Cheap Auto Insurance for 18-Year-Olds in 2024 (Big Savings With These 8 Companies!)

The top companies for cheap auto insurance for 18-year-olds are Erie Insurance, USAA, and Geico, with Erie Insurance being the cheapest choice overall.

AAA, State Farm, and more are some of the other best auto insurance companies for cheap 18-year-old auto insurance.

Our Top 8 Company Picks: Cheap Auto Insurance for 18-Year-Olds

Read on to learn more about our top picks for the cheapest young driver auto insurance. You can also enter your ZIP code into our free quote comparison tool above to find the cheapest provider in your area.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

#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.

#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.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

#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. Learn more here: State Farm Auto Insurance Review

#5 – AAA: Best for Roadside Assistance

Pros

• Membership perks: AAA customers receive discounts on shopping, traveling, and more (read more: AAA auto insurance discounts).
• 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. Learn more in our AAA auto insurance review.

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.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

#7 – Liberty Mutual: Best for 24/7 Support

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. Learn more in our Progressive auto insurance review.

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. The only way to know what you will pay is to get quotes.

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.

18-Year-Old Driver Auto Insurance Discount and Program

Whether you chose to stay on a parent’s policy or purchase your own, teenage driver discounts will help reduce rates.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

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.

18-Year-Old 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.

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!

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption