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When kids turn 18, they are experiencing the freedoms of adulthood. They move out of their childhood homes, go to college, and get their first job. 18-year-olds may also get their own car insurance policy.
For a year of full coverage on their own policy, an 18-year-old driver’s insurance costs nearly $5,190 on average. For drivers 30 and older, that’s more than $3,430 more than the national average ($1,758).
Insuring newly licensed drivers is expensive. Naturally, they are inexperienced and are prone to accidents. Insurance companies view that as a risk. They charge new, teen drivers much higher rates.
We will examine average rates for 18-year-old males and females by state, as well as by coverage level, and show how your rates change when you add a teen to your policy. Additionally, you’ll receive expert advice on how much coverage to buy and discounts for young drivers.
The cost of car insurance for 18-year-olds
The average cost of car insurance for an 18-year-old is $5,335 per year, which amounts to $444 per month. In comparison to the national average rate of $1,555, it’s immediately apparent that insurance for 18-year-old drivers is not cheap. A parent who adds an 18-year-old child to their car insurance policy will also see a large rate increase, but not as much as the 18-year-old would pay as the main policyholder. The average cost of adding a teen driver to an insurance policy is $4,048 for a male and $3,819 for a female. There are a few factors that affect an 18-year-old’s car insurance rate when they buy their own policy. Insurance companies look at their state and zip code, their claims history, and what type of vehicle they drive. Car insurance premiums decrease as the driver ages. They won’t see a significant reduction in premium until well into their 20s. Approximately $900 is the average annual premium for an 18-year-old.
$5,335
How much is car insurance a month for an 18 year old?
A full coverage policy for teen drivers age 18 will cost about $430 per month on average. It costs about $160 a month to buy just enough insurance to drive legally in your state.
The following is a breakdown of car insurance monthly costs for common coverage levels:
- State minimum policy: $158
- Full coverage, 100/300/100 liability with comprehensive and collision: $432
Rates of car insurance for 18-year-old males and females
People don’t realize that gender is a factor in car insurance rates, especially among younger people. 18-year-old females pay $5,009 per year for insurance, and 18-year-old males pay $5,661 per year – quite a big difference. Because statistically, women are less likely to get into a major accident or be charged with a DUI, their insurance rates tend to be lower.
18-year-olds’ car insurance in the most expensive states
The five states where 18-year-olds pay the most for car insurance are:
- New York—$7,978
- Rhode Island—$7,954
- New Jersey—$7,647
- Nevada—$7,391
- Michigan—$7,262
Why is insurance so expensive in these places? In fact, these five states are among the most expensive for car insurance for drivers of all ages..
New York, New Jersey, and Michigan are considered no-fault states, which means drivers must carry personal injury protection (PIP), which is an additional expense. Rhode Island and Nevada drivers pay high insurance premiums because they have a high population density, which means many people share the same roads, raising the risk of an accident.
Cheapest states for car insurance for 18-year-olds
As an 18-year-old, here are the least expensive states for car insurance:
- Hawaii—$1,186
- North Carolina—$4,058
- Maine—$2,668
- Iowa—$2,688
- Indiana—$3,141
The reason they are the cheapest for car insurance is that they have a low rate of uninsured drivers. Maine has the fewest uninsured drivers of any state, according to the Insurance Information Institute. Maine and Hawaii also have relatively low fatal car accident rates.
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