The Cheapest Car Insurance for 16-Year-Old Drivers in 2025
COUNTRY Financial, Auto-Owners, and USAA offer some of the cheapest car insurance rates for 16-year-old drivers.
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Written byMandy Sleight
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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In This Article
Insuring a 16-year-old driver costs an average of $265 per month, compared to $137 for all drivers, according to Compare.com data. That makes rates for teens higher than for any other age group.
Rates for 16-year-olds are the highest because they have very little driving experience and are involved in more accidents than other age groups. Adding a teen to your car insurance can increase your premiums by 50%–100%, according to the Insurance Information Institute (Triple-I).[1] It’s usually much cheaper to add a teen to a parent’s policy than to get their own policy.
Let’s take a look at which companies offer the cheapest car insurance rates for 16-year-olds and how you can save on your auto policy.
Key Takeaways
Teen males typically pay more than females due to higher accident risk, but maintaining safe driving habits and good grades can help lower premiums.
Shopping around and comparing quotes can help you get the best deal on teen car insurance.
Adding a teenager to your policy is usually the most affordable way to get full coverage and qualify for multi-car or multi-policy discounts.
Cheapest Companies for 16-Year-Olds
Auto insurance premiums for a 16-year-old can vary widely from one company to another, and sometimes by thousands of dollars. Each insurer uses its own formula to calculate risk, and since companies consider teens high-risk drivers, prices can differ even more than for adults.
That’s why it pays to compare quotes from multiple companies before choosing a policy. Some insurers specialize in affordable coverage for young drivers, while others offer generous discounts for good grades or safe driving.
See the table below for the cheapest car insurance companies for 16-year-olds, according to Compare.com data.
The below rates are estimated rates current as of: Thursday, December 4 at 11:00 AM PST.
Company  | Average Monthly Premium |
|---|---|
| COUNTRY Financial | $58 |
| Auto-Owners | $99 |
| USAA | $99 |
| State Farm | $114 |
| Dairyland | $141 |
| NJM | $145 |
| Erie | $145 |
| Root | $149 |
| The General | $154 |
| American Family | $158 |
| Allstate | $160 |
| Mile Auto | $160 |
| GEICO | $160 |
| Commonwealth Casualty | $161 |
| Bristol West | $179 |
| Mercury | $180 |
| Anchor | $188 |
| Elephant | $192 |
| Safeco | $196 |
| GAINSCO | $197 |
| Direct Auto | $200 |
| Nationwide | $202 |
| CSAA | $206 |
| Clearcover | $213 |
| National General | $214 |
| Travelers | $232 |
| Farmers | $236 |
| 21st Century | $241 |
| Liberty Mutual | $264 |
| Chubb | $283 |
| AssuranceAmerica | $287 |
| Shelter | $317 |
| The Hartford | $422 |
| State Auto | $464 |
| Amica | $529 |
Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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Average Costs for 16-Year-Old Drivers
Insurance for 16-year-olds can be pricey, but exact rates depend on factors like driving history, vehicle type, coverage levels, and state laws. Our research shows that liability-only coverage for teens costs around $193 per month, while full coverage runs about $334.
Two other key risk factors that affect what you’ll pay are which policy the teen is on and your coverage needs.
Parent vs. teen policy
It’s almost always cheaper to add teen drivers to a parent’s policy. Family policies spread the risk across all drivers, lowering the cost. A separate teen policy could cost twice as much or more, though it may make sense if a parent has a poor driving record or drives luxury vehicles.
Minimum vs. full coverage
Minimum coverage is cheaper, since it only meets your state’s requirements and doesn’t cover your vehicle. Full coverage costs more but protects your car against accidents, theft, vandalism, and weather-related damage.
The right choice depends on your budget, your vehicle’s value, and how comfortable you paying to repair or replace your car on your own.
Cheapest Car Insurance for Teens by State
Where you live plays a big role in how much you’ll pay for teen car insurance. Each state sets its own rates based on risk factors like accident rates, vehicle repair costs, weather events, local laws, and traffic density.2
The table below shows average liability and full-coverage premiums in each state, according to Compare.com data.
Average Rates for Teens
State | Average Liability Premium | Average Full-Coverage Premium |
|---|---|---|
| Alabama | $135 | $262 |
| Alaska | $142 | $214 |
| Arizona | $207 | $339 |
| Arkansas | $148 | $275 |
| California | $174 | $358 |
| Colorado | $170 | $349 |
| Connecticut | $282 | $405 |
| Delaware | $260 | $379 |
| Florida | $267 | $346 |
| Georgia | $284 | $432 |
| Hawaii | $104 | $184 |
| Idaho | $154 | $242 |
| Illinois | $173 | $315 |
| Indiana | $146 | $268 |
| Iowa | $121 | $219 |
| Kansas | $156 | $291 |
| Kentucky | $217 | $340 |
| Louisiana | $202 | $360 |
| Maine | $195 | $332 |
| Maryland | $280 | $413 |
| Massachusetts | $206 | $287 |
| Michigan | $216 | $331 |
| Minnesota | $179 | $317 |
| Mississippi | $125 | $243 |
| Missouri | $169 | $318 |
| Montana | $110 | $217 |
| Nebraska | $142 | $267 |
| Nevada | $272 | $408 |
| New Hampshire | $95 | $148 |
| New Jersey | $251 | $369 |
| New Mexico | $134 | $255 |
| New York | $264 | $301 |
| North Carolina | $128 | $182 |
| North Dakota | $127 | $212 |
| Ohio | $150 | $253 |
| Oklahoma | $160 | $311 |
| Oregon | $187 | $285 |
| Pennsylvania | $177 | $277 |
| Rhode Island | $296 | $416 |
| South Carolina | $311 | $441 |
| South Dakota | $125 | $287 |
| Tennessee | $137 | $269 |
| Texas | $237 | $411 |
| Utah | $191 | $280 |
| Vermont | $138 | $289 |
| Virginia | $227 | $358 |
| Washington | $203 | $355 |
| Washington D.C. | $299 | $423 |
| West Virginia | $168 | $290 |
| Wisconsin | $118 | $220 |
| Wyoming | $110 | $197 |
Adding a 16-Year-Old to a Parent’s Policy vs. Their Own
Adding a 16-year-old to a parent’s car insurance policy is usually the cheapest option, though exact rates depend on your state, the insurer, driving records, coverages, and vehicle types.
Check out the table to see how much the average premium increases after adding a teen driver, according to Compare.com.
Company | Average Monthly Premium for Parents Only | Average Monthly Premium After Adding Child |
|---|---|---|
| Allstate | $135 | $317 |
| GEICO | $114 | $268 |
| Liberty Mutual | $188 | $441 |
| Nationwide | $184 | $432 |
| Progressive | $147 | $345 |
| State Farm | $110 | $258 |
Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Our data shows that adding a teen driver to your policy roughly doubles your monthly insurance cost, but it’s still far less than buying a separate policy for a 16-year-old.
Let’s look at the pros and cons of both scenarios to decide which option is the right choice for you.
Pros and cons of adding a teen driver to your policy
Pros
Lower total cost
Shared discounts
Easier policy management
Cons
Teen accidents can raise family rates
Risk spreads across all vehicles
Greater liability exposure
Pros and cons of 16-year-old drivers having their own policies
Pros
Doesn’t affect parent’s premium
Builds independent insurance history
Customizable to the teen driver’s needs
Cons
Much higher rates
Fewer available discounts
Some insurers don’t offer stand-alone coverage
Factors That Affect Teen Insurance Rates
Car insurance companies set rates based on driver risk. The more likely you are to file a claim, the more you’ll pay for insurance. A 16-year-old has limited experience and is more likely to engage in risky driving behaviors, such as speeding and distracted driving.
Insurers also use the following factors to determine teen car insurance rates:
Driving history: Traffic tickets and accidents can quickly raise premiums, while a clean record can earn safe driving discounts and the lowest rates.
Location and state rules: States with higher accident rates, dense traffic, or stricter coverage laws usually have higher auto insurance rates.
Vehicle type and usage: Sports cars and high-value vehicles tend to be more expensive to insure. Older cars with high safety ratings are typically cheaper to insure.
Coverage and deductibles: More coverage and lower deductibles increase costs. Higher deductibles can reduce your monthly payments without sacrificing coverage.
How Much Car Insurance Coverage Do 16-Year-Olds Need?
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The right car insurance coverage can protect your finances if your teen gets into an accident. The amount of coverage you need depends on your budget, the car your teen drives, their driving habits, and your risk tolerance.
Here’s a breakdown of the most common auto insurance coverages for 16-year-olds.
Liability insurance
Almost all states require liability insurance, though minimum coverage amounts vary. Liability covers injuries and property damage your teen causes to others in an accident. It doesn’t cover your teen’s medical bills or vehicle repairs.
Comprehensive coverage
Comprehensive coverage protects your vehicle, regardless of who’s at fault. It covers non-collision events, such as animal damage, broken glass, fire, theft, vandalism, and weather-related damage. It’s optional, unless you finance or lease your car.
Collision coverage
Collision coverage pays for damage to your teen’s car from an at-fault accident, a single-vehicle rollover, or hitting an object like a pole or guardrail. Like comprehensive, it’s optional unless your lender requires it.
Uninsured/underinsured motorist coverage (UM/UIM)
Some states require UM/UIM coverage, while it’s optional in others. It covers your teen’s injuries and vehicle damage after a hit-and-run, or if a driver without enough or no liability insurance hits them.
PIP/MedPay
Personal injury protection (PIP) is mandatory in some states. It typically covers medical expenses and, in some cases, lost wages for your teen and passengers, no matter who’s at fault. Medical payments coverage provides similar benefits but is typically optional.
You should also consider optional coverages, like gap insurance if you finance or lease the vehicle your teen drives, roadside assistance, and rental car reimbursement.
How to Get Car Insurance for a 16-Year-Old
Getting car insurance for a 16-year-old is easier than it sounds, but parents usually need to take the lead. Most insurers require a parent or guardian to be the take out or co-sign for the policy, since minors can’t legally enter into contracts on their own.
Here are the steps to get auto coverage for your teen:
Decide on coverage. Choose whether to add your teen to an existing policy or start a separate one, and determine which coverages you need.
Gather driver info. Be ready to provide your teen’s license number, vehicle details, and discuss coverage needs.
Compare quotes. Shop around and compare quotes from multiple insurers to find the best deal.
Ask about teen-specific discounts. Many insurers offer savings if your teen is a good student, practices safe driving habits, or completes a defensive driving course.
Review before buying. Confirm coverage limits, deductibles, and discounts before finalizing the policy and making your first payment.
How 16-Year-Old Drivers Can Save on Car Insurance
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While car insurance for 16-year-old drivers can be expensive, there are plenty of ways to trim the cost. Parents and teens can work together to qualify for savings with these tips:
Add your teen to a parent’s policy instead of buying their own.
Maintain good grades to qualify for a good student discount.
Complete a driver’s education course to show responsibility and lower risk.
Choose a safe, modest vehicle with strong vehicle safety ratings.
Increase deductibles to reduce monthly premiums.
Sign up for telematics to track your teen’s driving habits and get feedback on ways to improve.
Bundle policies like home and auto under one insurer for extra savings.
Encourage safe driving behaviors to avoid tickets and accidents that raise rates.
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Car Insurance for 16-Year-Olds FAQs
If you’re new to teen car insurance, you’re not alone. Here are answers to the most common questions about insuring a 16-year-old.
Can a 16-year-old have their own policy?
Yes. A 16-year-old can have their own policy. But most states require a parent or guardian to co-sign or be a policyholder, since minors can’t legally sign contracts. It’s typically cheaper to add a teen to their parent’s policy than to get their own.
When do teen car insurance rates start to drop?
Rates often start decreasing around age 18 and continue to fall into the early 20s as teens gain more driving experience and build a clean record.
How much is car insurance for a 16-year-old?
Car insurance for a 16-year-old averages $193 per month for basic liability insurance and $334 for full coverage, according to Compare.com data.
Does gender affect car insurance for 16-year-olds?
In most states, yes. Insurers can use gender as a rating factor in all states except California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.[2] Elsewhere, male teens typically pay more than females because young men are statistically more likely to engage in risky driving and get into accidents.[3]
What car insurance discounts should teens ask about?
Teens should ask about good student, safe driver, driver’s education, telematics, multi-car, and multi-policy discounts to save money on car insurance.
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Sources
- III. "Students."
- Insurance Information Institute. "Trends and Insights: Risk-Based Pricing of Insurance."
- Iihs.org. "Males and females."
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Learn more about us, our team, and what makes us tick.
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Mandy SleightInsurance Writer
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.