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A Comprehensive Guide to Car Insurance for 18-Year-Old Drivers

Car insurance costs nearly $5,190 for an 18-year-old driver, on average, for a year with full coverage on his own package. For drivers aged 30 years, that's more than $3,430 over the national average ($1,758). It is difficult to cover newly licensed drivers. They are, inevitably, novice and have a high incidence of injuries. This is considered dangerous for car insurance firms. So, they charge even higher prices for young teenage drivers. Here we will include average auto insurance premiums by jurisdiction, as well as by coverage standard for 18-year-old males and females, and demonstrate how a parent's rates are impacted when you add a teen to your policy. You'll also get specialist advice on how much coverage to buy for young drivers and discounts.

18-Year-Old Car Insurance 101

Teenage drivers set off alarms amongst insurance agents and insurance companies from the get-go. From the lack of experience behind the wheel to their tendency to engage in risky on-road behavior, teenagers top other age groups when it comes to making insurance claims. That's no reason to lose hope, however. Implementing a few simple safe driving strategies not only reduces a teenager's risk while on the road but also gets you access to lower insurance premiums! Read on to know more about how safe driving for teenage drivers can reduce the risk of injury while keeping your insurance premiums in check.

Attend a driver safety course

As a concerned parent, it's understandable that you're worried about your teenager's safety while they're out driving. Having them take a driver safety course helps them get trained in safe driving practices that can be applied in real-world scenarios. What's more, being certified by an accredited driver safety course can also help lower teenage drivers' insurance premiums.

Buy a car with a good safety rating

Always make sure to check that the car you're purchasing for your teen driver has safety ratings that are up to code. A higher safety rating means added protection and safety of the driver and passengers in the car in the event of an accident. Various vehicles come with different car safety ratings, so be sure to shop around for one that has high ratings. Stronger safety ratings also tend to be cheaper to insure, making it an ideal choice for novice teen drivers.

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Limit distractions and put that phone away

Teens are at particular risk when it comes to using their phones while driving - a huge factor that contributes to the thousands of fatal accidents that happen in America every year. We can't stress this enough - put those phones down! Stow it away in your glove box or switch it to airplane mode when buckling yourself in. It's also a good idea to keep the number of people in your car to a minimum. A full car tends to be noisy, making for easy distractions that can deter your concentration and affect your driving skills.

Participate in a Graduated Driver's License (GDL) program

State-mandated GDL programs restrict and limit teenage drivers' vehicle access until they receive a full license. In most cases, these GDL programs are mandatory and require all teenage drivers to undertake them. Depending on the state you're in, these mandates may include limited driving times during bad weather, restrictions on the number of co-passengers, and so on.

Maintain a safe driving distance

It's ideal to leave a couple of car lengths between you and the car that's ahead of you. A sudden stop on the road could lead to you rear-ending the car that's ahead. These could result in huge damages to your car as well. If you're a parent who's training your inexperienced teen in safe driving practices, make sure to teach them how to adjust their driving distances to suit the conditions on the road.

Discuss driving costs with your teen driver

Driving a car comes with its own set of responsibilities - it's quite understandable that most teens don't understand how car insurance and insurance policies work. They may be unaware of how much the insurance costs shoot up after even a single at-fault accident. One way to get around this is to get your teenager to pitch in for the insurance premiums. This helps them understand driving costs better and realize the financial consequences of any rash driving on their part.

Auto insurance expenses per month for 18-year-old drivers

On average, with a full coverage package, young drivers under 18 would spend around $430 a month for auto insurance. It's around $160 a month if you only buy enough insurance to drive safely in your state.

Auto insurance expenses for an 18-year-old female

We estimate that $4,700 is the average total cost of insurance for an 18-year-old woman. This is under her own insurance, which requires extensive compensation and collision coverage, including 100/300/100 exposure caps. Insurance for female teen drivers aged 18 costs around $830 less than men their age.

The price of auto insurance for an 18-year-old male

For their own maximum benefit policy, men over 18 spend $5,605 on average. This is 833 dollars higher than their female counterparts. For a male 18-year-old with his own policy, you should equate rates to that of being admitted to the coverage of his parents.

18-year-old Auto Insurance: State minimum policies

The cheapest auto insurance that you can get is a package that only covers your jurisdiction's minimum car insurance provisions. Typically, buying only the state-required plan to drive safely means the insurance will pay for the injury and vehicle damage to others, but not for your own injuries or damages to your car.

Must an 18-year-old have complete coverage?

There is no regulation providing maximum compensation for underage drivers. If the vehicle being driven is rented or insured, though the lender may expect you to have total coverage, including comprehensive and crash insurance.

You only need state-mandated liability insurance to drive safely, which covers for other people's harm and injury in accidents you cause. That does not protect your own vehicle. However, since teenagers are young and have more injuries than seasoned drivers as a demographic, it is prudent to have complete surveillance of the vehicle your teen drives.

We recommend the following conditions when choosing a full coverage policy:

  • Ensure that there is collision coverage, regardless of the blame of a collision, to pay for damage to the vehicle
  • Ensure that there is comprehensive coverage to pay for hail, storm, burning, arson, animal strikes, damage to your vehicle, and repair it if stolen.

When your teen is driving your car, it is always worth the extra money to be totally covered. Otherwise, you will be on the hook for even small injuries that can surpass a bare-bones policy to pay out of your own pocket. The cost of going from the state minimum to maximum coverage for an 18-year-old daughter on your insurance is around $1,672, so for peace of mind, that's just $139 a month. The added expense of buying maximum benefits for him on your package instead of the state minimum for an 18-year-old son is $1,884, or $157 a month.

When are you expected to add a teen to a parent's policy?

18-year-olds are considered minors by most states. They need to purchase insurance on their own. But that may not be a smart idea. Teens may often try to break away from their parents but introducing a teen to the family policy is often smart. Usually, it is a cheaper choice than letting a teen get a different policy.

An 18-year-old would not earn the same price breaks as an adult receives. For multi-vehicle, multi-policy, and loyalty discounts, parents can be eligible. Even with these advantages, though, adding an 18-year-old driver to the parent's policy would definitely come with a price hike. Even by comparing prices, you can snag the most competitive offer. For the measurement of how much you spend, auto insurance firms each have their own system. That means that the quote on the same coverage will differ greatly between insurance providers for the same driver. You won't know how much you can save by buying the policy at the most reasonable price if you don't have a comparison store.

Which insurance is best for young drivers?

Liability cover is one aspect of auto insurance. That covers for losses that a teen can cause in an accident to individuals or property. For liabilities, states provide minimum coverage. Typically, it isn't enough. Hospital costs and damage to property will easily add up. For out-of-pocket costs, you do not want to be responsible. Be sure the properties are covered by the standard liability coverage. In addition to increasing your liabilities' value, buy an umbrella policy that enhances liability insurance once you hit basic caps. An umbrella with a security of $1 million or more could be an appropriate amount.

Comprehensive protection and crash provisions are important if you are financing the car. However, once the vehicle is already paid off, you know whether or not you like these optional safeguards. To lower your premium, accept higher deductibles if you opt for detailed and collision. Of course, after an injury, you will then have to pay for minor repairs. Comprehensive and collision insurance are not usually complete budget busters.

Discounts on auto insurance for 18-year-olds

A smart idea, instead of skimping on coverage, is to optimize discounts. Discounts vary by entity and jurisdiction. Here are common discounts for teenagers on auto insurance:

  • Good student: For drivers who maintain a 3.0 or 'B' score in the classroom, savings of up to 15 percent could be possible. This extends to students in either high school or college.
  • Driver education: Once your teenager finishes a driver training course, you will be eligible to get a 5 percent discount. A state could require the class as a step toward having a license.
  • A driving contract between parents and teenagers: An insurer can offer a discount of up to 5% to teenagers who sign a driving rules contract with their parents, such as restricted hours on the road and the number of passengers.

For an 18-year-old, what are the right cars?

Usually, sedans and small to medium-sized SUVs are cheaper to insure. Sports cars and costly trucks are also more expensive, and if they're hurt, an owner will like to pay further.

  • Go for decreased horsepower - Vehicles with more powerful engines can tempt young drivers to test the limits.
  • Get Electronic Monitoring for Equilibrium (ESC). This feature, which helps to keep stability over curves and slippery paths, is just as effective as safety belts in minimizing risks.
  • Consider cars from the IIHS and NHTSA with top safety reviews.

Shop around for premiums for cars

It is expensive to add a teen to an insurance package or to help youth with their own auto insurance. Shopping around is the perfect way of minimizing the discomfort. Compare rates on auto insurance from several insurance providers. As you age, auto insurance gets cheaper. Average auto insurance prices by age indicate that when drivers reach 26, premiums tend to decline dramatically.

Much like completing high school, costly auto insurance premiums are a rite of passage. However, there are means of mitigating the pain. Accident- and ticket-free travel, shopping comparison, and optimizing discounts can both help you get the best teenage auto insurance prices.

There are, however, a variety of other ways that 18-year-olds may use to negotiate car insurance deals:

Take advantage of the rebates: Insurers are giving several discounts you might be eligible for. You will get a decent student discount on auto insurance whether you are an 18-year-old high school or college student, provided you keep your GPA above a certain threshold. College students who abandon their vehicle during the school year at their parents' home to attend a university more than 100 miles away will also get a commuter discount away from home and maybe benefit from a low-mileage discount. Alternatively, you can save on your car insurance premium by bundling it with your renter's insurance if you're financially independent of your parents and live independently from them. Here's a rundown:

  • Get an inexpensive vehicle to drive: Expensive vehicles cost money to fix, which suggests that they cost more to cover as well. Our survey showed that sports cars such as the Mazda MX-5 Miata and the Ford Mustang, as well as SUVs such as the Subaru Outback and the Buick Encore, were among the cars with the cheapest protection for 18-year-olds.
  • Increase the deductible number: The bigger your deductible, the lower the annual premium you earn. In order to find more competitive prices, try raising the deductible.
  • Using telematics to monitor driving: You will show that you are a responsible driver deserving of lower premiums by sharing your driving details with your car insurer with a telematics monitoring system. Auto insurance plans focused on use allow you to receive substantial discounts.
  • Reconsider how badly you need coverage: Because 18-year-old drivers are statistically more likely to get into collisions, having a full liability package that covers both crash and comprehensive insurance is usually smart. A minimum coverage policy, though, could work if you had an older vehicle, like many young drivers, and maintenance will cost more than the car is worth.

If you can't enter your parents' policy for any reason, you will take the same action to get your own auto insurance at 18 as you will at any other age. Start by deciding how much auto insurance you need and collecting main vehicle information, as well as your history of driving and insurance. Once you've done this to get quotes, and identify the right price, reach out to multiple insurers. Rather than browsing online, we consider contacting insurance agencies for a quote. It might be more convenient to go online, but you lose an insurance agent's added experience and possibly any deals they may give you.

Short-term 18-year-olds' insurance

Reputable auto insurance providers should not offer car insurance for short-term use. Don't be tempted if you're an 18-year-old driver and you see commercials for one-day, one-week, or one-month auto insurance; insurance plans usually only come in terms of six months or one year, but at any point, you can also cancel them.

You'll need to buy a policy and terminate it early if you really need cover for a short period of time. And you may be protected by a current policy already. For instance, whether you're home for winter or summer break, you won't need to purchase premiums for this fleeting time.

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How to get cheap car insurance for 18-year-old drivers

As mentioned earlier, auto insurance for 18-year-olds costs more than regular insurance policies. Fortunately, to save money and lower the fee, there are always things you can do. A few choices are listed here:

Increase your deductibles: Your deductible is the amount of money you are expected to spend out-of-pocket for an insured loss before the insurance provider refunds you. The higher your premium, the lower your maintenance costs would be, especially for coverage for crashes. If you chose this option, make sure that you choose a deductible that you can afford if you should need to file a lawsuit.

  • Take advantage of deals: Many insurance providers offer coupons that will lower the premium, but make sure that all the discounts you are eligible for being taken advantage of. Be sure the insurance agent knows that the vehicle has such safety features that qualify for a discount, such as anti-lock braking. Also, inquire if you can demand any unadvertised discounts. By enrolling in paperless billing, for example, you may be able to save some money.
  • Taking a lesson or two on defensive driving: It is normal for insurance providers to give a discount or other driver protection class to drivers who take an accepted defensive driving course. There will also be several insurance providers promising to pay for it. The real discounts vary by company, but you'll see extra savings on your premium regardless.
  • Store around, shop around: Shopping about and having quotes from various insurers is the easiest way to save money on your auto insurance. You will match deals in this way to see which provider can give you the best price on the coverage you are looking for. Often, compare the discounts that each business provides so that it will lower the cost even further.

Remember to look for auto insurance premiums with a decent student discount for 18-year-olds. With this age group, it is popular for insurance providers to give drivers who get decent grades in school a good student discount. On average, on their monthly insurance premium, students who can demand a decent student discount save around 9 percent.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

FAQs

How much is car insurance for an 18-year-old?

Complete coverage of car insurance for an 18-year-old driver would cost $7179 annually, or $598 monthly, but rates differ drastically across insurance providers.

How much is car insurance for an 18-year-old male?

For their own maximum benefit policy, men over 18 spend $5,605 on average. This is 833 dollars higher than their female counterparts. For a male 18-year-old with his own policy, you should equate rates to that of being admitted to the coverage of his parents.

Why should I compare auto insurance quotes?

Shopping around and taking the time to compare car insurance quotes will make sure your wallet stays healthy while getting more than adequate car insurance coverage for your vehicle. What's more, you're never short of options either! From the biggest auto insurance companies like The General and Allstate Insurance to more affordable policies from Erie and Country Financial, you'll get quotes that are tailor-made for your budget. We recommend revisiting your policy options once a year - remember to check online for any updates or add-ons to your existing policy as well.

Can I get cheap insurance on rideshares?

Several auto insurance companies will let you add-on rideshare insurance to your existing policy. This generally costs around $15 more per month. It is a good idea if you're someone who uses your vehicle in rideshare scenarios. If your auto insurer doesn't provide this add-on, we recommend you look into other insurance options that get you a more comprehensive deal. Note that if your state does not allow for rideshare insurance, you may be required to purchase a commercial insurance policy.

Is cheap car insurance more accessible to homeowners?

Yes, homeowners do tend to get the cheapest car insurance deals on offer. This is especially because most insurance companies offer discounted rates on bundled home and car insurance plans. Besides making your payment process more streamlined, bundling policies lets you track your coverage and claims with ease. If you have an incident-free driving history and happen to own a home, we recommend speaking to your insurance agent or insuring firm for some great money-saving deals on car insurance.

Should I compare car insurance rates when moving states?

This is something that a lot of people tend to overlook. The state you live in has a huge impact on the kind of rates you shell out for insurance coverage. If you find yourself moving between states, ensuring you compare car insurance rates online makes for efficient financial planning. What's more, you'll likely find better deals even within your own state, so don't miss out on comparing insurance rates online.

Learn more by city and state for car insurance



Learn more by city and state for car insurance




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