Cheap Auto Insurance for 18-Year-Olds in 2023 (Big Savings With These 8 Companies!)
Erie Insurance, USAA, and Geico are the best providers of cheap auto insurance for 18-year-olds, with Erie Insurance coming in first for cheap teen auto insurance. Erie Insurance charges an average of $81/mo for young driver auto insurance, and teens can save even more with teenage auto insurance discounts.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Dec 5, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 5, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
The best companies for cheap auto insurance for 18-year-olds are Erie Insurance, USAA, and Geico, with Erie Insurance being the cheapest choice overall.
- Erie Insurance has the cheapest rates for teen driver auto insurance
- USAA has the cheapest auto insurance rates for military teenagers
- Teen drivers with clean driving records will have cheaper rates
AAA, State Farm, and more are some of the other best auto insurance companies for cheap 18-year-old auto insurance.
Our Top 8 Best Company Picks: Cheapest Auto Insurance for 18-Year-Olds
| Rank | Company | Monthly Rates | Good Student | Best For |
|---|---|---|---|---|
| #1 | Erie | $81 | 7-15% | Cheap Rates |
| #2 | USAA | $87 | Up to 25% | Military Savings |
| #3 | Geico | $106 | Up to 15% | Customizable Policies |
| #4 | State Farm | $124 | Up to 25% | Local Agents |
| #5 | AAA | $161 | Up to 14% | Roadside Assistance |
| #6 | Nationwide | $167 | Up to 15% | Vanishing Deductibles |
| #7 | Liberty Mutual | $278 | Up to 15% | 24/7 Support |
| #8 | Progressive | $280 | Up to 10% | Budgeting Tools |
Read on to learn more about our top picks for the cheapest young driver auto insurance.
#1 – Erie: Top Pick Overall
Pros
- Multiple auto insurance coverage options: Erie has plenty of coverage options for teenage drivers so that 18-year-olds can get the most protection possible.
- Good customer service reviews: Erie has good customer service reviews. Read more in our Erie auto insurance review.
- Cheap rates for young drivers: Erie is one of the cheapest companies for young drivers.
Cons
- Limited availability: Erie insurance is not available in every state.
- Less products: Erie insurance doesn’t offer as many products for bundling, such as renters insurance.
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#2 – USAA: Best For Military Families
Pros
- Cheap rates: USAA has the cheapest rates on average for teenage drivers of military families (read more in our USAA auto insurance review).
- Good customer service reviews: Policyholders rate USAA’s customer service highly, so teen drivers will be able to get great assistance with their policies and claims.
- Multiple discounts: USAA offers good student discounts, safe driving discounts, and more that can help 18-year-olds save on their policies.
Cons
- Limited availability: USAA is only sold to military families or veteran families, so most 18-year-olds can’t purchase USAA auto insurance.
- Limited in-person assistance: USAA doesn’t have many local agents, so young drivers will have to communicate online or over the phone.
#3 – Geico: Best For Customizable Policies
Pros
- Affordable rates: Geico has some of the cheapest rates for 18-year-olds. You learn more about Geico’s rates in our Geico auto insurance review.
- Multiple discounts: Geico offers plenty of discounts teenage drivers can take advantage of, such as a good student discount and a good driver discount.
- Easy-to-use website/app: Geico’s app and website are easy to navigate, so young drivers can easily check their policy details or get assistance.
Cons
- Limited in-person assistance: Most teens won’t be able to find in-person assistance, as Geico doesn’t have many agents.
- Customer satisfaction rates are varied: Reviews are mixed regarding claims, although this is typical of most companies.
#4 – State Farm: Best For Local Agents
Pros
- Large agent network: State Farm has multiple in-person agents, so young drivers can get in-person assistance with their policies.
- Financially stable: State Farm is one of the biggest auto insurance companies on the market, with great financial stability ratings.
- Multiple discounts: State Farm auto insurance discounts can help drivers save on teenage auto insurance, such as with a good student discount.
Cons
- Higher rates in some regions: State Farm’s rates may not be the cheapest for young drivers in some regions.
- Mixed customer reviews: State Farm has some poor reviews regarding claims handling.
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#5 – AAA: Best For Roadside Assistance
Pros
- Membership perks: AAA customers receive discounts on shopping, traveling, and more.
- Good student discount: AAA offers a good student discount to help young drivers save on their AAA policy.
- Good customer service: AAA has good customer service reviews.
Cons
- Membership fees: Teenagers will have to pay an AAA membership fee in addition to their auto insurance rate.
- Limited availability: AAA is not available in every state.
#6 – Nationwide: Best For Vanishing Deductibles
Pros
- Vanishing deductibles: Nationwide has vanishing deductibles, which means that deductibles will decrease for each policy period young drivers go accident and ticket-free.
- Multiple coverage options: Nationwide offers a good selection of coverage for young drivers to choose from.
- Multiple discount options: Young drivers can apply for plenty of discounts to get cheap teenage auto insurance.
Cons
- Limited availability: Nationwide has limited availability in some states. Learn more in our Nationwide auto insurance review.
- Mixed customer service reviews: Nationwide has mixed customer reviews when it comes to claims handling.
#7 – Liberty Mutual: Best For 24/7 Support
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Pros
- Great coverage options: Young drivers can choose among multiple auto insurance coverages at Liberty Mutual.
- Multiple discounts: Young drivers can apply for good student discounts, good driver discounts, and more.
- Bundling options: Young drivers can bundle another policy, such as renters insurance, for a discount.
Cons
- Limited availability: Liberty Mutual has limited availability in some regions (learn more about availability in our Liberty Mutual auto insurance review).
- Mixed customer service reviews: Liberty Mutual has some mixed reviews regarding customer service.
#8 – Progressive: Best For Budgeting Tools
Pros
- Name Your Price tool: Young drivers can enter a budget number when getting a quote and see what coverages they can get for that amount.
- UBI discounts: Progressive’s Snapshot program will reward young drivers with discounts for safe driving habits (read more about the program in our Progressive Snapshot review).
- Website and app are user-friendly: Both Progressive’s website and app are easy to use.
Cons
- Limited in-person assistance: Progressive has few in-person agents, so in-person assistance will be limited.
- Mixed customer service reviews: Like most companies, Progressive has mixed reviews from customers.
Buying Auto Insurance At 18
One of the first things to consider is your car insurance needs, meaning how soon you truly need to buy a policy. For some young adults, buying a car insurance policy is necessary at age 18. There are other times that you may not need to get your policy until a few years later.
There can be benefits to both options. Buying your policy at age 18 can allow you to select the coverage that meets your needs and budget.
Selecting your coverage will also provide some excellent real-world experience when it comes to:
- Managing your bills
- Creating a budget
- Learning to work with insurance providers
This experience can come with higher insurance costs due to your age or driving record since you will not be on a plan with your parents or guardians.
On the other hand, you may decide to hold off on buying your policy until you’re a little more established in your adult life.
There are benefits to waiting, such as multi-car discounts and lower premiums, which your parents or guardians have worked towards over the years. However, there are also discounts that young drivers can qualify for on their own, such as good student discounts.
| Insurance Company | Good Student Discount | Young Driver Programs |
|---|---|---|
| AAA | 14% | TeenSMART Program, Loyalty Rewards |
| Erie | 20% | Young Driver Safety Program |
| Geico | 15% | Defensive Driving Course, Driver Education |
| Liberty Mutual | 35% | TeenSMART, Homeowner Discount |
| Nationwide | 10% | SmartRide, Accident-Free Discount |
| Progressive | 10% | Snapshot, Teen Driver Discounts |
| State Farm | 25% | Steer Clear Program |
| USAA | 25% | New Driver Training, Family Discount |
Whether you chose to stay on a parent’s policy or purchase your own, teenage driver discounts will help reduce rates.
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How Driving Record Affects Auto Insurance Rates for Teens
Another point to take into consideration is your driving record. Although you are only 18, there is the possibility that you’ve already had a citation or violation occur.
Since your insurance provider will be looking at your driving record when they write your policy, this information will be something they look at and take into consideration.
Drivers who have a poor driving record, for instance, may face higher premiums or trouble getting the coverage they want.
If your driving record is exceptionally poor, your potential provider may be unwilling to provide you with any coverage. They may consider you to be too high of a risk.
Although your family may have maintained the insurance policy for the last few years, this can still affect you. One of the biggest ways you can be affected is if you are involved in an accident or end up filing a claim.
Any potential insurance provider may look at these claims to determine how much risk you would be introducing as a policyholder. Exceptionally large claims or several claims may indicate that you are high-risk or outside the boundaries of what they are looking to cover.
Are you able to afford the increased premiums?
Increased premiums are one of the biggest downfalls to getting an insurance policy at age 18.
Due to your limited time on the road, insurance providers make assumptions about the level of skill and experience you have acquired, indicated by the higher premiums that teenage drivers often encounter.
If you are acquiring your policy, you must be prepared to handle the higher premiums that come with your young age and higher risk status.Daniel Walker Licensed Auto Insurance Agent
Insurance providers use these premiums to offset the potential that you will be involved in a claim situation. If you cannot afford the higher premiums one provider recommends, you may have to look for coverage elsewhere.
It’s important to remember that many providers have the same mentality regarding young drivers.
Therefore, shopping around for 18-year-old auto insurance quotes from different providers is a smart idea, but you will likely experience the same higher rates across the board. Although, the high rates tend to decrease as you grow older and gain more experience behind the wheel.
Final Word on 18-Year-Old Auto Insurance
Buying your car insurance at 18 can often be an enlightening experience. Learning how to work with an insurance provider, what types of information they look at when writing your policy, and how to manage more responsibilities are all important life skills.
However, before you get your insurance coverage, you must look at what you truly need and make the best decision based on those needs.
As a young driver, insurance companies often look at you as a higher risk due to your lack of experience.
Due to lack of experience, your premiums may be much higher than you expected or you may have a harder time finding coverage.
Another big point to consider is your previous driving record. Your coverage options and premiums may be affected if you have a history that includes any of the following:
- Traffic citations
- Moving violations
- Other vehicle-related incidents
Be sure to discuss this with any potential provider during the policy writing process; it’s better to be upfront with them.
If you think you’re ready for your own auto insurance policy, start shopping for the best auto insurance rates by entering your ZIP code below!
Frequently Asked Questions
Can an 18-year-old get their own auto insurance policy?
Yes, an 18-year-old can typically get their own auto insurance policy. However, the eligibility criteria and requirements may vary depending on the insurance company and state regulations. It’s recommended to contact insurance providers directly to understand their specific policies regarding 18-year-old drivers.
How much does auto insurance cost for an 18-year-old?
The cost of auto insurance for 18-year-olds can vary based on several factors such as driving record, location, type of vehicle, coverage options, and insurance provider. Generally, auto insurance premiums for young drivers tend to be higher due to their limited driving experience. It’s advisable to obtain quotes from multiple insurance companies to compare rates and find the most affordable option.
Are there any discounts available for 18-year-old drivers?
Yes, some insurance companies offer discounts specifically targeted at young drivers, including 18-year-olds. These discounts can include good student discounts, safe driving program discounts, and discounts for completing driver training courses. It’s worth checking with insurance providers to explore any available discounts that may help reduce the insurance premium.
Can an 18-year-old be added to their parent’s auto insurance policy?
Yes, in many cases, an 18-year-old can be added to their parent’s auto insurance policy. Adding a young driver to an existing policy is often a cost-effective option compared to obtaining a separate policy. However, it’s important to inform the insurance provider about the new driver to ensure appropriate coverage.
What type of coverage do 18-year-olds need?
18-year-olds generally need the same types of coverage as any other driver. This includes liability coverage (to cover damages to others in an accident), collision coverage (to cover damages to their own vehicle in an accident), and comprehensive coverage (to cover non-collision related damages like theft or vandalism). The coverage limits can be adjusted based on individual needs and budget.
Can an 18-year-old with a learner’s permit get auto insurance?
Yes, an 18-year-old with a learner’s permit can usually obtain auto insurance. While they may not be the primary policyholder, they can be added to an existing policy or have a separate policy under a parent or guardian’s name. It’s essential to check with insurance providers about their specific requirements for drivers with learner’s permits.
What factors affect the cost of auto insurance for 18-year-olds?
Several factors can impact the cost of auto insurance for 18-year-olds. These may include the individual’s driving record, the type of vehicle they drive, their location, the coverage options selected, any applicable discounts, and the insurance company’s underwriting guidelines. Each insurance provider assesses risk differently, resulting in variations in rates.
How can 18-year-olds lower their auto insurance rates?
There are several strategies 18-year-olds can consider to potentially lower their auto insurance rates. These include maintaining a clean driving record, completing driver education courses, selecting a safe and low-risk vehicle, choosing higher deductibles, inquiring about available discounts, and comparing quotes from multiple insurance providers. These actions can help find more competitive rates.
Who has the cheapest auto insurance for 18-year-olds?
Companies with the cheapest auto insurance for 18-year-olds are Erie Insurance, USAA, and Geico.
At what age is auto insurance cheapest?
Auto insurance rates are generally at the lowest for recently retired drivers in their 60s.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
