- Why do 18-year-olds pay so much for car insurance?
- How much is car insurance for 18-year-olds?
- Cheapest car insurance companies for 18-year-old drivers
- Cheapest car insurance for 18-year-olds: male vs female
- Average car insurance for 18-year-old males and females
- What states have the cheapest car insurance cost for 18-year-olds?
- How can 18-year-olds save on car insurance?
- Related articles
Why do 18-year-olds pay so much for car insurance?
Young drivers typically shell out more for car insurance than older drivers due to their lack of experience behind the wheel. According to the most up-to-date Centers for Disease Control and Prevention figures, in 2019 nearly 2,400 teens aged 13–19 were killed in the United States, and about 258,000 were treated in emergency departments for injuries sustained in a car crash. The CDC also says that, in 2018, motor vehicle crash deaths among 15- to 19-year-olds resulted in some $4.8 billion in medical and work loss costs.
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.
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.
| Company | Average annual premium |
|---|---|
| Auto-Owners | $3,649 |
| USAA* | $3,790 |
| 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 their families.
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.
| Company | Single 18-year-old female | Single 18-year-old male |
|---|---|---|
| Auto-Owners | $3,229 | $4,070 |
| USAA* | $3,726 | $3,853 |
| 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.
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.
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.
| 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 |
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.
Sources:
- Motor vehicle crash deaths in 2018: CDC (Centers for Disease Control and Prevention)
- Insurers in California and Michigan are not allowed to use gender to determine car insurance rates: California Department of Insurance and Michigan Auto Insurance Laws
- Motor vehicle death rate for male drivers aged 16–19 is twice that of female drivers of the same age: Centers for Disease Control and Prevention
- Two out of every three teenagers who die in car accidents are males: Insurance Institute for Highway Safety
Related articles
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:
- Car insurance rates for 16-year-old drivers
- Car insurance rates for 20-year-old drivers
- Car insurance rates for 21-year-old drivers
- Car insurance rates for 22-year-old drivers
- Car insurance rates for 23-year-old drivers
- Car insurance rates for 24-year-old drivers
- Car insurance rates for 25-year-old drivers
