Best Car Insurance Company For Teenage Drivers – Erie, Geico, and USAA were the cheapest companies based on our analysis of thousands of auto insurance quotes for 18-year-old drivers from 29 companies across the country. To find the best prices for you, get quotes from multiple companies.
The cost of comprehensive car insurance for an 18-year-old driver averages $7,396 per year or $616 per month. We found a $7,551 difference between the annual rates of the cheapest insurer, Erie, and the most expensive insurer, Allstate. Such price differences show why it is so important to compare insurance quotes to get you the best price.
Best Car Insurance Company For Teenage Drivers
Drivers under the age of 25 have higher insurance rates because they are considered more unsafe drivers. As you get older and have more years of driving behind you, your insurance rates should begin to drop.
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For example, someone turning 18 will see their annual interest rate drop by an average of $1,445.
The average cost of car insurance for 18-year-old female drivers is cheaper than for 18-year-old male drivers. For 18-year-olds, female drivers pay an average of $7,030 per year, while male drivers pay $7,762.
The Centers for Disease Control and Prevention found that the motor vehicle mortality rate for male drivers ages 16 to 19 is more than twice that for female drivers in that age group, putting male teens at significantly higher exposure to insurance companies. .
But some states — California, Hawaii, Massachusetts, Michigan (in some cities), Montana, North Carolina and Pennsylvania — prohibit insurance companies from using gender to determine auto insurance rates. Male and female drivers in these states must pay the same price for auto insurance coverage, other things being equal.
How Old Do You Have To Be To Get Car Insurance?
Our analysis found that most young drivers see their insurance rates drop by 12% by age 18. At age 18, you pose less risk to insurers than 16- and 17-year-olds, and your rates reflect that.
New drivers are the exception to this rule. If you’re a new driver at age 18 and getting car insurance for the first time, you’ll likely pay more than a driver who got his license by age 16 and has two years of driving experience .
We did not include USAA in these recommendations because its policies only serve current or former military members and their families. If USAA is included, it would offer the cheapest car insurance for 20-year-olds in Illinois, Michigan, New York and Texas.
North Carolina is the cheapest state for an 18-year-old to get car insurance, with annual premiums being 54% cheaper than the overall average. Michigan is by far the most expensive state, with annual car insurance costs for 18-year-olds almost three times more expensive than the average.
Teen Driving 101: Getting The Right Car Insurance
An 18 year old can buy his own car insurance. However, we recommend adding to your parent’s policy if possible as it is cheaper than having your own separate policy.
The average cost to add an 18-year-old to a parent’s auto insurance is $3,020 annually, but the average cost for an 18-year-old to get their own auto insurance is $7,396 annually.
Adding a teen driver to their policy will likely see parents increase their rates, but by asking for a discount, they can help offset the increased costs. For example, if the teen drives a separate car, a parent may be able to get a multi-car discount. And if parents choose to stick with the same insurer for their teen car, they may be rewarded with a loyalty discount.
Aside from sticking to your parent’s policy, the best strategy for getting cheap auto insurance quotes is to shop around. Prices can vary in the thousands, so it’s a good idea to get free car insurance quotes from multiple insurance companies to compare prices.
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Explore discount options. Insurance companies offer several discounts that you may be eligible for. If you’re an 18-year-old high school or college student, you can get a nice student discount on car insurance, provided you keep your GPA above a certain threshold.
College students who leave their car at their parents’ house during the academic year and go to a university more than 100 miles away can often get a student discount from home and perhaps a low-mileage discount.
Alternatively, if you are financially independent from your parents and live separately from them, you can save by combining your car insurance with your renter’s or homeowner’s insurance.
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Drive a cheap car. Expensive cars cost more to repair, which means they also cost more to insure. The cheapest cars to insure for 18-year-olds include SUVs like the Subaru Outback and Buick Encore, and safe sports cars like the Mazda MX-5 Miata and Volkswagen Golf GTI.
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Increase your deductible. Another way to reduce your insurance rate is to choose a higher deductible. However, this means that you will have to pay more if you file a claim.
Use a telematics program. By sharing your driving data with your auto insurance company via a telematics tracking device, you can prove that you are a safe driver deserving of low premiums. If you’re generally a safe driver, usage-based car insurance allows you to earn significant discounts.
Consider how much coverage you need. Because 18-year-old drivers are statistically more likely to be involved in accidents, it is generally wise to purchase a comprehensive policy that includes both collision and comprehensive insurance. However, a minimum coverage policy may work if, like many younger drivers, you have an older car and repairs will cost more than the cost of the car.
Get more value. To make sure you get the best rates and coverage, it’s always best to shop around and get quotes from multiple insurance companies.
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Reputable car insurance companies do not sell short term car insurance. If you’re an 18-year-old driver and you see ads for car insurance for a day, a week, or a month, don’t be tempted. Policies usually only come for six months or a year, although you can usually cancel them at any time and you can choose to pay monthly.
We collected auto insurance quotes for thousands of zip codes in the nine most populous states in the United States. Our test drivers were a single male and an 18-year-old female who drove a 2015 Honda Civic X and had a clean driving record.
29 insurance companies were included in the analysis, and prices were only added to our list of average prices and recommendations if their policies were available in at least three of the nine states.
Our analysis drew on data from Quadrant Information Services. The rates we collected were obtained from publicly available insurance companies and should be used for comparison purposes only, as your own quotes may differ from our average.
What To Know About Car Insurance For Teens
An 18-year-old can expect to pay an average of $616 per month for comprehensive car insurance. Erie $264 per . Offers the cheapest rates on a month.
Yes, 18 year olds can take car insurance themselves. However, if you share the policy with your parents or an older driver, you can pay 60% less.
To get an insurance quote over the phone, call: (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! Car insurance companies consider many factors to determine rates, including driving experience. First time drivers pay higher premiums as they are more likely to be involved in an accident. For insurance purposes, newly graduated teens, immigrants and foreign nationals, older drivers who have never held a driver’s license, or who lack driving or insurance coverage are all considered new drivers.
We gathered thousands of auto insurance quotes from every zip code in Texas to find the lowest rates. Rates were for new drivers aged 16, 17, 18, 21, 25, 35, 45 and 55, as well as for a 16-year-old on his or her two 50-year-old parent’s policies.
Little Known Perks Of Usage Based Car Insurance
Allstate offers the cheapest minimum coverage car insurance rates for first time drivers under the age of 25. On average, new drivers can expect to pay $2,743 per year for insurance. However, Allstate’s policy costs 56% less at $1,205 per year.
New drivers looking to purchase full-coverage insurance can find the best rates with State Farm, where a policy costs $3,308 per year or $276 per month. The average $6,527 per year for full coverage insurance is almost double the rate at State Farm.
Minimum liability policies are usually the cheapest form of insurance because they provide the lowest level of coverage that is legal in your state. Affordable Rates Minimum coverage car insurance may seem like the best option, but if you are involved in an accident, you could end up paying more out of pocket in the long run.
First-time drivers over the age of 25 can find the cheapest car insurance with minimal coverage at Allstate. The company charges $395 per year, which is 62% less than the average of the quotes we received.
Best Car Insurance For Teens And Young Drivers For September 2022
State Farm has the lowest price for a full coverage policy. New drivers pay $1,398 annually, making the policy with State Farm $1,000 less than the average.
There is no age limit for sharing car insurance with your parents, so you can share one policy as long as you live in the same household. When you go out, you have to get your own
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