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

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

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Turned 18? Congratulations! You are officially an adult now! But as every coin has two sides, being an adult also comes with its challenges and benefits. 

And one of the best facts about being an adult is driving your car (whispers: even if your parents bought it for you). The challenge here? Getting insurance for your vehicle. But why, you ask?

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.

What Is The Cost Of Car Insurance For 18-Year-Olds?

According to Forbes Advisor’s Research, the average cost of car insurance for 18-year-olds is around $6147 annually, which breaks down to $512/ month. If you are a parent looking to buy car insurance for your 18-year-old, it might be more profitable if you add them into your car insurance policy than buying a separate one.

There is a huge price for including your 18-year-old in the car insurance policy, but it is still cheaper. At the same time, adding your 18-year-old to your car insurance policy would cost around $2,103 annually, which breaks down to $175 monthly. So, the family average of a car insurance policy adds up to $5,065 annually, which is less than buying an entirely new car insurance policy.

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. 

D. Student Away From Home Discount

If you are away from your beloved home for college in a different place, you could get a “student away from home discount”. Through this, you could save around 8%. To be able to get this discount, you must meet the requirements, which are subject to change for different car insurance companies. 

Some of the basic requirements are- that a student attends and lives in a college that is at least 100 miles away from home, that the car stays at home while the student is in college, and that they drive the car only when home during holidays and vacations. 

E. Higher Deductible

If you opt for full coverage, you could have two deductibles. One of them could be comprehensive coverage and other collision coverage. When you increase the deductible, the premium for the insurance reduces. 

A deductible is when damage occurs to the vehicle, you would be paying the appropriate deductible, and the insurance company would incur the rest of the required claim. And because you would be paying part of the claim, this would save the company money, and so the premium would be reduced. 

F. Other Discounts

Other discounts come with the insurance policy if you have safety features like anti-lock brakes or as specified by the company. Plus if you have insurance in the same company as your parents you will receive the discount. You may also buy renters insurance from the same company as your car insurance and take up a bundling discount.

Related Blog: 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

Special Feature: Lowest Average Rates

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.

Pros:

  • On average it has the cheapest rates for teenage drivers from military families. 
  • They have high rated customer service by its policyholders.
  • They provide various student discounts, driving safe discounts and others. 

Cons:

  • Only if you belong to a military family can you get this insurance. 
  • They don’t provide for local agents in a lot of numbers. Thus online communication is the primary source of communication.

2. Insurify

Special Feature: A Comparison Site For Insurance Comparison

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.

Pros:

  • You can match different choices with just one application.
  • They have a wide network of many trustworthy national and local companies. 
  • You wouldn’t be required to compare services individually. 

Cons:

  • There is no guarantee that the rates would be lower than any of the other providers.

3. Geico

Special Feature: Low Rates Offered Online

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.

Pros:

  • It has affordable insurance rates for 18 Year Olds.
  • They offer discounts like good student discounts and good driver discounts. 
  • Its website and app is easily accessible and smooth to navigate.

Cons:

  • They have very restricted in-human assistance as they have a limited number of agents. 
  • There are mixed reviews about customer satisfaction.

4. State Farm

Special Feature: Large Selection Of Products And Reasonable Pricing

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.

Pros:

  • They have a good in person agent network for in-person assistance relating to their policies. 
  • They have financial stability ensuring that the company doesn’t default. 

Cons:

  • In some areas of America they offer rates that might seem high to some. 
  • They have mixed customer reviews, including bad reviews relating to claims handling.

5. The Zebra

Special Feature: Home And Renters Insurance Provided Too

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.

Pros:

  • It provides instant quotes for comparison from more than 100 providers. 
  • You can compare top providers within 90 seconds. 
  • They have insurance providers which are trustworthy and reputed. 

Cons:

  • The chosen provider needs the direct website visit to complete the process. 
  •  They have different comparison engines, so information needs to be put again.

6. Lemonade

You get insurance coverage in a few minutes with the help of its online application process. They sell only life-term insurance and no permanent life insurance. They provide telematics-based car insurance. If you follow safe driving habits, the insurance premiums will be lower. However, Lemonade car insurance is not available in all the states of America.  

They offer car insurance like- comprehensive coverage, uninsured and underinsured motorist coverage, liability insurance, roadside assistance, collision coverage, medical payments coverage and personal injury protection. You can get different discounts like early signup discounts, hybrid/Ev discounts, bundling discounts, multi-car discounts and location services discounts.  

Pros:

  • Cheap rates for good and safe drivers.
  • Comprehensive and collision coverage includes roadside assistance. 
  • Car insurance claims can be filed in the Lemonade app.
  • A good number of discounts can be availed. 

Cons:

  • No provision for rideshare insurance.
  • Obtainable only in six states: Illinois, Tennessee, Ohio, Oregon, Texas, and Arizona.
  • Customer service is usually restricted to the Lemonade app.

7. American Family Insurance

American Family Insurance has various auto insurance coverage choices. These choices are much more than any other insurer. They have choices for gap insurance, original equipment manufacturer and even rideshare insurance. They provide various discounts. One of them is Teen Safe Driver, which is available to anyone up to 21 years old. 

You can even partake in accident forgiveness if you meet their requirements. This will make sure that rates will not increase if you have an accident. Plus, if you are claim-free for five years with your present insurer and then switch to American Family, you can get accident forgiveness without any cost. 

Pros:

  • Various discounts are offered.
  • Few customer complaints.
  • Numerous kinds of coverage are offered. 

Cons:

  • Not obtainable in all American States.

8. Nationwide

Special Feature: Cheap Rates For Most Insurances

Nationwide got a good rating in overall research. They have insurance policies for low rates for different kinds of drivers like the ones with pristine driving records and even those drivers who have certain issues in their driving record. 

They offer discounts like accident free, anti-theft, defensive driving, automatic payment discount, multi policy, good student, safe driver discount amongst others. The cost of insurance for teens is $4,122 annually. 

Pros:

  • Good option for poor credit score drivers.
  • Minimal complaints records.
  • Cheap rates of insurance.

Cons:

  • Not the cheapest rates for young drivers or accident caused drivers. 
  • It is not available in all the states of America. 

9. Travelers Insurance

Special Feature: Mostly In Top Five Cheapest Insurances

They, just like many of its competitors, offer cheap costs, sometimes cheaper than others. They have good customer service ratings and have low levels of complaints from its clients.

Travelers Insurance offer different discounts like continuous insurance, driver training discount, god student, early quote, hybrid or electric vehicle discount, multi-policy, new car, safe driver discount amongst others. The cost of insurance for teens is $5,121 annually.

Pros:

  • Good for drivers with poor credit score.
  • Good for drivers with an accident record or got a DUI. 

Cons:

  • High rates in the category where parents are adding their kids to the insurance policy as compared to competitors. 

How Can You Get Cheap Car Insurance?

Although in a very simple manner, you can get cheap car insurance by comparing different insurances as we have suggested in this blog. Or also using online comparison meters. But there are steps that you might follow to get cheap car insurance: 

1. Plan

Select the plan that you wish to follow. This means you should prioritize your insurance qualities. You might be in need of lower-rated insurance or insurance for poor credit, good customer service, or more discounts to save more. After you decide on the investment qualities you want, the process becomes easier. 

2. Explore

Before you pick a particular insurance, you must explore all the options available. This means you must research and analyze all the possible factors in one insurance policy before you make up your mind. Look at all the competing providers before choosing one. 

3. Weigh Up

When you are in the process of requesting quotes from different insurance providers, you must weigh differences in the rates of various coverages offered by different companies. You can use your current declaration page to help you in selecting your preferred coverage. 

4. Discounts

When you are a teenager and do not earn it is important to save money. But that doesn’t mean you wouldn’t take insurance but rather you would take insurance from the company that offers most discounts. Ask the company to inform you about all the discounts they have to offer so that you can make an informed choice.

5. Lapse

If you make a lapse in your car insurance premium payment, your premium amount might then increase. So, make sure that you automate your insurance payments to prevent any lapses. You can also pay in full rather than paying in installments to avoid paying more. Automatic payments may help you avoid unrequited service fees.

Why You Shouldn’t Purchase Cheap Car Insurance?

With the ever-rising cost of car insurance, you should consider the plan that you finally choose and might decide to take on a cheaper plan. Such a plan might not be full coverage but a bare minimum. But this could be risky. If you are looking to save money, you can cut down on rental reimbursement or roadside assistance because they are less risky, but choosing to take out collision or full coverage is more risky. 

The installments might seem expensive, but in reality, God forbid if something happens, you couldn’t pay for it from your pocket. You would be paying much more than you could expect you would pay through your insurance premium. Plus, if you take on a company with poor customer service, it might create problems for you when the time comes. Some companies do not fulfill their payment claims, so avoid such companies.

Rounding Up

If you think just that you have bought a car for your 18+child, that would make them a responsible driver, you are wrong! Your task wouldn’t end there. You need for them to have insurance not only because it would keep their future safe but also to teach them about real adulting. And getting car insurance for your teen is also 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. 

If you found this article useful, subscribe to our newsletter so you’ll always be among the first to know when a new article drops.

FAQs

You can either opt to retain your teen’s car insurance in your own insurance or could get them a new one. But many wait until the kids graduate from college.

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.

If you have a poor credit score you might have to pay more for the same car insurance policy. But there are some states that restrict the use of credit as a rating feature in deciding the rates of car insurances.

You can use discounts or ask for more deductibles. You can increase your deductible and pay less in collision and full coverage cost by a few percent.

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