How much is car insurance for a 16-year-old?

16-year-old-Teen-driver

The day has finally arrived. Your teen driver has passed their driving test, and they’re ready to take on the world. Your wallet, however, might not be. Although your young driver is eager to get out on the road, the costs you incur from adding them to your auto insurance policy could be a major sticker shock. Many parents spend thousands each year to insure the teen drivers in their families. 

You might think, “I don’t have thousands to spend on my teen right now!” If you’re about to break into a cold sweat, don’t worry too much. Although car insurance for teen drivers is expensive, there are ways to save while still maintaining the coverage levels you need for everyone in the family. 

Cost of Car Insurance for a 16-year-old Driver

Bankrate used 2022 data from Quadrant Information Services to determine the average cost of car insurance for a 16-year-old. 

Driver

Full Coverage Insurance Policy 

Married Couple

$1,668/year

Married Couple + 16 Year Old

$3,836/year

According to that data, a full coverage policy for a married couple costs an average of $1,668 annually. If that couple added on a 16-year-old driver, they would pay an average of $2,168 extra per year, bringing their annual premium to $3,836. If the teenage driver were at-fault for an accident or incurred a traffic violation, those premiums would increase even more.

The cost is even greater if teens take out their own car insurance policy. Average car insurance premiums for 16-year-olds range from $1,267 to $6,833 per year. Keep in mind that many other factors can impact the cost of insurance, including whether you are insuring a male or a female, the type of vehicle the teen drives, and even where they live. 

Male vs. Female Rates for Car Insurance

A teen driver’s gender will also impact the average cost of their car insurance coverage. 16-year-old males are more expensive to insure than female drivers of the same age. Compared to females, males are more prone to display riskier driving behavior, such as speeding, which is why they’re stuck with higher rates. 

Driver

Full Coverage Insurance Policy

40 Year Old Male and 16 Year Old Female

Premium Increase by 129%

40 Year Old Male and 16 Year Old Male

Premium Increase by 176%

Insurance.com did a national study to show how much rates can rise when a teen is added to a policy. In their research, they used a family profile of owning a 2019 Honda Accord driven by a 40-year-old man buying full coverage insurance. Then they added a 16-year-old teen to the policy. The study revealed that auto insurance for a teenage boy was far more expensive. The average bill rose by 176% for a boy, compared with 129% for a teenage girl.

Although this may seem unfair, studies performed by the CDC give us more insight. In 2019, the motor vehicle death rate for male drivers between the ages of 16-19 was twice as high as the death rate for female drivers. 

Cheap Car Insurance Companies for 16-Year-Old Driver

According to MoneyGeek, you can save money using one of the five cheapest car insurance companies for 16-year-olds. 

Car Insurance Company

Average Annual Premium

Allstate

$3,146

GEICO

$3,152

State Farm

$3,406

Progressive

$3,570

Nationwide

$3,787

You may also find better deals on car insurance by shopping around and comparing quotes from different companies. 

This is easy with Compare.com. Using our auto insurance comparison calculator, you simply share some information about your driving history and vehicle, which takes about five minutes. Then, you’ll receive personalized quotes offering the best rates on your auto insurance. Compare.com users save an average of $720 per year on their car insurance.


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The Average Cost of Car Insurance by State

Bankrate data highlights that where you live can also affect the rates you can expect to pay for your 16-year-old driver. Some states, including California, Pennsylvania, and Massachusetts, do not calculate teenage driver rates based on gender, so male and females will pay the same amount. 

State

Average Annual Insurance Premium for a 16-Year-Old Male

Average Annual Insurance Premium for a 16-Year-Old Female

Alabama

$4,055

$3,595

Alaska

$4,021

$3,448

Arizona

$4,277

$3,812

Arkansas

$4,024

$3,602

California

$5,123

$5,123

Colorado

$4,642

$4,172

Connecticut

$3,447

$3,055

Delaware

$4,138

$3,807

Florida

$6,101

$5,467

Georgia

$4,581

$3,986

Hawaii

$1,267

$1,267

Idaho

$2,412

$2,133

Illinois

$3,709

$3,294

Indiana

$2,818

$2,540

Iowa

$2,510

$2,183

Kansas

$3,884

$3,496

Kentucky

$4,540

$3,969

Louisiana

$6,641

$5,981

Maine

$2,161

$1,894

Massachusetts

$3,061

$3,061

Michigan

$5,258

$5,258

Minnesota

$3,498

$3,270

Mississippi

$3,614

$3,056

Missouri

$4,502

$3,817

Montana

$3,521

$3,521

Nebraska

$2,938

$2,605

Nevada

$5,863

$5,104

New Hampshire

$2,713

$2,327

New Jersey

$4,033

$3,705

New Mexico

$3,124

$2,787

New York

$6,833

$6,011

North Carolina

$3,156

$3,156

North Dakota

$2,503

$2,215

Ohio

$2,671

$2,306

Oklahoma

$4,376

$3,559

Oregon

$3,040

$2,778

Pennsylvania

$4,568

$4,569

Rhode Island

$4,351

$3,701

South Carolina

$3,210

$2,892

South Dakota

$2,786

$2,537

Tennessee

$3,324

$2,921

Texas

$4,241

$3,843

Utah

$3,795

$3,365

Vermont

$2,739

$2,362

Virginia

$3,243

$2,802

Washington

$3,251

$2,898

Washington, D.C. 

$4,340

$3,750

West Virginia

$3,411

$2,980

Wisconsin

$2,840

$2,613

Wyoming

$3,359

$2,818

This data highlights just how much your location can influence what you will pay for your teen’s car insurance. 

Least Expensive States

State

Male Driver

Female Driver

Hawaii

$1,267/year

 

Maine

$2,161/year

$1,894/year

Hawaii has the lowest rates, averaging $1,267 per year, with Maine having the second-lowest rates at $2,161 per year for males and $1,894 for females. These states also have some of the lowest populations, reducing the risk of car accidents. 

Most Expensive States

State

Male Driver

Female Driver

New York

$6,833/year

$6,011/year

Florida

$6,101/year

$5,467/year

California

$5,123/year

$5,123/year

In contrast, states with higher populations charge much more for auto insurance. New York is the most expensive state for teen car insurance, with policies costing an average of $6,833 per year for males and $6,011 for females. Florida is also costly, where policies for males average $6,101 and policies for females average $5,467 per year. Similarly, in California, which also has a higher population, you can expect to pay an average of $5,123 per year to insure a 16-year-old driver. 

Understanding these pricing differences in different states can help you better prepare for what it will cost to insure your teen driver. If you are planning to move to another state and haven’t yet decided where you want to live, this information might factor into your decision.

How to Save Money on Car Insurance for Your Teen

16 year old driver

There’s no getting around it. The cost of auto insurance for your beloved 16-year-old will probably be higher than other drivers on your policy. However, there are some things you can do to save money. 

Shop Around

Don’t underestimate the power of shopping around to save on the cost of auto insurance for your 16-year-old. Insurance companies base their rates on factors like gender, location, education level, and vehicle make and model — to name a few. As a result, the rates can differ drastically between drivers, even teen drivers in the same household.

For example, male drivers pay more for car insurance than female drivers. This means that if you have twin 16-year-old drivers in your household, but one is a boy, he would probably pay more for car insurance than his sister. With this in mind, shopping around is one of the best ways to save money on car insurance. 

To view dozens of quotes from insurance companies in one place, use an auto insurance comparison tool like Compare.com. Start by answering simple questions about your teen driver, vehicle, and driving record to see free quotes from dozens of insurance companies. This way, you can shop for auto insurance, confident that you’re getting the best deals. 


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Find Discounts

Many insurance companies offer discounts to young drivers to offset the high cost of auto insurance. Here are some typical discounts that 16-year-old drivers can qualify for:

Driver’s Education Course Discount

Young drivers need all the help they can get when learning the rules of the road. Although your 16-year-old may take driver’s ed classes, an official driver’s education course might get you a discount with your insurer. Check with your insurance company to determine which courses qualify for the discount. 

Good Student Discount

To qualify for a good student discount, teen drivers must show proof of their academic achievements. Car insurance companies consider you to be a good student if you can prove any of the following accomplishments:

  • A GPA of 3.0 or a grade average of B or higher 
  • Good standardized test scores on the SAT, ACT, or PSAT
  • Be in the top 20% of your class ranking 
  • Make the Dean’s List or be an Honor Roll student

Reduced Mileage/Mileage Tracking Discounts

If you choose an auto insurance company that offers mileage tracking, you may qualify for a discount if your 16-year-old drives under a certain number of miles a year. This might be a good fit for your child if they’ll only be using their car to drive from school to home or around town. In addition, you might find that telematics programs can help you save money and keep track of your teen driving habits. 

Parent-Teen Driving Contract Discount

Did you know you can save money on car insurance through a teen driving contract? Teens who sign a driving contract with their parents that outlines rules they will follow while driving can see savings of around 5% on insurance. The contract discusses rules like the hours of driving or the number of passengers they have in the car. 

Student Away From Home Discount

The “student away from home” discount typically applies to college students but can also work for younger drivers. Insurance companies are aware that if your student is away from home, the chances of them driving a vehicle and getting into a collision are much lower. 

You qualify for this discount if your student attends school away from home and doesn’t take their car with them. If your 16-year-old is currently attending school away from home (such as a boarding school), you could potentially qualify for this discount as well.

Choose a Less Expensive Vehicle

When shopping around for a vehicle, remember that the type of car your 16-year-old drives will affect your insurance rates. So although your teen might want to swing for a newer, flashier car, an older, less expensive vehicle is probably the better choice. 

The newer a car is, the more money your insurance company will need to pay out in case of a claim. If you own multiple vehicles, it’s best to let your teenager drive the least expensive one to keep insurance costs down. 

Increase Your Deductible

Opting for a higher deductible will decrease your monthly payments. Still, it’s essential to ensure you’re ready to pay a larger deductible if you need to file a claim. If you don’t have enough money to cover the deductible, then it’s safer to choose a policy with a lower deductible that you can more easily afford. 

Maintain a Clean Driving Record

Since teen drivers lack experience on the road, they need to keep a clean driving record. If your teen is caught driving under the influence, texting while driving, or speeding, you’ll see a severe spike in your insurance premium. In addition, if they add a collision or ticket to their driving record, they won’t qualify for discounts like the good driver discount anymore. 

Join a Family Policy

Although many parents think it’s best to give their teen drivers their own policy to keep costs down, this isn’t always the case. In most situations, it’s better to add your teen to the family policy and take advantage of a multi-car discount. 

Adding a 16-year-old driver to your policy can be expensive. That’s why parents should shop around and compare insurance rates to find options to fit their budget and insurance needs. Using online comparison calculators like Compare.com can help you find the best insurance policies for you and your family. 


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FAQs About Auto Insurance for a 16-Year-Old

Should I add my 16-year-old to car insurance?

While some drivers choose to give their 16-year-old their own insurance policy, others find it cheaper to add a teen driver to their existing policy. Insurance rates vary wildly for teen drivers, so shop for the most affordable options before adding your 16-year-old to your policy. 

Is car insurance more expensive for 16 years?

In short, yes. Car insurance is more expensive for 16-year-olds because teenagers are a high-risk group of drivers. They have the highest accident rates and are much more likely than older drivers to be involved in fatal collisions. Their lack of experience on the road also contributes to more expensive auto insurance. 

What is the cheapest way to get car insurance for a teenager?

The cheapest way to get car insurance for a teenager is to compare auto insurance rates from several insurance companies. Each insurer will use different factors to calculate your car insurance premiums, so compare thoroughly and review the various discounts and offers that are available.

How can I lower my teenager’s car insurance? 

Adding your teen onto your policy is often the easiest way to reduce what they will pay for auto insurance. You can also look for additional discounts your teen may be eligible for or shop around to see if changing insurance companies would get you a better deal.

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