Car insurance for 16-year-olds

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

Using 2024 data provided by Quadrant Information Services, Bankrate's insurance editorial team determined the companies, on average, that are writing the most affordable policies for families that include a 16-year-old driver. Price is an important characteristic in this case because of the high average rates for teen drivers, but we also looked at other factors, such as coverage options, available discounts and third-party rankings for customer service and financial strength.

The average cost of car insurance for a married couple with no teen drivers is $2,169 a year for full coverage, which includes collision and comprehensive insurance. Adding a newly licensed 16-year-old to that policy, however, bumps that average rate to $4,874 — an increase of $2,705, or $225 a month. This rate is for the three drivers and one car. Adding an additional car for the teen may increase the rate even more. This rate also doesn't include any increases resulting from accidents or moving violations.

Clearly, a teen driver can have a significant impact on the rate that a family pays for car insurance. This is because no age group has statistically as many accidents as teens do, and no age is more likely to engage in risky behavior such as texting while driving or failing to wear a seat belt. To compensate for the increased likelihood of claims, providers charge more for policies that include teen drivers.

Average car insurance costs for 16-year-old males and females

In most states, insurance companies can consider gender when determining rates. Because males are statistically more likely to be involved in accidents each year than females, they generally pay slightly higher rates than women. This is especially true for young drivers, since demographics show that male teens may be more likely to engage in risky behavior behind the wheel, such as speeding or road racing. Because they are at higher risk of filing claims, 16-year-old drivers who are male will likely pay more than their female counterparts.

Average car insurance rates for 16-year-olds by state

Car insurance for 16-year-old drivers varies depending on the state in which the young person lives. Every state has its own regulations requiring the type and amount of insurance that is required to drive legally on public roads. Because of this, rates vary across the country depending on your state of residence.

In a few states — California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania — gender does not play a role in determining rates, but in all other states, insurers may account for the increased risks of male drivers by charging a higher rate, as our chart below shows. Note that the average annual total rate includes both the teen driver and their parents, driving one vehicle.

Best car insurance companies for a 16-year-old

There's no single company that is always going to be the best option for a family with a 16-year-old. Determining the best choice for your family's needs means first thinking about your priorities. You may be interested mainly in the cheapest coverage available, or perhaps superior customer service is what you are looking for. You may want a broad range of optional endorsements for your policy, or coverage that is geared for low-mileage drivers.

Once you know what is most important for you, it becomes easier to find a company that matches your needs. A good place to start your search may be with the companies listed below, which have a reputation for offering affordable coverage for families that include 16-year-olds, based on average rates.

Cheapest car insurance for 16-year-old drivers

You've looked at how much insurance is for a 16-year-old and determined that your top priority is to keep costs as low as possible. If that is the case, you may want to look at the following companies, which offer some of the lowest average rates for teen drivers. Note that the average rates listed are for adding a 16-year-old to an existing policy that includes three drivers (the teen and their parents) and one vehicle, and that we chose carriers from among the more known and widely available companies.

Car insurance rates are personalized based on your rating factors, including the types of vehicles you own, the coverage types you choose and each driver’s driving history on your policy.

How to save on car insurance for a 16-year-old

Insuring a 16-year-old comes at a hefty price, but there are savings opportunities you may be able to take advantage of when insuring your teen:

• Good student discounts: Although the details vary among providers, your teen may qualify for a discount if they earn good grades. You may want to contact your agent or insurance company for specific eligibility information.
• Telematics: Using a telematics device or app may save money and encourage your 16-year-old to practice safe driving habits.
• Usage-based discounts: Some companies offer a cheaper rate for people who drive fewer miles than average or low-mileage drivers. If you don’t plan on your 16-year-old driving often, a pay-per-mile usage-based insurance policy may also be a good option.
• Vehicle choice: The type of vehicle your 16-year-old drives can considerably impact your car insurance premium. If you decide to purchase a vehicle for your teen, consider a 4-door sedan over a fast and sporty coupe. You may want to even consider insuring a vehicle where you are comfortable without comprehensive and collision coverage to save on costs. Just know that you would have to replace your vehicle out of pocket if your inexperienced driver is involved in an at-fault accident. Talking with your insurance agent or company during vehicle shopping may help determine which coverage is best for your budget.
• Safe driving agreement: A safe driving agreement may not save you money directly, but it may provide peace of mind for parents as their teens test the boundaries of their newfound freedom on the road. A safe driving agreement may encourage your teen to remain accident-free and ticket free.

Know that these insurance costs won’t be high forever. As your young driver gains experience behind the wheel, you will likely see your insurance rates drop. But, planning for higher rates for a few years and knowing how to offset some hikes can help your budget.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

Teens: Rates were determined by adding a 16-17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.