CAR INSURANCE FOR 18-YEAR-OLDS: All You Need to Know

Adding a teenage driver to your vehicle insurance policy can be a shock. Because they have little or no driving experience and are more prone to high-risk driving behaviour as a group, teen drivers have the highest insurance premiums of any category. However, just because adolescent insurance premiums are high does not indicate that there is no affordable vehicle insurance for an 18-year-old. There are various techniques parents may employ to help their newly licenced drivers save money on insurance. That’s the reason we have crafted this post to address all issues relating to temporary cheap Car Insurance for 18-year-Olds

How Much Does cheap Car Insurance Cost for an 18-Year-Olds?

Adults and teenagers alike are on the lookout for the lowest vehicle insurance premiums. Teens, on the other hand, join the insurance industry with a clean slate, which means their driving record is not available for examination. As a result, they are compensated at the highest feasible rates to cover future claims. While rates vary by state, adding an 18-year-old driver to family insurance costs an average of $2,867 per year, and adding an 18-year-old driver to an individual coverage costs $3,997. Yes, it is costly, but adding an 18-year-old to a family coverage can result in an average annual savings of $1,130.

Cheap Car Insurance for 18-Year-Olds Males and Females

While some jurisdictions prohibit insurance firms from setting prices for minors based on their gender, many regions in the United States do. Males pay higher rates for 18-year-old drivers because they have a higher accident rate and file more insurance claims. Nationally, 18-year-old females pay an average of $2,686 per year, while 18-year-old males pay $3,048, a difference of $362 per year.

Cheap Car Insurance Companies for 18-Year-Olds Drivers

Insurance firms have their own formulas for calculating rates, which means that the same driver may receive quotations from numerous carriers at markedly different prices. Car insurance for an 18-year-old driver added to a family policy can cost between $2,526 and $3,687, a difference of 32%. Bear in mind that this is an average for the entire country. Your premium may be much higher or less than either of these extremes, depending on the state in which you live and other rating variables.

#1. Erie

Although Erie is a regional carrier that isn’t available statewide, if you reside in one of the 12 states where it is, you should receive a quote. According to our analysis, the carrier has the lowest average premium for both full and minimal coverage for 18-year-olds. Erie also offers a variety of optional coverage options, as well as a number of discounts that adolescent drivers may be eligible for. In the 2021 J.D. Power U.S. Auto Claims Satisfaction Study, Erie achieved the second-highest official score, suggesting that consumers are usually satisfied with its claims service.

#2. USAA

J.D. Power frequently gives USAA excellent ratings, despite the fact that the insurance firm is not qualified for official ranking due to eligibility constraints. Active and retired military personnel, as well as qualifying family members, are eligible for USAA coverage. You may be eligible for a discount if your parents have had USAA auto insurance. You may be able to save even more money if you have completed a driver’s education course or maintain outstanding grades.

#3. Auto-Owners

Auto-Owners is a regional carrier, similar to Erie, and is currently offered in 26 states. The company provides three teen discounts: good student, student away from school, and teen driver monitoring. In addition to those reductions, you could save money by paying in full, owning another Auto-Owners’ insurance, or enrolling in a paperless policy. The National Association of Insurance Commissioners also gives Auto-Owners a low complaint index (NAIC). The NAIC received an average amount of complaints, as indicated by a score of 1.00. The NAIC received fewer complaints about Auto-Owner’s personal auto products than usual, giving it a score of 0.64.

#4. Geico

Geico is typically one of the most affordable vehicle insurance providers. Although its premiums for 18-year-olds are not the cheapest on a nationwide level, the company may be able to offer competitive prices in your location. Geico is also recognized for providing a comprehensive range of discounts that may assist you in lowering your premium. You can save money if you have a car with particular safety features, are a good student, and wear your seatbelt.

#5. Country Financial

Country Financial may not be as well-known as some of the other firms on our list, but it does provide typical premiums that are far lower than the national average for 18-year-old vehicle insurance. Also, country Financial only sells insurance in 19 states, so if you’re interested in finding out if you’re eligible, you should request a quotation. The company provides a nice student discount and a discount for driver training, as well as more standard savings such as safety features and defensive driving.

How 18-year-olds-drivers can save money on temporary car insurance

Young drivers may be able to save money on vehicle insurance in a variety of ways. The majority of them involve taking advantage of discounts, but there are a few more.

The following are the most popular ways for an 18-year-old driver to obtain low-cost vehicle insurance.

#1. Good student discount

Teens with strong grades are less likely to speed or drive carelessly, according to statistics. As a result, several insurance companies offer discounts for good grades. You will almost certainly only be eligible for this discount if you are a full-time student, and you will almost certainly need to give a copy of your most recent grade card to demonstrate that your grades meet the requirements. Every insurance business has its own set of rules, however, maintaining a 3.0 GPA or a B- or better letter-grade average is normal.

#2. Distant student discount

You might be able to save money on car insurance if you don’t plan on driving to college. However, you can only use this option if you’re covered by your parent’s insurance policy. When you’re at home on vacation, you’ll usually be covered to drive, but check with your employer for specific rules.

#3. Usage-based car insurance and telematics discounts

Many businesses now offer discount programs that track your driving patterns and provide you with a customized discount. Usage-based systems, such as Nationwide’s SmartMiles, measure your mileage and charge you just for the miles you travel because being on the road less indicates you’re less likely to be involved in an accident. Other telematics discounts, such as Progressive’s Snapshot, measure additional behaviours in addition to mileage, such as speed, hard braking, and quick accelerations, in order to customize a discount.

#4. Opt for a higher deductible

Your policy has two deductibles if you have full coverage: one for comprehensive and one for collision. If you file a claim for vehicle damage, you will pay the deductible and the insurance company will cover the rest of the claim. In most cases, raising your deductible lowers your premium since you are willing to pay more in the event of a claim, saving the insurance company money. However, if you do file a claim, make sure you can afford to pay the deductible.

#5. Utilize discounts

Most insurance companies have discounts, and taking advantage of as many as possible could save you money. You may be able to save money in addition to good student, distant student, and telematics discounts by owning a vehicle with anti-lock brakes, receiving insurance from the same company as your parents, and purchasing renters insurance from the same company as your auto insurance.

Strategies to Save Money on Car Insurance for an 18-Year-Old

There are numerous ways to save money on your 18-year-old driver’s insurance. As discussed previously, adding your teen to your family coverage saves you money compared to purchasing an individual policy. However, this is not the only option to save money on adolescent driver insurance.

#1. Compare Quotes for the Best Policy for Your Family

Comparing vehicle insurance quotes from various companies is one of the most efficient strategies for saving money on automobile insurance. Obtaining numerous estimates will assist you in locating the lowest attainable rates for an 18-year-old driver, as our research indicates that price disparities of up to 40% exist between the cheapest and most expensive adolescent insurance policies.

#2. Monitor Your Teen Driver to Ensure a Clean Driving Record

A clean driving record is critical for adolescent insurance rates to remain as low as possible. A single ticket or accident might drastically boost their insurance rates. A relatively new approach for kids to save money on vehicle insurance is to enrol in a driving tracker. Numerous insurance firms now provide a variety of devices and mobile phone apps that can monitor and reward you for safe driving. This approach saves money only for kids who are safe drivers, so tread carefully.

#3. Find Companies That Offer Teen Discounts

Certain vehicle insurance savings are available solely to teen drivers. For instance, the majority of insurance firms provide substantial student discounts. Students with a B average or better are eligible for this discount from GEICO. Nonetheless, because each firm has its own rules, it is critical to verify with your insurer to ascertain the specific requirements for a good student discount.

Numerous insurance providers also offer an “Away At School” discount. This discount may apply if your 18-year-old is attending college at a distance of at least 100 miles from home and will be leaving their car behind. If they drive themselves to school, the discount is not applicable.

Additionally, safe driving classes might result in a discount on your adolescent driver’s insurance. Apart from the immediate savings, completing a safe driving course will help lower accident rates. Which can ultimately save your family money. You should contact your insurance carrier to confirm that they offer this discount before enrolling your teen in the program.

#4. Lower the Coverage Amount

When deciding on a vehicle for a teen driver, opting for an older, more economical model can help you save money on auto insurance. If you can afford to replace the automobile out of pocket, liability-only car insurance coverage can be a great option to reduce your insurance costs. MoneyGeek combed through dozens of car insurance firms in hundreds of cities and all 50 states to identify the most affordable liability-only auto insurance providers.

If you finance the purchase of a new vehicle, the lender may demand you to carry comprehensive collision coverage. In comparison, a vehicle that would cost several thousand dollars to replace in the event of an accident may require complete coverage even if no lender is involved. By opting for a less expensive, older model, you can save money on insurance by purchasing liability-only coverage.

#5. Choose a Sedan Over a Sports Car

Choosing the appropriate vehicle for your kid can result in annual savings of hundreds of dollars. While a sports car or luxury vehicle may be enjoyable to drive. They will considerably boost a new driver’s insurance expenses. A safe, straightforward sedan is frequently the least expensive vehicle to insure for a teenager. For instance, the average annual cost of insurance for a Toyota Camry for an 18-year-old is $2,867. On the other side, the annual cost of insurance for a Mustang GT is approximately $4,171. By purchasing a Camry over a Mustang, you may save an average of $1,304 every year.

Why Is Car Insurance So Expensive for an 18-Year-Old?

Car insurance for 18-year-old drivers is pricey since insurance firms base their rates on your driving history. If you lack driving expertise, they will automatically assume you will submit a claim. Additionally, insurers conduct extensive research into statistical groups. Years of data indicate that teen drivers are more reckless behind the wheel than drivers of other ages.

Traffic Statistics for temporary Car Insurance 18-Year-Olds Drivers

While rating drivers on these variables may appear dubious, the statistics on fatal wrecks, injuries, and other accidents speak for themselves. According to the table below, per 100 million kilometres travelled, 16- and 17-year-old drivers were involved in 3.75 fatal crashes. According to the statistics, 18- and 19-year-old drivers were involved in only 2.47 fatal crashes. While drivers aged 20 and 21 were involved in 2.15 fatal crashes. Driving becomes safer as you age and gain experience.

How to get temporary cheap car insurance at 18 years olds

Apart from remaining on your parent’s policy, the most effective technique for obtaining low-cost vehicle insurance quotes is to browse around. Prices might vary by thousands of dollars, so contact several insurers to compare rates.

However, there are a few other ways that 18-year-olds can utilize to acquire affordable auto insurance:

#1. Explore discount opportunities

Insurance companies provide a variety of discounts to which you may be entitled. If you are a high school or college student under the age of 18, you may qualify for a substantial student discount on vehicle insurance. Provided your GPA remains above a specified threshold.

College students who leave their car at their parents’ house and attend a university more than 100 miles away frequently qualify for an away-from-home student discount, as well as a low-mileage discount.

Alternatively, if you are financially independent of your parents and live apart from them. You can save money by bundling your auto insurance with your renters or homeowners insurance.

#2. Drive an affordable car

Expensive automobiles are more expensive to fix, which means they are also more expensive to insure. Our analysis discovered that the lowest insurance for 18-year-olds was available for SUVs such as the Subaru Outback and Buick Encore. As well as safer sports cars such as the Mazda MX-5 Miata and Volkswagen Golf GTI.

#3. Increase your deductible

Another option to reduce your insurance premium is to increase your deductible. This does, however, imply that you will pay a higher out-of-pocket cost if you submit a claim.

#4. Use a telematics program

Through the use of a telematics monitoring device, you may demonstrate to your vehicle insurance that you are a safe driver deserving of reduced rates. If you’re a typically safe driver, usage-based vehicle insurance entitles you to big savings.

#5. Reconsider how much coverage you need

Due to the statistically increased likelihood of 18-year-old drivers being involved in accidents. It is typically prudent to get a full-coverage policy that includes collision and comprehensive coverage. Minimum-coverage insurance, on the other hand, may be appropriate if, like many young drivers. You drive an older vehicle and repairs would cost more than the car is worth.

#6. Get multiple rates

It’s always best to shop around and get quotes from multiple insurers to ensure you find the best rates and coverage.

Can 18-year olds get temporary car insurance?

Most temporary vehicle insurance companies do not cover drivers under the age of 25, although younger drivers who have held a full driver’s license for at least 12 months may be eligible for short-term coverage.

Young drivers’ temporary or short-term auto insurance is difficult to come by, but it is attainable if you shop about it.

You can compare vehicle insurance coverage for new drivers and drivers under the age of 18. But any temporary insurance rates you receive will be pricey.

Why is temporary car insurance for 18-year olds expensive?

For the younger and less experienced drivers, all auto insurance is more expensive. According to Department of Transportation statistics from 2018, one out of every five new drivers is involved in a crash during their first year on the road.

As a result, when it comes to calculating auto insurance costs, insurers consider youth to be the greatest risk factor. Insurers also evaluate the following factors and statistics:

New drivers are more likely to be involved in accidents and make insurance claims

Young drivers between 17 and 24 are three times more likely than drivers from any other age group to be injured in a car accident

When young drivers crash there are often other young people in the car as potential “third-party” claimants

Lowering the costs of temporary car insurance for 18-year-olds

While temporary auto insurance for young drivers is costly, there are a few strategies to reduce your rates.

• Increase the excess on your policy – but be sure that you can afford it because the excess set by insurers can be as much as £1,000 for drivers who are 18
• Driver a smaller car – if you need temporary insurance when borrowing a friend’s car, don’t borrow an expensive and powerful vehicle, borrow a car with a small engine because these usually cost less to cover
• Shop around for short-term car insurance compare as many quotes as you can and only get cover for the exact period you need it. Because you could end up paying over the odds for 24 hours of cover you do not use

Why is temporary car insurance more expensive for an 18 year olds?

Your age and driving experience are two major criteria that will raise the cost of your vehicle insurance. If you’re younger and have less driving experience, you’re more likely to be involved in an accident and file a claim.

According to Brake, a road safety charity, one out of every five drivers will crash within a year of completing their test, and insurers use figures like these to determine your cost.

Your insurance company will raise your premium to compensate for the greater likelihood of filing a claim. Even if you’re the safest, most cautious driver on the road, you’ll pay more for your insurance because similar drivers haven’t been as cautious or safe in the past.

While there isn’t much you can do to make your insurance as inexpensive as an experienced driver’s, there are some things you can do. With short-term vehicle insurance for 18-year-olds, you may do everything from choosing a less powerful automobile to taking advanced driving courses. Most significantly, only paying for the insurance you need.

FAQs