As an 18-year-old driver, you're probably frustrated by the expensive auto insurance quotes that you've been receiving. While the exact cost of your auto insurance policy will depend upon a wide range of factors, you'll be unlikely to find coverage for less than $100 per month. As an 18-year-old male, you present a significant statistical risk. Even if you opt for a policy that offers poor coverage and an extremely high deductible, you should expect to pay at least $1,200 per year for your plan. As long as you avoid racking up traffic citations, your rates should begin to drop after your 20th birthday. In fact, you could be paying as little as $50 per month by your 25th birthday.
Realistically, your auto insurance coverage might cost even more than $100 per month. If you select a policy that offers robust coverages, you may need to pay as much as $350 per month. Although such a policy will provide ample protection in the event that you're involved in a serious accident, it might prove to be out of your financial reach.
As an 18-year-old male, you might save a great deal of money by attaching yourself to your parents' insurance policy. If you wish to purchase your own vehicle, you'll need to make sure that one of your parents retains its title. Once this is done, you'll be able to obtain affordable insurance coverage on it using your parents' existing "umbrella policy." Although you'll need to be listed as one of the vehicle's "occasional drivers," this shouldn't affect the cost of the policy to a tremendous degree. However, your parents will be held liable for any damage that you cause to the vehicle. If you're involved in an accident, your parents' insurance company will almost certainly raise their rates by 25 percent or more.
If you don't find this arrangement to be palatable, you may be able to reduce your insurance costs by other means. If you haven't yet purchased a vehicle, consider buying a used vehicle with a security system, solid safety record and low resale value. These three attributes may significantly reduce your vehicle's annual insurance costs. If you've already purchased a vehicle, you may wish to install a security system. Depending upon the region in which you live, this could reduce your annual insurance costs by 10 percent or more. Finally, ask each of your prospective insurance providers about the "good student" and "safe driving" discounts that they might offer.