Auto Insurance Cost for an 18-Year-Old (Tips to Save)
Teens pay higher insurance rates since they lack experience. How much is auto insurance for an 18-year-old? Insurance rates for young drivers average $488 a month, but rates vary by driver. Save on teen auto insurance by taking advantage of car insurance discounts and raising your deductible.
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UPDATED: Oct 4, 2023
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Oct 4, 2023
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
On This Page
- Auto insurance rates for young drivers are high since they have less experience
- An 18-year-old male will pay higher rates than an 18-year-old female
- The best way to save on auto insurance for a young driver is with discounts
Auto insurance companies know that young drivers have little experience and are more likely to cause an accident. That means an 18-year-old will pay more, and those rates can be scary.
How much is auto insurance for an 18-year-old? Rates for young drivers are very high and depend on the company.
Even though auto insurance for 18-year-old drivers is very expensive, there are some great ways to save. Young drivers can lower their auto insurance rates by adding discounts, buying a cheaper car, and raising deductibles. We’ll cover all that and more here.
One of the best ways to find affordable auto insurance for an 18-year-old is to shop around. Every company will charge different rates, so drivers need to compare multiple companies to find the best deal.
If you need to buy auto insurance for an 18-year-old, enter your ZIP code now to compare free quotes from companies in your area.
Table of Contents
The Cost of Auto Insurance for an 18-Year-Old?
It’s no secret that younger drivers pay much higher auto insurance rates than older drivers. The reason is simple.
Young drivers don’t have enough experience to avoid accidents. The National Highway Traffic Safety Administration reports that 2,042 people were killed in accidents involving a teen driver in 2019.
Young drivers can lower those rates with discounts and by keeping a clean driving record.
How much is car insurance for an 18-year-old? This table shows you the average monthly rates for 18-year-old drivers from some of the top auto insurance companies:
| Auto Insurance Company | Average Annual Auto Insurance Rates for an 18-Year-Old |
|---|---|
| Allstate | $10,467 |
| Erie | $3,161 |
| Geico | $4,651 |
| Nationwide | $5,735 |
| Progressive | $7,073 |
| State Farm | $6,336 |
| USAA | $3,596 |
Although the cheapest insurance for 18-year-old drivers costs around $260 per month, the average is $488.
When do auto insurance rates go down? Typically, auto insurance rates start to drop around age 25.
The good news is that you can still save money on auto insurance for young drivers with a few simple steps.
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How an 18-Year-Old Can Save On Auto Insurance
Adding auto insurance discounts is one of the easiest ways to save money. While some discounts, such as good student or driver’s ed, are specially for young drivers, there are many more that you can take advantage of.
This table shows you the common auto insurance discounts that are available from top companies:
| Discount Name | Allstate | American Family | Farmers | Geico | Liberty Mutual | Nationwide | Progressive | State Farm | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Adaptive Headlights | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Anti-lock Brakes | 10% | ✓ | ✓ | 5% | 5% | 5% | ✓ | 5% | ||
| Anti-Theft | 10% | ✓ | 23% | 20% | 25% | ✓ | 15% | |||
| Claim Free | 35% | ✓ | ✓ | 26% | ✓ | 10% | ✓ | 15% | 23% | 12% |
| Continuous Coverage | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | ||
| Daytime Running Lights | 2% | ✓ | 3% | 5% | 5% | ✓ | ✓ | |||
| Defensive Driver | 10% | 10% | ✓ | ✓ | 10% | 5% | 10% | 5% | 10% | 3% |
| Distant Student | 35% | ✓ | ✓ | ✓ | ✓ | 10% | ✓ | 7% | ||
| Driver's Ed | 10% | ✓ | ✓ | ✓ | 10% | ✓ | 10% | 15% | 8% | 3% |
| Driving Device/App | 20% | 40% | ✓ | ✓ | 30% | 40% | 20% | 50% | 30% | 5% |
| Early Signing | 10% | ✓ | ✓ | ✓ | ✓ | 8% | ✓ | ✓ | 10% | 12% |
| Electronic Stability Control | 2% | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Emergency Deployment | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Engaged Couple | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Family Legacy | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 10% |
| Family Plan | ✓ | ✓ | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ |
| Farm Vehicle | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Fast 5 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Federal Employee | ✓ | ✓ | 12% | 10% | ✓ | ✓ | ✓ | ✓ | ||
| Forward Collision Warning | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Full Payment | 10% | ✓ | ✓ | $50 | ✓ | ✓ | ✓ | 8% | ✓ | |
| Further Education | ✓ | ✓ | 10% | 15% | ✓ | ✓ | ||||
| Garaging/Storing | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 90% | ||
| Good Credit | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Good Student | 20% | ✓ | 15% | 23% | 10% | ✓ | 25% | 8% | 3% | |
| Green Vehicle | 10% | ✓ | 5% | ✓ | 10% | ✓ | ✓ | ✓ | 10% | ✓ |
| Homeowner | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | 3% | 5% | ✓ | |
| Lane Departure Warning | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Life Insurance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Low Mileage | ✓ | ✓ | ✓ | 30% | ||||||
| Loyalty | ✓ | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | |
| Married | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Membership/Group | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | |||
| Military | ✓ | ✓ | 15% | 4% | ✓ | ✓ | ||||
| Military Garaging | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% |
| Multiple Drivers | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Multiple Policies | 10% | 29% | ✓ | 10% | 20% | 10% | 12% | 17% | 13% | |
| Multiple Vehicles | ✓ | ✓ | 25% | 10% | 20% | 10% | 20% | 8% | ||
| New Address | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Customer/New Plan | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| New Graduate | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Vehicle | 30% | ✓ | ✓ | 15% | ✓ | 40% | 10% | 12% | ||
| Newly Licensed | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Newlyweds | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Non-Smoker/Non-Drinker | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Occasional Operator | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Occupation | ✓ | 10% | 15% | ✓ | ✓ | ✓ | ||||
| On-Time Payments | 5% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | |
| Online Shopper | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 7% | ✓ | ✓ | ✓ |
| Paperless Documents | 10% | ✓ | ✓ | ✓ | 5% | $50 | ✓ | ✓ | ✓ | |
| Paperless/Auto Billing | 5% | ✓ | ✓ | ✓ | $30 | ✓ | $20 | 3% | 3% | |
| Passive Restraint | 30% | 30% | 40% | 20% | ✓ | 40% | ||||
| Recent Retirees | ✓ | ✓ | ✓ | ✓ | 4% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Renter | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Roadside Assistance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Safe Driver | 45% | ✓ | 15% | ✓ | 35% | 31% | 15% | 23% | 12% | |
| Seat Belt Use | ✓ | ✓ | ✓ | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Senior Driver | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Stable Residence | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Students & Alumni | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | ✓ | ||
| Switching Provider | ✓ | ✓ | 10% | ✓ | ✓ | ✓ | ✓ | |||
| Utility Vehicle | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Vehicle Recovery | 10% | ✓ | ✓ | 15% | 35% | 25% | ✓ | 5% | ||
| VIN Etching | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | |||
| Volunteer | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Young Driver | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | $75 |
Another great way to save is by paying attention to the vehicle you buy. Cars with poor safety ratings or that are expensive to repair will have higher auto insurance rates.
This video shows you how to save on car insurance for 18-year-olds.
Consider raising your deductible, dropping coverage you don’t need, and comparing quotes from multiple companies to get the lowest rates possible.
Factors That Affect Auto Insurance Rates for an 18-Year-Old
Many factors affect auto insurance rates. Three of the biggest are your age, gender, and driving record.
We’ve already discussed how young drivers are charged higher car insurance rates, but your gender can also affect those rates. In general, males are charged more for insurance.
How much is car insurance for an 18-year-old male per month?
An 18-year-old male driver will pay around $470 a month for auto insurance. However, rates will vary by driver and company.
How much is car insurance for an 18-year-old female per month?
An 18-year-old female driver will pay an average of $400 a month. Again, rates will vary for each driver and auto insurance company. Some states, like California, don’t allow insurance companies to consider gender when calculating rates.
In addition, car insurance costs vary depending on your ZIP code. Some states charge more for car insurance than others.
Louisiana and Michigan are the most expensive states for auto insurance. While Idaho and Washington, have some of the cheapest car insurance rates in the country.
Your driving record has a big impact on your rates. Drivers with a poor or no driving history will pay higher rates than a driver who’s been on the road a while.
Case Studies: Auto Insurance Cost for an 18-Year-Old (Tips to Save)
Case Study 1: Max’s Discount Bundle
Max, an 18-year-old driver, was determined to find affordable auto insurance. He decided to take advantage of available discounts to lower his rates. Max bundled his auto insurance with his parents’ policy, qualifying for a multi-policy discount. Additionally, he completed a driver’s education course and maintained good grades in school, making him eligible for a good student discount.
By combining these discounts and comparing quotes from multiple companies, Max was able to secure a more affordable rate than initially expected. This case study demonstrates the effectiveness of utilizing available discounts to reduce auto insurance costs for young drivers.
Case Study 2: Sarah’s Affordable Car Choice
Sarah, an 18-year-old driver, knew that the type of car she chose would impact her insurance rates. Instead of opting for a high-performance sports car or a luxury vehicle, Sarah decided to purchase a used sedan with a good safety rating.
By selecting a car with lower repair costs and a lower risk of accidents, Sarah was able to secure a more affordable insurance premium. This case study highlights the importance of considering the type of vehicle and its associated insurance costs when aiming to save on auto insurance for young drivers.
Case Study 3: Jake’s Deductible Adjustment
Jake, an 18-year-old driver, wanted to find ways to reduce his monthly auto insurance expenses. After discussing options with his insurance agent, Jake decided to raise his deductible. By choosing a higher deductible, Jake assumed more financial responsibility in the event of an accident but received a lower premium in return.
This adjustment allowed Jake to save on his monthly insurance costs without compromising his coverage. This case study emphasizes the potential savings that can be achieved by adjusting deductibles to fit an 18-year-old driver’s budget.
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Enter your ZIP code below to compare cheap insurance rates.
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Auto Insurance for an 18-Year-Old: The Bottom Line
Young drivers don’t have experience, so auto insurance companies charge them higher rates. However, there are multiple ways to lower those high rates, including adding available discounts.
Before you buy auto insurance for an 18-year-old, shop around to find the best coverage with the lowest rates.
Enter your ZIP code now to compare auto insurance rates for 18-year-old drivers from companies near you for free.
Free Insurance Quote Comparison
Enter your ZIP code below to compare cheap insurance rates.
Secured with SHA-256 Encryption
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.