There are a few factors to take into account in order to determine how much 16-year-old car insurance costs.
When calculating rates for different drivers, auto insurance companies take many factors into account. These variables, which are crucial for determining premiums, include age, gender, and location.
Overview of Car Insurance for a 16 Year Old
According to the Centers for Disease Control & Prevention, teens between the ages of 16 and 19 have the highest risk of being in a car accident than any other age group.
Teen drivers 16 to 19 are nearly three times more likely to be in a fatal collision per mile driven than drivers 20 or older.
It is safe to assume that the cost of your new driver’s auto insurance will be high. However, there are still some clever ways to save money and still have enough insurance.
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How Much is Car Insurance for a 16-Year-Old?
Here’s the average yearly car insurance rate for a 16-year-old who has their own policy:
- State minimum coverage: $2,511
- Liability limits of 50/100/50: $3,008
- Full coverage: $7,625
For full coverage, the typical annual car insurance premium for a 16-year-old on their own policy is $7,625. That price is almost $6,000 more than the $1,682 typical price for a driver with full coverage who is 40 years old.
Among the companies we surveyed, Island, Erie, Mapfre, North Carolina Farm Bureau, and State Farm offered the cheapest car insurance for 16-year-olds.
The price of car insurance for a 16-year-old driver will differ depending on your coverage limits, state, and the make and model of your vehicle.
The cost of adding a teen driver can still be hundreds of dollars, even though it is less expensive than having a separate policy.
Only emancipated adults or those who have reached the age of majority are eligible for teenagers to purchase their own insurance policies. If not, they must be covered by a parent’s insurance policy.
How Much Does Car Insurance Cost for a 16-Year-Old Female in Each State?
With her own policy, a 16-year-old female’s average annual insurance cost is $6,782. The annual rate is $4,144 if a 16-year-old female is added to a parent’s policy, saving $2,638 annually.
Female 16-year-old drivers pay $843 less for their own policies than males of the same age.
You can compare the average cost of auto insurance for a 16-year-old female in each state with the cost of a parent’s policy with the child added below.
| State | Teen Female Policy | Parent Policy | Parent’s Policy with a 16-year-old Female |
|---|---|---|---|
| Alaska | $5,137 | $1,236 | $2,847 |
| Alabama | $6,318 | $1,522 | $3,128 |
| Arkansas | $7,165 | $1,587 | $3,549 |
| Arizona | $7,415 | $1,649 | $3,929 |
| California | $6,257 | $2,043 | $4,919 |
| Colorado | $7,488 | $2,166 | $4,173 |
| Connecticut | $9,674 | $1,436 | $2,981 |
| Washington, D.C. | $6,910 | $1,877 | $3,540 |
| Delaware | $10,470 | $1,707 | $3,237 |
| Florida | $10,870 | $3,015 | $6,178 |
How Much Does Car Insurance Cost for a 16-Year-Old Male in Each State?
Males who are 16 years old pay, on average, $7,625 annually for their own full coverage policies. That is $843 more than what women make.
However, the annual rate drops to $4,462 if a 16-year-old male is added to a parent’s policy, saving $3,163. The rates for male 16-year-olds who have their own policies and those who are added to a parent’s policy are contrasted below.
| State | 16-year-old Male Policy | Parent Policy | Parent’s Policy with a Teen Male |
|---|---|---|---|
| Alaska | $5,995 | $1,236 | $3,117 |
| Alabama | $7,176 | $1,522 | $3,400 |
| Arkansas | $8,256 | $1,587 | $3,915 |
| Arizona | $8,592 | $1,649 | $4,456 |
| California | $6,257 | $2,043 | $4,919 |
| Colorado | $8,576 | $2,166 | $4,492 |
| Connecticut | $11,001 | $1,436 | $3,259 |
| Washington D.C. | $8,683 | $1,877 | $4,028 |
| Delaware | $11,999 | $1,707 | $3,540 |
| Florida | $11,960 | $3,015 | $6,639 |
How Much is Car Insurance for a 16-Year-Old vs. A Parent and Teen Policy?
The majority of parents choose the less expensive option of including a teen in their policy when it comes to young driver auto insurance.
Insurance companies base premiums on a number of variables, including the policyholder’s driving history and experience. Since a 16-year-old will be inexperienced, rates will be higher.
See what it costs to add a teen driver to a parent’s policy below, as well as how much you can save on teen driver insurance.
| Gender | Teen Policy | Parent’s Policy with a 16-year-old | Savings |
|---|---|---|---|
| Female | $6,782 | $4,144 | $2,638 |
| Male | $7,625 | $4,462 | $3,163 |
Cheapest Car Insurance Companies for 16-Year-Olds
Among the insurance companies we surveyed, Island, New Jersey Manufacturers, Mapfre, Nationwide, and Erie were the least expensive to add a female last year.
See how the big carriers stack up when you add a 16-year-old to your coverage in the table below.
How Much is Car Insurance for a 16-Year-Old Female, by Company?
| Company | Parent’s Policy with a 16-year-old Female |
|---|---|
| Allstate | $4,336 |
| American Family | $3,372 |
| Auto Club | $4,697 |
| Auto-Owners | $3,916 |
| Automobile Club MI | $4,623 |
| Geico | $2,787 |
| Chubb Ltd | $3,569 |
| CSAA Insurance | $7,854 |
| Erie Insurance | $2,684 |
| Farmers Insurance | $6,039 |
How Much is Car Insurance for a 16-Year-Old Male, by Company?
Island, New Jersey Manufacturers, Nationwide, and Mapfre stood out as the cheapest for adding 16-year-old male drivers.
| Company | Parent’s Policy with a 16-year-old Male |
|---|---|
| Allstate | $4,670 |
| American Family | $3,615 |
| Auto Club | $4,691 |
| Auto-Owners | $3,919 |
| Automobile Club MI | $5,014 |
| Geico | $2,967 |
| Chubb Ltd | $4,087 |
| CSAA Insurance | $7,973 |
| Erie Insurance | $3,107 |
| Farmers Insurance | $6,387 |
How Much is Car Insurance for a 16-Year-Old Annually?
Keep it in mind that the lowest rates for a 16-year-old female on her own policy annually are provided by State Farm, Island, Erie, Mapfre, North Carolina Farm Bureau, and Erie.
Cheapest Car Insurance Companies for a 16-Year-Old Female with Her Own Policy
| Company | Teen Policy |
|---|---|
| Allstate | $8,533 |
| American Family | $4,653 |
| Auto Club | $12,594 |
| Auto-Owners | $4,117 |
| Automobile Club MI | $8,220 |
| Geico | $4,379 |
| Chubb Ltd | $4,299 |
| CSAA Insurance | $9,351 |
| Erie Insurance | $3,224 |
| Farmers Insurance | $11,531 |
Cheapest Car Insurance Companies for a 16-Year-Old Male with His Own Policy
The national insurance providers with the lowest rates for 16-year-old male drivers on their own policies include Island, North Carolina Farm Bureau, Mapfre, Erie, and Auto-Owners.
| Company | Teen Policy |
|---|---|
| Allstate | $9,104 |
| American Family | $5,040 |
| Auto Club | $15,819 |
| Auto-Owners | $4,919 |
| Automobile Club MI | $10,336 |
| Geico | $4,911 |
| Chubb Ltd | $8,242 |
| CSAA Insurance | $9,543 |
| Erie Insurance | $4,156 |
| Farmers Insurance | $12,466 |
How Do You Get Cheaper Insurance for 16-Year-Olds?
Despite the high rates you pay for young drivers, you can lower your premiums by speaking with your insurance provider about discounts, looking around, and practicing safe driving.
Car Insurance Discounts for 16-Year-Olds
Here are some discounts that teen drivers can work toward getting:
- Good student discount: Drivers who hold a 3.0 or “B” average may get a discount of up to 16%.
- Parent-teen driving contract: Teens who sign a contract with their parents that outlines rules to follow when driving – for example, limited hours and numbers of passengers – may get up to a 5% discount.
Shop Around for Insurance for 16-Year-Olds
Your auto insurance premiums will skyrocket if you add a teen to the policy.
Even though your teen may be the safest driver in the neighborhood, you should expect to pay more for insurance until they can demonstrate this through years of accident-free driving.
There are ways to lessen the discomfort, though. To find the best auto insurance rates, one strategy is to shop around and compare. As the teen acquires more knowledge, rates are likely to decrease.
The cost of teen auto insurance is broken down in guides available at CarInsurance.com for drivers aged 17, 18, and 19. When drivers reach the age of 26, their average auto insurance rates start to significantly decline.
Keep a Clean Driving Record
Demanding a clean driving record from your teen is one of the most effective ways to lower their car insurance costs.
Traffic violations or accidents won’t alter the insurance industry’s perception of teens as high-risk, inexperienced drivers.
You will experience an increase in insurance costs whether it is due to speeding, an accident, reckless driving, or distracted driving.
Frequently Asked Questions
Why is car insurance for 16-year-olds more expensive?
Car insurance rates are determined by risk. They take into account a person’s driving history, claims history, location, vehicle type, and other factors.
A driver with a risky (or insufficient) driving history will be required to pay more than a driver with no claims.
The Insurance Institute for Highway Safety/Highway Loss Data Institute estimates that 2,738 teenagers (ages 13 to 19) will pass away in the United States in 2020 as a result of their injuries in crashes.
Must a 16-year-old buy full coverage insurance?
Teen drivers are not required by law to have full coverage. However, the lender will insist that you have full coverage, which includes comprehensive and collision insurance, if the vehicle is leased or financed.
To be able to legally drive, you must have liability insurance, which covers other people’s property damage and medical expenses in case you are at fault for an accident.
However, it’s advisable to have full coverage on the vehicle your teen drives because they are inexperienced drivers and, as a group, have more accidents than experienced drivers.
Does a 16-year-old need car insurance to get a license?
Most states mandate that you have minimum liability insurance if you drive. However, a 16-year-old who wants to obtain his first license only needs to demonstrate that the owner of his car has insurance.
Teen drivers are subject to driving restrictions both before and after obtaining a license. The laws governing Graduated Driving Licenses (GDL) vary from state to state.
What are the rules for 16-year-old drivers?
Most states have regulations that limit the places and times that 16-year-olds can drive.
These rules, known as Graduated Driver Licensing (GDL) laws, are applicable to drivers under the age of 18. State-specific GDL regulations differ, with some states having strict regulations and others having lax ones.
You “graduate” from a provisional or restricted license you obtained as a teen to a regular license with no restrictions over time.
Can a 16-year-old have their own policy?
Teens can typically obtain auto insurance, but because they are still considered minors and must have a parent or guardian co-sign the contract, parents are held financially liable.
Most states do not allow teens to independently purchase or insure a vehicle.
Can a 16-year-old own a car?
Most states generally prohibit minors from owning property, so until the child reaches adulthood, the property would belong to the minor’s parents.
In the majority of states, a parent is required to sign any financial documents that the dealership requests, including the car loan.
So, even though a minor can participate in the purchase of an automobile, the parent will be the actual owner.
Does a teen need car insurance to drive with a learner’s permit?
The insurance that a new driver needs is not covered by their own policy. Usually, the insurance policy of the car’s owner, who is usually the parent or guardian who goes with the teen while they learn, should be sufficient.
Once teens have their licenses, however, parents must include teen drivers in their policies.
What are the best cars for a 16-year-old?
If you purchase a top teen car, your insurance company might lower your rate.
When looking for a car, the Insurance Institute for Highway Safety (IIHS) offers some fundamentals:
- Vehicles with more robust engines can tempt (young drivers) to test the limits, according to the IIHS.
- Get Electronic Stability Control (ESC) helps keep control on curves and slippery roads.
- Consider automobiles with top IIHS and National Highway Traffic Safety Administration reviews.
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Final Thoughts
Parenting a teen driver is expensive and stressful. Even though it might be tempting to get your teen their own policy, adding them to your auto insurance policy is a great way to save money.
Make sure you are driving safely and that teens adhere to GDL regulations.
In order to get the best deal on auto insurance at each renewal, as well as to help your teen understand the value of safe driving, shop around.
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