Did you know that 18 year olds usually pay higher insurance premiums than other age groups of adults? Coverage can be more expensive for drivers at this age and there are some specific factors that go into that. It’s no secret that car insurance rates spike as drivers approach their late twenties.
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If you’re a younger driver and wondering “how much is car insurance for an 18 year old?”, the sad fact is that insurance premiums will be more expensive even if you’re an excellent driver, are attentive to safety, and have a near-perfect driving record. Since this is the case, you must understand the factors that contribute to how much your car insurance will cost as an 18 year old.
We’re going to take a look at average rates for this age and give you some tips on how to keep those premiums low. So whether you’re now starting to drive, shopping around for your first policy for your first car, or checking for your child, keep reading for the information you’ll need.
How Much Is Car Insurance for an 18 Year Old?
The national average car insurance rate for 18 year olds will often equal out to be $5,189.
Your monthly cost will often be $500 or a bit less. It depends on who you’re insured through, your credit history, etc.
If you’re a student that is away for college, this is something that could drive the cost down. Your zip code affects the overall price, so you don’t have to list your school zip code if you’ll be in a more expensive area. Also, there are other things that will affect the price 18 year olds will pay.
One of those things is gender.
Take men, for example. Men will often pay less than women for car insurance and that difference will fluctuate depending on the company.
What Factors Affect Premiums?
One of the main factors that affect how much car insurance is for an 18 year old driver is simply age itself. Insurance companies often charge higher premiums for drivers under 25, as they’re considered more inexperienced and therefore more at-risk on the road.
This can be partially explained by statistics showing a higher rate of accidents among beginner drivers aged 18-19 compared to other age groups. Young drivers tend to be less financially stable, which means they may not be able to afford high insurance premiums or would struggle with paying damages after an accident.
This, however, is not always the case because there are some younger individuals that can afford these premiums. This is why insurance companies will consider other things like your credit history and your physical address/zip code.
Other factors that affect how much car insurance costs for this age group include:
- Your driving history and record
- Your state of residence and state requirements
- High-risk violations
- Yearly Mileage
- Car make and model if your vehicle is expensive to insure
- Credit history
- Zipcode
If you have a clean driving record with no accidents or violations, you will most likely pay less for insurance than someone with a poor driving history.
Other Things That Affect Price
Where you live can affect your rates – rural areas tend to have lower rates than urban areas, as there is less traffic and fewer opportunities for accidents. Of course, insurance companies know that accidents can happen anywhere and due to any cause.
In rural versus urban locations, roads are less congested. There is also a lower chance of car theft and vandalism. This means that the risk insurance companies would be taking is less of an issue than if you were living in a larger city.
A good example of this would be Detroit, Michigan which has some of the highest premiums in the country. In fact, Detroit’s car insurance premiums are 284.1% higher than the national average. This also means that younger drivers in this city will often have higher rates to pay.
How to Decrease Your Overall Cost
There are some ways to mitigate how much car insurance costs for an 18 year old driver. One way is to take a driver’s education course, which can often lead to a discount on your rates. Additionally, some insurance companies offer discounts for good students – so if you’re maintaining a high GPA, be sure to ask about this when shopping around for policies.
You can also ask your parents if you can be added to their policy as an occasional driver. This can sometimes lead to lower rates as well. Also, be sure to shop around and compare rates from different companies before choosing a policy.
Rates can vary significantly and you’ll want to make sure you’re getting the best deal possible. Using Insurance Tales is a great way to get free quotes for multiple types of insurance.
Can You Have Your Own Policy Before 18?
Some teens want to know if they can get their own policy right before 18 which could help parents – but not as much as they might think. If a teenager at 17 wants to take over or get their own policy, this can be done. However, a parent or a guardian would have to co-sign that policy.
A cosigner will often be required because a 17 year old will usually be considered a minor. The insurance company would then look at the credit score of both the parent and the teenager. If they both had high scores, this could lead to a lower premium.
The rates will still be expensive for that teenager but not as costly as if they tried to get their policy without any help. If a parent decides to add their teenager onto their existing policy instead, the average cost would be around $2,250 per year and that’s for full coverage car insurance.
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Consider These Factors
There are multiple things to consider when trying to decide whether or not you should get your policy before 18. You have to remember that even though you may be able to get a lower rate by co-signing with a parent or guardian, the rates will still be high depending on your personal driving history. You also have to consider whether or not you would be comfortable with your parents being on your policy.
If you’re not comfortable with that, it may be better to wait until you’re 18 to get your policy, which you would still have the issue of higher premiums. Keep in mind that even if you’re younger than 18 and get your own policy, unless you’re an emancipated minor, your parents would still be responsible for your policy in terms of finances.
Overall, it would usually be pointless to get your own policy before 18 if you want the factor of independence because anyone under the age of 18 is considered to be a minor. Your guardian will always be responsible.
Top 3 Tips for Saving on Car Insurance as an 18 Year Old
As an 18 year old, car insurance can be a huge expense; but with the right tips and strategies, you can save money on your premiums. Some key things to keep in mind when comparing car insurance quotes include:
1. Looking at Different Providers
Research different car insurance providers to find the best rates and coverage options for your needs. Many companies offer special discounts or promotions for young drivers, so it’s worth shopping around to find the right fit.
2. Considering Bundling
Consider bundling your car insurance with other types of coverage, such as homeowners’ or renters’ insurance. This can help you save money on both policies while still providing adequate protection in case of an accident or other incident.
3. Maintaining a Clean Driving Record
Try your best to keep your driving record clean by following traffic laws and avoiding accidents or traffic violations as best you can. This will not only help you keep your rates low, but it will also keep you, your passengers, and those around you safe on the road.
By following these tips, you can save money on car insurance as an 18 year old and be prepared in case of an accident or other emergency.
Shopping around is another tip that isn’t used enough. Finding one great rate is good, but you don’t know if you could find a cheaper policy with better coverage or more benefits without exhausting your other resources.
Always ensure that you look around for the best rates, bundle your policies, and drive safe to keep your premiums affordable.
Get the Rates Best Suited for You
People often ask, how much is car insurance for an 18 year old, and now you know. Keep in mind that while insurance premiums are often higher for those that are 18, the price can’t be the only thing you consider. Overall coverage is just as important.
With 7% of motor accidents caused by teens in 2019 alone and 8% in causing fatalities in 2020, it’s important to find coverage that works for you while you’re 18.
To find the best rates, contact the Insurance Tales team today.
Compare Insurance Rates
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
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