An Overview Of 18 Years Old Car Insurance

How to Get the Best Car Insurance for an 18 Year Old

It’s a great time to be a parent! Your kids are nearly adults, and are more and more independent each month. Perhaps they’re even off to college soon, with a car of their own? Hold on, Mom and Dad. You’re not totally finished with the responsibilities on their behalf: you still need to ensure they have adequate car insurance.

We have created this short read to help demystify car insurance for an 18 year old, so that you and/or your kid can pay as little as possible and still be covered in case of damage or collision.

The average monthly cost of car insurance for an 18-year-old is around $450. However, this can vary significantly depending on the state you live in, the type of car you drive, and your driving history. In some states, such as Michigan, monthly premiums can be as high as $780.

It’s important to note that these figures are for full coverage insurance. If you’re willing to take on a higher deductible, you can lower your monthly premiums. Additionally, you may be able to save money by bundling your car insurance with other types of insurance, such as homeowners or renters insurance.

Before you buy a car or start driving, it’s important to shop around for car insurance quotes. You can compare rates from different companies online or by calling them directly. Be sure to compare the different types of coverage offered and the deductibles associated with each one. You should also consider the company’s reputation and customer service record.

Full Coverage vs. State Minimum Coverage

If the car your kid is driving is leased or financed, most insurance companies will require full coverage auto insurance. If you own the car outright, you may be able to get away with paying the state minimum coverage.

State minimum coverage is the bare minimum needed to legally drive the vehicle. It typically includes:

  • $100,000 for injury liability for one person
  • $300,000 for all injuries in one accident if the accident is deemed your kid’s fault
  • $100,000 for property damage your kid caused, which includes damage to another’s car

Full coverage includes all of the above, plus:

  • Collision insurance, to pay for damage to the car regardless of who was at fault
  • Comprehensive, to pay for damage to your car due to circumstances out of your control, like theft, flooding, hail, ding and run, etc.

Which is better?

It is generally recommended to get full coverage auto insurance for your teen driver. This will provide the most comprehensive protection in the event of an accident.

The cost of full coverage vs. state minimum coverage

The cost of full coverage auto insurance will vary depending on the state you live in, the type of car you drive, and your teen driver’s age and gender. On average, full coverage auto insurance costs about $150 per month more than state minimum coverage.

18 Year Old Girl vs. 18 Year Old Boy

The cost of auto insurance for an 18 year old driver is typically higher for boys than for girls. This is because boys tend to drive a bit more recklessly than girls. 18 year old male drivers have almost double the number of accidents annually than 18 year old female drivers.

In some states, insurance companies are not allowed to take gender into account when setting rates. These states include California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.

If your 18-year-old still lives with you, it is advisable to put them on your own auto insurance plan as a second driver. This will result in paying 50% lower monthly premiums on average. However, it will raise your own monthly premium by about 26%, especially if your child has traffic violations or an accident on their record. In fact, if your child has had a few incidents, you may not actually be saving anything by including them in your policy.

There are a few things that can be done to reduce premiums:

  • If your child is a B student or better, they could pay up to 15% less per month.
  • Driving lessons can reduce premiums by 5%.
  • A driving contract can reduce premiums by 5%.
  • The type of car also plays a role. Sedans and small SUVs are less expensive to insure than sports cars and luxury vehicles.

If you have an 18-year-old who wants a car, share these insights with them. They might be motivated to study harder and come home earlier at night.

An Overview Of 18 Years Old Car Insurance

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