7 Cheap Car Insurance For 18-Year-Olds: Top Picks Of 2024

Chidinma Ofoegbu
January 31, 2023
7 Cheap Car Insurance For 18-Year-Olds: Top Picks Of 2024
7 Cheap Car Insurance For 18-Year-Olds: Top Picks Of 2024

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G etting a car is one of the major milestones of becoming an adult. Are you about to get a new car? Or do you have a teen that needs insurance for the car you just got him/her? If yes, keep reading to know more about the most affordable car insurance for 18-year-olds. 

Without wasting much time, let’s dive straight into the matter. 

Why Is Car Insurance Important For 18-Year-Olds? 

There are several reasons a young adult will need car insurance coverage. Most young adults engage in riskier driving habits and are prone to accidents. One of the most stressful things that can happen to a driver is causing an accident. 

When you’re at fault, you’re responsible for the costs. However, certain types of insurance, such as collision or personal injury protection, usually cover costs regardless of who is at fault.

Also, in the event of a car accident, insurance should cover any injuries sustained by passengers. A good policy will cover their medical bills if you cause an accident and injure others. If you’re driving with passengers and an accident isn’t your fault, your insurance or the at-fault driver’s insurance should cover passengers. 

Why Is Car Insurance For 18-Year-Olds Expensive?

Did you know that car insurance for 18-year-olds is more expensive than car insurance for other drivers?

Well…why is this so?

Here’s why: Young drivers are statistically more likely to be involved in car accidents and have more severe accidents. As a result, auto insurance companies charge some of the highest premiums to younger drivers to offset the risk associated with inexperience.

Generally, 18-year-olds are referred to as high-risk. This age group tends to file more claims than older drivers, so auto insurance companies raise the rates of their premiums. 

Factors That Affect The Cost Of Car Insurance For 18-Year-Olds

There are several factors affecting the cost of insurance for 18-year-olds, and some of them include the following:

  • Age 

It is common knowledge that the more driving experience you have, the better driver you are. Even if you’re 18, car insurance companies consider you inexperienced and more dangerous on the road. This is why an 18-year-old’s insurance costs more than someone in their mid-twenties.

  • Gender 

An 18-year-old female may result in lower car insurance rates than an 18-year-old male. Some states have made it illegal to consider gender when calculating car insurance rates, but your gender will almost always play a role. According to studies, men have riskier driving habits than women.

  • Driving Record 

You must keep a clean driving record as an 18-year-old. The fewer claims, accidents, or citations you have, the less of a risk you are to the insurance company. Accidents happen, and when they do, don’t be surprised if your insurance premiums skyrocket.

  • Coverage Limits 

The amount you can pay out of pocket for your teen’s car affects the cost of your car insurance premium. The limits and deductibles you select will determine the cost of your car insurance, so it’s critical to shop around for policies.

  • Location 

Auto insurance companies consider location, too, to provide you with the best quote possible. When companies verify your address, the ZIP code you live in matters, so if you live in an area with a low rate of accidents, theft, and vandalism, your car insurance policy will usually be less expensive.

  • Type Of Car 

It is perfectly normal to want the best car for your 18-year-old. However, did you know that the type of car you purchase can qualify you for auto insurance discounts and lower rates? The less expensive your car, the less expensive your auto insurance. You may be eligible for discounts if your vehicle has anti-theft technology, anti-lock brakes, or passive restraints.

  • Credit Score 

Even at the age of 18, credit scores are essential. Most large first-time purchases, such as renting a student apartment or purchasing a car, necessitate a credit score. As a result, it is typical for an insurance company to request your teenager’s credit score.

How To Save On Car Insurance For 18-Year-Olds?

Smart Financial car insurance

Isn’t it wise to know some ways to save money on expensive car insurance premiums? Let’s go over some proven methods of saving on car insurance. 

A. Good Student Record 

Car insurance companies usually offer discounts to teens who have good grades. The psychology behind this shows that students who maintain good scores are disciplined and will also be disciplined when driving. 

This discount is often open to full-time students. Also, you’ll need to provide a transcript of your scores to prove that your grades qualify for the discount. Usually, most insurance companies look out for students under 25 with a GPA of at least 3.0. 

B. Usage-Based Car Insurance And Telematics Discount

Many businesses provide discount programs that track your driving habits using a mobile app or telematics device and then award you a personalized discount. Usage-based programs track your mileage and allow you to pay based on the miles you drive because driving less means you are less likely to be involved in an accident. 

Other telematics discounts monitor your driving habits, as well as your mileage, speed, hard braking, and rapid accelerations, and award discounts based on your driving performance.

C. Safe Driving Discounts

If you drive safely and avoid getting into accidents, you can start to build discounts on your insurance. Safe driving also prevents you from getting points on your license, making your car insurance expensive. 

Related Posts: How To Save On Car Insurance For Drivers Under 25

Affordable Car Insurance Companies For 18-Year-Olds

Below are the best affordable car insurance for 18-year-olds:-

1. USAA 

According to US News, USAA ranks first among the top ten auto insurance companies, making it an excellent choice for qualified drivers looking for affordable insurance coverage. USAA customers pay $1,000 annually for coverage, which is nearly 35% less than the national average.

For most drivers, USAA offers the most affordable car insurance rates. It also has the lowest average rates for almost all driver categories. Most importantly, USAA provides all of the standard types of auto insurance coverage and a couple of optional coverage options.

2. Insurify 

Insurify is not a traditional insurance company. It’s a comparison site that allows you to compare quotes from multiple insurance companies in one place.

Insurify may offer an easy way to compare multiple quotes at once if you’re looking for a new car insurance company.

However, Insurify only underwrites the policies it sells because it relies on a partner network.

When you use Insurify, you can eliminate the need to compare insurance companies and obtain individual quotes, potentially saving you a significant amount of time. Furthermore, it is free to use, with no hidden fees if you purchase a policy through Insurify.

3. Geico 

Geico is the nation’s second-largest auto insurance company, best known for offering low rates to customers directly online and over the phone. It is available in all 50 states and the District of Columbia.

Geico is a popular and often affordable choice for car insurance due to its nationwide availability and a slew of discounts. Geico could be a good fit if you’re looking for a low-cost car insurance policy and are comfortable managing your accounts online when an agent isn’t available.

4. Progressive 

Progressive is the US’ third-largest auto insurance company, providing coverage for almost anything with a motor. Progressive provides a long list of discounts and coverage options, including rideshare insurance and coverage for pets injured in a car accident.

Progressive has the highest teen driver rates of any car insurance company. Progressive’s rates for female teenagers are 37% higher than the national average. Progressive’s rates for male teenagers are 35% higher than the national average.

Progressive’s full coverage insurance policy costs an average of $1,739 annually. However, suppose you have good credit and a clean driving record free of accidents and other traffic violations. Your car insurance can vary depending on age, location, and others.

5. Allstate Insurance Company 

Customers who want to balance personalized service from a local insurance agent with the ability to manage their policies online may find that Allstate meets both of these requirements. Allstate’s premiums for car insurance are higher than the national average, but the company still offers numerous discounts and coverage options to help you save money. 

Allstate car insurance costs an average of $2,438 per year for full coverage and $558 per year for minimum coverage. The company’s average rates are nearly 38% higher than the national average of $1,771 per year for car insurance.

6. State Farm 

State Farm may be the right choice if you want a well-known brand name with a large selection of products and reasonable pricing.

State Farm provides numerous advantages.

To begin, they provide numerous discounts, including two programs — one for safe driving and one for young drivers. They also pay for car rentals and travel expenses. Finally, State Farm’s customer satisfaction rating for auto insurance is higher than the national average.

State Farm customers pay an average of $1,267 per year for coverage. This is approximately $185 less than the national average.

7. The Zebra 

The Zebra is the leading independent insurance comparison website in the United States. Using its dynamic, real-time quote comparison tool, consumers can identify car insurance companies with the coverage, service level, and pricing to meet their specific needs.

The Zebra does one thing for you: it simplifies your online insurance shopping experience. They accomplish this by comparing multiple insurance companies and providing agent support and educational resources to ensure consumers have the information they need to make the best home and auto insurance decisions.

Rounding Up 

Getting car insurance for your teen is a great investment. Car insurance for 18-year-olds might cost higher than usual. However, there are different tactics to help you save. Also, some companies offer affordable premiums, as discussed in this blog post. 

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