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As a 16-year-old driver, you want an auto insurance company that provides the coverage you need while you gain more experience behind the wheel. Most insurers will charge you higher rates until you have more driving experience, so you want to consider the cost along with the coverage quality.
Below, you’ll find a list of the best car insurance companies for 16-year-old drivers. As you begin your search, start by taking a look at these insurers.
Key Takeaways:
- You’ll pay more for auto insurance as a teen because you’re a high-risk driver.
- To offset the higher car insurance premiums, insurers often offer discounts for maintaining good grades and being a safe driver.
- It’s often less expensive to stay on your parents’ auto insurance policy than to get your own.
Top 5 Car Insurance Companies for a 16-Year-Old
Before you choose an auto insurance company, you want to compare them. While cost is a factor, be sure to look at other considerations to make sure it’s the best fit.
1. Travelers
Travelers offers car insurance policies that cater to young and inexperienced drivers.
Like Esurance, it offers discounts to good students who maintain a B or higher grade point average. You can also secure a discount on your policy if you finish a driver’s education course.
The company prioritizes educating new drivers as well. It provides various online tools to educate new drivers on safe driving habits and accident-prevention techniques.
With its focus on supporting young drivers, you can rest easy knowing that Travelers is a good auto insurance company for you.
2. Liberty Mutual
Liberty Mutual offers various coverage choices to suit the needs of new drivers. Its dedication to safety and education is one of the main advantages of its auto insurance for 16-year-olds.
In addition to instructional materials, driving advice, and tools to assist you in navigating the confusing world of auto insurance, it offers various tools to help young drivers stay safe on the road.
It also provides discounts to students who maintain a B or better GPA and those who complete a driver’s education course. Thanks to these incentives, you enjoy not only quality insurance but also lower-cost coverage.
3. Farmers Insurance
Farmers Insurance provides coverage for 16-year-old drivers. The company knows young drivers represent more risk because they lack experience behind the wheel and are at risk of being in an accident.
The company also provides young drivers with various discounts, including a good student discount for those with a GPA of 3.0 or better and discounts for passing a defensive driving course.
Additionally, Farmers offers several tools and services to assist you in staying safe on the road. One of the offerings is a program called Signal that employs telematics to track driving behavior and provide coaching and feedback to help improve your driving.
Farmers also provides a mobile app to help you manage your account, submit claims, and get details about your coverage. It’s a good option for families seeking auto insurance for their 16-year-old driver due to its extensive coverage options, discounts, and information for teen drivers.
4. Esurance
Esurance is a leading auto insurance company. It offers a range of coverage options, including liability, collision, and comprehensive insurance. Esurance also provides several ways to save money on your policy, such as the good student discount if you maintain good grades.
In addition, the company offers various tools and services to help make maintaining coverage easier. You can also download a mobile app that streamlines managing your car insurance policy and accessing important information like your insurance card.
You can also look forward to its dedicated customer service team.
5. The Hartford
The Hartford understands the difficulties you may experience securing quality and affordable coverage as a young driver. That’s why it provides you with discounts and incentives to help reduce your insurance costs.
The only requirement is your parents or guardians must be a member of AARP.
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How Much Is Car Insurance for a 16-year-old?
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.
Why Car Insurance is More Expensive for Young Drivers
There are numerous reasons why you’ll pay more for auto insurance as a young driver. Here are a few of the factors that contribute to you paying higher premiums.
- You have limited driving experience: As a 16-year-old driver, you don’t have much experience behind the wheel. That means you’re more likely to be in an accident or file insurance claims, which drives up the cost of insurance.
- You’re more likely to be risky: Teenagers are more likely to participate in high-risk behavior while driving, such as being distracted. Insurers increase your premiums to account for the greater risk.
- Your state’s insurance regulations: Some states have laws requiring insurance companies to raise premiums for drivers that pose a higher risk. This includes teen drivers.
How to Lower Car Insurance Costs for 16-Year-Old Drivers
You can expect to pay more for auto insurance as a 16-year-old. However, you can still save on your premiums. We’ve outlined some ways in more detail here:
- Compare auto insurance rates: Before buying a policy, compare insurance companies to get several quotes. This is the only way to know you’re getting the best rate on your policy.
- Take defensive driving training: Defensive driving training can show insurance companies that you’re committed to driving safely. Insurers will then reward you with a discount on your premium.
- Get a good student discount: Maintaining good grades can qualify you for the good student discount, which most auto insurance companies offer to students who hold a B average or above.
- Enroll in a usage-based policy: The less time you spend on the road, the less likely you are to be in an accident. Insurance companies may provide discounts if you drive fewer miles than the average driver. You might also benefit if you avoid driving during rush hour or late at night.
- Practice safe driving habits: Consistently demonstrating safe driving practices and adhering to the rules of the road will likely reduce how many traffic violations you receive. Maintaining a clean driving record is one of the keys to proving you’re a responsible driver, which results in lower premium costs.
Cheapest Car Insurance Companies for 16-year-olds
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.
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Pros and Cons of Being on Your Parents’ Car Insurance
As you consider whether to join your parents’ car insurance policy or get your own plan, keep these pros and cons in mind.
Pros:
- Ease: Joining your parents’ plan is easy and convenient. If they’re helping you set up your policy and/or paying for your premium, it’s simple to manage both under the same policy.
- Discounts: If your family has multiple vehicles under the same policy, you’ll qualify for a multi-vehicle discount, which reduces everyone’s premium.
Cons:
- Increased rates: Since teen drivers pay more for auto insurance, joining your parents’ policy may increase everyone’s premiums.
- Liability: If you’re in an accident, your parents may be held liable for any damages the insurance policy doesn’t cover. This could put their assets at risk.
Car Insurance for 16-year-olds FAQs
Want to learn more about insuring your 16-year-old? Here are some answers to the questions we hear most.
Is it possible to get car insurance at 16 years old without a parent or guardian?
Yes, 16-year-olds can get car insurance on their own without the help of their parents or legal guardians. However, until 18, a teenager usually needs a parent or guardian to be a co-signer on the insurance policy.
What affects the cost of car insurance for 16-year-old drivers?
When setting premiums, car insurance companies consider many factors, especially age. A 16-year-old’s driving history, location, vehicle type, experience behind the wheel, coverage options, deductibles, and history of previous insurance are also considerations.
What is the minimum liability insurance requirement for a 16-year-old?
Each state has minimum liability insurance requirements, but generally speaking, a 16-year-old driver must have the same level of protection as any other motorist. Usually, the minimum consists of bodily injury liability, property damage liability, and uninsured/underinsured motorist protection.
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