How much is car insurance for an 18 year old?

18 Year old Car InsuranceParents who need car insurance for an 18 year old will certainly have another thing to think about. They want to know how much auto insurance for an 18 year old costs. You need to be creative and have all the car insurance information to save on insurance payments and steer your child away from accidentally ruining his insurance history.

There is some debate as to whether insurance should be taken out for an 18 year old. Car insurance however is something that is a no-brainer and will make it worthwhile in case of an accident. Is it worth taking the risk?

Did you know? Any teen below the age of 21 falls under the high insurance risk category and any claims made with the insurance company with kids this age will impede insurability of the child until they reach legal age.

 




Table of contents:

How much is car insurance for a 18 year old?

Gender and driving experience

Car insurance for 18-year-old male

Car insurance for an 18-year-old female

How to get cheap 18-year-old car insurance

The $1000 rule

How much is car insurance for a 18 year old?

The two factors that matter

If you are looking for an insight on the insurability of an 18 year old, well car insurance companies will tell you that gender and driving experience are qualifying factors for the kind of premium your child will have to pay to be insured.

Gender and driving experience

That said – the average cost:

An 18-year-old driver will pay an average of $4,055 per year for car insurance according to the carinsurance.com website.




However, how much you pay will depend on whether you are male or female. Yes, sounds unfair but bear with us a moment and let us explain…

Car insurance for 18 year old male

a) Males under the age of 21 who are b) first time drivers will command the highest insurance payments on the market. This is attributed to decades of insurance studies on the prevalence of male teenage vehicle accidents caused by male teen drivers. This is not a stigma or a stereotype of the insurance companies but is a fact that has been reinforced by countless insurance claims over the years. As always: the higher the risk, the higher the premium.

Young men tend to:

  • drive faster
  • take more risks
  • lack the judgement of their female counterparts.

What not to do when getting insurance:

Arguing with the car insurance agent about why your teenage son will have to pay more to be insured won’t get you anywhere and will probably get you denied insurance coverage. Car insurance agents will steer you in the right direction. At this age you really don’t have much of a choice, and if you want to cultivate your son’s insurability until he reaches legal age you should be careful about how he uses his insurance as well.

Car insurance for 18 year old female

Auto insurance for an 18 year old female, varies by state, but the good news is that it can be significantly cheaper than for a male of the same age.

An example of cheaper car insurance for females is:

In the state of California, rates for 19 year old males are on average 14% higher than rates for 19 year old females.

Any age before 21 is considered high risk in the insurance business. This means that if a claimant makes her insurance claim at a high risk age, her claims will become a stamp against her insurability as it will be viewed as liability based on reckless judgement. However, it is still better than being a male.




How to get cheap 18 year old car insurance

Here are some pointers to bear in mind when it comes to finding affordable 18 year old auto insurance

  1. use the parents auto insurance policy – this makes a lot of sense and can mean a lower price
  2. buy a safe vehicle – what does this mean? Well, certain vehicles cost less to insure. What are the cheapest vehicles to insure? As of 2019 they are:
  • Subaru Outback 2.5I: $1,306
  • Mazda CX-3: $1,307
  • Honda HR-V: $1,325
  • Honda CR-V: $1,333
  • Jeep Renegade: $1,338
  • Ford Escape: $1,344
  1. good grades – lenders give a discount for good students. Want more specifics? In general, car insurance companies consider a “good student” as someone under age 25 that is enrolled in high school or college and (the important bit) – ranks in the upper 20 percent of his or her class –  or has a B average or 3.0 average – or is on the dean’s list or honor roll
  2. be a safe driver – if you have a car already make sure that you don’t have any speeding fines or DUIs as these will increase the cost of your auto insurance policy.
  3. length of driving record – if you have started driving earlier (say 16) it gives you a longer record and may make it easier to get a better premium provided that you have a good record.
  4. safe driving course taken – this is certainly considered a plus
  5. speeding tickets and other offenses – it’s a no-brainer, having these on your record will mark you out as a liability and risk for insurance companies.

The $1000 rule that will save you money 

A lot of teenagers make the mistake of filing a claim with insurance companies for car repair and vehicular policy qualifiers worth less than $1000.

What car repairs will cost you:

  • New timing belt is between $400 and $900
  • Alternator or starter replacement is between $400 to $600
  • Brakes are around $500 (source: cars.com)

As you can see new brakes and a replacement alternator or even a new timing belt alone will cost just under $1,000.

Doing so will jack up the auto insurance prices once his insurance lapses and requires renewal. Having a higher deductible on the policy will help to keep the teen insured and prevent them from making claims for anything that is not a major incident.

Consider getting added to your parent’s car insurance policy if you are 18 years old as it may work out cheaper.

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