What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

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.

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