Teenage Car Insurance Average Cost – It’s no surprise that young and teenage drivers pay more for car insurance. A young driver’s inexperience and limited driving history can cause car insurance companies to charge more for new drivers. But how much does a new driver pay? We’ve crunched the numbers to work out the cost of UK car insurance in a capital city for an 18-year-old driver living in England, so you know what you could be paying based on where you live. The prices for 17 and 19 year olds will be the same.
If price is your priority, you will choose one of the cheapest plans available to you. The team collected over 400 young driver insurance quotes in 10 cities across England and calculated that the average cheapest comprehensive insurance cover for an 18-year-old driver was £1,752. But prices vary widely from area to area, with young drivers in Liverpool, Birmingham, Bradford and Manchester being quoted for more than £2,000 a year. Young drivers in Sheffield and Bristol pay the least in our research, at just over £1,100 a year. This means that young drivers in some areas pay almost 2X as much as young drivers in other areas.
Teenage Car Insurance Average Cost
Between the high cost of insurance and the average driver spending more than £1,000 on driving lessons (£23 an hour), being a young driver doesn’t come cheap.
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To find out what a young driver would typically pay for comprehensive car insurance, we’ve compiled quotes for an 18-year-old male driver with a full UK license driving a 2016 Ford Fiesta, a popular car in the UK. (For more information on how insurance costs vary by car make and model, see our article How much does it cost to insure popular vehicles in the UK) In total we have collected over 400 quotes for drivers living in London, Birmingham, Leeds. Sheffield, Bradford, Manchester, Liverpool, Bristol, Newcastle and Sunderland, which drive less than 5,000 miles per year. Offers include free car cover, breakdowns, personal accident and legal cover. Plan quotes are collected from the following car insurance companies:
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Advertiser Disclosure: Authorized and regulated by the Financial Conduct Authority (FCA), FCA FRN 797621. It is a research and information based personal finance website. The reviews displayed on this website are based on our own analysis and opinion, not on service but on product features and prices. Some offers displayed on this website are from companies that receive compensation. This shift may affect how and where offers are displayed on this website (eg, the order in which they are displayed). See the advertiser’s message for more information. The Site may not include all companies or all available products. Although we do our best to be comprehensive and up-to-date, prices and terms may change after publication, so always check with the supplier for details. Consumers should make sure they do their due diligence before entering into any deal. Regional insurance companies are also affordable options, with companies like Erie and Country Financial offering lower rates than State Farm.
Joining a parent’s auto insurance policy can save you a significant amount of money — an average of 62%, based on an analysis of thousands of quotes from multiple states. Comprehensive auto insurance costs an average of $4,917 for an 18-year-old driver on their own policy.
Michigan Car Insurance (rates + Companies)
We’ve collected tens of thousands of quotes from every zip code in the three largest states in the country, Illinois, Pennsylvania and Georgia, to find the cheapest rates for teens and their parents. Example drivers include 18-year-olds, 50-year-olds without children and an adult with an 18-year-old child on their policy.
Factors that helped determine the best choice were low cost, teen-oriented discount options, and ease of getting accident waivers. Full method
A State Farm policy for an 18-year-old child costs an average of $3,518 per year, which is 29% cheaper than the national average of $4,917.
Although not an option for everyone, Country Financial, Erie and USAA are generally the cheapest insurance companies. Erie is in 12 states and only Washington, D.C., while Country Financial is in 19 states. USAA offers policies only to current and former members of the military.
Teenage Car Insurance Average Cost: Everything You Need To Know
Teen drivers always pay more because they have less experience behind the wheel and are more likely to engage in dangerous behavior. A teenage driver pays more than three times as much as a 50-year-old for full coverage.
If you’re a parent looking to add a teenage child to your policy, Auto-Owners is the cheapest option at just $1,832 per year for a 50-year-old and 18-year-old.
That’s just $501 more than saving thousands of dollars without a minor having the insurance. Erie, Farm Bureau and State Farm are other cheaper than average options for adding a child to your policy.
Keeping your child on your insurance saves families an average of $3,108 a year — a 62 percent reduction in car insurance costs — compared to what the same 18-year-old would spend getting their own insurance.
Teen Drivers, Insurance And Safety
Car owners are often the cheapest option when adding a young driver for parents, as the company has a balanced price for drivers under 19. It is the cheapest carrier to add a 16, 17 and 18 year old and second cheapest for a 19 year old after USAA.
However, other companies’ rates can vary significantly depending on the age at which a young driver joins the policy. For example, it costs $1,395 less per year to add a 19-year-old to a USAA policy than a 16-year-old.
If you need to purchase a policy on your own as a young driver, State Farm can help lower your costs. Among the most affordable insurance companies, State Farm’s average rate is $293 per month.
You can lower it further by getting young drivers to take a safety course, like a good student discount or a “Steer Clear” program. However, the company does not offer accident forgiveness or gap insurance, both of which can be crucial in avoiding costs after an accident.
First Car: Average Price Paid By Teenage Drivers
Rebates are a key tool in reducing the high rates teen drivers pay, and Erie offers a wide variety of things for young drivers to get behind the wheel.
Erie has the lowest rates we found, at $3,067 a year for a teenage driver on their own and $2,088 for an older driver who adds the youngest to their policy. However, the company only provides coverage in 12 states.
Younger drivers tend to be more reckless than their older peers, and the car owner’s accident waiver provides relief from the first incident. The company offers the option of paying more for accident forgiveness, which means your rates won’t increase after an accident.
Some companies require drivers to be long-term customers to receive that benefit. Car owners are also cheaper than average for teenagers on their own and the lowest price we’ve found for adding a young driver to a parent’s policy. One problem is that you have to work through an agent and cannot manage your policy online.
Solved Parents Of Teenage Boys Often Complain That Auto
There are several important ways that young drivers can lower their car insurance and save money.
The first is by qualifying for discounts, as most major insurance companies offer discounts that young drivers can take advantage of.
You can also see if your insurer offers accident waivers at affordable rates. It will cost more in the short term, but young drivers are more accident prone, and if that happens the savings will be higher.
Collision insurance is expensive for young drivers because this demographic is statistically more likely to be involved in accidents and make insurance claims than more experienced drivers.
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It is important to remember that if teenage drivers are at fault for an accident without collision coverage, they will have to pay for the repairs themselves. Unless your car is old and only worth a few thousand, we recommend that you have collision insurance.
It has assembled a diverse team of experts, spanning different areas of expertise, to help you identify tough issues and make smart financial decisions.
Do parents feel it gives them valuable time to spend on the money if their teen takes on the responsibility of a big purchase like a car? Why or why not?
Many traits, such as self-control and delay of gratification, develop during adolescence and young adulthood. In fact, the part of the brain responsible for these processes, the prefrontal cortex, continues to mature until about age 25.
Average Cost Of Car Insurance For Young Drivers 2022
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