Compare Car Insurance for 18-Year-Olds (2023)

Teen drivers pay the highest car insurance rates of any age group. One reason is that relative inexperience makes teens — such as 18-year-olds — riskier to insure than drivers with years of experience behind the wheel. 

While you can’t control your age, you can minimize its effect on your insurance rate. Drive safely to avoid accidents and traffic citations that drive rates up, and explore discounts you might qualify for. Some insurers offer young drivers more favorable rates than others, and premiums can vary by as much as 78% between companies, so it pays to compare policies.

How much is car insurance for an 18-year-old?

Eighteen-year-old drivers pay more for insurance because they have less experience driving. In fact, they actually pay the highest rates of any adult age group — $630 per month, on average, compared to $263 for drivers in their 30s. 

Fortunately, you don’t have to wait until you’re 30 to catch a break on your insurance rates. The average rate for all drivers younger than 25 is $387, and drivers ages 25 to 29 pay just $289, on average.

See More: Car Insurance for 19-Year-Olds

How do insurers calculate car insurance quotes?

Auto insurers use two processes to calculate insurance rate quotes: underwriting and rating.[1]

Underwriting is the process of evaluating how likely you are to file an insurance claim. The insurer determines this by using an algorithm that weighs your personal information against its own claims data to determine how risky you’d be to insure, according to the National Association of Insurance Commissioners. 

The insurer uses that risk data to project how much it’s likely to pay out in the event it insures you, and it uses that projection to calculate your insurance quote. The more risk the insurance company assumes, the higher your quote will be.

Many factors influence your quote. Here are some of the most important:

Age

Among adult drivers, the younger you are, the more you’re likely to pay for your car insurance. Teen drivers in particular have more car accidents than more experienced drivers do, according to the Insurance Information Institute. 

Rates drop significantly once a driver reaches age 25. Progressive, for example, reduces rates by an average of 9% for 25-year-old drivers as long as all other risk factors remain the same.

Driving record

Experienced drivers usually have lower rates than newer drivers, but exceptions exist. Your driving record also factors heavily. Just as a short record can drive up your rates, so can a blemished driving record.

Insurance companies can review your driving record when you apply for a new insurance policy or renew your current policy. If you’ve been at fault in an accident or had moving violations, the insurer will likely consider you a high-risk driver and rate your new policy accordingly. 

How much that’s likely to cost you depends on the company and the violation. Speeding tickets and accidents are two of the most common violations. While an accident typically drives up rates more than a speeding ticket, multiple speeding infractions could cost you more than a single fender-bender.

A DUI on your record has the most devastating effect. Outside of any legal ramifications you’ll face, insurers will usually increase your rates dramatically after a DUI, or they may even refuse to cover you.

Credit score

Insurance companies use a rating called an insurance score to evaluate how well you manage your finances. Your credit score factors heavily in your insurance score because financial behavior correlates with risk.

Certain components of your credit score are weighted more heavily, according to the III:

• Outstanding debt

• Length of credit history

• Late payments

• Collections

• Bankruptcies

• New credit applications

State law determines whether insurance companies may consider consumers’ credit histories, and if so, how they can use the information. For example, Alabama, Delaware, Florida, Illinois, New Mexico, Oklahoma, Texas, Vermont, and Washington all prohibit using a lack of credit history as a factor in determining insurance premiums, according to the National Conference of State Legislatures.

California, Hawaii, Maryland, Michigan, and Massachusetts all either ban or limit the use of credit scores by insurers when determining rates for auto insurance policies. Washington state implemented a three-year ban in March 2022. 

Colorado insurers can’t use any external data or information sources for insurance, pending the final adoption of rules for specific insurance types. Other states with legislation under consideration during the 2022 session included Louisiana and New Jersey.

Average car insurance rates by gender

In most states, insurance companies can factor your gender into their calculations for determining your insurance rate. Although in general, males pay more than females for car insurance, Insurify’s data shows that male 18-year-olds fare better, paying $590 per month, on average, compared to $665 for 18-year-old females. 

Ironically, 18-year-old male drivers are over three times more likely than 18-year-old female drivers to be killed in an accident, and they’re slightly more likely to experience a passenger death, according to data from the Insurance Institute for Highway Safety.
Several states have laws in place to prohibit gender-based car insurance ratings. California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania currently have bans in effect, while Montana lifted its ban in April 2021.

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

Average monthly car insurance rates vary quite a bit from one state to another. In Hawaii, the average rate is just $84, the lowest of any state. Other states with low rates include North Dakota and North Carolina, with average rates of $223 and $258, respectively. Only two other states, Montana and New Hampshire, have average rates under $300 per month.

As you read through the following list of average monthly premiums, keep in mind that where you live is just one of the factors that affect how much you’ll pay for car insurance.

See More: Car Insurance for 17-Year-Old Drivers

Best car insurance discounts for 18-year-olds

Insurers sometimes reward young drivers with special discounts. Liberty Mutual, for example, discounts rates for teens added to their parents’ account. Teens whose activities and achievements correlate to a lower risk of filing a claim can also qualify for rate discounts. 

Here are some young-driver discounts you should be aware of:

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

One of the best ways to save as an 18-year-old driver is to qualify for a good student discount. Even so, you’ll likely still pay higher rates until you have more driving experience. But rates for drivers your age aren’t set in stone. Most insurance companies give you plenty of ways to save, even if you don’t qualify for a good student discount and other teen-specific incentives.

Compare insurance quotes

Comparing car insurance quotes from several companies is one of the best ways to keep your rate in check. Although companies weigh similar factors when they calculate rates, the weight given to each factor and the calculations themselves vary by company. The III recommends researching at least three.

Online insurers are easy to compare with a quote-comparison tool. These allow you to compare quotes side by side from multiple companies. Be sure to look at both the coverages and prices so you get an apples-to-apples comparison.

Maintain a clean driving record

Your driving record speaks volumes about how risky a driver you are. Your driving record, also called a motor vehicle record, contains information about traffic violations you’ve received and accidents you’ve been involved in. 

Speeding, running red lights, failing to use a turn signal or yield right-of-way, and distracted driving are just a few of the moving violations that could appear on your driving record if you’re found guilty. While most can’t result in jail time, according to the legal website Nolo, they can result in points on your record.

How points are assigned and how long they remain on your record varies by state. In Maryland, for example, points are public record. They are available to anyone who wants to see them, including your insurance company, for three years.

Increase your deductible

Insurance policies come with a deductible, which is the amount you have to pay toward claims you file. Say, for example, you caused a fender-bender, and the car repair will cost $2,000. With a $500 deductible, you’d pay $500 toward the repair and the insurance company would cover the remaining $1,500.

Policies with higher deductibles usually have lower premiums because it means the insurance company pays less in the event of a claim. However, that means you’ll need more cash on hand — or in a savings account — if you have to file a claim.

Build good credit

If you’re in a state that allows insurers to base insurance ratings on your credit history, establishing a good credit score could boost your insurance score and reduce your rates. One way to do this is by opening a credit card. Keeping your balance low and paying it in full each month will help you build credit without incurring interest charges.

Install a telematic device

Some insurance companies, such as Progressive and Allstate, offer drivers the option of installing a telematic device in their cars. The device measures speed, braking, how far and how often you drive, and where you drive, then sends the data back to the insurance company, where it’s analyzed. 
If the data demonstrates safe driving habits, the insurer could reduce your premiums or discount your policy. The devices are typically easy to install — some can be plugged into the onboard diagnostic port beneath your steering wheel or dashboard while others utilize a mobile app.

What to look for in a car insurance policy for an 18-year-old

Car insurance coverage falls under two main categories: liability coverage and full coverage. The one you choose affects the amount of protection you receive and how much you pay for your coverage.

Liability coverage

Liability coverage is the type of insurance required by every state in the U.S., according to the III, citing data from the Property Casualty Insurance Assoc. of America. It doesn't cover damage to your car, but it does offer financial protection in the event you or someone driving your car injures another individual or damages their property.

Every state, along with Washington, D.C., requires property damage liability insurance. It covers damage to other cars and to objects you hit with your car, such as a fence or telephone pole.

Every state except Florida also requires drivers to carry bodily injury liability insurance. Bodily injury coverage pays for injuries or death you cause while driving your car or any other car you have permission to drive.

How much liability coverage you need depends on the laws in your state. However, minimum coverage might not offer adequate protection in the case of a serious injury or death.

Full coverage

Full coverage is typically optional unless you’re financing or leasing your car. In that case, your lender or lessor will require it. The coverage has two components: comprehensive and collision.

Collision pays for damage to your car that occurs in an accident with another car. It also covers damage resulting from hitting an object, a pothole, or from flipping your car, according to the NAIC.

Comprehensive coverage reimburses you for damage to your car resulting from causes other than a collision. Damage from hitting a deer, for example, a hail storm, or a fallen tree, all fall under comprehensive coverage, as does theft of your car.

Best cheap car insurance for 18-year-old drivers

Despite the various factors working against them, it is possible for 18-year-old drivers to find low-cost car insurance. Premiums depend on many factors, including where you live, how long you’ve been driving, what kind of car you drive, and your driving record, so you’ll need to shop around to find the best rate for your specific circumstances.

Car insurance for 18-year-olds FAQs