Auto Insurance For Your Teen: What You Need To Know

The cost of car insurance for a 16-year-old varies depending on several factors, including the driver's gender, location, and whether they are added to an existing family policy or take out their own policy. On average, a married couple with a 16-year-old driver on their policy will pay $4,392 per year for full coverage. However, if the 16-year-old takes out their own policy, the cost can be significantly higher, with an average rate of $8,765 per year. The cheapest option is usually to add the teen driver to their parents' policy, but this can still result in a substantial increase in premiums for the family.

The average cost of car insurance for 16-year-olds

The cost of car insurance for 16-year-olds varies depending on a range of factors, including the driver's gender, location, and the type of car they drive.

Average Costs

According to Forbes Advisor, it costs $2,735 per year to add a 16-year-old to their parent's car insurance policy, which equates to around $230 extra per month. If a 16-year-old were to take out their own insurance policy, the average cost rises to $8,765 per year, or $730 per month.

Bankrate puts the average cost of car insurance for a married couple with one vehicle and a 16-year-old child at $4,874 per year, or $406 per month. This is based on a full-coverage policy.

MarketWatch, meanwhile, estimates that the average cost of a 16-year-old's car insurance on their own full-coverage policy is $7,581 per year, or $632 per month.

Cost by Gender

In most states, insurance companies can consider gender when determining rates. Males are statistically more likely to be involved in accidents, so they generally pay higher rates than females. According to Forbes Advisor, insuring a 16-year-old male costs 25% more than insuring a 16-year-old female when added to a parent's policy.

Cost by State

The Zebra reports that the average 16-year-old driver in 2020 paid an annual premium of $5,744, or $479 per month, for insurance. However, this figure varies by state. MarketWatch identifies Delaware, Rhode Island, and Louisiana as the three most expensive states for 16-year-olds to take out individual full-coverage insurance policies, while North Carolina, Ohio, and Virginia are among the cheapest.

Cost by Type of Car

The Zebra also notes that the type of car a 16-year-old drives will influence their insurance rates. Luxury and sports cars tend to be the most expensive to insure, while sedans are generally cheaper.

Cheapest car insurance for 16-year-olds

Car insurance for 16-year-olds is notoriously expensive. The cost of insuring a 16-year-old driver is more than double the average cost of insuring a 25-year-old. This is because newly licensed drivers are considered high-risk due to their lack of experience, making them more likely to be involved in accidents and file insurance claims.

Cheapest Insurance Companies for 16-Year-Olds

According to Forbes Advisor, Erie is the cheapest car insurance company for adding a 16-year-old driver to a parent's car insurance policy, at $932 cheaper than the national average of $2,735. Nationwide is the second cheapest.

However, if the 16-year-old is looking for their own policy, Auto-Owners has the cheapest car insurance, at $3,380 cheaper than the national average of $8,765. Geico is the second cheapest.

Cheapest Insurance for 16-Year-Olds by State

The cost of insuring a 16-year-old driver varies by state. GEICO offers the lowest average rates in Hawaii, at $640, while Nationwide offers the cheapest rates in Ohio, at $740.

Cheapest Insurance for 16-Year-Old Males and Females

Insurance rates for 16-year-olds also vary by gender, with males generally paying more than females. This is because male teens are more likely to be involved in accidents and file insurance claims.

Nationwide is the cheapest option for insuring a 16-year-old male driver, at an average of $2,801 per year. State Farm is the cheapest option for insuring a 16-year-old female driver, at an average of $2,550 per year.

Ways to Save on Car Insurance for 16-Year-Olds

• Add them to a family policy: This is usually much cheaper than putting the teen on their own policy.
• Look for discounts: Many insurance companies offer discounts for young drivers, such as good student discounts and driver training discounts.
• Choose a cheaper car: The type of car a teen drives will affect their insurance rates. Sports cars and luxury vehicles tend to be more expensive to insure than sedans and other affordable, safe cars.
• Keep a clean driving record: Accidents and moving violations will increase insurance rates, so it's important for teen drivers to maintain a clean driving record.

Average insurance cost for 16-year-old males vs females

The cost of car insurance for a 16-year-old varies depending on several factors, including the driver's gender, location, and whether they are added to an existing family policy or take out their own policy.

Average Insurance Cost for 16-Year-Old Males

On average, car insurance for a 16-year-old male costs $7,625 per year for a policy that includes comprehensive and collision coverage, and liability limits of 100/300/100. This breaks down to $635 per month.

Average Insurance Cost for 16-Year-Old Females

The average cost of car insurance for a 16-year-old female is $6,782 per year for a similar policy, which is $843 less than their male counterparts. This equates to $565 per month.

Average Insurance Cost for 16-Year-Olds by State

The cost of car insurance for 16-year-olds also varies depending on the state in which they live. For example, in Louisiana, the average cost of car insurance for a 16-year-old is $13,666 per year, while in Hawaii, it is much cheaper at around $3,400 per year.

Average Insurance Cost for 16-Year-Olds by Policy Type

The type of policy also has a significant impact on the cost of car insurance for 16-year-olds. If a 16-year-old is added to an existing family policy, the average cost is $2,735 per year, or $230 per month. However, if they take out their own policy, the average cost increases to $8,765 per year, or $730 per month.

How to get cheaper car insurance for 16-year-olds

Car insurance for 16-year-olds can be very expensive, but there are ways to reduce the cost. Here are some tips to help you get cheaper car insurance for 16-year-olds:

Add Them to a Family Policy

Adding a 16-year-old to a family policy is much cheaper than getting them an individual policy. According to Forbes Advisor, it costs $2,735 per year to add a 16-year-old to a parent's car insurance policy, while a 16-year-old driver with their own policy pays an average of $8,765 per year.

Shop Around for the Best Rates

Don't just settle for the first insurance company you find. Compare quotes from multiple providers to find the most affordable option for your situation.

Seek Out Teen Driver Discounts

Many insurance companies offer discounts for young drivers. For example, you can get a "good student discount" if your teen maintains a certain grade point average (usually a "B" average or above). Other common discounts include driver education discounts for completing an approved driver training program and safe driver discounts for those with a clean driving record.

Choose the Right Car

The type of car your teen drives will also affect their insurance rates. Sports cars and luxury vehicles tend to be more expensive to insure, so consider opting for a more modest and reliable car, like a sedan.

Increase Your Deductible

You can also lower your premium by raising your deductible. Just keep in mind that this means you'll have to pay more out of pocket if your teen is in an accident.

Encourage Safe Driving Habits

Accidents and moving violations can significantly increase car insurance costs. So, it's important to encourage your teen to drive safely and follow the rules of the road.

How much insurance do you need for a 16-year-old?

The amount of insurance you need for a 16-year-old depends on several factors, including the state in which they live, the type of car being insured, and the coverage limits. The cost of insurance for a 16-year-old also varies depending on whether they are added to an existing family policy or get their own separate policy.

Average Insurance Costs for 16-Year-Olds

According to various sources, the average cost of car insurance for a 16-year-old driver is around $2,500 to $7,600 per year for full coverage. This can be broken down further by gender, with males paying around $7,600 and females paying approximately $6,700 per year. These averages can also be influenced by the state in which the 16-year-old resides, with some states having higher insurance rates than others.

Adding a 16-Year-Old to an Existing Policy

If you are adding a 16-year-old to your existing policy, you can expect to pay significantly less than if they were to get their own policy. The average cost of adding a 16-year-old to a parent's or guardian's policy is around $2,700 to $2,800 per year, which is a much more affordable option. This option also allows the 16-year-old to take advantage of discounts offered by the insurance company, such as multi-car or multi-policy discounts.

Getting a Separate Policy for a 16-Year-Old

While it is possible for a 16-year-old to get their own insurance policy, it is important to note that it will be significantly more expensive. The average cost of a separate policy for a 16-year-old is around $8,700 per year, which is almost three times the cost of adding them to an existing policy. Additionally, a parent or guardian will need to co-sign the policy, as minors cannot legally sign a contract.

Ways to Save on Insurance for 16-Year-Olds

There are several ways to save on the cost of insurance for 16-year-olds:

• Shop around: Comparing quotes from multiple insurance companies can help you find the best rates and coverage options.
• Good student discounts: Many insurance companies offer discounts for students who maintain a certain grade point average or are part of honour societies.
• Defensive driver discount: Some companies offer discounts for young drivers who have taken a professional driving course.
• Usage-based insurance: Installing electronic monitoring devices or using mobile apps to track a teen's driving habits can result in discounts from some insurance providers.
• Keep a clean driving record: Avoiding accidents, speeding tickets, and other violations can help keep insurance rates low.
• Consider the type of car: Insuring a simple car, such as a sedan, is typically cheaper than insuring a sports car or luxury vehicle.

Frequently asked questions