The age of 18 is a great milestone, a time where someone becomes an official adult. Being an adult means making bigger and more important decisions.

One of these major choices will be deciding on what car insurance to get and how much of it you’ll need. If the idea is new to you, don’t worry, we’ve got you covered.

Below is a breakdown of how much car insurance would cost for an 18-year-old, along with factors that cause insurance rates to increase and how you can save some money by shopping around for cheaper insurance policies.

If you’re ready to know more, let’s dive in!

What Does Car Insurance Cover?

Auto insurance is needed for everyone, no matter the age. Although the cost may vary on a variety of factors (more on that later), the coverage provided can be greatly beneficial to the policyholder.

Car insurance covers three things: liability, property damage or theft, and medical expenses.

Liability

It is mostly required to obtain this, as it provides coverage for any liabilities the car owner has if involved in an accident. This is also known as minimum coverage since it only covers other people and not you (or your 18-year-old).

There are two types: property liability and bodily liability. Property liability covers any expenses or financial fees regarding damage to someone else’s property when you or your 18-year-old is at fault.

Property

This is another type of insurance that is required (if it is a part of liability). This one also covers you if you purchase any other If there is any damage done to someone else’s property caused by your vehicle, your car insurance policy will provide coverage for the financial fees of repair.

Medical

If anyone, including you, is injured during an accident, your car insurance company will pay the medical expenses. Most insurance companies pay for fees when you go to the doctor or receive any medical treatment due to an accident.

These policies even include mental or emotional damage such as post-traumatic stress disorder (PTSD) from an accident.

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How Much Is Car Insurance for an 18-Year-Old?

On average, for an 18-year-old to have full coverage on their vehicle, the annual cost comes to about $7,396 and a monthly cost of around $616. That is a lot of money and much more expensive than insurance for older drivers.

Rates will go down at the age of 18 compared to rates when you turn 16, or even 17.

You may be wondering the reasoning behind such high rates. Many factors go into determining the cost of insurance, and age happens to be one of them.

Factors Affecting Car Insurance Costs

Unfortunately, car insurance is never a set rate or the same for every person on the planet. Factors such as age, gender, accident history, marital status, and vehicle type are all determinants of cost.

  • Age. Younger drivers will have more expensive insurance than older people. Due to statistics showing higher accident rates for teens 16-19, insurance companies will raise the prices to provide coverage in the case of an incident.
  • Gender. Statistics show that men have higher fatality rates and crash rates than women.
  • Accident History. Having a history that contains lots of speeding tickets or traffic violations, or crashes will cause insurance companies to see you as high-risk, therefore raising the price.
  • Marital Status. This one is not as commonly known, but yes, being married can actually get you cheaper car insurance. Single people are more known to get into car accidents than married couples.
  • Location of Your Vehicle. On top of the type of vehicle you drive, where you live, and where you’ll be driving the car plays a role in costs. Highly populated areas will cause higher insurance rates and vice versa.

How Does Age Affect Insurance Costs?

It may seem completely unfair to charge more for younger people who haven’t even driven for that long. But it is for that inexperience that insurance companies will place a higher price on insurance costs.

According to the Center for Disease Control (CDC), the highest risk of a vehicle crash is higher among teens ages 16-19 than any other age group. Even further, male teens, teens driving in the car with other teens present, and newly licensed teens are more at risk for crashes.

The reasoning behind the high insurance, as the CDC explains, is that the inexperience, likelihood of teenagers driving at night and on the weekends, speeding, distracted driving, and refusal to wear a seat belt, is very high and puts teens at risk for crashing.

Many insurance companies recognize this and will put higher costs on insurance in the case that a teen does become involved in a car crash.

How Can I Get the Best Car Insurance?

While there may be no escaping the higher insurance prices for 18-year-olds, there are some ways to find cheaper car insurance overall that still keep you fully covered.

Like with any other insurance, the best way for you to get car insurance is to shop around. All prices and policies will vary by state and company.

There are other ways to help you, or your 18-year-old find coverage that won’t necessarily break the bank.

Shop for Discounts

It is wise to shop around or even ask about any discounts available to 18-year-olds.

If you are 18 and are either in high school or going to college, you can qualify for a student discount, assuming that you have a high enough GPA and can maintain it.

Bundling your car insurance with renter’s or home insurance can be a great way to save money if you are living on your own or have an 18-year-old that desires independence.

Select a Higher Deductible

If you’re thinking that higher deductibles mean more money spent, then rest assured that that is not the case.

Deductibles are what you pay out of pocket when you file a claim for an accident. If the deductible is higher, the insurance rate will be lower, but you will end up paying out of pocket when if you do ever file a claim.

Drive Responsibly

This one may seem like a no-brainer, but it is serious! Driving responsibly means adhering to traffic laws and making wise decisions when you are on the road.

Doing this can keep you from getting into accidents that would put you at fault and may decrease your chances of getting speeding tickets or seat belt tickets. That is money well-saved!

The Recap

So, car insurance for 18-year-olds is not the cheapest thing in the world, right? Because of the inexperience and statistics pointing toward higher rates of crashes of teens, the cost of insurance will be much higher.

Now that you are more familiar with what it can cost and what it covers, deciding on a plan should be a bit easier. But, just in case you are still stuck, here is a summary of what you can do.

Check for discounts (they’re out there) with an insurance provider, opt for selecting a higher deductible, and drive responsibly. Ultimately, shopping around and figuring out your needs will be the key to finding the car insurance policy you need.

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