If you’re just starting to drive, be prepared to dig deep to pay for car insurance.
The average auto insurance rate for 16-year-olds with their own policy is $7,625 a year for full coverage. that rate is nearly $6,000 higher than the annual average of $1,682 for a 40-year-old driver with full coverage. island, erie, mapfre, north carolina farm bureau and state farm had the cheapest auto insurance for 16-year-olds among insurers surveyed by carinsurance.com.
Newly licensed drivers are expensive to insure, says Carole Walker, executive director of the Rocky Mountain Insurance Information Association.
“New and young drivers pay the highest rates for car insurance because, as a group, they are statistically more likely to cause an accident than older, more experienced drivers,” says walker.
Car insurance companies view 16-year-old drivers as a high risk to insure and charge them much higher rates as a result.
In fact, the risk of car accidents is higher among teens ages 16 to 19 than any other age group, according to the Centers for Disease Control & prevention. and per mile traveled, teen drivers ages 16 to 19 are nearly three times more likely to be in a fatal crash than drivers age 20 and older.
It’s safe to say that auto insurance for your new driver won’t be cheap. but there are still some smart ways to save while making sure you have enough coverage. we explain how.
how much does car insurance cost for a 16 year old?
What you pay for car insurance for a 16-year-old driver will vary based on many factors, such as whether the teen is added to your policy, what state you live in, the type of car you drive, and coverage limits. Although adding a teen to a parent’s policy is cheaper than having a separate policy, the cost of adding a teen driver can still be in the hundreds of dollars.
Please note that teens can only get their own insurance policy if they are emancipated adults or have reached the age of majority. otherwise, they will have to be insured under one of the parents’ policies.
how much does auto insurance cost for a 16 year old female in each state?
The national average cost of insurance for a 16-year-old woman is $6,782 with her own policy. However, if the 16-year-old is added to the parent’s policy, the annual rate is $4,144, an annual savings of $2,638.
16-year-old teen drivers pay $843 less than men their age for their own policies. Below, you’ll see the average insurance costs in each state for a 16-year-old female and how it compares to the price of a parent policy with the child added.
how much does auto insurance cost for a 16 year old male in each state?
16-year-old men pay, on average, $7,625 for their own comprehensive coverage policy per year. that’s $843 more than their female counterparts. but if a teen is added to their parent’s policy, the annual rate drops to $4,462 per year, a savings of $3,163 per year. You can compare the rates for a 16 year old with his own policy to being added to his parents’ policy below.
How much can you save by adding a 16 year old to your insurance compared to a teen’s policy?
When it comes to car insurance for young drivers, most parents opt for the cheaper approach of adding a teenager to their policy. Insurers base premiums on several factors, including the policyholder’s experience and driving record. a 16-year-old won’t have much experience, which translates to higher rates.
See below how much it costs to add a teen driver to a parent policy and how much you can save on car insurance for a 16-year-old.
Which car insurance companies are cheapest for 16 year olds?
in 2022, island, new jersey manufacturers, mapfre, national and erie were the cheapest insurance companies we surveyed for adding a woman.
See how the top carriers compare when you add a 16-year-old to your coverage below.
the cheapest car insurance companies for a 16-year-old woman
the cheapest car insurance companies for a 16-year-old man
island, new jersey manufacturers, nationwide and mapfre were the cheapest to add 16 year old male drivers.
what are the average annual car insurance rates for a 16 year old driver with their own policy?
If your teen is buying her own policy, Island, Erie, Mapfre, North Carolina Farm Bureau and State Farm offer the lowest rates for a 16-year-old female with her own policy.
the cheapest car insurance companies for a 16-year-old woman with her own policy
the cheapest car insurance companies for a 16-year-old man with his own policy
for 16 year old male drivers with their own policy, island, north carolina farm bureau, mapfre, erie, and auto-owners are among the national companies with the lowest auto insurance rates.
how do you get cheaper insurance for 16 year olds?
Despite the high rates you pay for young drivers, there are ways to cut costs by asking your insurance company about discounts, comparing options, and driving safely.
discounts on car insurance for 16 year olds
Here are some discounts teen drivers can work to earn:
- good discount for students: drivers who maintain a 3.0 or “b” average can get a discount of up to 16%.
- Parent-Teen Driving Contract: Teens who sign a contract with their parents that sets out driving rules, such as limited hours and number of passengers, can get up to a 5% discount.
- Vehicles with more powerful engines can tempt (young drivers) to test the limits, according to the iihs.
- getting electronic stability control (esc) helps maintain control on curves and slippery roads.
- Consider cars with top safety reviews from the IIHS and the National Highway Traffic Safety Administration.
look for insurance for 16 year olds
Adding a teenager to your auto insurance policy will send your premiums skyrocketing. Your teen may be the better driver, but until he or she proves years of accident-free driving, she can expect to pay more for insurance.
However, there are ways to lessen the pain. One key is to shop around and shop around to find the best auto insurance rates. rates are likely to drop as the teen gains more experience.
carinsurance.com has car insurance guides for 17, 18 and 19 year olds that break down teen car insurance rates. Average auto insurance rates drop significantly when drivers turn 26.
keep a clean driving record
One of the most impactful ways to reduce car insurance costs for your teen is to require them to maintain a clean driving record. Insurance companies already view teens as high-risk, inexperienced drivers, and traffic violations or accidents won’t help change that perspective. Whether it’s speeding, an accident, reckless driving, or distracted driving, you’ll see an increase in insurance rates.
Frequently Asked Questions: Average Car Insurance for 16 Year Olds
why are teen car insurance rates higher?
Car insurance companies base their rates on risk. they take into account a person’s driving experience, claims history, location, vehicle type and other factors. a driver with a hazardous (or limited) driving history will pay more than a motorist who hasn’t filed a claim.
In 2020, 2,738 teens (ages 13-19) died in the United States from crash injuries, according to the Insurance Institute for Highway Safety/Highway Loss Data Institute.
does a 16 year old have to have full coverage insurance?
There is no law that requires teen drivers to have full coverage. however, if the car you drive is leased or financed, the lender will require you to have comprehensive coverage, including comprehensive and collision insurance.
To drive legally, you need state-mandated liability insurance, which pays for damages and injuries to others in accidents you cause. however, because teens are inexperienced and, as a demographic, have more accidents than experienced drivers, it’s wise to have comprehensive coverage for the car your teen drives.
does a 16 year old need car insurance to get a license?
If you drive, most states require you to have minimum liability insurance. But a 16-year-old hoping to get his first license just has to show that the owner of his vehicle already has coverage. A teen driver faces driving restrictions before and after receiving a driver’s license. states have different levels of graduated driver license (gdl) laws.
what are the rules for a 16 year old driver?
Most states have laws that restrict where and when 16-year-olds can drive. These stipulations are generally called graduated driver’s license (GDL) laws and apply only to drivers under the age of 18. GDL laws vary by state, with some states having strict GLD laws and others very lenient. over time, you “graduate” from a provisional or restricted license you got as a teenager to a standard unrestricted license.
guide: most and least dangerous states for teen drivers
can a 16 year old have a car and car insurance in his name?
Usually a teen can get car insurance, but as a minor, a parent or guardian will need to sign the policy with the teen in order for the teen’s parents to be financially responsible for the policy. In most states, a teen can’t buy or insure a car on her own.
A minor generally cannot own property in most states, so the minor’s parents will own that property until the child becomes an adult. In most states, a parent will have to co-sign a car loan, as well as any other financial paperwork required by the dealer. therefore, while a minor may be part of a car purchase, the parent will be the legal owner.
Does a teenager need car insurance to drive with a learner’s permit?
A novice driver needs insurance, but not under their own policy. Generally, the vehicle owner’s policy (usually the parent or guardian accompanying the teen while learning) should suffice. but parents must add teen drivers to their policies once the teens are licensed.
what are the best cars for a 16 year old?
Your insurance company may lower your rate if you buy a premium teen car.
the insurance institute for highway safety (iihs) offers some basics when looking for a vehicle:
final thoughts on car insurance for a 16 year old
Being a parent of a teen driver is stressful and costly. Adding your teen to your auto insurance policy is a great way to save money, even if it’s tempting to get your own policy.
make sure you show good driving behavior and that teens follow gdl laws. Also, purchase auto insurance at each renewal to ensure you get the best deal, which will help your teen understand the importance of safe driving.
resources & methodology
- centers for disease control & prevention. “Teen Drivers: Get the Facts.” accessed June 2022.
- governors road safety association. “Teen and Novice Drivers”. accessed June 2022.
- insurance institute for highway safety, highway loss data institute. “teenagers.” accessed June 2022.
carinsurance.com commissioned Quadrant Information Services in 2022 for field rates for auto coverage data by zip code for drivers ages 16 and 40.
– michelle megna contributed to this story.