How Much Is Car Insurance For A 16-Year-Old?
Sixteen year-old drivers may be ready to hit the road, but they could pay as much as $8,261 per year or more for dependable full-coverage car insurance.
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Key Points:
- Average car insurance rates for 16-year-old drivers can be as high as $8,261 per year or $688 per month for a full coverage policy, though some insurers may charge much higher rates.
- State Farm is known across the country for offering great rates and discounts for teens and student drivers.
- Parents can save money by opting to insure their teen drivers under their existing policy versus taking out separate coverage.
In many states, you have to be 16 years old before you can get your driver’s license. If you’re a teenager who recently got their license or a parent of a soon-to-be licensed driver, you might be wondering: How much is car insurance for a 16-year-old?
We’ve done our research on the best car insurance companies in the country based on coverage, cost, financial strength, customer service, availability, and technology. This article will break down the average cost of car insurance for teens, provide tips on the most important types of coverage, and suggest which providers are best for 16-year-old drivers.
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How Much Is Car Insurance For A 16-Year-Old?
Based on quotes we received from providers in every state, 16-year-old drivers pay an average of $8,261 per year or $688 per month for car insurance. While these numbers may seem high, some providers charge teen drivers thousands of dollars more for full coverage. This is because teens aren’t experienced drivers, so they’re considered high-risk. Fortunately, as teens maintain good driving habits and keep a clean driving record, they may see their rates fall within six months to a year.
In many cases, minimum coverage may be more affordable than full coverage, but it won’t offer the same protections for the driver or the vehicle. Comprehensive and collision coverages guarantee some form of coverage for accidents small and large, from a mild fender bender to a totaled vehicle. These policies also provide additional medical coverage and protect parents and teens in the event of an at-fault accident.
The providers we list in this review all quote rates below the national average for car insurance for 16-year-old motorists. Parents and teens interested in exploring their options should compare quotes from two or more of the providers below.
What Factors Influence The Cost Of Car Insurance For A 16-Year-Old?
Car insurance for 16-year-olds and other teenage drivers can be expensive. As you can imagine, teenage drivers and newly licensed drivers are considered high-risk because of their inexperience and the large number of accidents they report. In fact, according to the Centers for Disease Control and Prevention (CDC), the risk of car accidents is higher for teen drivers than any other age group.
Age is one of many factors that influences the cost of car insurance for 16-year-old drivers. Depending on the state you live in, other factors could include:
- Type of car
- Gender
- Location
- Marital status
- Credit score
- Previous insurance history
- And more
Most 16-year-olds haven’t started building credit or gotten married. Without these data points to assess a 16-year-old driver’s risk, most insurance companies focus on age and inexperience.
Can A 16-Year-Old Get Their Own Car Insurance?
Yes. A 16-year-old driver can get their own car insurance policy, but such policies are usually very expensive. A less expensive option would be for a 16-year-old to be added to their parents’ policy.
Ways To Lower Car Insurance Rates For A 16-Year-Old
It’s no secret that car insurance for a 16-year-old is expensive. Even though many of the factors that car insurance providers take into consideration to calculate each party’s rates don’t apply to teen drivers, there are things that teens can do to save money on auto insurance policies.
| What Teens Can Do | How It Can Make Car Insurance More Affordable |
|---|---|
| Maintain a B average or higher in school. | Many car insurance companies give teen drivers discounts on car insurance for being a good student. |
| Ask about teen driver discounts. | Many providers offer discounts for adding teens to your policy or for teens opening an account with the same provider as their parents. |
| Complete a state-approved defensive driving course. | Completing a state-approved driving refresher course could help teens qualify for discounts. Providers in states like New York, Virginia, Kansas, and Florida are required to give discounts to drivers who complete pre-approved courses. |
| Start building credit. | Encourage your teen to start building credit. The higher an insured driver’s credit score, the lower their car insurance rates in most states. |
The Insurance Information Institute also recommends that parents of teenage drivers do a few things to make getting car insurance for a 16-year-old more affordable:
- Involve your teen in the car insurance shopping experience.
- Encourage teens to practice safe driving behavior.
- Show them what they can do to save money on car insurance.
- If you can, assign your 16-year-old driver the least expensive car to insure on your car insurance policy.
- Increase your liability coverage just in case your teen is involved in an accident.
- Raise your deductible to save money on your car insurance premiums.
Best Types Of Car Insurance For A 16-Year-Old
Adding a 16-year-old driver to your auto policy might change the types of protection you need on the road. To start, we recommend researching basic car insurance requirements in your state. Some of the most common car insurance requirements include:
- Bodily injury liability (BI): This type of coverage protects you from having to pay for the other party’s injuries out-of-pocket in an accident you cause.
- Property damage liability (PD): PD protects you from having to pay for another party’s damages to their vehicle as a result of an accident you cause.
- Medical payments (MedPay): This type of coverage pays for your medical bills after a covered accident, regardless of who was at fault.
- Personal injury protection (PIP): This type of coverage helps you pay for medical bills, lost wages, and death benefits in a no-fault state.
- Uninsured/underinsured motorist (UM/UIM): This type of protection helps you pay for property damages or injuries to your own person in the event that the at-fault driver has insufficient limits to cover you.
Two other forms of coverage, collision and comprehensive insurance, aren’t required in any state, but could be helpful when insuring a 16-year-old driver.
- Collision coverage: This type of coverage pays for repairs to your car after an accident regardless of fault.
- Comprehensive insurance: Comprehensive covers vehicle damage not related to an accident, such as vandalism, theft, hazardous weather conditions, or animal damage.
Beyond standard types of car insurance, there are numerous add-ons that may benefit your 16-year-old driver:
- Roadside assistance can cover situations like a flat tire change, lockout services, towing to a repair shop, and fuel delivery.
- Accident forgiveness prevents your auto insurance rates from going up after your first at-fault accident. We think Progressive has an impressive accident forgiveness policy.
- Gap insurance could also be beneficial for young drivers with financed cars. This type of insurance covers the difference between the amount you owe and the actual cash value of your car in the event of a total loss.
Affordable Car Insurance Options For Teens
When you’re shopping for the right car insurance for a 16-year-old, it’s a good idea to get quotes from multiple providers to be sure you’re getting the best rates. Here are some of the best and cheapest car insurance companies for teen drivers, based on our industry research.
#1 State Farm: Best Overall Provider
Average full-coverage rate for 16-year-olds: $6,289 per year, $524 per month
We named State Farm the best overall provider for U.S. drivers, and the company’s coverage is often affordable for teen drivers. We think a policy from State Farm has a lot to offer 16-year-old drivers, including:
- Usage-based savings program (Drive Safe & Save® app)
- Good student discount
- Student away at school discount
- Steer Clear® driving refresher course for drivers under 25 years old
If you’re a 16-year-old driver, this usage-based program is a good way to make up for your lack of driving experience, because the data collected by the Drive Safe & Save app won’t work against you.
Learn more in our State Farm insurance review.
#2 Auto-Owners: Affordable For Teens
Average full-coverage rate for 16-year-olds: $4,656 per year, $388 per month
Auto-Owners Insurance is a highly rated provider that’s offered coverage to drivers for over 100 years. The company has a solid industry reputation with an A+ rating and accreditation from the Better Business Bureau (BBB). Based on quotes we received from Auto-Owners, the company can offer coverage for teen drivers for nearly half the cost of the national average.
Good student discounts and safe driving discounts offered by Auto-Owners give teens incentive to practice good driving habits and stay safe on the road. Coverage perks like multi-policy discounts and roadside assistance give parents a break at the bank and peace of mind while their teens are on the road.
#3 Erie Insurance: Great Coverage
Average full-coverage rate for 16-year-olds: $5,163 per year, $430 per month
Erie Insurance is known for great coverage selection, and the company also offers below-average rates for teen drivers. Benefits like roadside assistance and accident forgiveness help protect teens in the event of trouble on the road, while new car replacement coverage can help parents rest easy about turning over the keys to a new car.
Erie offers a convenient online quotes process and friendly, locally based agents in the areas the company serves. Learn more about their coverage options and costs in our in-depth Erie insurance review.
#4 Geico: High Number Of Discounts
Average rate for 16-year-olds: $5,745 per year, $479 per month
Geico is one of the most well-known names in the car insurance industry, and for good reason. While the company may not offer the cheapest car insurance rates for 16-year-old drivers, it does offer usage-based coverage and discount opportunities for young drivers who practice safe driving and maintain good grades. Geico also offers bundling discounts for parents who want to save money on individual policies.
Learn more about rates and coverage in our Geico insurance review.
Car Insurance For 16-Year-Olds: Our Take
Parents can choose to add their 16-year-olds to their existing car insurance policies or have them take out their own policy. Car insurance rates for teens can be high, so we recommend comparing insurance quotes from several companies before signing up for a policy. You’ll want to check rates as well as available car insurance discounts to see if there are ways you or your teen can save money now or in the future.
FAQ: Car Insurance For 16-Year-Olds
Below, we cover some of the most frequently asked questions about car insurance coverage for teen drivers:
Do you need car insurance for your teenager?
Absolutely. Your 16-year-old cannot drive without auto insurance protection, so you must insure your first-time driver before they get behind the wheel. Your premiums will go up when you add a teenager driver to your plan, but you’re paying for the peace of mind that they’ll be covered in the case of an accident.
What is the cheapest insurance for a 16-year-old?
It’s important to explore the cheapest plans with the most comprehensive coverage for new drivers. Because teenagers are new to the roads, finding the right plan for your wallet can be tricky. Car insurance rates for 16-year-olds vary across providers, so in reality, there is no plan that is significantly more expensive than another, but there are ways to bring the cost of insuring your new driver down. Popular options include student-driver discounts, usage-based programs, and building credit.
Can a teenager get their own insurance policy?
Yes, a teenager can get their own car insurance policy. However, because they don’t have established driving or credit histories and are considered high risk, it’s usually cheaper for a teen to be added to their parents’ policy instead.
How We Rate Auto Insurance Providers:
Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:
- Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
- Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
- Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
- Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
- Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
- Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.
*Data accurate at time of publication.
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