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

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.

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.

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.

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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 coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible.; 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

Hawaii is the cheapest state to insure a teen driver, at $477 for state minimum coverage and $1,747 for full coverage. On the other end, Louisiana has the highest rates for a teen driver with a full coverage policy; Connecticut has the highest state minimum car insurance rates for teens at an average of $4,089.

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.

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.

How much is car insurance for a 16-year-old male vs. female driver?

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.

The average cost of car insurance for a 16-year-old female is $6,757 a year for the same policy.

“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.”

The table below shows average car insurance rates from top companies for male and female 16-year-olds.

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.

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.

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

Younger drivers are seen as high-risk lack experience on the road and have a higher rate of incidents and accidents than other age groups. As a result, insurance rates are much higher.

“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.”

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.

How to save on car insurance for a 16-year-old

In addition to the discounts mentioned above, there are a few other ways to reduce car insurance rates for teen drivers:

• Reduce coverage if you can. If your teen is driving a car that is paid off and isn't worth much, consider carrying liability-only insurance.
• Raise your deductible. If you need to carry full coverage, consider higher deductibles, ensuring you can afford them if necessary, to get lower rates.
• Buy a cheaper car. If your teen is driving a newer, more expensive car, rates will be higher. Consider buying a lower-value vehicle for your teen to drive.
• Keep your teen on your policy. Even once they are old enough to get their own car insurance, it will be much cheaper if they stay on a parent or guardian's policy.
• Bundle your home and auto insurance. You'll get a discount on both policies.

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.

Sources:

Facts about teen driver crashes, injuries, and fatalities

Related articles

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:

• Car insurance rates for 18-year-old drivers
• Car insurance rates for 20-year-old drivers
• Car insurance rates for 21-year-old drivers
• Car insurance rates for 22-year-old drivers
• Car insurance rates for 23-year-old drivers
• Car insurance rates for 24-year-old drivers
• Car insurance rates for 25-year-old drivers

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