Many factors go into the average cost of car insurance for 18-year-olds, including:
Age
The more experience you have on the road, the better driver you are. Even at 18, you’re still considered relatively inexperienced and more risky on the road to car insurance companies. For example, 17-year-olds will pay more for car insurance than 18-year-olds, and 19-year-olds will pay less. The average car insurance cost for teens is higher than it is for someone in their mid-twenties.
Gender
Being an 18-year-old female could mean lower car insurance rates compared to an 18-year-old male. Some states have outlawed considering gender when calculating car insurance rates, but your gender will generally play a role. According to the Insurance Information Institute, female drivers report fewer accidents, lower numbers of DUIs, and less severe accidents than male drivers.
Location
To protect your teenager, car insurance companies take everything into account, including location, so you get the best quote possible. The ZIP code you live in matters when companies verify your address, so if you live in an area that has a low rate of accidents, theft, and vandalism, your car insurance policy will usually be more affordable.
Driving Record
Establishing and maintaining a clean driving record goes a long way for an 18-year-old. The fewer claims, accidents reported, or citations you’ve had, the cheaper you are to insure. Accidents happen, and when they do, don’t be alarmed if you see your policy drastically go up.
Type of Car
If you’re looking for the best car for your teenager, you’re probably thinking about two things: safety and affordability. But did you know the type of car your 18-year-old drives can qualify for you auto insurance discounts and lower rates? The less expensive your car, the less expensive your car insurance will be as well. If your teenager’s car has safety features like anti-theft technology, anti-lock brakes, or passive restraints, you could also qualify for discounts.
Credit
In most states, credit scores matter, even at the age of 18. Most big first-time purchases require a credit score, like renting a student apartment and buying a car. So, it’s not uncommon for an insurance company to ask for your teenager’s credit score. Data from the Federal Trade Commission suggests that drivers with a better credit score file fewer claims.
Coverage limits
Considering how much you can pay out-of-pocket for your teenager’s car influences the cost of your car insurance premium. Minimum coverage will cost less than full coverage, but you also get less protection. The limits and deductibles you choose will determine how expensive your car insurance rates are, so it’s important to shop around for policies.