What Car Insurance Coverage Do I Need?

Decide 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.

What an 18-year-old Pays for State-Minimum Liability:

How much would insurance be for a 18 year old?

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 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.

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