Best Car Insurance for 18-Year-Olds

Whether you're just getting your license or looking into the expense of moving out and living on your own after graduation, car insurance costs can be a big consideration.
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Best Car Insurance for 18-Year-Olds

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: November 24th, 2022

Reviewed by Grant Desselle
Licensed Insurance Agent

Find out more about the best auto insurance for 18-year-olds and the average costs of coverage below.

What is the Best Auto Insurance for 18-Year-Olds?

The best auto insurance policy is the one you can afford that also provides the right amount of coverage. In cases where it’s possible, the best option may be adding an 18-year-old to a parent’s policy. It’s usually cheaper to add a teen driver to a parent’s policy than it is to buy an individual plan.

In most states, 18-year-olds are considered legal adults who can own a car and get an insurance policy in their own name. The exceptions are Mississippi, where the age of majority is 21, and Nebraska and Alabama, where the age of majority is 19. If an 18-year-old owns their own car, they will need to insure it separately from their parent’s policy.

How Much is Car Insurance for 18-Year-Olds?

The average cost for full coverage car insurance for 18-year-old drivers ranges from around $300 to $600. Costs for minimum liability-only coverage range from around $120 to $270 on average for 18-year-old drivers.

What is the Cheapest Insurance for 18-Year-Olds?

Both male and female drivers aged 18 may find the cheapest car insurance premiums at USAA, GEICO, Erie Insurance, and State Farm. Note that you can only get insurance from USAA if you are a qualifying current or former military member, a spouse of a qualifying current or former military member, or a child of a USAA member. See below for other insurance rates for 18-year-old drivers.

Average cost of auto insurance for 18-year-old males

Company Average monthly premium, full coverage
GEICO $350
State Farm $360
Nationwide $450
Progressive $575
Allstate $580
Farmers $610
Liberty Mutual $750

Average cost of auto insurance for 18-year-old females

Company Average monthly premium, full coverage
State Farm $300
GEICO $300
Nationwide $380
Allstate $500
Liberty Mutual $500
Progressive $515
Farmers $560

If an 18-year-old owns their car outright and doesn’t need comp and collision coverage, they may be able to save money with liability-only insurance.

Company Average monthly premium, minimum liability-only coverage
State Farm $180
GEICO $250
Allstate $260

Why Do Insurance Companies Charge More for Teen Drivers?

Drivers aged 16 to 19 cost more to insure because they’re considered a higher risk by insurance companies. Insurance companies base this on a range of facts, including statistics about who is involved in the most accidents. The Centers for Disease Control and Prevention reports that drivers between the ages of 16 and 19 are three times as likely to be involved in a fatal accident than older drivers, making teens the riskiest group to insure.

What Factors Other Than Age Impact the Cost of Auto Insurance for 18-Year-Olds?

The type of car you’re insuring and the amount of coverage and deductible you pick impact the price of auto insurance. So do the state you live in, your own driving record, and, potentially, your credit score.

Access to discounts might also impact the price of car insurance for 18-year-olds. Teen drivers that have completed a defensive driving course may be eligible for a discount. If an 18-year-old has moved out and has renter’s insurance, they may be able to save money by bundling renter’s insurance with car insurance through the same provider.

Many insurance companies also offer discounts for students who maintain a 3.0 GPA or higher. The savings can range from 8% to 20%.

Insurance company Average savings for drivers with good student discounts
Allstate 20%
State Farm 16%
Nationwide 15%
Farmers 12%
Progressive 8%

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