Best Car Insurance For 18-Year-Olds

Key Points:

• Liberty Mutual is our top company for 18-year-olds, due to their great discount incentives for young drivers.
• Erie Insurance offers the cheapest car insurance for 18-year olds with rates that are 37% lower than average
• Our team found that the average annual cost of full coverage insurance for 18-year-olds is $4,598.

Turning 18 years old is the start of adulthood. You’re eligible to vote, open your own lines of credit, and in many states, own a car. Whether you’re shopping for auto insurance for the first time or looking for a cheaper policy, car insurance coverage for 18-year-olds can be expensive.

We’re going to take a look at average costs, then explore ways to save money on coverage. We’ll also look at which companies provide the best car insurance in the industry.

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Cheapest Car Insurance For 18-Year-Olds

Below are the cheapest full coverage car insurance companies for 18-year-olds according to our rate data. These rates apply to 18-year-olds with good driving records looking for full coverage auto insurance. Teens with car accidents and tickets in their driving history may pay auto insurance rates much higher than these.

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Best Car Insurance For 18-Year-Olds

While cheap rates are nice to have, the best insurance providers for 18-year-olds also provide some extra perks like car insurance discounts for teens or usage-based discounts for safe driving. Below we’ve summarized our picks for the top 3 companies for 18-year-old drivers

#1 Liberty Mutual

After comparing top auto insurance policies for 18-year-olds, Liberty Mutual is our top pick for teen drivers. It’s an established brand that has been serving young adults and parents with dependents since 1912.

While it isn’t included in our rate data, the company has a number of useful discounts and programs for teens including:

• New Teen Driver: This discount applies when a teenage new driver is added to their parent’s policy.
• Teen Driving Program: Drivers under 21 who take an approved educational course can get this discount.
• Good Student Discount: Students under 25 with a B average get this discount
• Accident forgiveness: This plan will protect your premium against heightened rates after your first at-fault accident, which can be beneficial for teens with less driving experience.

Liberty Mutual offers RightTrack^®, a usage-based program that rewards safe driving habits. Discounts for safe driving begin at 10 percent for signing up and can extend up to 30 percent. This usage-based program is free for Liberty Mutual members and you will receive a discount immediately after signing up.

#2 State Farm

If you’re looking for a trusted provider to protect your recent high school student or graduate, State Farm insurance is for you. Its extensive list of student-driver discounts, driving programs and usage-based programs have reassured parents of young drivers in almost every U.S. state.

With State Farm, you have access to the following discounts for your 18-year-old motorist:

• Safe driving discounts: Your teenager can get discounts for being a safe driver. This includes having a clean driving record, no accidents or moving violations for three years, completing a defensive driving course, or taking a driver’s education course.  
• Safe vehicle discounts: With State Farm, you can get discounts for having a modern vehicle with safety features and anti-theft mechanisms. However, at a certain point, high-tech safety features may cost more to repair and can increase overall rates.
• Loyalty discounts: If you have multiple teen drivers on one policy, you can get discounts for insuring multiple vehicles and bundling auto with another policy like homeowners insurance or life insurance.
• Good student discount: State Farm has a generous discount of 25 percent for students with good grades. This can last until the student is 25.

State Farm also has two programs that can be useful for 18-year-olds: Drive Safe & Save™ and Steer Clear^®.

• Drive Safe & Save: This telematics program rewards safe driving habits with discounts of up to 30 percent.
• Steer Clear: This program is available for drivers under 25. Participants get a discount after completing training and practice sessions.

#3 Geico

Geico doesn’t have as many teen-specific programs as the last two providers, but it is one of the cheapest car insurance companies on average for 18-year-olds and other drivers, according to our rate data. Its A+ rating from the BBB shows it resolves complaints in a timely manner, too.

Geico offers 16 different discounts for a wide range of situations. Discounts that are useful for teens include:

• Good Student: Get 15 percent off for having good grades.
• Driver’s Educational Course: Get a discount for taking an approved education course.

Geico also offers a usage-based program called DriveEasy. Like other usage-based programs, this one gives you a discount for safe driving habits. It tracks things like hard braking, cornering, and acceleration. DriveEasy is available in 38 states.

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What Is The Average Car Insurance Cost For 18-Year-Olds?

Our data shows that 18-year-olds pay about $4,958 per year or $413 per month for full-coverage insurance. This applies to 18-year-olds who have their own registered vehicles and purchase insurance policies independently. Adding an 18-year-old to a parent’s car insurance policy will be cheaper overall than parents and children having separate policies.

Because 18-year-old drivers don’t have much experience behind the wheel, they’re considered high-risk drivers. Teenage drivers tend to file more claims than older drivers, so car insurance companies raise rates for this age group.

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How To Save On Car Insurance For An 18-Year-Old

From discounts to usage-based savings programs, there are many ways for teens to save money on car insurance. Here are some of the discounts offered by major providers that could help you get lower rates for car insurance for 18-year-olds.

• Good student discount: Many auto insurance companies offer student discounts for full-time students who maintain a certain average in school, usually a B or higher.
• Driver training course: Some states require insurance companies to give customers discounted rates after completing a state-approved driver safety course.
• Distant student discount: Do you have a full-time student who goes to school more than 100 miles from home? If your student is without their car, you could qualify for lower insurance rates.
• Usage-based discount: Safe driving habits can be monitored through a plug-in device or cell phone app. If you accelerate and brake safely, you can save on car insurance.

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Best Car Insurance For 18-Year-Olds: Our Take

It’s important to compare multiple car insurance quotes for your 18-year-old to find the cheapest car insurance. Whether you’re looking for the most cost-effective plan, or the safest plan for your teen, you should keep a lookout for policies from Liberty Mutual, State Farm, and Geico. Our research found that these providers have cheap car insurance overall and good coverage for young drivers.

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Car Insurance For 18-Year-Old: FAQ

Below are a few frequently asked questions about car insurance for young drivers:

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

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