Car insurance for 18-year-olds

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

Navigating car insurance at 18 can be a complex journey. Premiums vary significantly based on whether you're purchasing your own policy or added to your parents' policy. For those venturing into insurance independence, rates are on the higher side. Average car insurance for an 18-year-old costs $7,296 annually and minimum coverage is $2,301. Opting to remain on your parents' policy softens the financial blow, bringing the average down to $4,925 for full coverage and $1,597 for minimum coverage annually.

This stark difference in costs can be attributed to the relative inexperience of young drivers. With less time behind the wheel, 18-year-olds are viewed through a lens of higher risk by insurance providers. This perspective is backed by actuarial data, as drivers aged 16 to 19 are more prone to accidents than any other age group. Despite this, sticking to a parents' policy can offer a financial reprieve, with 18-year-olds benefiting from slightly lower rates than their younger counterparts, indicating a small but notable decrease in premiums as teens edge closer to adulthood.

The gravity of this situation is underscored by statistics from the National Highway Traffic Safety Administration, which reveal a concerning trend: car crashes remain the leading cause of death for teenagers in the United States, with 2,514 young lives lost in 2022 alone. These sobering figures highlight the critical nature of adequate insurance coverage, as insurers price policies to reflect the elevated risks associated with insuring young drivers.

Average cost of car insurance for 18-year-old males vs. females

Gender can be used as a rating factor in all but six states — California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania. Male drivers can typically expect to pay higher car insurance premiums compared to female teen drivers, on average. Why? Male drivers statistically engage in riskier driving behaviors, which can lead to a greater number of and more severe accidents.

The table below breaks down the average cost of both full coverage and minimum coverage car insurance for 18-year-old males and females on their own policies. It is important to note that in the six states that ban the use of gender as a rating factor, men and women pay close to the same amount for insurance if all other rating factors are equal.

Cheapest car insurance companies for 18-year-olds

When looking for a car insurance company, whether for yourself or your family, it’s important to find a carrier with strong financial strength ratings, dependable customer service and options that you want to personalize your policy. Naturally, finding a policy with the most reasonable price is also a priority for nearly all drivers.

Bankrate’s insurance editorial team obtained average premium information for the largest carriers by market share in the country. The table below shows some of the companies offering the cheapest average 18-year-old car insurance costs for drivers on their parents’ policy and drivers on their own policy. However, your exact premium will vary based on several factors specific to you and your vehicle.

Average car insurance cost for 18-year-olds by state

How much car insurance costs for an 18-year-old also depends on where they park their car at night. Whether you’re moving to another city or another state, you can expect that your car insurance rate may be affected. However, some states ban the use of ZIP codes, such as Michigan, while others, like California, limit how they can be used.

How 18-year-old drivers can save money on car insurance

There are a variety of ways that young drivers may be able to save money on car insurance — namely through discount opportunities.

Good student discount

Teens enrolled in high school or college with good grades are statistically less likely to speed or drive recklessly. For this reason, many insurance providers reward good grades with a discount. You will likely only be eligible for this discount if you are a full-time student, and you will probably need to provide a copy of your most recent report card to prove that your grades qualify. Every insurance company will have its own underwriting regulations, but many providers require you to be under 25 and maintain a GPA of at least 3.0.

Distant student discount

If you plan to go to college without taking a vehicle, you might qualify for a “distant student” discount. However, this option is typically only available if you are insured on your parents’ policy. Usually, you will still be covered to drive when you are home on breaks, but you may want to check with your company to determine its specific rules.

Usage-based car insurance and telematics discounts

Many companies offer discount programs that track your driving habits via a mobile app or telematics device and award you a personalized discount. Usage-based programs, like Nationwide’s SmartMiles, track your mileage and allow you to pay based on the number of miles you drive because being on the road less means you are at a lower risk of getting into an accident. Other telematics discounts, like Progressive’s Snapshot or State Farm’s Steer Clear, track your habits behind the wheel as well as your mileage, speed, hard braking and rapid accelerations to award discounts based on your driving performance.

Opt for a higher deductible

If you have full coverage, your policy likely has two deductibles: one for comprehensive coverage and one for collision coverage. (There is no deductible for a liability claim.) If you file a claim for damage to your vehicle, you will pay the appropriate deductible, and the insurance company will pay the rest of the claim up to your policy limits. Generally, increasing your deductible lowers your premium because you are willing to pay more out of pocket in the event of a claim, which saves the company money. However, before adjusting your deductible, consider your income and savings. Be sure you can always afford to pay your deductible at a moment’s notice should an accident occur.

Utilize discounts

While many insurers offer common discounts for good grades or safe driving, 18-year-olds can explore additional savings avenues that might not be as well known. If your vehicle is equipped with advanced safety features, you might qualify for further premium reductions. Additionally, choosing the same insurer your parents use could present loyalty discounts. Moreover, consider bundling a renters insurance policy with your auto insurance for potential savings, a strategy that not only simplifies managing your policies but also can lead to substantial savings.

How to get the best insurance for 18-year-olds

Securing car insurance at 18 doesn't have to be difficult, even if you are a first-time buyer. However, it's essential to navigate this task with care, especially in light of the 12 percent increase in average full coverage auto insurance rates across the U.S. from 2024 to 2025. This spike underscores the need for diligent research and a deep dive into the intricacies of the insurance market before committing to a policy. Before you shop, it might help to do the following:

• Understand how to read a quote: Any quote you receive is likely to contain information on several types of coverage, each of which comes at a cost. Understanding the meaning of terms like liability, comprehensive or gap coverage will help you determine what you need to be financially protected by your policy.
• Analyze deductible options: You will notice that raising your deductible lowers your monthly premium, sometimes significantly. This may seem like an appealing option for young drivers on a budget — but it comes at a literal cost. Increasing your deductible means you’re in charge of a larger lump sum payment after a covered accident or other event. You don’t want a higher deductible than you can actually afford to pay after a covered claim. 
• Think about your individual needs: Do you want a company that offers a mobile app? Are you looking for ridesharing coverage for your Uber or Lyft job? How much money can you spend on your car insurance? Knowing what factors are important to you could simplify your shopping process.
• Get quotes from several companies: Many insurance experts would recommend that you ask for quotes from more than one insurer. This is generally free and fairly simple — most major insurers allow you to do this through their website. Be sure to ask for the same types and levels of coverage for each, so you can do an apples-to-apples comparison to find the most affordable option.
• Take advantage of discounts: Most insurers offer at least a small handful of discounts, and many are easy to qualify for. You might, for example, be able to earn some savings just by agreeing to receive your policy documents digitally rather than by mail. Ask an agent to review your quote to be sure you’re taking advantage of all applicable discounts.

If you are completely new to purchasing auto insurance, talking to a licensed agent when you begin to shop for coverage might be helpful. A licensed insurance professional can help you decide what type of coverage is best for your situation.

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