Guide to the cheapest car insurance for 18-year-olds

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Teenagers face some of the highest car insurance costs. An 18-year-old driver, for example, might pay more than $7,000 a year for coverage. Some insurers do offer relief, though — USAA’s average rate for teens is closer to $3,800 a year.

The reason for these high prices comes down to risk. Drivers between 16 and 19 are more likely to get into accidents than any other age group. In fact, the CDC reports that per mile driven, 16-year-olds crash at about 1.5 times the rate of 18- and 19-year-olds.

Our recommendation for cheap car insurance for 18-year-olds

Teen drivers pay the highest car insurance rates on average compared to any other age group. Because 18-year-old drivers lack experience behind the wheel, car insurance providers charge much higher rates.

While many 18-year-olds can legally purchase their car insurance policy, staying insured on a parent’s policy is more cost-effective. There are also many ways for 18-year-olds to lower their insurance costs, including shopping around to find the best deal.

Although teens can’t avoid expensive car insurance premiums, we suggest insurance shoppers look into various ways to lower insurance costs. Most insurance providers offer discounts for young drivers, including savings for being a good student or taking a driver’s education course. Shopping around and comparing quotes from several insurance companies can help teens find the most affordable policy. 

What is the cheapest car insurance for an 18-year-old?

Our data shows USAA offers the lowest car insurance rates for 18-year-olds. The average cost is about $3,790 per year, or $316 a month — well below the overall average across insurers.

However, USAA coverage is limited to military members and their families. For those who aren’t eligible, American Family provides some of the most affordable rates available without restrictions.

While most 18-year-olds can purchase their own car insurance policy, car insurance companies will only sell insurance to drivers who have reached the age of majority in their state. If the age of majority in your state is older than 18, young drivers must be insured on a parent’s policy. 

In the table below, you can see which insurance companies offer the cheapest car insurance for 18-year-olds.

Best companies for cheap car insurance for 18-year-olds

Most car insurance companies will insure 18-year-old drivers, either on their own insurance policy or on a parent’s insurance policy. However, not all car insurance providers are created equal. Before purchasing car insurance, reviewing several providers based on features like cost, discounts and coverage options is essential.

Our best companies for teens are based on the 2024 Best Auto Insurance Companies ranking. The table shows the best auto insurance companies for 18-year-olds.

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How much is car insurance for 18-year-old males vs. 18-year-old females?

One of the rating factors car insurance companies use to calculate premiums is gender. Young males usually pay more than females of the same age because crash data shows they’re more likely to take risks and be involved in accidents. That said, the exact difference in cost also depends on the insurance company.

The table below shows the average car insurance cost for an 18-year-old male added to a parent’s policy.

Here is the average car insurance cost for an 18-year-old female.

Average car insurance rates for 18-year-olds on a parent’s policy

Although 18-year-olds can purchase their car insurance policy in most states, they can save money by staying insured on a parent’s policy. In the table below, you can see the average annual cost of car insurance for an 18-year-old on their own policy and a parent’s policy.

Is car insurance expensive for 18-year-olds?

Because 18-year-old drivers lack experience behind the wheel and have higher accident rates than any other age group, insurance companies charge higher rates for coverage. However, car insurance rates decrease as drivers age, assuming they maintain a good driving record and have a clean claim history.

“Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute. 

Which states are the most expensive for 18-year-olds?

Car insurance rates vary by location. Factors like weather risks, vehicle theft rates, and the cost of vehicle repairs can all impact insurance premiums in one area. According to our data, Louisiana is the most expensive state for car insurance for 18-year-olds.

Below are the 10 most expensive states for full coverage insurance for 18-year-olds.

Which states have the cheapest car insurance for 18-year-olds?

Some states have cheaper car insurance premiums than others, largely because of differences in traffic density, accident rates, repair costs, and state insurance regulations. For example, Hawaii stands out as the least expensive state for 18-year-old drivers, with an average full coverage premium of just $1,628 per year.

Other states with below-average insurance rates include North Carolina, Iowa and Maine — all places where lower population density, fewer claims, and tighter insurance regulations help keep premiums down.

Here are the 10 cheapest states for full coverage car insurance for 18-year-olds.

Which cars are the cheapest to insure for 18-year-old drivers?

Getting insurance quotes is a good idea before purchasing a car for an 18-year-old. The cost of car insurance can vary significantly depending on your vehicle. In most cases, brand-new cars are more expensive to insure than used cars that have already depreciated. 

Based on our research, these are the 10 cheapest cars for 18-year-old drivers to insure on a parent’s policy:

How to save on car insurance at 18: Smart strategies that work

There are many ways for 18-year-olds to reduce their car insurance premiums. Here are some tips for saving money:

• Look for discounts. Car insurance discounts can help you get a cheaper premium. Some insurers offer discounts aimed specifically at teen drivers.
• Bundle your policies. Purchasing two or more insurance products from the same insurer, like auto and renters insurance, could help you save money with a bundling discount.
• Choose higher deductibles. For car insurance policies that require a deductible, such as collision insurance and comprehensive insurance, selecting a higher deductible will result in a lower monthly premium. Ensure you can afford a higher deductible.
• Compare quotes from multiple providers. The cost of car insurance can vary between insurance companies, even for the same type and amount of coverage. Compare personalized rate quotes from several insurers to find the most affordable policy. 
• Drive safely. Keeping a clean driving record can lower your car insurance rates. When insurers see you’ve avoided accidents and tickets, they view you as a lower-risk driver — which often means more affordable coverage.
• Review your coverage regularly. Checking your policy each year helps make sure you’re not paying for coverage you don’t need — and that you still have the right protection for your situation.

What discounts are available for 18-year-olds?

Eighteen-year-olds can often qualify for car insurance discounts, which can reduce their premium. Here are some of the most common discounts car insurance companies offer to 18-year-old drivers:

• Good student discount. If you’re looking for affordable car insurance for 18-year-old college students, consider a good student discount. Full-time high school and college students can qualify for a good student discount if they maintain a good GPA.
• Driver training course discount. Many insurance companies offer a discount to young drivers who complete an approved driver training course or driver’s education course.
• Student away at school discount. Students who attend school at least 100 miles away from home and leave their vehicle behind can qualify for this discount. Oftentimes, it only applies to collision and/or comprehensive insurance.  
• Telematics program discount. Most car insurance companies offer a telematics-based driver rewards program. Your smartphone or device in your car tracks your driving habits, like brake force and speed. Drivers who demonstrate safe habits behind the wheel can earn a discount on their premiums. 

What our expert says

Q. Why is teen car insurance so high?

Mark FriedlanderDirector of corporate communications for the Insurance Information Institute.

“Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups.”

Resources & Methodology

Sources:

Methodology

Insure.com editors collected rates from Quadrant Information Services for 18-year-old drivers with a full coverage insurance policy with limits 100/300/100 and a $500 comprehensive and collision deductible on a Honda Accord LX. We analyzed 53,409,632 quotes, 34,588 ZIP codes, and 170 insurance companies nationwide.

Elizabeth Rivelli

Contributing Researcher

 

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Elizabeth Rivelli is an insurance expert and freelance writer specializing in insurance and personal finance. Her work has been featured in major outlets like Investopedia, CNET and Bankrate, where she helps readers make confident decisions about car insurance, coverage options and financial planning.