Which company will offer the cheapest car insurance for 18-year-olds? 18-year-old drivers are considered adults. However, the cost of their car insurance can still be expensive. And the reason is that teenage drivers are prone to more claims and accidents than older drivers.
If you are currently looking for the cheapest car insurance for 18-year-olds, you are welcome to read the right article. Our team has compared rates from various providers to see which of them offers cheap auto insurance for 18-year-olds. We will cover our top picks and provide you with more information on car insurance for teens.
Car Insurance Cost for 18-year-olds?
Based on your rate research, full coverage auto insurance for 18-year-olds is an average of $4,958 in a year, or $413 a month. Keep in mind that if you add an 18-year-old to your policy, the rates will go up, but you will be able to save money. Just like I have stated above, teens get higher rates than older drivers.
Factors that Affect Car Insurance Costs for 18-year-olds
Just so you know, several factors affect the cost of car insurance for 18-year-olds. Some of them include driving history, location, gender, and credit scores. Premium differences because of gender are usually pronounced for young adults and teens. 18-year-old males usually pay higher rates than females of the same age. However, some states do not allow insurance companies to use gender as a factor to calculate car insurance premiums.
The Cheapest Car Insurance for 18-Year-Olds in 2024
Although auto insurance policies are very expensive for young adults, some insurers offer affordable rates. Below are some of the auto insurance companies that offer affordable policies for 18-year-olds:
Geico
Geico is our number-one choice for cheap car insurance for 18-year-olds. It is the cheapest insurance company and is available nationwide. Our research shows that Geico rates are 37% cheaper than the normal national average for young adults. The company also provides good student discounts and driver education that can help reduce rates for young drivers.
USAA
USAA is another cheap insurance company for 18-year-old drivers. The company has average rates that are about 40% lower than the normal car insurance cost for this age group. However, your teen can only qualify if either of you is a veteran or in the military. Also, you can pass down your eligibility as a guardian or parent if you are a member of USAA. Apart from the cheap rates, this insurance company offers good customer service. USAA earns the highest score in the J.D. Power US Auto Claims Satisfaction Study and an A+ rating from the Better Business Bureau.
Liberty Mutual
Liberty Mutual is a good pick for young drivers because of its programs and useful discounts. Established in 1912, this insurance company has been providing insurance for parents with dependents and young adults for a very long time. Some of the discounts and programs available for young adults include New Teen Driver, Good Student Discount, Teen Driving Program, and Accident Forgiveness. As long as you are a member of Liberty Mutual, you will be eligible for discounts as soon as you sign up.
Erie Insurance
Erie Insurance offers affordable coverage in about 12 states in the USA, including Washington, D.C. Our research shows the average rate for young drivers is about 40% cheaper than the national average. Just like USAA, this insurance company scored really well in the J.D. Power Auto Claims Satisfaction Study. It earns about 901 out of 1,000 points.
State Farm
State Farm makes it on our compilation of cheap car insurance for 18-year-olds because of its discounts available for teens and students. For instance, the Steer Clear program is an incredible education course for young adult drivers that offers discounts after completing it. And a good discount of about 25% is applied until the driver is 25. Our research shows that State Farm’s average rates for 18-year-olds are 33% cheaper than the normal national average.
Auto-Owners
Auto-Owners Insurance operates in 26 states in the country and provides a variety of coverage options and discounts for young drivers. The insurer’s good student discounts come in if our 18-year-old has a B average or better. And it offers about 20% off.
Young drivers can also get teen driver monitoring discounts if they make use of the GPS device when driving. Our research shows that this insurer averages about 41% cheaper than the national average for young adults.
Why Is Car Insurance So Expensive for 18-Year-Olds?
Just like I have mentioned above, auto insurance rates are very expensive for young drivers because they get into more accidents and claim more. Even an 18-year-old with a very clean driving history is likely to pay more for car insurance than drivers in their 30s or 40s. 18- and 19-year-olds are likely to get into more accidents than drivers between 30 and 39 years old, according to the AAA Foundation for Traffic Safety. Even if you add a young driver to your policy, your rates will likely go up more than before.
How to get a cheap car insurance policy at 18
If you want to add an 18-year-old to your policy, it is advisable to compare insurance quotes from different companies. To know what company provides the best deals for your needs and budget. Explore different discount opportunities and consider reducing some coverage to save more money. Increase your deductible.
You can ask your insurance agent to give you quotes for different deductible levels. Decide on the best one, and keep in mind that a young driver is likely to be more into something than an adult driver. Also, comprehensive and collision insurance are very cheap if your car is very cheap to replace or repair. Avoid luxury cars and stay away from sports cars if you want auto insurance rates to be affordable.