Cheapest Car Insurance for 18-Year-Olds
State Farm offers the cheapest liability and full coverage car insurance for 18-year-old drivers. Geico is the second-cheapest company for teens.
Teens usually pay more for car insurance than older drivers because they are more likely to get into accidents. Young drivers looking to lower their car insurance costs should take advantage of all the discounts they can and also see if they can get added to a parent’s policy.
Cheapest car insurance companies for 18-year-olds
Cheapest minimum coverage car insurance for 18-year-olds
State Farm has the cheapest liability car insurance for 18-year-olds among large companies. Its rates average $2,854 a year, or $238 a month.
Geico is the next-cheapest option for most 18-year-old drivers, at $316 a month. Despite the cost gap between the two companies, Geico offers many discounts that could make it a lot cheaper.
USAA’s average liability insurance Liability insurance covers injuries and property damage you cause to others. It’s required by law in almost every state. rate for teens is $253 a month, but it only sells to members of the military and their families. If that includes you, consider USAA and its history of customer satisfaction.
Cheapest liability car insurance for 18-year-olds
| Company | Average rate | LendingTree score | |
|---|---|---|---|
 | State Farm | $2,854 |  |
 | Geico | $3,792 |  |
 | Allstate | $7,163 |  |
 | Progressive | $7,362 |  |
 | USAA* | $3,039 | |
*USAA is only available to military members and their families.
Cheapest full coverage car insurance for 18-year-olds
State Farm has the cheapest full coverage car insurance for 18-year-olds, with an average rate of $4,960 a year, or $469 a month.
The next-best rates are available from Geico, at $605 a month. This is 29% more than State Farm’s average rate for full coverage Full coverage includes collision and comprehensive, which cover your own car for damage and theft. , but you may be able to bring it down if you qualify for some of Geico’s many car insurance discounts.
Geico also does a good job of handling customer complaints, based on its strong rating from the National Association of Insurance Commissioners.
Cheapest full coverage rates for 18-year-olds
| Company | Average rate |
|---|---|
| State Farm | $4,960 |
| Geico | $7,259 |
| Allstate | $11,111 |
| Progressive | $15,477 |
| USAA* | $5,490 |
How much is car insurance for an 18-year-old?
The average cost of car insurance for an 18-year-old is $2,848 a year, or $237 a month, for minimum coverage.
Full coverage costs an average of $6,782 a year, or $565 a month, for 18-year-olds.
On average, an 18-year-old pays more than double what a 30-year-old pays for car insurance.
Adult vs. 18-year-old average car insurance rates
| Driver age | Minimum coverage | Full coverage |
|---|---|---|
| 18 | $2,848 | $6,782 |
| 30 | $1,042 | $3,871 |
Why is car insurance so expensive for young drivers?
Young drivers get into more accidents than other age groups. This is one of the main reasons they pay so much for car insurance.
Accidents cost insurance companies money in the form of claims payments. They offset these costs by charging more to those seen as more likely to file claims.
Also, young drivers have not yet had time to establish a safe driving record, good insurance history or good credit. These are among the factors that help you qualify for cheaper rates in your mid-20s.
Is it cheaper to add a young driver to a parent’s car insurance?
Yes, it is usually cheaper to add a young driver to a parent’s car insurance than it is for the teen to buy their own policy.
The average cost of full coverage for a parent adding an 18-year-old to their car insurance is $6,782 a year, or $565 a month. This amount is 27% cheaper than the cost of stand-alone full coverage for an 18-year-old.
A parent can usually keep a child of any age on their car insurance if the child lives at home.
Most young drivers can also stay on a parent’s car insurance while away at school or if a parent is listed on their vehicle’s title. However, the policies on this vary by insurance company.
Car insurance rates for 18-year-old by gender
An 18-year-old female pays 8% less for full coverage than 18-year-old males.
The main reason young female drivers pay less for car insurance than young males is because female teens get into fewer accidents than their male peers.
For example, the death rate for male teens in vehicle crashes is three times higher than it is for females, according to the Centers for Disease Control.
Full coverage rate by gender
| Gender | Annual rate |
|---|---|
| Male | $4,702 |
| Female | $4,338 |
How to get cheaper car insurance for young drivers
Shopping around, looking for car insurance discounts and adjusting your coverage can help make car insurance cheaper for young drivers.
Your age is among the many factors companies use to set your car insurance rate. The others include:
- Your driving record
- The value and safety record of your vehicle
- Any discounts you may be eligible to receive
Since each company weighs these factors differently, you may qualify for a much lower rate with one company than you do with others.
We recommend comparing quotes from at least three companies when you shop for car insurance.
Best car insurance discounts for young drivers
Insurance companies offer many discounts that can help make car insurance cheaper for young drivers. Some of the most common are:
Good student discount: Most car insurance companies offer good student discounts to young drivers who maintain a B average or better in school. You don’t have to share school transcripts to get quotes, but you may need them to confirm your eligibility with the company you choose.
Driver’s education discount: Several companies offer discounts to young drivers who complete an approved driver education program. Some companies, including State Farm and Allstate, offer programs that combine online learning with on-road driving exercises. Others offer a discount for completing any state-accredited driver education program.
Away at school discount: Many companies give parents a discount if the young driver on their car insurance is away at school. Some companies require the school to be more than 100 miles away from home.
Safe-vehicle discounts: Driving a safe vehicle may help a driver of any age get a discount on car insurance. For example, several companies offer discounts to those whose vehicles have antilock brakes and/or airbags.
Car insurance coverage adjustments for young drivers
Changing the coverages on your policy is another way to help a young driver get cheaper car insurance.
A minimum coverage policy, which costs about half as much as full coverage, may be enough for a young driver with their own policy.
If you’re adding a young driver to your family’s car insurance policy, list the teen as the primary driver of the cheapest vehicle in your household. If the teen drives an older car with a low market value, consider removing collision and comp from the vehicle to save more.
Frequently asked questions
Yes. In most states, 18-year-olds can enter into any legal contract, including car insurance. If you’re younger than 18, you can usually only get your own car insurance if a parent or guardian cosigns your application.
An 18-year-old with their own car insurance may only need minimum coverage. If you’re the parent of an 18-year-old, you shouldn’t lower your liability limits. Instead, consider dropping the collision and comprehensive coverage on the 18-year-old’s vehicle if it has a low value.
Young drivers often begin to see their car insurance rates level off when they reach their mid-20s – if they keep their driving record clean.