How much is insurance for a 16-year-old?

Car insurance for a teenage driver is most expensive at age 16 with an average annual rate of $7,149 a year for full coverage insurance. That's about $596 a month. For a state minimum policy, the average annual rate is $2,111 a year or about $176 a month.

That's based on Insurance.com's analysis of data provided by Quadrant Data Services for 16-year-old drivers with a 2023 Honda Accord; an older vehicle will cost less to insure.

That same data analysis found that the cheapest full coverage car insurance for a teen driver is found at Nationwide, with an average annual rate of $6,094, which is about $508 a month.

In general, it's difficult for a minor to get an insurance policy alone, since they aren't old enough to legally sign a contract. In most cases, they'll be added to the policy of a parent or guardian, and that's actually the cheaper way to insure a teen, since they can take advantage of the discounts already on your policy.

Here's a look at the average cost of car insurance for a 16-year-old from top companies, based on a full coverage policy with 100/300/100 liability limits and $500 deductibles.

Average cost of car insurance for a 16-year-old
CompanyAnnual rateMonthly rate
Nationwide$6,094$508
USAA*$6,239$520
State Farm$6,368$531
Geico$6,375$531
Travelers$6,455$538
Progressive$9,297$775
Allstate$9,968$831
Farmers$11,592$966

*USAA is only available to military members, veterans and their families.

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

Because younger drivers lack experience on the road and have a higher rate of incidents and accidents than other age groups, they're seen as high risk. As a result, insurance companies charge teen drivers more since they're more likely to cost the insurance company money.

“Insurance industry actuarial studies show that 16-year-old drivers have the highest accident frequency rate of any age group,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I). “This is due to their lack of experience behind the wheel and a higher incidence of distracted driving – such as using cell phones and talking to friends while operating the vehicle – than more experienced drivers.”

While insurance for the teen driver in your life will cost money, there are savvy ways to put money back in your wallet and make sure your 16-year-old has sufficient coverage. Let's break down some price points.

Average car insurance cost for 16-year-old drivers

The average cost of car insurance for a 16-year-old driver is:

  • State minimum coverage: $2,111
  • Liability limits of 50/100/50: $2,527
  • Full coverage: $7,149

It's important to note here that it doesn't cost much more to bump the liability limits above the state minimum (only about $16 a year), and it's a good idea considering the higher risk of an accident. Full coverage is expensive, so consider buying an older vehicle for your teen to drive that doesn't require comprehensive and collision coverage; just be sure you can afford to repair or replace the car if necessary.

Average cost of car insurance for 16-year-olds by state

Where you live has a major impact on what you pay for car insurance. Find your state below to see how much you can expect to pay for a teen car insurance policy, either on their own or added to your policy.

Average cost of teen car insurance by state
State 16-year old male16-year old femaleParent policy with teen added
Alaska$6,969$5,975$2,982
Alabama$7,968$7,038$2,912
Arkansas$9,185$8,250$3,151
Arizona$9,885$8,550$3,773
California$7,334$7,314$4,899
Colorado$7,823$7,244$3,762
Connecticut$10,253$9,444$2,899
Washington, D.C.$7,553$5,729$3,784
Delaware$10,530$9,377$3,277
Florida$9,721$8,288$5,979
Georgia$8,642$7,887$3,424
Hawaii$1,747$1,747$1,338
Iowa$6,544$5,824$2,340
Idaho$6,499$5,563$2,106
Illinois$6,744$5,982$3,213
Indiana$6,512$5,509$2,714
Kansas$7,581$6,303$2,875
Kentucky$9,230$7,102$3,654
Louisiana$11,209$9,760$7,288
Massachusetts$7,302$6,735$3,733
Maryland$7,116$6,169$3,861
Maine$5,225$4,551$2,653
Michigan$7,539$7,539$7,857
Minnesota$6,918$5,678$3,213
Missouri$8,233$7,211$4,988
Mississippi$8,224$7,693$2,818
Montana$8,598$8,335$3,584
North Carolina$5,374$5,374$3,329
North Dakota$7,781$6,310$2,192
Nebraska$7,953$6,847$3,228
New Hampshire$5,519$4,948$2,138
New Jersey$9,114$8,491$4,846
New Mexico$9,028$8,335$3,430
Nevada$10,661$9,929$4,721
New York$6,987$6,123$4,113
Ohio$6,720$6,087$2,454
Oklahoma$9,274$7,965$4,000
Oregon$8,277$7,523$3,000
Pennsylvania$7,080$7,071$2,767
Rhode Island$9,504$8,406$4,035
South Carolina$7,707$6,704$3,951
South Dakota$8,412$7,411$2,798
Tennessee$8,327$6,794$2,827
Texas$5,862$5,306$4,451
Utah$9,326$8,250$4,308
Virginia$6,179$5,417$3,049
Vermont$5,834$4,976$2,222
Washington$6,947$6,354$2,493
Wisconsin$8,335$7,066$3,688
West Virginia$8,911$7,289$3,440
Wyoming$7,120$5,408$3,175

Cheapest car insurance for a 16-year-old

Shopping around to compare rates is the best way to get cheap car insurance for a 16-year-old driver. We've gathered rates in each state to identify the cheapest car insurance company there for insuring a newly licensed teen.

Cheapest car insurance for a 16-year-old by state
StateCheapest companyAverage annual rate
AlaskaWestern National Insurance$5,327
AlabamaCountry Financial$3,817
ArkansasSouthern Farm Bureau$4,332
ArizonaGeico$4,405
CaliforniaGeico$5,503
ColoradoSouthern Farm Bureau$3,999
ConnecticutState Farm$6,259
Washington, D.C.Erie Insurance$3,466
DelawareNationwide$5,065
FloridaGeico$6,516
GeorgiaAuto-Owners$4,252
HawaiiGeico$1,332
IowaIMT Insurance$3,350
IdahoAuto-Owners$3,466
IllinoisErie Insurance$3,568
IndianaIndiana Farmers Insurance$3,226
KansasNationwide$4,357
KentuckyShelter Insurance$6,035
LouisianaSouthern Farm Bureau$6,195
MassachusettsState Farm$2,198
MarylandErie Insurance$4,755
MaineAuto-Owners$2,010
MichiganAuto-Owners$4,076
MinnesotaAuto-Owners$3,920
MissouriMissouri Farm Bureau$4,616
MississippiSouthern Farm Bureau$4,122
MontanaNationwide$4,568
North CarolinaErie Insurance$2,912
North DakotaAmerican Family$3,490
NebraskaAuto-Owners$4,249
New HampshireAuto-Owners$2,100
New JerseyGeico$3,414
New MexicoCentral Insurance$3,509
NevadaState Farm$4,840
New YorkProgressive$3,592
OhioAuto-Owners$3,522
OklahomaAFR Insurance$4,189
OregonCountry Financial$3,042
PennsylvaniaTravelers$3,469
Rhode IslandState Farm$4,284
South CarolinaAuto-Owners$4,891
South DakotaNationwide$5,059
TennesseeFarm Bureau Insurance of Tennessee$4,415
TexasRedpoint Insurance$1,681
UtahNationwide$4,530
VirginiaVirginia Farm Bureau$2,778
VermontAuto-Owners$2,473
WashingtonPEMCO$4,520
WisconsinErie Insurance$3,990
West VirginiaNationwide$4,412
WyomingFarmers$4,042

How much is car insurance for a 16-year-old male?

The national average cost for a male is $7,541 a year for a policy that includes comprehensive and collision coverage, and liability limits of 100/300/100.

That breaks down to $628 a month.

Here's a look at car insurance costs for 16-year-old male drivers by company, both on a solo policy and on a parent's policy.

Average cost of car insurance for a 16-year-old male
Company16-year-old male annual rateParent's policy with male teen added annual rate
USAA*$6,379$3,138
Nationwide$6,545$2,700
Progressive$9,630$4,265
Geico$6,752$2,967
State Farm$6,953$3,560
Travelers$6,968$4,519
Allstate$10,337$4,670
Farmers$12,009$5,279

According to Triple-I, 16-year-old boys have a higher accident frequency than 16-year-old girls.

“This mirrors a similar trend of adult male drivers having a higher accident frequency rate compared to adult female drivers,” Friedlander says. “Thus, 16-year-old boys are considered a higher risk than 16-year-old girls and will pay more for auto insurance, on average.”

How much is car insurance for a 16-year-old female?

The average cost of car insurance for a 16-year-old female is $6,757 a year for a policy that includes comprehensive and collision coverage and liability limits of 100/300/100.

That's $563 a month.

On average, a 16-year-old female pays $784 less yearly than a male.

The chart below displays the average insurance costs for a 16-year-old female from top companies.

Average cost of car insurance for a 16-year-old female
Company16-year-old female annual rateParent's policy with female teen added annual rate
Nationwide$5,642$2,552
State Farm$5,784$3,244
Travelers$5,945$3,986
Geico$5,997$2,787
USAA$6,099$2,946
Progressive$8,967$4,009
Allstate$9,582$4,336
Farmers$11,164$5,145

How much does it cost to add a 16-year-old to car insurance?

The cost of adding a teen to a parents’ policy varies greatly – from a little more than $1,000 to nearly $8,000 depending on where a family lives, the car they’re insuring and other factors.

But, as mentioned before, the easiest and cheapest route for parents of young drivers is to add a teen to their own policy. Below you can compare rates by state for teens on their own policy and on a parent's policy.

Teen car insurance rates on a solo policy vs. a parent's policy
StateParent policy, no teenMale teen addedFemale teen added
Alaska$1,236$3,117$2,847
Alabama$1,464$3,029$2,796
Arkansas$1,436$3,305$2,998
Arizona$1,532$4,024$3,522
California$2,041$4,899$4,899
Colorado$2,048$3,878$3,645
Connecticut$1,383$3,027$2,770
Washington, D.C.$1,877$4,028$3,540
Delaware$1,636$3,432$3,123
Florida$2,993$6,215$5,742
Georgia$1,516$3,635$3,214
Hawaii$1,282$1,338$1,338
Iowa$1,156$2,417$2,263
Idaho$957$2,201$2,011
Illinois$1,309$3,448$2,977
Indiana$1,214$2,783$2,645
Kansas$1,422$2,983$2,766
Kentucky$1,743$3,806$3,502
Louisiana$2,991$7,762$6,815
Massachusetts$1,721$3,733$3,733
Maryland$1,923$4,166$3,555
Maine$996$2,829$2,476
Michigan$4,054$7,857$7,857
Minnesota$1,610$3,317$3,109
Missouri$2,134$5,318$4,657
Mississippi$1,342$2,920$2,715
Montana$1,782$3,584$3,584
North Carolina$1,369$3,329$3,329
North Dakota$1,154$2,296$2,088
Nebraska$1,798$3,346$3,110
New Hampshire$923$2,221$2,055
New Jersey$2,208$5,126$4,567
New Mexico$1,695$3,560$3,300
Nevada$2,287$4,908$4,533
New York$1,832$4,378$3,849
Ohio$1,065$2,555$2,352
Oklahoma$1,855$4,413$3,588
Oregon$1,430$3,080$2,921
Pennsylvania$1,245$2,767$2,767
Rhode Island$1,681$4,278$3,793
South Carolina$1,671$4,030$3,873
South Dakota$1,523$2,959$2,638
Tennessee$1,209$2,945$2,708
Texas$1,852$4,650$4,253
Utah$1,819$4,508$4,108
Virginia$1,133$3,248$2,850
Vermont$996$2,332$2,111
Washington$1,309$2,561$2,426
Wisconsin$1,511$3,915$3,462
West Virginia$1,386$3,656$3,223
Wyoming$1,677$3,483$2,866

Remember: Insurance companies base the rates of premiums on a handful of factors – think experience and the policyholder’s driving record. Because a 16-year-old has neither, that means their rates will be higher.

Plus, teens wouldn't be eligible for specific discounts that a parent, who has a driving record, experience, and has carried insurance for several years, will be able to qualify for, such as a multi-vehicle, multi-policy, no-claims period discount and loyalty discounts.

Car insurance discounts for 16-year-old drivers

Your teenage driver may qualify for several different discounts, which can reduce the cost of your insurance premiums. These discounts include:

Good student discount

“Many auto insurers offer various discounts to help defer the high cost of coverage for 16-year-old drivers,” Friedlander says. “Most common discounts offered by national and regional insurers include a good student discount – meaning you must maintain a ‘B’ average or better in high school – and taking a certified driver education course before obtaining your driver’s license.”

Low mileage

The more time a teen spends driving a vehicle, the greater their chances of being involved in an auto accident or moving violation. That's why adolescents who drive a low amount of miles per year may be entitled to a discount. This is usually available to persons who travel fewer than 7,000 miles per year or less than 10 miles every weekday.

Usage-based insurance

Some insurers might offer a discount to policyholders with teens who install electronic monitoring devices to track the way teens drive in their cars.

“Usage-based telematics programs are also becoming more common for young teen drivers to help reduce insurance costs. This is where you allow the insurer to track your teen’s driving habits via a mobile app or installed device in the vehicle,” Friedlander says.

Methodology:

Insurance.com commissioned Quadrant Information Services in 2023 to field rates for auto insurance by ZIP code for 16-year-old and 40-year-old drivers. Coverage options included state minimum limits, 50/100/10 liability-only, and full coverage with 100/300/100 liability and $500 deductibles.

--Jackie Lam contributed to this article.

Sources:

Facts about teen driver crashes, injuries, and fatalities

Insurance.com has prepared in-depth car insurance guides for drivers of different ages. You will learn how much you expect to pay for insurance based on your age and how you can save on premiums each year. Check out the guides below:

Auto insurance FAQs

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

Yes and no. A 16-year-old can get an insurance policy, but will likely require a parent to co-sign on it since they are a minor. It will most likely be far more expensive than if they were added as a secondary driver to their parents' or guardians' family policy. Per Mark Friedlander with the Insurance Information Institute, a parent or guardian must co-sign, as a 16-year-old cannot sign a legally binding document like an insurance policy on their own.

How does car insurance for a 16-year-old compare to other ages?

Car insurance for a 16-year-old driver is typically significantly higher than for other ages. That's because they are considered high-risk, as they lack experience and a driving record, and data show that they are more likely to get involved in a car crash than any other age group.

Do car insurance rates go down after age 16?

As long as you maintain a clean driving record, the cost of premiums will usually go down after age 16. Typically, once a driver turns 25, there is a dramatic decrease in car insurance rates.

Does a 16-year-old have to have full coverage?

As laid out by state mandates, teens are required to have the minimum required coverage for car insurance in their states. The types of coverage and amounts vary according to where they live. Most states, however, require that insurance pays for damage or injuries to the other driver.

If a loan on the car still needs to be paid back, then the lender usually requires full coverage—collision, comprehensive and liability insurance.

How much is insurance on a sports car for a 16-year-old?

Car insurance rates depend on a handful of factors, including the type of car one drives. Usually, insuring a sports car is more expensive than other types of vehicles. That's because they're a higher risk to insure than say, a sedan or minivan.

Getting car insurance on a sports car for a teen can be a double-whammy. It's expensive to insure a sports car, and it's also more costly to insure a 16-year-old. So you can expect insurance on a sports car for a 16-year-old to be significantly more expensive.