Of any age group, car insurance tends to be the most expensive for 16 year olds. But how about for 18 year olds? How much is car insurance for an 18 year old?
The good news is that it’s not as expensive as policies for 16 year olds. That 2 years does save you some money. But it still isn’t cheap. Let’s look at some numbers below.
How Much Is Car Insurance For An 18 Year Old?
If you’re 18, there’s no single number that we can give you about how much car insurance will cost you. There are just so many factors that go into the rates for each individual. We’ll cover them below.
However, the average annual car insurance premium is around $5,300 for 18 year olds. That breaks down to about $440 a month.
As a comparison, the national average annual premium for all drivers is around $1,700.
Now that average is for a full coverage policy that you take out yourself.
The reason as to why car insurance policy premiums are more expensive to people of younger age is because of the risks. Car insurance companies find younger drivers to be more riskier on the road as they are usually lacking in experience in driving compared to older drivers.
That said, there are other options that could make your rate much cheaper than that.
How To Save On Car Insurance Rates For an 18 Year Old
One option to lower your rates is to take out a car insurance policy that only covers that state minimum requirements. That averages around $160 per month or $1,900 per year.
Another way to save money is to let your parents add you to their car insurance policy. Although the premiums will have an increase of possibly $3,819 to $4,048, you will not pay as much as if the policy was just in your name.
Factors That Affect The Rates
There are a number of factors that could affect the premiums of your car insurance policy. The first one is gender.
Most of the time, the premiums of 18 years old female drivers are lower compared to male drivers of the same age. While the average monthly premiums of 18-year-old males is $467, their female counterparts pay an average $432.
If we are talking about annual premiums, then the average for 18-year-old females is $4,772. Males of the same age pay for a significantly larger amount which is $5,605.
Another factor that affects the cost of your car insurance premiums is the state where you live. Average rates in Hawaii are just around $1,500 a year. While in Michigan they will cost you over $9,000 a year.
One more thing that determines the cost of your premiums is the car insurance company. Different companies can have huge differences. The lowest average annual premium of car insurance for 18 years olds we can find is around $2,400. The highest is over $11,500!
So it definitely pays to shop around!