Car insurance for an 18-year-old

Car insurance is a huge expense for most Americans. Buying a new car might not be as pricey but the insurance payments yearly are quite expensive. It is usually very expensive in states like Rhode Island and New Hampshire as compared to places like Illinois. It is more demanding for young drivers who would have to work three times as much and as hard as other young drivers in other states to be able to afford the liability insurance that satisfies the state minimum car insurance requirements.

According to the statistics, the average hourly wage rate was around $24.57 as of December 2014 and the average outlay for liability car insurance was $504 which meant, that an average worker could buy one year of liability auto insurance with almost 21 hours of the week.

With the current wage rates in the market, an 18-year-old with an entry-level job would require almost 106 hours of work, keeping in mind the state minimum wage rate of $7.92 to pay for the state minimum liability insurance. The teenagers pay a lot more for insurance.

How Much is Car Insurance for An 18-year-old?

We did a comparison of cheapest car insurance for an 18-year-old, between young drivers having a good credit as well as previous insurance on a parent's policy, with a clean record. We chose the cheapest insurance rates that we found in every state. Therefore, we gave the same criteria, an 18-year-old with a 1997 Ford Taurus with a particular address and then found out the rates. This showed what kind of a problem financially young kids who are dependent on going to school in their car have to go through.

Rank	State	ZIP code	Annual liability cost	Minimum wage	Hours to buy
1	Illinois	61761	$459	$8.25	56
2	North Carolina	28778	$419	$7.25	58
3	Iowa	50010	$419	$7.25	58
4	Nevada	89427	$492	$8.25	60
5	Missouri	65101	$458	$7.65	60
6	Indiana	47905	$462	$7.25	64
7	California	93441	$602	$9.00	67
8	New Mexico	88310	$557	$7.50	74
9	New York	14580	$669	$8.75	76
10	Montana	59602	$625	$8.05	78
11	Connecticut	06498	$728	$9.15	80
12	Nebraska	68504	$662	$8.00	83
13	Pennsylvania	16823	$611	$7.25	84
14	Washington	99163	$795	$9.47	84
15	Kansas	67401	$625	$7.25	86
16	Vermont	05446	$826	$9.15	90
17	Florida	32669	$755	$8.05	94
18	Mississippi	39759	$688	$7.25	95
19	Tennessee	37686	$721	$7.25	99
20	Wisconsin	53081	$727	$7.25	100
21	Arizona	86426	$805	$8.05	100
22	Arkansas	72768	$751	$7.50	100
23	Wyoming	82007	$732	$7.25	101
24	Alabama	36543	$759	$7.25	105
25	Georgia	31601	$763	$7.25	105
26	Virginia	22652	$787	$7.25	109
27	Idaho	83712	$791	$7.25	109
28	Texas	76306	$802	$7.25	111
29	Colorado	80525	$916	$8.23	111
30	Louisiana	71021	$811	$7.25	112
31	Oregon	97330	$1,060	$9.25	115
32	Utah	84772	$848	$7.25	117
33	Minnesota	56003	$939	$8.00	117
34	Maryland	21780	$1,049	$8.25	127
35	South Carolina	29692	$943	$7.25	130
36	Maine	04105	$1,039	$7.50	139
37	Oklahoma	74003	$1,019	$7.25	141
38	Michigan	49866	$1,204	$8.15	148
39	Delaware	19939	$1,327	$8.25	161
40	Ohio	44833	$1,330	$8.10	164
41	Kentucky	41075	$1,227	$7.25	169
42	West Virginia	25427	$1,370	$8.00	171
43	New Jersey	07933	$1,446	$8.38	173
44	New Hampshire	03303	$1,261	$7.25	174
45	Rhode Island	02842	$1,569	$9.00	174
*	Alaska	99829		$8.75
*	Hawaii	96722		$7.75
*	Massachusetts	02158		$9.00
*	North Dakota	58285		$7.25
*	South Dakota	57069		$8.50
*	Washington, D.C.	20006		$10.50
	National average		$841	$7.92	106

How Much Minimum Average Coverage Costs per year in each state for 18-year-old male/female?

State	Woman	Man
Alabama	$1,138	$1,415
Alaska	$699	$812
Arizona	$1,354	$1,633
Arkansas	$1,335	$1,566
California	$1,401	$1,762
Colorado	$1,514	$1,792
Connecticut	$2,414	$3,091
Delaware	$2,771	$3,641
District of Columbia	$2,488	$3,002
Florida	$1,967	$2,294
Georgia	$1,323	$1,704
Hawaii	$416	$416
Idaho	$1,109	$1,355
Illinois	$1,088	$1,331
Indiana	$1,409	$1,759
Iowa	$826	$1,007
Kansas	$1,024	$1,205
Kentucky	$1,154	$1,298
Louisiana	$1,905	$2,290
Maine	$1,137	$1,391
Maryland	$1,633	$1,986
Massachusetts	$2,200	$2,200
Michigan	$6,494	$6,472
Minnesota	$2,166	$2,376
Mississippi	$1,347	$1,521
Missouri	$1,051	$1,270
Montana	$1,156	$1,156
Nebraska	$1,009	$1,207
Nevada	$1,402	$1,703
New Hampshire	$1,108	$1,417
New Jersey	$2,192	$2,329
New Mexico	$1,292	$1,548
New York	$1,462	$1,891
North Carolina	$720	$720
North Dakota	$1,005	$1,200
Ohio	$1,383	$1,640
Oklahoma	$1,570	$1,909
Oregon	$2,440	$2,711
Pennsylvania	$1,062	$1,062
Rhode Island	$2,172	$2,574
South Carolina	$1,427	$1,642
South Dakota	$926	$1,155
Tennessee	$1,390	$1,679
Texas	$1,568	$1,836
Utah	$1,415	$1,698
Vermont	$937	$1,136
Virginia	$1,065	$1,275
Washington	$1,416	$1,690
West Virginia	$1,228	$1,456
Wisconsin	$1,340	$1,624
Wyoming	$699	$887

What Are The Best Cars For 18-Year-Olds?

The type of vehicle an 18-year-old driver is utilizing has an impact on the car insurance rates they pay. Cars that are considered to be safer and less expensive to repair are often the best choices. With a wide range of vehicles that fit these requirements, other considerations are also important. Cars that are worth more, in general, will cost more to insure, so used vehicles are often top choices for cars for teenagers. Vehicles like the 2014 Ford Fusion, the 2015 Toyota Camry, and the 2014 Mazda 6SE 2.5i are often listed as top cars for 18-year-old drivers.

How To Get Car Insurance For A 18-Year-Old

Shopping around is one of the best ways to save money on car insurance plans. If a teen driver has a permit, they may be covered by their parent's car insurance policy even if they are not listed on the policy itself. Once a teenager gets their full driver’s license, however, this is not likely to be the case. A teenager will need to get their own policy if they have a full driver’s license and the vehicle they are driving lists them on its title. Many parents decide to be listed on the title so that their teenager is listed on their car insurance policy instead of having to get a policy of their own. This can help people save money overall.

Auto insurance providers use different variables to determine the rates people pay for car insurance. Some auto insurance companies are better for teen drivers than others. Even if a parent is adding their teenager onto their own policy, switching car insurance companies, and getting free quotes on auto insurance coverage plans is the best way to save money overall.

How Young Drivers Can Get More Affordable Car Insurance

The cost of the liability insurance is more dependent on the driver rather than the car. There are some factors you can control in order to have a clean chit.

Fix your driving record; make sure there are no violations of accidents
Make sure you credit history is good
How is your mileage? If you drive less there are less chances you will hit anyone
If you have let your insurance history lapse, you will end up paying around 5% more
Do your shopping. Find out the best rates that the insurance companies are offering, it might have a difference of hundreds.
If your car has had a higher rate of claims than others have, it would be considered risky.

FAQ for 18 year old drivers

What factors affect the cost of 18 year old car insurance?

There are two main factors which affect the cost of 18 year old car insurance. These include the fact that teenagers ages 18 earn less per hour as compared to adults of this particular age. For instance, the average hourly wage rate for an adult over the age of 18 is $24.57 as of December 2014. On the other hand, a teenager at 18 years earns approximately $7.92 per hour. This means that teenagers will work harder for more hour to pay for their car insurances. The other factor is that teenagers are known to be more vulnerable to accidents as compared to adults. This makes their car insurance costs higher as compared to those of the adults earning more than them as far as monthly or yearly car insurances are concerned.

Do you need insurance to drive a learner’s permit?

Indeed, some states will require one to insure so as to drive under a learners permit. However, it differs from one state to another. Considering that those leaners are more vulnerable to accidents while learning, there has been a dire need for such insurers to be insured against potential accidents that might happen in the course of the learning period. However, the learner, if a teenager below or at the age of 18, he/she can take a policy under the cover of a third party such as the parent.

Does it matter who owns the car that an 18 year old is driving?

Yes, it does matter who owns the car that an 18 year old is driving because of two simple reasons. Firstly, in case of an accident, the driver at that time will either be covered by the parent’s policy or the owner’s car policy. Secondly, it matters who owns the car because of when compensating after an accident, the insurer will require the owner of the car to state with who the liability befalls.

Expert:

Michael Seekens