When I turned 18, I was eager to get my car and hit the road.
I had saved up enough money to buy a used Honda Civic, and I thought I was ready to go.
But there was one thing I didn’t anticipate: the cost of car insurance.
I was shocked when I saw how much it would cost me to insure my car as an 18-year-old.
The quotes I got from different companies ranged from $300 to $500 per month.
That was more than half of my monthly income from my part-time job.
How could I afford that?
I felt like giving up on my dream of having a car.
But then I decided to do some research and find out why car insurance was so expensive for 18-year-olds, and what I could do to lower it.
Here’s what I learned, and how you can save money on car insurance as an 18-year-old too.
What Is the Best Age to Get Car Insurance?
The best age to get car insurance is not 18.
18 is one of the worst ages to get car insurance.
This is because it’s when you are considered an adult, but you still have very little driving experience.
That makes you a high-risk driver in the eyes of insurance companies, and they charge you accordingly.
According to Forbes Advisor¹, the average cost of car insurance for an 18-year-old on their own policy is $6,147 a year, or $512 per month.
That’s almost four times more than the average cost for adults (drivers ages 30, 35, and 45), which is $1,868 a year, or $156 per month.
The good news is that car insurance rates tend to decrease as you get older and gain more driving experience.
Drivers between the ages of 16 and 19 are at the highest risk of being involved in motor vehicle accidents.
But the risk drops significantly after age 25.
That’s why the best age to get car insurance is usually 25 or older when you can qualify for lower rates and discounts.
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How Much Is Car Insurance for an 18-Year-Old in Texas?
If you live in Texas, you might be wondering how much car insurance costs for an 18-year-old in your state.
The answer is: That it depends.
Car insurance rates vary depending on many factors, such as your location, and your vehicle.
According to Bankrate, the average cost of car insurance for an 18-year-old in Texas is $5,485 per year, or $457 per month, for full coverage.
Full coverage means that you have liability, collision, and comprehensive coverage.
This protects you from damages to others, your vehicle, and other events like theft or fire.
The average cost of car insurance for an 18-year-old in Texas is $1,841 per year, or $153 per month, for minimum coverage.
Minimum coverage means that you only have the state-required liability coverage, which pays for damages to others if you cause an accident.
The minimum liability limits in Texas are $30,000 per person, $60,000 per accident, and $25,000 for property damage.
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How Much Is Car Insurance for 18-Year-Old in NJ?
If you live in New Jersey, you might be curious about how much car insurance costs for an 18-year-old in your state.
The answer is: it’s not cheap.
New Jersey is one of the most expensive states for car insurance, because of its high population density, high traffic congestion, and high medical costs.
According to Bankrate, the average cost of car insurance for an 18-year-old in New Jersey is $7,620 per year, or $635 per month, for full coverage.
The average cost of car insurance for an 18-year-old in New Jersey is $2,531 per year, or $211 per month, for minimum coverage.
The minimum liability limits in New Jersey are $15,000 per person, $30,000 per accident, and $5,000 for property damage.
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How Much Is Car Insurance for an 18-Year-Old in Indiana?
If you live in Indiana, you might be interested in how much car insurance costs for an 18-year-old in your state.
The answer is it’s more affordable than in many other states. Indiana is one of the cheapest states for car insurance, because of its low population density, low traffic congestion, and low medical costs.
According to Bankrate³, the average cost of car insurance for an 18-year-old in Indiana is $4,254 per year, or $355 per month, for full coverage.
The average cost of car insurance for an 18-year-old in Indiana is $1,414 per year, or $118 per month, for minimum coverage.
The minimum liability limits in Indiana are $25,000 per person, $50,000 per accident, and $25,000 for property damage.
How to Save Money on Car Insurance as an 18-Year-Old
As you can see, car insurance for an 18-year-old can be costly, but it doesn’t have to be.
There are some ways you can save money on car insurance as an 18-year-old, such as:
Stay on your parent’s policy
If you live with your parents and drive their car, you can save money by staying on their policy instead of getting your own.
This way, you can benefit from their lower rates and discounts, and pay less than if you were on your own.
According to Forbes Advisor, it costs an average of $2,103 a year to add an 18-year-old to a car insurance policy.
This is much cheaper than the average cost of an 18-year-old on their own policy ($6,147 a year).
Shop around
Different insurance companies have different rates and discounts for 18-year-old drivers, so it pays to shop around and compare quotes from multiple providers.
You can use online tools like Coverage.com to get personalized rates from top carriers in minutes.
You might be surprised by how much you can save by switching to a cheaper company.
Save money on car insurance as an 18-year-old: Choose a cheaper car
The type of car you drive affects how much you pay for car insurance because some cars are more expensive to repair or replace, or more likely to be stolen or involved in accidents.
Generally, newer, faster, and fancier cars cost more to insure than older, slower, and simpler cars.
If you want to save money on car insurance, choose a car that is cheap, reliable, and safe.
Increase your deductible
The deductible is the amount of money you have to pay out of pocket before your insurance kicks in when you make a claim.
The higher your deductible, the lower your premium, because you are taking on more financial risk.
If you want to lower your car insurance cost, you can increase your deductible, but make sure you can afford to pay it in case of an accident.
Maintain a good driving record
One of the best ways to save money on car insurance as an 18-year-old is to be a safe and responsible driver.
Avoid speeding, texting, drinking, or doing anything else that could cause an accident or a violation.
If you keep a clean driving record, you can avoid surcharges and qualify for discounts from your insurance company.
Conclusion
Car insurance for an 18-year-old can be costly, but it doesn’t have to be.
By following the tips above, you can find the best deals and save money on car insurance as an 18-year-old.
Remember, car insurance is not only a legal requirement, but also a financial protection that can save you from a lot of trouble and expenses in case of an accident.
So don’t skimp on coverage, and don’t drive without insurance.
Be smart, be safe, and be insured.
Evans Brown
CURRENTLY
Insurance Writer, Insurance Blob
RESIDES IN
Missouri
EDUCATION
Cambridge University
EXPERTISE
Insurance Writing, Regulatory Compliance, Underwriting Insights, Claims Analysis
Summary
Evans Brown, a skilled Insurance Writer at Insurance Blob, brings a wealth of expertise to the insurance landscape. Educated at Cambridge University, Evans specializes in crafting informative and engaging content on insurance topics, with a focus on regulatory compliance, underwriting insights, and claims analysis.
Experience
Evans’ writing journey is characterized by a commitment to simplifying complex insurance concepts for a broad audience. As an Insurance Writer at Insurance Blob, he excels in creating content that not only informs but also engages readers in the dynamic world of insurance.
Educational Background
Graduating from Cambridge University, Evans Brown gained a solid foundation in insurance principles and an analytical approach to problem-solving. His educational background uniquely positions him to interpret and convey insurance intricacies to a diverse readership.
Expertise
Insurance Writing:
Evans contributes informative and accessible articles, demystifying insurance concepts for readers of all backgrounds.
Regulatory Compliance:
Staying well-versed in insurance regulations, Evans ensures that his content aligns with the latest compliance standards.
Underwriting Insights:
With a focus on risk assessment, Evans provides valuable insights into underwriting practices and strategies.
Claims Analysis:
Evans delves into the complexities of claims analysis, shedding light on the intricacies of the claims process for readers.
Missouri Resident
Based in Missouri, Evans Brown infuses a regional perspective into his writing, considering the specific nuances of the insurance landscape within the state. His dedication to producing quality content makes him a valuable contributor to Insurance Blob’s mission of educating and informing its audience.