Cheapest car insurance companies for 18-year-old drivers

Auto-Owners offers the cheapest full coverage car insurance rates for 18-year-old drivers at $3,649 per year.

Travelers, Geico, State Farm, and Nationwide are among other insurers that offer cheap car insurance for 18-year-old drivers. USAA also provides cheap insurance for teens, but it only provides its services to veterans, military members and their families.

The table below shows how insurance companies rank in terms of price for 18-year-old drivers buying full coverage policy.

Cheapest car insurance for 18-year-old drivers
CompanyAverage annual premium
USAA*$3,790
Auto-Owners$3,649
Travelers$4,296
Geico$4,644
State Farm$5,077
Nationwide$5,173
Allstate$6,871
Progressive$7,037
Farmers$7,903

*USAA auto insurance is available only to military members, veterans, and family members.

Data updated in 2024

Cheapest car insurance for 18-year-olds: male vs female

Auto-Owners is the cheapest car insurance provider for both 18-year-old male and female drivers. Female drivers pay $3,229 per year, whereas 18-year-old male drivers pay $4,070 annually for the same coverage.

According to the CDC, the motor vehicle death rate for male drivers aged 16–19 is twice that of female drivers of the same age. The Insurance Institute for Highway Safety found that two out of every three teenagers who die in car accidents are males, thereby making male drivers a high risk to insure.

Cheapest car insurance for 18-year-olds by gender
CompanySingle 18-year-old femaleSingle 18-year-old male
USAA*$3,726$3,853
Auto-Owners$3,229$4,070
Travelers$4,046$4,546
Geico$4,438$4,851
State Farm$4,624$5,531
Nationwide$4,784$5,562
Allstate$6,524$7,223
Progressive$6,714$7,362
Farmers$7,612$8,192

Note: USAA auto insurance is available only to military members, veterans, and their families.

Data updated in 2024

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

Hawaii is the cheapest state for 18-year-old drivers to get car insurance at about $1,628 per year. It’s $3,621 cheaper than the national average of $5,249 for 18-year-olds. 

The below table shows the cheapest to most expensive states for car insurance rates for 18-year-old drivers.

Cheapest car insurance for 18-year-olds by state
State Average annual premium
Hawaii$1,628
North Carolina$3,777
Iowa$3,859
Maine$3,893
New Hampshire$3,917
Illinois$4,094
Virginia$4,169
Indiana$4,194
Texas$4,242
Ohio$4,265
Vermont$4,334
Idaho$4,461
Alaska$4,762
Wyoming$4,768
Washington$4,818
Maryland$4,909
Minnesota$4,960
Nebraska$4,985
Colorado$5,021
Massachusetts$5,080
North Dakota$5,109
Pennsylvania$5,148
New York$5,153
Oregon$5,326
Missouri$5,329
Wisconsin$5,381
Tennessee$5,468
Kansas$5,599
New Mexico$5,728
Alabama$5,746
Mississippi$5,847
South Carolina$5,861
Utah$5,918
West Virginia$5,928
Georgia$5,947
Washington, D.C.$6,079
Kentucky$6,095
South Dakota$6,113
Arkansas$6,116
New Jersey$6,149
Michigan$6,224
California$6,252
Montana$6,361
Oklahoma$6,406
Connecticut$6,419
Arizona$6,674
Rhode Island$6,776
Florida$6,798
Nevada$6,807
Delaware$6,989
Louisiana$7,885

Data updated in 2024

How much is car insurance for 18-year-olds?

While the average 18-year-old driver pays $5,249 a year, or about $437 per month, for a full coverage policy, teens also can opt for state minimum, liability-only, and other coverage types.

Below are average annual car insurance costs for common coverage levels for 18-year-old male drivers:

  • State minimum coverage: $1,480 per year
  • Liability-only coverage (50/100/50): $1,799 per year 
  • Full Coverage: $5,249 per year

For a full coverage auto insurance policy, the coverage limit is 100/300/100, where $100,000 is for bodily injury per person, $300,000 for bodily injury per accident, and $100,000 for property damage.

Average car insurance for 18-year-old males and females

When it comes to car insurance, 18-year-old male drivers pay $5,543 per year on average, whereas 18-year-old female drivers pay $4,956 annually. That’s a difference of $587 based on gender.

Some states, including California and Michigan, do not allow insurance companies to charge different rates for teen adults based on their gender. However, in many places in the United States, insurance companies take gender into account when determining auto insurance rates.

Why do 18-year-olds pay so much for car insurance?

Car insurance companies typically charge higher premiums for 18-year-olds due to their perceived higher risk. Younger drivers are more likely to engage in risky behaviors such as speeding or distracted driving, leading to a greater likelihood of accidents. Additionally, their limited driving experience and lack of a proven track record make them a higher insurance liability. As they age and gain more experience, their insurance rates generally decrease as they demonstrate safer driving habits and lower risk profiles.

How can 18-year-olds save on car insurance?

For young drivers, car insurance can be a major expense. But there are ways to save. Here are some tips for 18-year-olds looking to get the best deal on car insurance.

  • Compare quotes: Car insurance rates vary from company to company. This is because insurers use different parameters -- such as your driving record, age, gender, type of car you own, and where you live -- to determine your insurance premiums. So, 18-year-olds should consider comparing quotes from multiple companies to get the best deal on car insurance.
  • Take advantage of discounts: Most insurance companies offer discounts for teen drivers, such as good student discounts and discounts upon completing a driving course.
  • Drive a cheaper or more affordable car: The cost of repairing an expensive vehicle is often greater than the price of fixing a less costly model. This means drivers pay more in monthly insurance premiums for an expensive car model.
  • Reconsider your coverage needs: Most insurance carriers recommend that you have a full-coverage policy for 18-year-olds, as they are more likely to get into accidents. However, if your car is old and the repairs would be more expensive than the car is worth, you might be able to get away with a minimum-coverage policy.

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Insurance.com has prepared in-depth car insurance guides for drivers of different ages. You will learn how much you expect to pay for insurance based on your age and how you can save on premiums each year. Check out the guides below: