Cost of Auto Insurance for 18-Year-Olds

In general, 18-year-olds pay more for auto insurance, at $3,926 per year, which is approximately 275 percent more than the national average of $1,047. In general, young drivers have higher car insurance rates due to their lack of driving experience (even if they have a relatively clean driving record) and high risk levels.

Men pay more for auto insurance than females in 43 states due to higher fatality rates, DUI rates, and other factors. In the same vein, 18-year-old males pay more for auto insurance, with an average annual premium of $5,617.44. In comparison, 18-year-old females pay an average monthly premium of $4,185.48, about 25 percent less than 18-year-old males.

However, not every state allows this type of gender discrimination. It is illegal to increase auto insurance rates based on gender in these states:

• California
• Montana
• Hawaii
• Michigan
• Pennsylvania
• Massachusetts
• North Carolina

• Allstate
• GEICO
• Auto Club
• USAA
• Erie
• Nationwide

1. Compare quotes from auto insurance providers.
2. Find insurance providers that offer good-driver and good-academic-standing discounts for teens and new drivers. Some providers offer car insurance discounts for teens who drive eco-friendly cars.
3. Reduce or drop collision coverage if the value of your car is negligible, such as less than $5,000.
4. Increase your car insurance deductibles to lower your insurance premium.
5. Avoid new and luxury cars, which may have higher rates.
6. Consider mileage-based insurance if your teen doesn’t drive many miles per year.

Yes, 18-year-olds can get their own car insurance policies. Alternatively, a parent can add a teen to their insurance or exclude them from coverage temporarily. While adding a teen to your policy will increase your insurance rates, they won’t be as high as if you got them a separate policy. Plus, managing everything under one policy is more convenient.

Overall, adding an 18-year-old to your car insurance can significantly increase your premium – by an average of about $3,000 per year.

We’ve listed a few additional factors that may affect how much your auto insurance policy will cost after adding a teen driver:

• The teen’s driving history (traffic violations, speeding tickets, and accidents)
• Age
• Gender (in most states)
• Annual mileage
• State of residence and ZIP code
• Type of vehicle

• Insurance providers see teens as a liability risk because of their lack of driving experience.
• Teens have a higher chance of getting into an accident. Eighteen-year-olds, in particular, are 26 percent more likely to die in a traffic accident, at 47 deaths per 100,000 licensed drivers in 2020. Additionally, 16- to 19-year-olds are three times more likely to be involved in a fatal motor crash than drivers ages 20 and above.¹
• Teens are more likely to get speeding tickets compared to older drivers. According to recent statistics, 16- to 18-year-olds speed more than the general population, at 43 percent, compared with 30 percent across other age groups.
• Teens are likely to participate in distracted driving behaviors. Recent stats on teen distracted driving show that 9 in 10 adults ages 18 to 24 talk on the phone while driving.

Although the cost of auto insurance for 18-year-olds can be on the high end, there are many ways to offset the price. This includes obtaining quotes from auto insurance providers, eliminating unnecessary coverage or reducing coverage, signing up for a defensive driving course, and asking about discounts.