Car Insurance Costs for 18-Year-Old Males and Females

For full coverage, the cost of auto insurance for 18-year-olds is $7,179 per year, or $598 per month — nearly triple the national average of $2,399 per year, or $200 per month.

According to our research, Erie has the cheapest car insurance for 18-year-olds, with an annual policy costing an average of $3,161. Allstate, the most expensive insurer, charges $7,306 more for the same coverage for 18-year-old drivers. Given the huge disparity between insurers, we recommend shopping around for the best rates.

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

Full coverage car insurance for an 18-year-old driver costs an average of $7,179 per year, or $598 per month, but premiums vary greatly between insurance companies.

• Erie - $3,161
• USAA - $3,596
• Geico - $4,651
• Nationwide - $5,735
• State Farm - $6,336
• Progressive - $7,073
• Allstate - $10,467

We discovered a $7,306 difference in annual rates between Erie, the cheapest insurer, and Allstate, the most expensive insurer. Huge gaps like this demonstrate why it's critical to compare insurance quotes to ensure you're getting the best rates.

• Erie Insurance had the lowest rates, at $3,161 per year, but it is only available in 13 states.
• USAA, with an annual premium of $3,596 was the second cheapest insurer we looked at; however, the company only offers car insurance policies to current and former military members and their families.
• Geico is the cheapest car insurance company for 18-year-olds that is widely available across the country, with an annual premium of $4,651.

Nationwide comes next with an average annual rate of $5,735, while State Farm and Progressive charge even more for car insurance for 18-year-olds: $6,336 and $7,073, respectively. Allstate charges the most to 18-year-old drivers, with an average annual rate of $10,467.

Does car insurance go down at 18?

According to our research, most young drivers' insurance rates will drop by 12% when they reach the age of 18. You pose less of a risk to insurers as an 18-year-old than newly licensed 16- and 17-year-olds, and your rates reflect that decrease.

This rule does not apply to new drivers. If you are an 18-year-old new driver seeking car insurance for the first time, you will pay more than a 16-year-old driver with two years of driving experience.

Average cost of car insurance for 18-year-old males vs. females

Car insurance for 18-year-old females is generally less expensive than for 18-year-old males. Women pay an average of $6,797 per year for 18-year-olds, while men pay $7,561.

According to the Centers for Disease Control and Prevention, the motor vehicle death rate for males aged 16 to 19 was nearly double that of females in that age group, making teenage males a significantly higher risk to insurers. Some states, however, including California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania, prohibit insurers from using gender to determine car insurance rates. As a result, all else being equal, men and women in these states should pay the same price for auto insurance coverage.

Best cheap car insurance for 18-year-olds by state

We compared average car insurance premiums in the United States' ten most populous states and recommend the cheapest insurers for 18-year-olds in each.

North Carolina has the lowest annual premium for 18-year-old car insurance, with an annual premium that is 55% less than the national average.

Michigan is by far the most expensive state, with 18-year-olds paying nearly three times the national average for auto insurance.

In the table below, we recommend the cheapest auto insurance companies for an 18-year-old in the ten most populous states.

The cheapest auto insurance company for 18-year-olds in the 10 most populous states

USAA was excluded, as policies are only available for current or former military members and their families. Without its exclusion, it offers the cheapest car insurance for 18-year-olds in Illinois, Michigan, Pennsylvania and Texas.

Can an 18-year-old get their own car insurance

An 18-year-old can get their own auto insurance policy. However, if possible, we recommend being added to your parents' policy, as the additional cost will be much less than taking out your own policy.

The average annual cost of adding an 18-year-old to a parent's car insurance policy is $3,020, but the average annual cost of getting their own car insurance is $7,178.

When parents add a teen driver to their policy, their rates will skyrocket, but by requesting discounts, they can help offset the increased cost. If the teen has a separate car, for example, parents may be able to get a multi-car discount. In addition, if parents choose to keep their teen's car insured with the same company, they may be rewarded with a loyalty discount.

If you are an 18-year-old looking for your first car insurance policy, you should read our article on car insurance for beginners.

How to get cheap car insurance at 18

After remaining on your parents' policy, the best way to obtain low-cost auto insurance quotes is to shop around. Prices can vary by thousands of dollars, so contact several insurers to compare rates.

There are, however, a number of other strategies that 18-year-olds can employ to secure auto insurance deals:

Take advantage of discounts. Many discounts are available from insurers, and you may be eligible for some of them. If you are an 18-year-old high school or college student, you can qualify for a good student discount on car insurance if your GPA remains above a certain level. College students who leave their car at their parents' house during the academic year and attend a university more than 100 miles away may be eligible for an away-from-home student discount, as well as a low-mileage discount. Alternatively, if you are financially independent of your parents and live apart from them, you can save money on auto insurance by bundling it with renters insurance.

Drive an affordable car. Expensive cars are more expensive to repair, which means they are also more expensive to insure. According to our research, the cars with the lowest insurance rates for 18-year-olds include sports cars like the Mazda MX-5 Miata and the Ford Mustang, as well as SUVs like the Subaru Outback and the Buick Encore.

Increase your deductible. Your monthly premium will be lower if you have a higher deductible. Consider raising your deductible in order to obtain lower rates.

Make use of a telematics program. You can demonstrate that you're a safe driver worthy of lower premiums by sharing your driving data with your auto insurer via a telematics tracking device. You can earn significant savings with usage-based auto insurance programs.

Reconsider how much coverage you need. Because 18-year-old drivers are statistically more likely to be involved in an accident, it's generally a good idea to purchase a full coverage policy that includes both collision and comprehensive coverage. A minimum coverage policy, on the other hand, may be appropriate if you, like many young drivers, have an older car and repairs would cost more than the car is worth.

If you are unable to join your parents' policy for whatever reason, you will take the same steps to obtain your own car insurance at the age of 18 that you would at any other age. Begin by determining how much car insurance you require, and then gather important information about your vehicle, as well as your driving and insurance history.

After that, contact several insurers to obtain quotes and find the best deal. Rather than looking online, we recommend calling insurance companies for a quote. Going online may be more efficient, but you will forgo the added expertise of an insurance agent as well as any discounts they may be able to offer you.

Short-term insurance for 18-year-olds

Short-term car insurance is not sold by reputable car insurance companies. If you're an 18-year-old driver and see advertisements for one-day, one-week, or one-month car insurance, don't be tempted; insurance policies typically come in six-month or one-year terms, with the option to cancel at any time.

If you only need insurance for a short time, you'll need to buy a policy and then cancel it. Furthermore, you may already be covered by your current policy. If you are home for winter or summer vacation, for example, you will not need to purchase insurance for this brief period. Simply notify your current insurer that you are at home and will be driving the car.

Methodology

We gathered car insurance quotes for thousands of ZIP codes in the ten most populous states in the United States. Our sample drivers were men and women aged 18 who drove a 2015 Honda Civic EX. All other factors influencing car insurance rates were consistent; drivers were single with a clean driving record. The following are the coverage levels included in the full coverage policy, including liability insurance. These coverage levels are slightly higher than the minimum coverage requirements of any individual state:

The study included 23 insurance companies, but rates were only added to our list of average prices and recommendations if they were available in at least three of the ten states.

The insurance rate data used in LowCostInsurance analysis came from Quadrant Information Services. These rates were obtained publicly from insurer filings and should only be used for comparison purposes — your own quotes may differ.