 26 states, Auto-Owners offers a variety of coverage options, plus discounts for young drivers. A good student discount applies if your child is 18 and maintains a B average or better and offers discounts of up to 20%. Young drivers can also get a discount on young driver monitoring if they use a GPS device while driving. Our estimates show that car ownership is around 41% cheaper on average than the national average for 18-year-olds.
Teen car insurance is expensive, but not everything is out of your control. There are things you can do to save money, including adding the 18-year-old driver to your family policy, shopping often and looking for special discounts.
If you live in a household, you can add a teen driver to your family policy to save hundreds or thousands of dollars each year. This won’t work if the 18 year old has a car registered in their name so they need their own policy.
Car Insurance Questions And Expert Answers
It also may not matter if the parent has a bad driving record or a bad grade point average. In these cases, 18-year-olds can find cheaper rates on their own policies.
Car insurance discounts can make a big difference in finding good rates for young people. Young drivers can get student discounts and parents can save money when their children go to school more than 100 miles away without a car.
Bundling may also be a good idea if you have other types of insurance policies, such as renters. Some car insurance companies offer car insurance discounts to people with a short driving history, while others require four or five years of damage-free driving to qualify.
The company that has the best car insurance for the age of 18 offers a variety of applicable discounts. Look for the following discounts when comparing car insurance rates:
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Your level of coverage and deductibles directly affect your auto insurance rates. Think about the level of protection you want in the event of an accident and reduce your coverage to that amount to save money. You can also increase your deductible to take on less risk and lower your total premium. A car insurance policy with minimum coverage is the cheapest option.
If you’re thinking about buying a family car for your 18-year-old, consider paying for a mid-size sedan or SUV. Without a car loan, you don’t have to have comprehensive or collision coverage on your car.
You just need to have the level of bodily injury and property damage coverage required in your state. Some states require more coverage, but companies are not allowed to sell you less than the base amount.
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