Once drivers turn 18, they’ve had two years of driving under their belts, and that experience begins to pay off in lower car insurance rates. The average car insurance rate for an 18-year-old on their own policy is $5,249 yearly for full coverage. That rate is $3,354 higher than the national average of $1,895 for 40-year-old drivers.
As drivers gain more experience and improve their behind-the-wheel performance, car insurance rates are likely to drop, says Carole Walker, the Rocky Mountain Insurance Information Association executive director.
“While teen drivers will pay more for car insurance even with a clean driving record, steering clear of at-fault crashes and citations will help them keep their insurance premiums lower,” she says.
- For full coverage car insurance, an 18-year-old teen driver pays an average of $5,249 per year or $437 monthly for car insurance.
- Female drivers who are 18 pay $4,956 on average, $587 less than males their age. By contrast, 18-year-old male drivers pay about $5,543 annually for their car insurance policies.
- Female teen drivers save $1,607 per year and males pay $1,936 per year being insured on a parent’s policy.
Car insurance for teens: How much is car insurance for 18-year-olds?
The average annual cost of car insurance for an 18-year-old on their own policy is $5,249 for full coverage, or about $437 per month. This is $3,354 higher than the national average of $1,895 for a 40-year-old driver.
Average car insurance rates for teens: 18-year-olds- State minimum coverage: $1,480
- Liability limits of 50/100/50: $1,799
- Full coverage with 100/300/100 liability limits and $500 comprehensive/collision deductibles: $5,249
Insurance costs for teens vary greatly depending on the provider, state and vehicle. Adding a teen to your policy is generally much cheaper than having them purchase their own, which they can only do if they’re emancipated or have reached the age of majority – typically age 18.
How much is car insurance for 18-year-olds per month?
Car insurance costs an average of $462 per month for an 18-year-old male driver, and female drivers pay $413 monthly for the same coverage.
Car insurance rates for an 18-year-old female, by state
The nationwide average cost for insurance for an 18-year-old female on her own policy is $4,956. Below, you’ll see average car insurance costs by state for an 18-year-old female compared to the price of a parent policy that adds an 18-year-old.
| State | Teen female policy | Parent policy | Parent’s policy with an 18-year-old female |
|---|---|---|---|
| Alaska | $4,392 | $1,236 | $2,254 |
| Alabama | $5,359 | $1,464 | $2,394 |
| Arkansas | $5,665 | $1,436 | $2,471 |
| Arizona | $6,168 | $1,532 | $2,954 |
| California | $6,251 | $2,041 | $4,275 |
| Colorado | $4,841 | $2,048 | $3,190 |
| Connecticut | $6,125 | $1,383 | $2,294 |
| Washington, D.C. | $6,150 | $1,877 | $3,060 |
| Delaware | $6,766 | $1,636 | $2,706 |
| Florida | $6,333 | $2,993 | $5,208 |
| Georgia | $5,533 | $1,516 | $2,824 |
| Hawaii | $1,628 | $1,282 | $1,338 |
| Iowa | $3,568 | $1,156 | $1,918 |
| Idaho | $4,059 | $957 | $1,658 |
| Illinois | $3,846 | $1,309 | $2,494 |
| Indiana | $3,840 | $1,214 | $2,061 |
| Kansas | $5,107 | $1,422 | $2,353 |
| Kentucky | $5,532 | $1,743 | $2,940 |
| Louisiana | $7,323 | $2,991 | $5,630 |
| Massachusetts | $5,026 | $1,721 | $3,386 |
| Maryland | $4,616 | $1,923 | $3,169 |
| Maine | $3,587 | $996 | $2,167 |
| Michigan | $6,224 | $4,054 | $6,948 |
| Minnesota | $4,478 | $1,610 | $2,645 |
| Missouri | $4,934 | $2,134 | $3,760 |
| Mississippi | $5,460 | $1,342 | $2,281 |
| Montana | $6,263 | $1,782 | $3,077 |
| North Carolina | $3,777 | $1,369 | $2,490 |
| North Dakota | $4,885 | $1,154 | $1,828 |
| Nebraska | $4,582 | $1,798 | $2,726 |
| New Hampshire | $3,691 | $923 | $1,763 |
| New Jersey | $5,725 | $2,208 | $4,112 |
| New Mexico | $5,226 | $1,695 | $3,019 |
| Nevada | $6,371 | $2,287 | $3,940 |
| New York | $4,820 | $1,832 | $3,408 |
| Ohio | $4,055 | $1,065 | $1,964 |
| Oklahoma | $5,865 | $1,855 | $3,168 |
| Oregon | $5,142 | $1,430 | $2,411 |
| Pennsylvania | $5,144 | $1,245 | $2,256 |
| Rhode Island | $6,466 | $1,681 | $3,190 |
| South Carolina | $5,475 | $1,671 | $3,243 |
| South Dakota | $5,578 | $1,523 | $2,280 |
| Tennessee | $5,013 | $1,209 | $2,171 |
| Texas | $3,957 | $1,852 | $3,631 |
| Utah | $5,439 | $1,819 | $3,317 |
| Virginia | $3,891 | $1,133 | $2,342 |
| Vermont | $3,985 | $996 | $1,752 |
| Washington | $4,519 | $1,309 | $2,046 |
| Wisconsin | $5,041 | $1,511 | $2,834 |
| West Virginia | $5,454 | $1,386 | $2,852 |
| Wyoming | $4,004 | $1,677 | $2,490 |
Car insurance rates for an 18-year-old male, by state
On average, males aged 18 pay $5,543 annually for their own full-coverage insurance policy, which is $587 more than females their age. The table below compares rates for a male 18-year-old with his own policy to those of being added to a parent’s policy.
| State | 18-year-old male policy | Parent policy | Parent policy with an 18-year-old male |
|---|---|---|---|
| Alaska | $5,133 | $1,236 | $2,474 |
| Alabama | $6,133 | $1,464 | $2,595 |
| Arkansas | $6,568 | $1,436 | $2,742 |
| Arizona | $7,176 | $1,532 | $3,320 |
| California | $6,252 | $2,041 | $4,275 |
| Colorado | $5,207 | $2,048 | $3,366 |
| Connecticut | $6,722 | $1,383 | $2,511 |
| Washington, D.C. | $5,984 | $1,877 | $3,548 |
| Delaware | $7,255 | $1,636 | $2,983 |
| Florida | $7,267 | $2,993 | $5,631 |
| Georgia | $6,367 | $1,516 | $3,226 |
| Hawaii | $1,628 | $1,282 | $1,338 |
| Iowa | $4,150 | $1,156 | $2,055 |
| Idaho | $4,863 | $957 | $1,816 |
| Illinois | $4,342 | $1,309 | $2,889 |
| Indiana | $4,548 | $1,214 | $2,176 |
| Kansas | $6,092 | $1,422 | $2,526 |
| Kentucky | $6,660 | $1,743 | $3,163 |
| Louisiana | $8,460 | $2,991 | $6,496 |
| Massachusetts | $5,134 | $1,721 | $3,386 |
| Maryland | $5,212 | $1,923 | $3,739 |
| Maine | $4,200 | $996 | $2,486 |
| Michigan | $6,224 | $4,054 | $6,948 |
| Minnesota | $5,443 | $1,610 | $2,737 |
| Missouri | $5,724 | $2,134 | $4,296 |
| Mississippi | $6,249 | $1,342 | $2,472 |
| Montana | $6,459 | $1,782 | $3,077 |
| North Carolina | $3,777 | $1,369 | $2,490 |
| North Dakota | $5,334 | $1,154 | $2,007 |
| Nebraska | $5,387 | $1,798 | $2,918 |
| New Hampshire | $4,143 | $923 | $1,903 |
| New Jersey | $6,569 | $2,208 | $4,599 |
| New Mexico | $6,208 | $1,695 | $3,283 |
| Nevada | $7,241 | $2,287 | $4,304 |
| New York | $5,495 | $1,832 | $3,915 |
| Ohio | $4,475 | $1,065 | $2,131 |
| Oklahoma | $6,959 | $1,855 | $3,820 |
| Oregon | $5,514 | $1,430 | $2,563 |
| Pennsylvania | $5,151 | $1,245 | $2,256 |
| Rhode Island | $7,102 | $1,681 | $3,563 |
| South Carolina | $6,246 | $1,671 | $3,368 |
| South Dakota | $6,650 | $1,523 | $2,531 |
| Tennessee | $5,922 | $1,209 | $2,401 |
| Texas | $4,526 | $1,852 | $4,030 |
| Utah | $6,391 | $1,819 | $3,619 |
| Virginia | $4,448 | $1,133 | $2,656 |
| Vermont | $4,682 | $996 | $1,927 |
| Washington | $5,117 | $1,309 | $2,146 |
| Wisconsin | $5,721 | $1,511 | $3,191 |
| West Virginia | $6,403 | $1,386 | $3,287 |
Individual car insurance for 18-year-olds is expensive
Car insurance for young drivers is much cheaper when parents add the teen to their existing policy. As young drivers gain more experience, their rates should drop. You’ll see how much it costs to add a teen driver to a parent policy and how much you save in the chart below.
| Gender | 18-year-old policy | Parent’s policy with a teen | Savings |
|---|---|---|---|
| Female | $4,956 | $3,349 | $1,607 |
| Male | $5,543 | $3,607 | $1,936 |
Check out our parents’ guide on the best and cheapest way to insure teenage drivers.
Cheapest car insurance companies for 18-year-olds
Nationwide, Geico, State Farm, and USAA are the cheapest car insurance companies for 18-year-olds. However, USAA is only available to military community members and their families.
Car insurance for 18-year-old females on a parent’s policy, by company
Nationwide, Geico and State Farm offer the cheapest car insurance to parents with an 18-year-old female driver on their policies. Remember to compare the price and key policy elements, like coverage limits and deductibles.
See rates for 18-year-old females on a parent’s policy in the table below.
| Company | Parent’s policy with an 18-year-old female |
|---|---|
| Nationwide | $2,360 |
| Geico | $2,429 |
| State Farm | $2,775 |
| Travelers | $3,280 |
| Progressive | $3,592 |
| Allstate | $3,776 |
| Farmers | $4,705 |
| USAA | $2,151 |
Read full bio >>
Note: USAA is only available to military community members and their families.
Car insurance for an 18-year-old male with parents, by company
Nationwide, Geico, State Farm and USAA have the cheapest car insurance for 18-year-olds. The table below shows more rates for 18-year-olds.
| Company | Parent’s policy with an 18-year-old male |
|---|---|
| Nationwide | $2,506 |
| Geico | $2,566 |
| State Farm | $3,072 |
| Travelers | $3,603 |
| Progressive | $3,874 |
| Allstate | $4,111 |
| Farmers | $4,791 |
| USAA | $2,270 |
Read full bio >>
Note: USAA is only available to military community members and their families.
Car insurance for 18-year-old females on their own policies
If your teen buys their own policy, USAA, Travelers, Geico and State Farm come in with the lowest female rates for full coverage; see the rates in the table below.
| Company | Average annual rates for teen policy |
|---|---|
| Travelers | $4,046 |
| Geico | $4,438 |
| State Farm | $4,624 |
| Nationwide | $4,784 |
| Allstate | $6,524 |
| Progressive | $6,714 |
| Farmers | $7,612 |
| USAA | $3,726 |
Read full bio >>
Car insurance for 18-year-old males on their own policies
For male drivers aged 18 on their own insurance policies, USAA, Travelers, Geico and State Farm are among the national carriers with the cheapest car insurance rates.
| Company | Average annual rates for teen policy |
|---|---|
| Travelers | $4,546 |
| Geico | $4,851 |
| State Farm | $5,531 |
| Nationwide | $5,562 |
| Allstate | $7,223 |
| Progressive | $7,362 |
| Farmers | $8,192 |
| USAA | $3,853 |
Read full bio >>
What’s the best car insurance for teen drivers?
State Farm, Geico and Nationwide are among the top providers for teen driver car insurance. Start by comparing quotes from different insurers, looking for discounts on good grades, safe driving, and bundling policies. Prioritize companies that offer competitive rates and flexible coverage options for young drivers. The table below outlines the top insurers for teen drivers.
| Company | Market Share | J.D. Power Rating | NAIC Rating | AM Best Rating | Customer Satisfaction Score | Claims Handling | Trustworthiness | Plan to Renew | Likely to Recommend | Ease of Service |
|---|---|---|---|---|---|---|---|---|---|---|
| Amica | 0.44% | 833 | 0.61 | A+ | 3.76 | 3.67 | 3.76 | 4.6 | 4.2 | 3.88 |
| Nationwide | 1.71% | 809 | 0.64 | A | 4.06 | 3.87 | 3.79 | 4.19 | 4.35 | 4.11 |
| Mercury | 0.89% | 794 | 0.84 | A | 3.95 | 3.7 | 3.89 | 4.74 | 4.21 | 4.11 |
| CSAA Insurance Group (AAA) | 1.21% | 822 | 0.75 | A | 4.05 | 4 | 3.9 | 4.25 | 4.25 | 3.9 |
| Auto Club Group (AAA) | 0.71% | 800 | 0.77 | A+ | 3.75 | 4.14 | 3.91 | 4.38 | 4.53 | 4 |
| Allstate | 10.37% | 811 | 0.65 | A+ | 4.04 | 4.33 | 3.92 | 4.34 | 4.41 | 4.21 |
| Travelers | 2.08% | 810 | 0.49 | A++ | 4 | 4.2 | 3.93 | 4.52 | 4.29 | 4.19 |
| Geico | 12.31% | 821 | 0.91 | A++ | 4.07 | 4.12 | 3.95 | 4.54 | 4.37 | 4.14 |
| Progressive | 15.24% | 810 | 0.65 | A+ | 3.91 | 4.01 | 3.96 | 4.58 | 4.56 | 4.12 |
| Auto-Owners | 1.34% | 826 | 0.5 | A++ | 3.97 | 4.1 | 3.97 | 4.47 | 4.47 | 4.18 |
| Farmers | 4.18% | 814 | 0.8 | A | 4.12 | 4.19 | 3.99 | 4.49 | 4.49 | 3.94 |
| State Farm | 18.31% | 823 | 0.7 | A++ | 4.24 | 4.37 | 4.05 | 4.58 | 4.58 | 4.29 |
| American Family | 2.14% | 820 | 1.1 | A | 4.32 | 4.16 | 4.09 | 4.34 | 4.53 | 4.25 |
| Auto Club of Southern California (AAA) | 1.53% | 819 | 2.21 | A- | 4.15 | 4 | 4.1 | 4.75 | 4.5 | 4.3 |
| Erie | 1.34% | 845 | 0.61 | A+ | 4.43 | 3.91 | 4.24 | 5 | 5 | 4.43 |
Best car insurance companies for 18-year-olds
The best insurer for your teen driver will vary depending on a wide variety of factors related to their driving record and the vehicles you are insuring. Our analysts looked at the data, and these are the cheapest insurers for 18-year-old drivers:
Female drivers: Keeping teens on your policy is cheaper than getting them their own policy. Nationwide had the cheapest insurance for a female 18-year-old on their parent’s policy at $2,360. Geico ($2,429) was No. 2, and State Farm ($2,775) rounded out the top three.
If a female teen moves to their own policy, the cost of coverage gets higher. Travelers is the cheapest option at $4,046, with Geico ($4,438) in second and State Farm ($4,624) grabbed third.
Male drivers: Teen males are typically more expensive to insure than teen females, and the data backs this up. Nationwide was the cheapest insurer for a male teen on their parent’s policy at $2,506 yearly. Geico was second ($2,566), and State Farm ($3,072) was third.
The cheapest option for a teen male on his own policy was Travelers, at $4,546. Geico ($4,851) took second place, and State Farm ($5,531) finished third.
It should be noted that USAA was the cheapest option in each category, but because it is only available to military families, we left it out of the rankings. If your teen qualifies for USAA coverage, they can get the cheapest rates from a well-reviewed insurance company.
How do you get cheaper car insurance for 18-year-olds?
Rather than skimping on coverage, a better idea is to maximize discounts and shop around regularly for the best insurance coverage. Accident- and ticket-free driving, comparison shopping and maximizing discounts will help you find the cheapest car insurance rates for teens.
“Many big car insurance companies offer discounts to good students. Students are eligible for discounts if they have excellent academic performance, such as a high GPA or high test scores on SAT or ACT,” says Associate Professor Ting Liu of the College of Arts and Sciences at Stony Brook University.
“Some companies offer multiple policy discounts. For example, if a student needs renters insurance and car insurance, buying the two policies from the same company is a good idea and asking for a multiple policy discount.”
Car insurance discounts for 18-year-olds
Here are some typical car insurance discounts for teens:
- Good student discount: A savings of up to 16% may be available for drivers who maintain a 3.0 or “B” average in the classroom, but the average is 7%.
- Student-away discount: College students who live away from home could qualify for this discount.
Shop around for car insurance for 18-year-olds
Adding an 18-year-old to a parent’s insurance policy or getting their own car insurance policy is costly. The best way to minimize the pain is to shop around. Compare car insurance quotes from multiple insurance companies. Each insurer uses its own method for calculating what you pay, so prices for the same policy vary.
There is some good news. Car insurance gets cheaper as you age. Average rates by age show that premiums decrease significantly when drivers turn 26. CarInsurance.com has guides for car insurance for 16-year-olds, 17-year-olds, and 19-year-olds that break down rates for teens.
FAQs: How much is insurance for 18-year-olds?
Why is car insurance for 18-year-olds expensive?
The truth is that teens are not great drivers and often take unnecessary risks behind the wheel. According to the Insurance Institute for Highway Safety (IIHS), teenagers are disproportionately involved in car accidents, even though they drive less than most other age groups. The crash rate for 16- to 19-year-olds is nearly four times the rate for drivers 20 and older.
Young drivers lack the experience that older drivers have, which leads to accidents and claims, which will always raise your premium. Rates will drop if a teen driver keeps it safe out on the road and will hit the normal range around age 25.
Do 18-year-olds have to buy full coverage insurance?
No, there is no state that requires drivers to carry full coverage car insurance. Almost all of them require that you carry a certain amount of liability coverage; the required amount varies by state. If your teen is an older vehicle that you would replace if it were in an accident, there is probably no need to carry full coverage car insurance.
However, if you have a loan or lease on the vehicle your teen is driving, your lender will require that you carry full coverage to protect their investment.
Does an 18-year-old need car insurance to get a license?
No, you do not need car insurance to get a driver’s license. Many people with a driver’s license don’t own a car or have insurance coverage. However, in most states, if you want to legally drive or register a vehicle, you will need car insurance.
Most states require you to carry a certain amount of liability insurance to register a car and drive it legally on the street.
What are the rules for 18-year-old drivers?
The rules of the road are the same for everyone, regardless of age. Teen drivers need to keep their driving records clean to get the best rates for coverage. If a teen gets a speeding ticket or accident on their record, their insurance cost will skyrocket.
Can an 18-year-old have their own policy?
In most states, the answer is yes, but it depends on your state’s “age of majority.” In almost all states, that age is 18, but it may be higher in some states; for example, in Alabama, it is 19.
The age of majority is when a person can legally enter into a contract on their own, and an insurance policy is considered a contract which means most 18-year-olds will be able to purchase their own insurance coverage.
Can an 18-year-old own a car?
Yes, in most states, but again, it depends on your state. If you are paying cash for a vehicle and will own it outright, then owning a car as an 18-year-old is possible in most states.
However, if you need to finance the vehicle, the answer may vary. Purchasing a vehicle typically involves some type of contract if you are financing or leasing a vehicle, and you must be the age of majority in your state to enter into a contract. In most states, the age of majority is 18, but it can vary.
What are the best cars for an 18-year-old?
The best vehicle for an 18-year-old will vary, but in general, avoid luxury and sports cars to keep your premium affordable. Teen drivers are extremely expensive to insure, so putting them in a safe, boring vehicle is usually the most affordable option. A vehicle loaded with advanced safety features will result in a number of discounts that can lower your premium while keeping your teen safe.
Consider sedans, minivans and small to midsize SUVs, which tend to be cheaper to insure and often top best cars for teens lists.
Another way to keep your insurance affordable is to put your teen in an older vehicle that you would replace if it were stolen or in an accident. Carrying liability only on a teen’s vehicle will help keep your coverage reasonable.
Resources & Methodology
Sources
- Centers for Disease Control & Prevention. “Teen Drivers: Get the Facts.” Accessed October 2024.
- Governors Highway Safety Association. “Teen and Novice Drivers.” Accessed October 2024.
- Insurance Institute for Highway Safety, Highway Loss Data Institute. “Teenagers.” Accessed October 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates for 18-year-old male and female drivers. The hypothetical drivers have a 12-mile commute and 10,000 annual mileage for a Honda Accord LX. The data come from 73 companies, 1,467 ZIP codes and 6,94,408 auto insurance quotes across all the states in the U.S.
The car insurance rate for the teen added to the parent’s policy includes coverage for one family car owned and insured by the parents. This data comprehensively compares car insurance costs for teenage drivers as independent policyholders and when added to a parent’s existing policy.
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