Turning 18 years old is the beginning of adulthood. one is eligible/qualified to vote, open their own lines of credit, and also, in many states, own a car. Whether you are shopping for auto insurance for the very first time or looking for a cheaper auto insurance policy, car insurance for 18-year-olds can and is expensive.
The full coverage insurance for an 18-year-old costs an average of $7,396 per annum or $616 monthly.
Those under the age of 25 tend to have a higher insurance rate because they are regarded as more at-risk drivers. As one gets older and has more years of driving experience under their belt, their insurance rates will start to drop.
According to research, Erie offers the cheapest and lowest car insurance for 18-year-olds, with an average annual rate of $3,173.
The average cost of auto insurance for 18-year-old female drivers is more cheaper than that for 18-year-old male drivers. The 18-year-olds female drivers pay $7,030 yearly on average, while male drivers pay $7,762 yearly.
The Cost of Full Coverage Insurance a Month for an 18-Year-Old
Because 18-year-old car drivers do not have much experience behind the wheel, these 18 years old drivers are considered and regarded as high-risk drivers. Teenagers are said to file more claims than older drivers, so because of this, car insurance companies raise rates for this age group.
The average cost of full coverage insurance for 18-year-olds is $7,396 per annum, or $616 monthly, according to our research. Erie is said to offer the cheapest car insurance for 18-year-olds, with an average rate of $3,173. An 18-year-old is expected to pay an average rate of $616 per month for full-coverage insurance. While Erie offers the cheapest rates at $264 per month.
According to The Zebra’s State of Auto Insurance study, the average car insurance for 18-year-old drivers runs about $4,700 yearly or nearly $400 monthly. The same study discusses that the savings 18-year-olds can see if they stay under their parents’ insurance policy instead of starting their own insurance policy is about $2,600.
What Affects the Cost of Car Insurance?
Several factors play into calculating car insurance rates for 18-year-olds, and they include the following:
Age It is a well-understood fact that the more experience you are on the road, the better driver you will become. At 18, one is still considered relatively inexperienced and more at risk on the road to auto insurance companies. This is the reason why the average auto insurance for an 18-year-old is higher than those who are in their mid-twenties.
Gender
An 18-year-old girl could pay lower car insurance rates compared to an 18-year-old-boy. While Some states have outlawed considering gender when calculating car insurance rates, but still one’s gender will generally play a role. According to Insurance Information Institute, there are fewer accidents reports related to women, lower numbers of DUIs, and also less severe accidents than that of men.
Location
To protect your teenage ones, auto insurance companies take almost everything into account, including location, so you can get the best quote possible. The ZIP code one lives in matters when companies verify their address, so if one lives in an area with a low rate of accidents, theft, and vandalism, their car insurance will be more affordable.
Driving Record
Maintaining a clean driving record goes a very long way for an 18-year-old. The fewer claims, accidents reported, or citations one has had, the less of a risk they are seen to the auto insurance company.
Type of Car
Do you know that the type of car your 18-year-old drives can grant and qualify for auto insurance discounts and lower rates? The less expensive the car is, the less expensive the auto insurance will be as well. If a teenager’s car has safety features like the anti-theft technology, the anti-lock brakes, or passive restraints, they could also qualify for discounts.
Credit
The Credit scores matter, even at the age of 18. Most big first-time purchases require a credit score. Data from the Federal Trade Commission suggests that drivers with a better credit score file fewer claims. Statistics show that drivers with a higher credit score tend to file lesser claims. Companies also view drivers with higher credit scores as generally more responsible.
Coverage Limits
The limits and deductibles you choose will determine how expensive your car insurance rates are going to be, so it’s important to shop around for policies.
Top Cheap Full Insurance Coverage for 18-Year-Old
Below is the list of some of the cheapest auto full coverage insurance for 18 years old, and they include the following:
- Erie $3,173 per year
- USAA $3,963 per year
- Geico $4,224 per year
- State Farm $5,670 per year
- Nationwide $5,737 per year
- Farmers $6,470 per year
- Progressive $7,057 per year
- Allstate $10,724 per year
The Erie offers the cheapest and lowest rates, at $3,173 annually, though it is only available in 13 states.
The USAA, with an annual premium rate of $3,963, they offer the second-cheapest rates among the insurers listed. However, the company offers car insurance policies to only current and former members of the military and their families.
The Geico, with an annual premium rate of $4,224, it is the cheapest car insurance company for 18-year-olds that is widely available across the country.
NOTE: that an 18-year-old can get a car insurance policy on their own. However, they could pay 60% less if they share a policy with their parents or an older driver. If you are an 18-year-old driver who still lives at home, staying on your parent’s auto insurance policy is always more affordable than purchasing your own policy.
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