Average Cost of Car Insurance for 16-Year-Olds

According to our analysis of thousands of rates across nine states, the average cost to insure a 16-year-old for full coverage is $813 per month. In comparison to girls, 16-year-old boys pay $63 more per month on average.

Cost of car insurance for a 16-year-old

Car insurance for 16-year-olds costs an average of $813 per month. Rates for full coverage ranged from $311 to $1,141 per month among the different insurers we looked at, emphasizing the importance of getting quotes from multiple insurers.

With a monthly rate of $311, Erie provides the cheapest insurance for 16-year-olds. Farmers is the cheapest option available nationwide at $415 per month because Erie is only available in 13 states.

Cost of car insurance for 16-year-olds compared to other ages

Insurance for a 16-year-old driver can be prohibitively expensive. The average cost of insuring a 16-year-old driver is more than double that of a 25-year-old. When a 16-year-old turns 17, their insurance costs will drop by an average of 9%.

How do rates differ between 16-year-old male and female drivers?

Car insurance for 16-year-old female drivers is generally less expensive than for male drivers. This is due to the fact that young male drivers exhibit more risky driving behavior than young female drivers, such as speeding or driving drunk.

Why is car insurance so expensive for 16-year-olds?

Because 16-year-old drivers are more likely to be involved in accidents than older drivers, car insurance is much more expensive for them. Teen drivers are three times more likely than other drivers to be involved in a fatal crash, according to the Centers for Disease Control and Prevention (CDC).

Rates for 16-year-olds are also higher because insurers lack existing data on which to base their models. Car insurance rates are partly determined by your driving record; for example, someone who has been accident-free for several years will pay less for insurance than someone who has been involved in several car accidents.

However, because these teenagers have typically had their driver's license for a year or less, insurance companies have very little data to base their decision on. This results in higher costs for all teen drivers, regardless of how cautious they are.

The cheapest auto insurance company for 16-year-olds by state

Because both companies are the cheapest option in three states, Geico and State Farm are frequently the cheapest insurers. The following are the cheapest insurance companies in our nine sample states for a 16-year-old.

Do I have to add my teenager to my car insurance?

Most states require you to add your 16-year-old son or daughter to your car insurance policy as soon as they get their license. Some states require it by law, and many insurance companies do as well. Even if it's not required, it's a good idea to make sure your car insurance covers everyone.

Typically, you only need to add a driver to your policy after they have obtained their driver's license. Your 16-year-old does not usually need to be listed on your policy if they have not yet passed their license test.

Rates for 16-year-olds are cheaper under parents' insurance

The most significant way to save money on car insurance as a 16-year-old is to be added to your parents' policy rather than purchasing your own. A 16-year-old male could save 45% on his car insurance by joining his parents' policy.

Some insurance companies require you to have a single family policy for everyone in your household. Even if you are able to purchase your own policy, you will almost certainly need your parents' approval — an insurer will not allow you to purchase a policy as a minor because minors cannot legally sign contracts.

Driving laws for 16-year-olds

Many states have laws that restrict how and when 16-year-olds can drive, even if they have passed their license tests. Teen drivers frequently have intermediate licenses, also known as provisional or restricted licenses, which come with restrictions that adult drivers do not have.

In Florida, for example, 16-year-old drivers are not permitted to drive between 11 p.m. and 6 a.m. In California, 16-year-olds are not permitted to transport passengers under the age of 20 unless accompanied by a driver aged 25 or older.

How to save on the cost of auto insurance for 16-year-olds

Car insurance for 16-year-old drivers is very expensive, but there are ways to reduce your monthly premium. Rather than purchasing your own policy, it is preferable to be added to that of a family member.

However, there are other options for getting the cheapest car insurance for a 16-year-old.

Shop around at multiple insurance companies

Every insurance company has different prices, and the difference is especially noticeable when it comes to teenagers — choosing one insurer over another can save thousands of dollars over the course of a year.

However, the most affordable insurers for 16-year-old drivers will differ by region. You should obtain quotes from several different insurance companies to ensure that you are paying the least amount of money possible.

Find discounts for 16-year-old drivers

Many insurance companies offer a variety of discounts targeted specifically for young drivers to offset the high cost of insurance for 16-year-olds. Here are some common deductions to avoid.

• Good grades: If you are a full-time high school or college student with a certain GPA (typically a "B"/3.0 or higher), you may be eligible for a rate reduction.
• Driving tracker: Many insurance companies will provide you with a telematics driving tracker after you've demonstrated that you drive safely. It may demonstrate, for example, that you do not start or stop abruptly, or swerve on the road. To track your habits, plug these into your car's diagnostic port or use a mobile app.
• Driving class: Sixteen-year-old drivers are likely to have recently taken driver's education, but many states allow you to take a driver's education course to automatically reduce your car insurance rates — the discount in New York state is 10%.
• Student away from home: While college students are more likely to qualify for this discount than 16-year-old high schoolers, if you're more than 100 miles away from home for school (such as boarding school) and don't have a car, you'll usually qualify to have your insurance rates reduced.
• Pay-in-full: Most insurers will give you a discount if you pay for your entire policy in one lump sum rather than in installments.

Buy a car that's cheaper to insure

If you or your parents are purchasing a new or used car for you to drive once you reach the age of 16, one important factor to consider is the cost of insurance. The cost of car insurance varies greatly by car model; for example, in our study of the cheapest cars to insure, we discovered that a Honda CR-V, the car with the lowest monthly rates, is 33% less expensive to insure than a Ford Mustang.

A fun or fast car, such as a Mustang, may appear appealing, but it will almost certainly be much more expensive to buy, drive, and insure than a car like a Honda Civic. Furthermore, if you are involved in an accident, a sports car will be more expensive to repair.

Drop comprehensive and collision coverage

One of the simplest ways for teenagers to save money on their insurance is to reduce the amount of coverage they purchase. Comprehensive and collision coverage, which pay for your own vehicle's repair, are the most commonly removed parts of car insurance. Collision insurance protects you if your car is damaged in a collision and no one else is to blame. Damage caused by something other than a collision, such as vandalism or theft, is covered by comprehensive coverage.

Unless you have a car loan or lease, both coverages are optional. When your car is older and less valuable, it is generally a better idea to drop comprehensive and collision coverage. This is due to the fact that the maximum possible payout of coverage — the replacement cost of your vehicle — is frequently less than the cost of coverage. You should, however, drop these coverages only if you can afford to repair or replace your car without them.

How to get car insurance for a 16-year-old

Getting behind the wheel for 16-year-olds who are simply adding themselves to their parents' policy can be as simple as calling your insurance agent or visiting your insurer's website.

However, adding a 16-year-old to a car insurance policy is an excellent opportunity to check with other insurers to see how much they charge for coverage and to consider switching insurance companies to save money.

Can a 16 year-old get their own car insurance?

Yes, a 16-year-old can buy their own car insurance. However, in addition to being more expensive, there will almost certainly be an additional step in the process.

Because minors cannot sign legally binding contracts, they will almost certainly need to have a parent approve or cosign the agreement.