Guide to the cheapest car insurance for 16-year-olds

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Teenagers usually pay the most expensive rates for car insurance. A 16-year-old male driver could pay more than $10,000 yearly for coverage. But there are cheaper rates available. American Family, for instance, offers these teens policies for less than $6,000 a year.

Young drivers between the ages of 16 and 19 have a higher risk of accidents than any other age group. According to the CDC, the crash rate per mile driven is roughly 1.5 times higher for 16-year-olds than for 18- and 19-year-old drivers. 

If you’re shopping for car insurance for a 16-year-old, you might wonder how much you can expect to pay for coverage. We have all the answers below.

Our recommendation for cheap insurance for 16-year-olds

Teen drivers pay the highest car insurance rates on average compared to any other age group. Because 16-year-old drivers are newly licensed and lack experience behind the wheel, car insurance providers charge much higher rates.

Remember – most 16-year-olds will need to be insured on a parent’s policy, as drivers cannot purchase their own car insurance policy until they reach the age of majority in their state. 

Although teens can’t avoid expensive car insurance premiums, we suggest shoppers look into various ways to lower insurance costs. Most insurance providers offer discounts for young drivers, including savings for being a good student or taking a driver’s education course. Shopping around and comparing quotes from several insurance companies can also help teens find the most affordable policy for their situation. 

What is the cheapest insurance for a 16-year-old?

American Family has the cheapest car insurance for 16-year-olds, with an average rate of $5,801 per year and $483 monthly. However, teen drivers can’t purchase their own car insurance policy until they reach the age of majority in their state – typically 18. 

Because car insurance is a legal contract between the driver and their insurance company, you must be able to sign a legally binding agreement to get car insurance. 

In the table below, you can see the cheapest car insurance companies for 16-year-old drivers.

Best companies for cheap car insurance for 16-year-olds

Most car insurance companies will insure 16-year-old drivers. However, not all car insurance companies are created equal. Some providers are better suited for newly licensed drivers than others. Insure’s best companies for teens are based upon the 2023 Best Auto Insurance Companies ranking.

See the table below for the best auto insurance companies for 16-year-olds.

How much is car insurance for 16-year-old males vs. 16-year-old females?

Car insurance rates vary by gender. For young drivers, males typically pay higher rates than females. Below is the average cost of car insurance for 16-year-old males on a parent’s policy.

In the table below, you can see the average car insurance cost for 16-year-old females on a parent’s policy.

How much does car insurance cost for a 16-year-old per month?

Car insurance for 16-year-old males costs $628 per month; the same full coverage policy costs $562 for females.

How much can teens save on insurance when added to a parent’s policy?

Teens can save thousands of dollars each year by being added to a parent’s policy, and at age 16, teens can’t have their own policies, anyway.

The table below shows how much car insurance costs annually for a 16-year-old in all 50 states on a parent’s policy vs. on their own policies. 

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

Because 16-year-olds have higher accident rates than older drivers, it’s more likely that car insurance companies will have to settle claims. As a result, insurance companies charge higher rates for 16-year-olds to protect themselves financially in case of an expensive claim. 

“Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute. 

Which states are the most expensive for 16-year-olds?

If you want to know how much car insurance costs for a 16-year-old per month, it’s important to consider location. Where you live is one of the biggest factors that can impact the cost of auto insurance. 

The table below shows the top 10 most expensive states for full coverage car insurance for 16-year-olds.

Which states have the cheapest car insurance for 16-year-olds?

Some states have cheaper car insurance rates than others. The table below shows the top 10 cheapest states for full coverage car insurance for 16-year-olds. 

How to get cheap car insurance rates for 16-year-old drivers

There are many ways for 16-year-old drivers to save money on auto insurance. Here are some tips for reducing your premium:

• Look for discounts: Car insurance discounts can help you get a cheaper premium. Some insurers offer discounts aimed specifically at teen drivers.
• Choose higher deductibles: For policies that require a deductible, like collision and comprehensive insurance, choose a higher deductible to get a lower monthly premium. 
• Compare quotes: Comparing quotes from several car insurance companies will help you find the best deal for your situation and coverage needs.
• Maintain a clean record: Drivers with no recent violations or claims typically pay the lowest rates. Avoid tickets, accidents and claims to get the cheapest car insurance.
• Insure a safe vehicle: To save money on car insurance, it’s best to insure a safe vehicle. Cars with safety features like an anti-theft system and anti-lock brakes often have lower premiums or qualify for a discount. 

Which discounts are available for 16-year-olds?

Many car insurance providers offer discounts for 16-year-old drivers. Here are some of the most common discounts:

• Good student discount: High school students who maintain a minimum GPA (often a “B” average or better) can qualify for a discount on their car insurance premium. 
• Driver training course discount: Some insurers offer a discount to young drivers who complete an approved driver training course or driver’s education course.
• Telematics program discount: Many insurers offer a telematics-based driver rewards program that uses a smartphone to track your driving habits, like brake force and acceleration. Teens can get a lower premium if they demonstrate safe driving behaviors.

What our expert says

Q. Why is teen car insurance so high?

Mark FriedlanderDirector of corporate communications for the Insurance Information Institute.

"Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups.”

Resources & Methodology

Sources

Methodology

Insure.com editors in 2024 collected rates from Quadrant Information Services for 16-year-old drivers with a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible on a Honda Accord LX. We analyzed 53,409,632 quotes, 34,588 ZIP codes and 170 insurance companies nationwide.

Elizabeth Rivelli

Contributing Researcher

 

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Elizabeth Rivelli is a freelance writer who covers various insurance topics. Her areas of expertise are life insurance, car insurance, property insurance and health insurance. Elizabeth’s byline has appeared in dozens of online publications, including Investopedia, CNET and Bankrate. She has also written for several insurance carriers.